Exploring the Perceptions of Leaders in Investor-Owned Utilities in California on Managing Organizational Change Initiatives

Purpose: The purpose of this qualitative study employing in-depth interviews was to identify the strategies and practices executive leaders and midlevel managers of investor-owned utilities (IOUs) perceive are effective in creating employee acceptance and support of organizational change and to identify the supports and barriers executive leaders and midlevel managers perceive as affecting employee acceptance or resistance to organizational change in IOUs. Methodology: A qualitative research design enabled the capture of deeper thoughts and insights of executive leaders and midlevel managers of 4 IOUs in California. The study delved into the strategies and practices used by IOUs that are perceived effective in creating employee acceptance and support of organizational change. Furthermore, support and barriers affecting employee acceptance or resistance to organizational change were also examined. Interview participants were selected based upon their exposure to the topics studied and their experience within this industry. Findings: The analysis of data from the in-depth interviews identified 9 major and 1 unexpected finding. Findings included 4 strategies, practices, and supports to facilitate effective change implementation. Five barriers were identified. Conclusions: Eight conclusions were drawn. Employees are more likely to embrace change when they understand the reasons behind the organization’s need to change; they receive adequate training and the tools necessary to facilitate change; there is a change plan and process to engage and support them; they are given the opportunity to engage in an open dialogue with supervisors, leaders, and executives; they are afforded sufficient time to understand the need behind the change. Employees are likely to resist change when leaders and midlevel managers have opposing perceptions of the organizational change process, when leaders and midlevel managers do not anticipate and plan for external forces that may affect the change initiative, and when leaders and midlevel executives give employees a choice between accepting the change or leaving the organization. Recommendations: Further research is recommended such as conducting a qualitative research study examining frontline employees affected by change in IOUs in California