Strategic Risk
In 2012, Denmark’s biggest energy company, Danish Oil and Natural Gas, slid towards financial crisis. The price of natural gas was plunging by 90%, and its credit rating was downgraded to negative. The board hired a new CEO – a former executive from LEGO, Henrik Poulsen.
Crisis Mode or Innovation?
At this point some leaders might have gone into crisis-management mode, laying off workers until prices recovered, but Poulsen recognized the moment as an opportunity for fundamental change. He decided to build an entirely new company.
Poulsen renamed the firm Ørsted after the legendary Danish scientist Hans Christian Ørsted, who discovered the principles of electromagnetism. He tells us “We looked at the shift to combat climate change, and we became one of the few companies to wholeheartedly make this profound decision, to be one of the first to go from black to green energy.”
Successful strategy comes from understanding internal and external risks. It comes from understanding core purpose. They were an energy company before 2012 and Ørsted continued to be an energy company. Success comes from anticipating and investing in the future, and it comes from taking risks.
Take a look at global trends. What’s coming that you need to be part of?
Take a look at your business. Do you have the right capability for the future?
The Author
With over 30 years’ experience, from engineering and manufacturing through to consulting, facilitation and speaking, Lauren’s passion and expertise is in helping leaders build businesses for the future.
She helps organisations become “future fit” through pragmatic application of risk management in strategic planning and management systems. Lauren is also passionate about developing future fit leaders through essential leadership skills.
Her book 10% Better – Taking Organisations from Ordinary to Excellence has been acclaimed as a practical and hugely helpful guide for business leaders.
