How Reykjavik Energy made sound strategic governance a central part of the DNA and culture
Company overview
Reykjavik Energy is the largest public utility company in Iceland serving more than 120.000 homes in south-west Iceland with electricity, hot and cold water, broadband and sewage. The company is the world’s largest producer of geothermal energy. A new structure where the company was broken up in three daughter companies caused several governance issues. One of the challenges faced was the coordination of strategic direction within the newly established group. Being a highly regulated company under public ownership the requirements by the owners for sound and comprehensive governance principles were evident.
Business Issues
- Operating under 18 different policies in operational matters, which all entities within the group are required to adopt.
- The corporate Group strategy is guiding for the different units in formulating their own business and operating strategies.
The Solution
- To successfully keep track of this rather comprehensive governance structure, Reykjavik Energy adopted the first version of the DecideAct software in 2012.
- Simultaneously a Chief Strategy Officer was hired to oversee the strategy work within the group and ensure transparency.
- Strategic initiatives, key measurements and goals are monitored and reported periodically to the respective boards of daughter companies as well as the group Board of Directors.
The Benefits
- By having DecideAct as a GPS for the strategy, Reykjavik Energy has made sound strategic governance a central part of the Group DNA and culture.
"We have used DecideAct to build a project-based culture that has been absolutely central to the turnaround we have been through. We are very proud of what we have done.”
Guðrún Erla Jónsdóttir
