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Saudi Aramco's Shift to Sustainable Energy

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0% found this document useful (0 votes)
7 views4 pages

Saudi Aramco's Shift to Sustainable Energy

Uploaded by

dolapo teds
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Introduction

Organizations cannot grow or change without something constantly shifting. Considering

my contact with System Integrator, which is rated among the largest and powerful energy

companies on a global scale – Saudi Aramco, I noticed a gradual transformation towards the

transition of becoming more ‘environmentally friendly’ energy practices. This change was in line

with the objectives of Saudi Vision 2030, which was a plan aimed at diversifying the economies

of the nation and deterring the nation from complete dependency on oil (Sing, 2020). This part of

the discussion will approach the change initiative by looking at four organizational change roles:

change initiate, executor, enabler and change recipient.

The Change Initiative: Transition to Sustainable Energy

The shift to green energy practices at Saudi Aramco was influenced by external factors

(global warming) as well as internal (economic) policy imperatives. The company undertook an

ambitious program of renewable energy implantation into its infrastructure, including solar and

wind generation (Schroeder, 2023). Such transformation, though, needed a clear transformation

of the firm, its cultures, and the direction on which it was heading to.

Change Initiator: The CEO of Saudi Aramco

In the case of Saudi Aramco, the CEO was extremely and perhaps the only person who

acted as a change initiator. He understood the change and consequently embraced the dynamics

of globalization that his company should synergize with the Saudi Vision 2030 and thus

instituted a company-wid e shift to renewable energy. With such power, the CEO (as part of the

senior leadership) was instrumental in the initial vision for this change, top level advocacy of this

vision and resources acquisition for its implementation (Kats, 2022). The value of the CEO in
supervising this function was manifested in appropriate strategy and bigger picture alignment for

the initiative. The CEO’s authority was also significant in addressing the doubts that were raised

in the beginning of the program by some directors and in obtaining the board and other

stakeholder’s backing to the initiative (Roth, 2021).

Change Implementer: The Renewable Energy Division

This ambitious initiative was carried out by the Renewable Energy Division WT of Saudi

Aramco, which was created specifically for this purpose. The division, which was headed by the

Head of Renewable Energy, was responsible for the planning, execution and commissioning of

renewable energy projects in the company (Sing, 2020). This required the initial investigation of

potential locations for installing solar and wind projects, the construction of those projects and

their interconnection with the power system, as well as carrying out compliance with

environmental laws at the local and international levels. This division, whose primary function

was that of change implementer, had mixed fortunes in this regard. They performed well in the

execution of some prominent projects, however, the division encountered serious difficulties in

the assimilation of such energy projects within the business framework of the company

(Schroeder, 2023). Such issues were worsened by some workers who were used to working with

traditional energy, which made them resistant.

Change Facilitator: Department Managers

At Saudi Aramco, department managers across various functions acted as the facilitators

of change. Their responsibility was to help their teams cope with the new sustainable practices,

train them, provide them with the necessary tools, and make the process as seamless as possible.

They also acted as middlemen who took the thoughts of the employees back to the Renewable
Energy Division and the top management (Kats, 2022). These managers were effective to an

extent. In the departments where the managers decked the sails and internally networked change,

the employees were more committed towards the adoption of sustainable measures. In some

areas, however, change management in this sector was subject to additional challenges due to

lack of knowledge of managers who supported the effort coupled with lack of enthusiasm in

others (Roth, 2021).

Change Recipients: Employees

Employees change affected the employees, especially the operations and the engineering

departments. They needed to reconstruct work under new shifting renewable energy technologies

and processes, sometimes with little discretion in making choices about them (Sing, 2020). This

had substantial differences in the effectiveness of this group in adopting the change.

Psychologically, there were others who even after receiving sound input and direction from their

managers took longer to adjust, for instance, some of them had been working for over thirty yeas

in the deep rooted oil industry (Schroeder, 2023). Eventually however, the successful

implementation of the transition depended on the extent to which these employees could acquire

and utilise new skills and methods of work.

Conclusion

The case of Saudi Aramco transitioning to sustainable energy practices also demonstrates

the significance of the need for a clear articulation of the roles of actors on any change initiative.

As far as the patients’ probable change is concerned initiation regarding their type of change by

the CEO was very important. Nevertheless, the experiences of the Renewable Energy Division

and department managers in executing and enforcing the transformation illustrated the very
opposing consequences of organizational change of such proportions within a conventional

structure. The limited success of this initiative makes it clear that more resources, better

communication, and overall leadership are needed at all levels for achievable change to occur.

References
Singh, A., Klarner, P., & Hess, T. (2020). How do chief digital officers pursue digital
transformation activities? The role of organization design parameters. Long
Range Planning, 53(3), 101890.
Schroeder, C. (2023). Coming in from the margins: Faculty development’s emerging
organizational development role in institutional change. Taylor & Francis.
Katz, J. H.(2022). Unleash Agency in Your Organization.
Roth, S. (2021). Draw your organization! A solution-focused theory-method for business
school challenges and change. Journal of Organizational Change
Management, 34(4), 713-728.

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