Changes in the strategic focus and internal operating culture of investor-owned U.S. electric utilities due to deregulation

Abstract

[Abstract]: This research inquiry aimed to determine whether accepted organisational change models and strategic theory were the appropriate mechanisms to increase understanding the electric utility industry. Exploratory research into the U.S. electric utility industry provided several key findings and conclusions. The three case studies included in this document illustrated the difficulties of adjusting to transformational change, both internally and externally. Industry experts provided additional insight regarding the barriers these utilities faced in developing a successful change strategy and the shortcomings that resulted from a lack of clear and well-implemented strategy. This inquiry identified an industry segment – the U.S. investor-owned electric utility industry – that had not been examined in any depth regarding the nature and effect of organisational change. The findings revealed some areas for further investigation, most importantly focusing on the unique nature, culture and structure of this industry, which could lead to the greater understanding of the effects of organisational change and the corporate strategies for deregulating industries. The results from this study identified several opportunities for additional research in the areas of strategic management and organisational change: a) the role of organisational change models for deregulating industries b) negative consequences of organisational change c) validity of the Reactor strategy d) alternative approaches for organisations that do not want to change. This research inquiry provides managers with insights regarding the challenges of implementing organisational change in highly rigid and bureaucratic cultures while also providing researchers additional insights into better understanding the unique culture of investor-owned electric utilities in the United States.