• competency management
• energy business
• operation management

How will operations managers keep pace with the rapid transformation of the energy sector in Finland? As the industry faces significant changes, understanding the critical competencies required for success is more essential than ever. Managing the operations and day-to-day business means juggling between various inputs and interfaces, where effectively managing them requires each to have its own special set of skills. These key skills and competencies were closely explored through a case study to form a clear picture of the demands and expectations for this role.

As Finland stands on the brink of an energy transformation, new skill sets will be required from the operation managers working in the industry. Roques et al. (2021) in their study for Sitra highlight that electrification of energy consumption plays a key role in the path to emission neutral future. In the studied scenarios, electricity consumption is estimated to double by 2050 while there will be a shift to emission free electricity production dominated by onshore wind. This will create new types of jobs also in operations management. 

How are key competencies determined

Defining competencies on an organizational level, companies needs to be aware of the key elements of their business and having the ability to translate these key organizational success factors to individual level competencies. This process requires the ability to translate the business elements to human behavior, thinking, motives, and abilities. Ultimately the competencies aim to describe how the individual is able to achieve the desired outcome at work (Honkanen, 2005, 41 – 43). 

Existing research identifies certain basis for competency listing. For example, researchers Wood and Payne (1998, as cited in Honkanen, 2005, 48) have listed 12 most commonly used competencies while Burgoyne and Stuart (1976, 21 – 23) have developed a framework for competencies needed in managerial work. The available research gives a good starting point for more thorough competency evaluation that accommodates the complex demands of the energy business.

Operations managers face an ever-changing, complex environment in the energy business

The conducted case study confirmed that operation managers need to maintain a variety of skills as well as possess certain meta-qualities that will give them the ability to adapt, reflect, as well as continuously develop and improve. 

Key competencies identified include:

• People Management skills;
  • Leadership and management abilities
  • Communication skills and readiness
  • Customer focus
  • Social skills and abilities
• Normative competence
  • Knowledge of legislation
  • Knowledge of collective agreements
• Performance management skills;
  • Business orientation
  • Performance and result orientation
• Meta-qualities;
  • Creativity and innovativeness
  • Planning and organization abilities
  • Analytical thinking
  • Problem solving abilities
• Technical knowledge;
  • Relevant professional understanding

Listed key competencies outline the complexity of the work and specific personal qualities that are critical for success. The emphasis on the skills needed is linked to people management skills, including building and managing relationships with subordinates as well as internal and external stakeholders. People management skills form the cornerstone of effective operations management, influencing over 40% of the competencies listed by senior management.

Emphasis is also placed on performance management skills, particularly in business knowledge and the capability to oversee business operations. These skills are not only identified as crucial but also as areas requiring further improvement to meet evolving business demands.

How can we ensure that we have right people in the right roles for the future

As Finland’s energy sector undergoes significant transformation, it becomes crucial for companies to not only identify but also continuously develop essential competencies. Operation managers play an essential role in this context, directly influencing the success of their organizations.

Are we prepared for the evolving demands of the energy sector? The first step is ensuring the right competencies are identified and in place.

It is vital that companies do not merely understand the competencies required but actively monitor and enhance these skills among their workforce. This ongoing process helps to maintain a competitive edge in a market where competition over skilled professionals is fierce. Furthermore, by aligning these competencies with the strategic objectives of the company, organizations can ensure they are well-equipped to meet future challenges.

Ultimately, sustaining success in the rapidly evolving energy sector depends on our capacity to adapt to and anticipate changes in competency requirements. By fostering an environment that emphasizes continuous learning and adaptability, companies can prepare their operations managers and their business to thrive in the coming decades.

The thesis exploring this subject will be published in May 2024.

Picture of the article: Image by Gerd Altmann from Pixabay.

References

Burgoyne, J. G. & Stuart, R. (1976). The nature, use and acquisition of managerial skills and other attributes. Personnel Review, 5(4), 19-29. Accessed 16.4.2023. https://www.researchgate.net/profile/John-Burgoyne-3/publication/235317802_The_Nature_Use_and_Acquisition_of_Managerial_Skills_and_Other_Attributes/links/54253eab0cf238c6ea73f4ad/The-Nature-Use-and-Acquisition-of-Managerial-Skills-and-Other-Attributes.pdf?_sg%5B0%5D=started_experiment_milestone&origin=journalDetail&_rtd=e30%3D

Honkanen, H. (2005). Henkilöstöarviointi työelämässä. Helsinki: Edita Publishing Oy

Roques, F., Le Thieis, Y., Aue, G., Spodniak, P., Pugliese, G., Cail, S., Peffen, A., Honkapuro, S. and Sihvonen, V. (2021). Sähköistämisen rooli Suomen ilmastotavoitteiden saavuttamisessa: Kustannustehokas polku kohti päästötöntä Suomea. Helsinki: Sitra. Accessed 14.4.2024.https://media.sitra.fi/app/uploads/2021/09/sitra-sahkoistamisen-rooli-suomen-ilmastotavoitteiden-saavuttamisessa.pdf

Wood, R. & Payne, T. (1998). Competency based recruitment and selection, a practical guide. John Wiley & Sons.