Bright Moves: How U.S. Utility Innovation Is Driving the Cleantech Transition
Thomas J. Flaherty
Greenleaf Book Group Press (April 2023)

Lessons to Be Learned from the Past, Present, and Future of the U.S. Utilities Industry

Why did Thomas Flaherty write this book? As he explains in an exceptionally informative Introduction, “This book focuses [3]

Moreover, “innovation is a more qualitative than quantitative topic, given the broad range of its interpretation by pundits and practitioners. Consequently, much of the discussion in this book relates to the [WHAT, WHERE, and HOW] about innovation, rather than the [HOW MUCH] spend. Nevertheless, several empirical measures arte available and referenced in specific areas of this book to provide a glimpse into the level and direction of spend of both utilities and venture capital.”

Flaherty makes a compelling case for support of sufficiently funded innovation so that it can become “a centerpiece of utility strategies and a focal point for utilities’ internal organization as well as their external customers.”

Briefly, this book achieves several objectives as Flaherty shares his thoughts about subjects such as these:

o Innovation in proper perspective (e.g. three models, Pages 14-17)
o Disruptive influences (e.g. customer preferences, 44-48)
o Global innovators(i.e. the innovation mindset, 51-52)
o Utility investment (e.g. venture capital, 76-81)
o “Enablers” (e.g. Edison Electric Institute, 123-133)
o Innovators (e.g. Southern Company, 236-254)

o Platform Stand-Up (e.g. leadership and placement, 277-284)
o Achieving success (e.g. culture of innovation, 303-307)
o Operational to commercialization (e.g. commercialization, 314-323)
o Innovation strategies (e.g. constraints to approvals, 334-327)
o Refreshing the agenda (e.g. value differentiation, 357-359)

One of the passages of special interest and value to me is found on Pages 350-351. Consider this composite excerpt:

“The ability of utilities to move through the present industry state of play will be heavily affected by the nature and intent of company innovation models…Innovation 1.0 — the first era — started with just a few companies pursuing investments in or acquisitions of start-up companies with technical solutions viewed as beneficial to utilities in preparing for the future…Innovation 2.0 — the second era — saw a wave of companies become engaged in innovation after they had further assessed the nature and pace of technology introduction and seen the progress that the era 1.0 companies were achieving…The future innovation 3.0 agenda will address a full range of actions to enhance the innovation platform and continue to elevate its importance inside the company, as well as with the full range of relevant stakeholders. The innovation 3.0 agenda could address enlarging the scope, focus, and accomplishment of the platform…The success of the utilities industry with innovation through the next few years will depend on the vitality of the steps taken to further elevate its importance within the business and position it as a valued element of a company’s operating philosophy and DNA,” (Pages 350-353)

Near the conclusion of his book, in order to ensure utilities’ future innovation success, Thomas Flaherty urges them to make these specific reassessments of defining elements of their prior success:

1. Strategy focus
2. Priority setting
3. Organizational positioning
4. Employee participation
5. Innovation messaging
6. External collaboration
7. Innovation emphasis
8. Incentive alignment

He provides a brief but substantial discussion of each of the eight reassessments to assist utilities’ planning “with an eye toward both fine-tuning and wholesale redesign.” (See Pages 160-162)

No brief commentary such as mine could possibly do full justice to the quality of information, insights, and counsel that Thomas Flaherty provides in abundance but I do hope I have indicated why I think so highly of his work and especially of this brilliant book.

Here are two concluding suggestions: Highlight key passages, and, keep a lined notebook near at hand while reading Bright Moves in which you record your comments, questions, action steps (preferably with deadlines) and page references as well as your responses to the questions generated and to lessons you have learned while absorbing and digesting the material. These two simple tactics will facilitate, indeed expedite frequent reviews of key ideas later.