What CIOs Should Know About Post-Election Winners and Losers

The Trump Administration is making big changes faster than any other modern president. The movement of many kinds of levers — tariffs, buyout packages, government layoffs, and more are disrupting the status quo, and the effects will affect tech companies and enterprise chief information officers.

Like the pandemic, the extreme and rapid changes require extreme organizational agility, Monte Carlo simulations, an open mind, and a CIO unafraid to lead. As with all major changes, organizations need to have a strong vision and the ability to execute it within the context of changing circumstances.

Energy Companies Will Have Uneven Impacts

Chris Black, CEO at GridX says most of what happens in the electric and gas utility space is decided state by state. It’s both a blessing and a curse when selling to utilities companies because they answer to different state regulators with different objectives. This means his company is more subject to state-level decisions than national ones.

“Companies like GridX that work in the back-of-house operations of utilities are treated more like infrastructure investments than anything else. Utilities make decisions on 20-year cycles, not four-year political terms,” says Black. “When utilities invest in grid infrastructure, they’re planning for decades, which gives us some insulation from the political winds of the moment.”

However, not everyone in the utility tech space is so fortunate. Certain areas, such as residential energy-efficiency credits and offshore wind players, should have a plan B in place because they rely on federal support and are frequently tied to green messaging that may be less favored in the current climate.

“For companies traditionally emphasizing environmental benefits, you can still achieve the same positive impacts while shifting your communications to highlight cost savings and reliability,” says Black. “Getting people to shift their energy usage away from peak times aligns with clean energy and renewables goals, even if you’re not leading with an ‘environmental’ message.”
The biggest challenge will be prioritization. For example, a utility may have requests for $30 billion in infrastructure projects but can only fund $8 billion of it.

“Those tough choices will become even more critical, and companies that can demonstrate immediate economic value will be at an advantage. For those in areas that feel more vulnerable to administrative changes, now’s the time to focus on complementary offerings or pivot to aspects of your business that are less dependent on federal priorities,” says Black. “The fundamentals haven’t changed: Utilities must deliver reliable service and modernize aging infrastructure. Companies that help them do this more efficiently will continue to find opportunities, regardless of who’s in Washington. Just be prepared to frame your value in terms that resonate with the moment while staying true to your core mission.”

Bottom Line

Some CIOs will be harder hit than others by the changes the current administration is making. This has been true of any administration. However, the speed of change this time around is unprecedented, so organizations need to focus on, organizational agility partnering with consultants and vendors that can help them weather the shifts while meeting the demands of customers.

This is an excerpt from an original article by Information Week. See the full article here.