Nov-2023

Thoughts about leadership in the energy transition times (ERTC 2023)

Amidst the dynamic canvas of the energy transition, the beacon of effective leadership shines ever brighter, illuminating the path through challenges toward sustainable transformation.

Ignazio Arces
ENI

Article Summary

Within this intricate landscape, we embark on a journey that intertwines the harmonious interplay of Humanistic Management, the transformative force of the ‘Speed of Trust’ concept by Stephen M.R. Covey, and the profound insights drawn from Aeneas’ transformative odyssey, immortalised within Andrea Marcolongo’s literary tapestry, The Art of Resilience: The Lessons of Aeneas.

At the heart of this expansive framework lies the understanding that leadership, though defined through myriad lenses, fundamentally revolves around the art of influencing and motivating others toward a common endeavour.

humanistic leadership: an essential paradigm
In the words of Peter G Northouse, a distinguished authority in the realm of leadership, it is ‘a process whereby an individual influences a group (…) to achieve a common goal’ (Leadership: Theory and Practice, 2001, p3). The stewardship of delineating a shared purpose, coupled with the sagacity to discern optimal actions within each context and galvanise collective participation, embodies the essence of management. However, the energy transition unfurls as a clarion call for a leadership paradigm that transcends traditional norms. As a result, humanistic leadership emerges as an essential paradigm, departing from both the antiquated top-down models that exert dominance and the paternalistic approaches that erode the autonomy of collaborators.

These traditional models disregard the core of human existence – the innate consciousness and freedom that define us – and inadvertently belittle human dignity. In stark contrast, humanistic leadership unfurls as a tapestry woven with the threads of interactive dialogue and nurturing relationships between leaders and their followers. It thrives on the leader’s genuine concern for the growth and aspirations of their followers, intertwined with an acute awareness of the collective needs.

In this organic symbiosis, leaders illuminate a path that harmonises individual development with the collective good. As we navigate the intricate terrain of the energy transition, the virtues of humanistic leadership emerge as indispensable guides.

The ethical compass that it provides, coupled with transparent collaborations and an empathetic engagement, shapes a vision of a sustainable energy future. In a world where environmental responsibility interweaves with societal welfare, this holistic ethos becomes a potent driving force.
The resonance of humanistic leadership amplifies within the context of the energy transition. A realm marked by rapid changes and multifaceted challenges, it necessitates leaders who are not only proficient navigators but also empathetic architects of change.

These leaders rise beyond the role of mere decision-makers; they become champions of collaboration, agents of innovation, and custodians of effective decision-making.

‘Speed of Trust’ principle
Crucially, the ‘Speed of Trust’ principle emerges as a cornerstone augmenting the fabric of leadership within the energy transition. Rooted in transparency, accountability, and credibility, it reverberates as a transformative force propelling effective collaborations. As the energy transition narrative unfolds, this principle assumes paramount importance, underscoring the significance of trust in nurturing partnerships that catalyse innovation and drive sustainable change. The application of the ‘Speed of Trust’ principles to energy transition leadership yields manifold benefits. It accentuates the pivotal role of trust in both personal and professional relationships – a facet of critical importance in steering the complex and urgent energy transition journey. Trust manifests as the bedrock of collaboration and co-operation, vital elements that unite diverse stakeholders – governments, industries, communities, and environmental groups – in collective action. Trust, in turn, emboldens individuals to share audacious ideas, thereby fostering innovation, an imperative in developing the novel technologies, processes, and policies that underpin sustainable change. It thrives on transparency, channelling leaders’ intentions, decisions, and communication toward credibility, a quality that nurtures trust among teams and stakeholders.

Particularly in energy transition leadership, transparency holds the key to addressing concerns regarding resource allocation, environmental impact, and long-term strategies. Navigating the energy transition landscape, rife with technological advancements, regulatory shifts, and market dynamics, underscores the pertinence of trust.

Trust empowers leaders to steer teams through uncertainty, embrace novel challenges, and make informed decisions that anchor long-term sustainability. It engenders accountability, prompting individuals to embrace ownership of their commitments when nurtured by the trust of their leaders and peers. This sense of trust extends beyond individuals to stakeholder networks, facilitating effective communication, understanding, and collaboration. Trust embodies a commitment to long-term outcomes rather than fleeting gains, aligning seamlessly with the overarching mission of the energy transition – the creation of a sustainable future for generations yet unborn.

As humanistic leadership principles intersect with the tenets of the ‘Speed of Trust’, a potent formula emerges for ushering societies and industries toward a cleaner and more sustainable energy future.

Transparent communication bridges gaps between governments, industries, and communities, while trust becomes the cornerstone that bolsters partnerships, expediting the transition to renewable energy sources.

Moreover, the resonance between Covey’s trust framework and Enea’s transformative journey, as captured in Andrea Marcolongo’s The Art of Resilience: The Lessons of Aeneas, magnifies the relevance of these principles in the energy transition.

Aeneas’ journey: navigating the transition with courage
Aeneas’ voyage, brimming with resilience and hope, emerges as an invaluable trove of insights for energy transition leadership. His audacity to confront fear and triumph over uncertainties mirrors the challenges faced by leaders navigating the intricate tapestry of technological and societal transformations. Aeneas’ leadership style, marked by inclusivity and guidance of diverse companions, echoes the imperative of engaging stakeholders across the spectrum.

Just as Aeneas’ inclusive journey led him to guide not only his peers but also those marginalised, energy transition leaders must similarly bridge divides, working with governments, industries, communities, and underrepresented groups. This inclusive approach mirrors the spirit of the ‘just transition’, assuring that progress leaves no one behind.

As we traverse the energy transition landscape, the initiation of change amidst uncertainties emerges as a central tenet of leadership. Aeneas’ audacious endeavours post-devastation parallel the leader’s resolute commitment to sustainable energy systems. As Aeneas’ journey embarked on uncharted paths, energy transition leaders, too, must navigate the unknown with courage, spearheading a holistic transformation toward a greener horizon.

In this intricate mosaic, geopolitical conflicts cast their shadows across the energy landscape, disrupting global oil markets and amplifying price volatility.

The insights of the 2023 IEA reports resonate with the profound interplay between supply and demand dynamics. Geopolitical conflicts impact supply chains and refinery operations, sending shockwaves through the energy sector, influencing investments, and underscoring the leadership’s role in navigating turbulence. In this tapestry of complexity, the principles of humanistic leadership remain unwavering. Learning from mistakes and adapting strategies mirror the essence of leadership in the energy transition.

Enea’s journey of resilience and learning serves as a poignant reminder of the significance of adaptability. Much like the fluctuations in oil supply and demand described in the IEA reports, the energy transition’s journey is marked by evolution.
The urgency of addressing climate change, akin to Aeneas’ relentless determination, underscores the leaders’ call to mobilise stakeholders, imbuing a sense of hope by articulating the myriad benefits of sustainable solutions.

Inclusivity remains the North Star of energy transition leadership, echoing Aeneas’ journey of unity amid diversity. Just as he led a diverse array of companions through uncharted realms, today’s leaders must orchestrate collaboration among governments, industries, communities, and marginalised groups. In harmony with the ‘just transition’ imperative: because ‘survival is not enough’.

Last but not least, leadership is a language: During their meetings, leaders involved in the energy transition should avoid talking only about EBIT, to walk it like they talk it!

This short article originally appeared in the 2023 ERTC Newspaper, which you can VIEW HERE