#40 From municipal energy supplier to energy transition platform

In the strategy interview, badenova Co-CEO Hans-Martin Hellebrand reports on the two-year journey of the municipal energy supplier with more than a century of roots to become the digital platform for the energy and heating transition in southern Germany. Christian Underwood and Prof. Dr. Jürgen Weigand get to the bottom of the secret of his success in this strategic realignment: from the participative strategy process and shared leadership in the highest corporate office to agile target management with Objectives & Key Results (OKR).

Hellebrand's distinguished career includes a degree in Business Administration from the University of Bielefeld and an entry into controlling at RWE Systems in 2006. With continued responsibility and leadership, he was eventually appointed Senior Vice President Group IT Controlling. His passion for innovation and technological progress led him to Innogy as SVP Global Innovation & Cooperation, where he was instrumental in founding and developing the InnovationHUB in Silicon Valley. Along the way, he successfully completed his Executive Kellogg-WHU MBA and the CIO program at WHU. After three years in the USA, he returned to Germany in 2018 to accompany the growth of the energy discounter eprimo as Managing Director. His passion for digital transformation in the energy industry ultimately led him to badenova as Co-CEO in July 2021.

"We are shaping the energy and heating transition for a future worth living. With the region, for the region." This is the company's WHY. But what does that mean in detail? Hans-Martin Hellebrand explains that badenova's goal is to shape the sustainable energy world of tomorrow. All aspects of the energy world, including the transformation of the entire energy system and the vital energy of water, are to be taken into account. A particular focus is on tackling this goal together with the region for the region. This is because the transformation of the energy system requires the cooperation of many stakeholders and is not just in the hands of the energy supplier. To ensure that this collaboration is as successful as possible, badenova is organizing the energy solutions for private households in a digital end-to-end platform - in addition to the traditional task of supplying sustainable energy, heat and water. In this way, all the necessary partners for the decentralized energy transition are optimally coordinated to create a holistic offering for the customer.

" We must all pull together to make the energy transition possible."

Hellebrand emphasizes that badenova's target image is based on Simon Sinnek's "Golden Circle". This answers the questions: Who are we? Where do we want to go? A conscious decision was made to use the term "target image" (and not "purpose" or similar) in order to make the core more understandable for the workforce: The target image serves as a point of orientation for all employees and gives them the energy and confidence to move forward safely every day.

He explains that their aim is to shape the energy future by moving away from the current fossil fuel system towards a better future, but not in a dogmatic way. They want to involve their customers in this journey and help them make the best transition to sustainable energy.

Christian is interested in whether Hellebrand's time in Silicon Valley has translated into innovative, digital product ideas for badenova. Hellebrand begins by explaining that badenova has a strong innovation DNA in its blood and has been committed to changing the world for years. When the company was founded, badenova established an innovation fund, in which a portion of the annual profits of the shareholders flows into a fund to promote innovative projects in the region.

Hellebrand then discusses specific innovative solutions that badenova is already implementing, which could easily have been developed in Silicon Valley. One example is the platform-driven ecosystem approach for the decentralized energy transition for private customers. The aim here is to understand the needs and infrastructure of customers in order to find the optimal energy solution for each customer. The platform brokers solar systems, batteries and other products from hardware manufacturers, while regional tradespeople are involved to install and maintain the products. badenova also works with partners such as building societies and banks to secure financing.

Hellebrand also emphasizes that badenova is clearly focusing on its core competencies, namely its relationship with its customers and its knowledge of energy. When searching for the optimal solution, however, it is important to work with partners and experts in order to find a holistic, optimal solution. Hellebrand speaks of an "Uber or Airbnb approach" in the energy sector and emphasizes that this is not the only area in which badenova aspires to be a pioneer in energy innovation.

His passion for IT and innovation led Hellebrand to Innogy in 2015 as SVP Global Innovation & Cooperation, right in the heart of Silicon Valley. For three years, he played a key role in founding and developing the InnovationHUB. Despite the cultural differences between Silicon Valley and a down-to-earth, traditional company like badenova, he felt at home right from the start and was warmly welcomed. He described Silicon Valley as an entrepreneurial environment where people get things done.

"Compared to many experiences in large corporations, I find the attitude and mindset that I find among SMEs in regional and municipal companies much more similar to Silicon Valley than in a large corporation."

So Hans-Martin Hellebrand only joined badenova two years ago and, together with his co-CEO colleague and the entire team, managed to completely restructure the company strategically in this short time. A remarkable record: how did he approach this transformation to achieve such results?

First of all, they set themselves a target image in order to have a point of reference for further work. It was important to them to involve the entire company by collecting voices from all hierarchical levels and adopting a participatory approach. The aim was to find an image that is shared by all employees and serves as a driving force. This target image was then iteratively developed further and ultimately used as the North Star for the strategy work.

Specific courses of action were identified that would lead towards the goal, such as rethinking the gas network or implementing a decentralized energy future for customers. Hellebrand emphasizes that it was important for every employee to be able to identify with the process and take ownership of their own work. This was achieved through the participatory approach and the joint work on the target vision.

In the end, does only one person really have to be the main decision-maker in a company for it to be successful? badenova proves the opposite. Hellebrand describes its governance structure as a two-person board with no primus inter pares. Instead, he manages the company together with his colleague Heinz-Werner Hölscher as a team, without one having more say than the other. Although each of them has areas of focus, they manage the company as a whole.

badenova also relies on a methodology called OKR (Objectives & Key Results), in which the company sets concrete goals at the beginning of each 4-month cycle in the form of tangible, desired "outcomes" to be worked towards within this period. What is important here is the dialogical cooperation with the team on the path to achieving the goals in a sprint, as well as the implementation of a retro and review analysis at the end of a cycle in order to continuously improve.

. The consequence of this model is dialogical collaboration and greater involvement of employees in decision-making processes. It also promotes a culture of cooperation and teamwork throughout the company.

badenova introduced this methodology in a very "low-threshold" way by first defining the "top topics" for the next sprint with the teams. This made the value of the methodology very clear and it was only in subsequent sprints that the already established "school of thought" was continuously refined.

Christian concludes by asking what skills are really crucial to be successful in a constantly changing environment. To summarize, Hellebrand's time in Silicon Valley taught him to always look outwards in order to perceive changes and opportunities and to have the courage to implement new ideas and concepts. Even if they are associated with a certain risk of failure. In conclusion, he emphasizes that learning from mistakes and adapting your strategy are crucial to achieving lasting success in a constantly changing environment.