Strategic decisions in turbulent times: Lessons from the energy industry

Giones F, Brem A, Berger A (2019)

Publication Type: Journal article

Publication year: 2019

Journal

Business Horizons Elsevier

Book Volume: 62

Pages Range: 215-225

Journal Issue: 2

DOI: 10.1016/j.bushor.2018.11.003

Abstract

Most of the firms currently in the S&P 500 probably will not be there in 15 years. In times of great uncertainty, managers are called upon to make the right strategic choices, preserve core businesses, and prepare their organizations for the future. How can managers make these choices when the industry is under transformation? In this article, we explore how the popular VUCA framework can help to make sense of turbulent contexts and drive the decision making of managers. We study the case of the energy industry, in which traditional business models eroded quickly and dominant players lost their positions. Based on personal interviews with the CEOs of RWE (Germany) and NRG Energy (U.S.), we analyze how these executives led transformation of their organizations. We get immersed in their decision-making processes and depict how the VUCA framework helps them to identify, map, and prepare their organizations to respond to the volatility, uncertainty, complexity, and ambiguity in their industry. We propose a guide for executive managers to navigate through VUCA contexts, taking into account the necessity to introduce short- and long-term responses that prepare organizations and stakeholders for an uncertain future. (C) 2018 Kelley School of Business, Indiana University. Published by Elsevier Inc. All rights reserved.

Authors with CRIS profile

Alexander Brem Lehrstuhl für Technologiemanagement

Involved external institutions

University of Southern Denmark / Syddansk Universitet DK Denmark (DK)

How to cite

APA:

Giones, F., Brem, A., & Berger, A. (2019). Strategic decisions in turbulent times: Lessons from the energy industry. Business Horizons, 62(2), 215-225. https://dx.doi.org/10.1016/j.bushor.2018.11.003

MLA:

Giones, Ferran, Alexander Brem, and Andreas Berger. "Strategic decisions in turbulent times: Lessons from the energy industry." Business Horizons 62.2 (2019): 215-225.

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