Balancing Growth And Innovation

Here’s a new, highly-timely way to classify innovations: FLEXIBLE vs. INFLEXIBLE. When chaos abounds, prioritize the FLEXIBLE. Yet companies usually spend most money and time on what’s INFLEXIBLE. Six ways to change the balance are: 1️⃣ Map your innovation portfolio How have you spread your bets along axes such as time horizon, type of risk taken, and ability to change course? Know where your portfolio is currently at, and what profile you wish to move toward. 2️⃣ Create options What are inexpensive bets you can place on ways your world might shift? Consider, for instance, low-cost products that might be embraced by customers feeling acute economic pressures. Perhaps these bets have a relatively large probability of not paying off – that’s OK if they’re taken inexpensively, keeping your financial risk small. 3️⃣ Think platforms, not products Platforms create flexibility to change what you offer customers, while retaining a sticky customer relationship. They often have a software component, even in the world of physical goods. 4️⃣ Stay focused on your customers’ constants We can be certain that today’s chaotic environment won’t settle down soon. But your customers’ Jobs to be Done stay fairly constant. Know those very well and concentrate on them. 5️⃣ Prioritize business model and service innovations Product innovation often takes time and multi-year planning. Business model and service innovations are much more flexible (and cheaper), yet oftentimes companies lack clear mechanisms to pursue these. Fix that. 6️⃣ Pursue Costovation You can concentrate some of the less flexible portions of your portfolio on cost innovation (Costovation), because your costs are often more controllable than your revenues. Use the tools of innovation to radically re-think your costs. The innovation literature has many classifications: disruptive vs. sustaining, existing vs. new market, etc. But it’s been rare to classify flexible vs. inflexible. Now’s the time to change that. When everything seems to be swirling, focus on what’s FLEXIBLE.

🔧 𝗠𝗼𝗱𝗲𝗿𝗻𝗶𝘇𝗶𝗻𝗴 𝘁𝗵𝗲 𝗚𝗿𝗶𝗱 𝗳𝗿𝗼𝗺 𝗪𝗶𝘁𝗵𝗶𝗻: 𝗪𝗵𝗮𝘁 𝗨𝘁𝗶𝗹𝗶𝘁𝗶𝗲𝘀 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗞𝗻𝗼𝘄 𝗔𝗯𝗼𝘂𝘁 𝗚𝗘𝗧𝘀 As load forecasts shift rapidly—driven by data centers, electrification, and distributed energy—utilities face a growing challenge: how to meet demand when the traditional playbook is too slow. New transmission takes years. But the grid needs relief now. 𝗚𝗿𝗶𝗱-𝗲𝗻𝗵𝗮𝗻𝗰𝗶𝗻𝗴 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝗶𝗲𝘀 (𝗚𝗘𝗧𝘀) offer a way forward—solutions that help utilities do more with what they already have. From dynamic line ratings and topology optimization to modular power flow controls, GETs are reshaping grid planning. 𝗪𝗵𝘆 𝘁𝗵𝗶𝘀 𝗺𝗮𝘁𝘁𝗲𝗿𝘀 𝗳𝗼𝗿 𝘂𝘁𝗶𝗹𝗶𝘁𝗶𝗲𝘀: • 🚀 𝗔𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲𝗱 𝗰𝗮𝗽𝗮𝗰𝗶𝘁𝘆 𝗴𝗮𝗶𝗻𝘀 – Unlock 10–30% more throughput from existing lines in months, not years. • 🔄 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 – Route power around constraints and respond in real time to fluctuating demand. • 💡 𝗗𝗲𝗳𝗲𝗿𝗿𝗮𝗹 𝗼𝗳 𝗺𝗮𝗷𝗼𝗿 𝗖𝗮𝗽𝗘𝘅 – De-risk and defer expensive upgrades by squeezing more value from legacy infrastructure. • 📈 𝗜𝗺𝗽𝗿𝗼𝘃𝗲𝗱 𝗶𝗻𝘁𝗲𝗿𝗰𝗼𝗻𝗻𝗲𝗰𝘁𝗶𝗼𝗻 𝘁𝗶𝗺𝗲𝗹𝗶𝗻𝗲𝘀 – Enable faster renewable integration by easing congestion and bottlenecks.    𝗧𝗵𝗿𝗲𝗲 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝘂𝘁𝗶𝗹𝗶𝘁𝗶𝗲𝘀: 1. 𝗣𝗹𝗮𝗻 𝘀𝗺𝗮𝗿𝘁𝗲𝗿, 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝗯𝗶𝗴𝗴𝗲𝗿. GETs provide near-term tools that enhance grid agility without full rebuilds. 2. 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 𝗿𝗲𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝘄𝗵𝗶𝗹𝗲 𝗲𝗻𝗮𝗯𝗹𝗶𝗻𝗴 𝗴𝗿𝗼𝘄𝘁𝗵. These technologies help maintain grid stability even as load grows unpredictably. 3. 𝗣𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗮𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁. Forward-thinking utilities are using GETs to demonstrate proactive planning and grid stewardship. 𝗧𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗶𝘀𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗮𝗯𝗼𝘂𝘁 𝗻𝗲𝘄 𝘀𝘁𝗲𝗲𝗹 𝗶𝗻 𝘁𝗵𝗲 𝗴𝗿𝗼𝘂𝗻𝗱. It’s about reimagining how we operate the grid we already have—more dynamically, more intelligently, and more sustainably. ✅ Is your utility actively exploring GETs? ✅ How are you factoring flexible, tech-enabled solutions into your long-term planning? The time to rethink grid strategy is now—and GETs should be part of that conversation. #GridModernization  #EnergyTransition  #UtilityInnovation  #GridEnhancingTechnologies  #SmartGrid  #TransmissionPlanning #PowerGrid  #CleanEnergy  #ElectricUtilities  

Ever find yourself saying, “I’m playing the long game here” or “I need results, and I need them now!”? 🕒 If you have, you’ve stumbled upon a subtle yet vital aspect of leadership: short vs. long-term time orientation. 🏁 In business, our time orientation isn’t just about the clock; it’s about how we approach our goals, strategies, and even relationships. Let’s dive into the two ends of this spectrum: ➡️ Short-Term Focus: It’s all about now. Immediate results, quick wins, and tangible achievements. Great for hitting those quarterly targets and keeping things moving. But, is it sustainable? ➡️ Long-Term Focus: It’s the marathon, not the sprint. Building for the future, nurturing relationships, investing in growth and innovation. But does it sometimes lack urgency? So how do you lead a team that’s torn between these two orientations? Here’s what I’ve learned: 1. Recognize the Difference: Recognize your own preference and understand that these two orientations are not only valid but essential. Each has its place and purpose. 🧐 2. Build a Bridge: Align short-term goals with long-term visions. Your short-term ‘sprinters’ can see how their efforts contribute to the ‘marathon’ ahead.🔗 3. Communicate: Engage in open dialogue. Make sure that everyone understands both the immediate tasks and the bigger picture. 🗣️ 4. Adapt Your Leadership Style: Be ready to switch gears. Sometimes, your team needs a coach for the quick sprints; other times, a mentor for the long haul. 🧩 5. Celebrate Diversity of Thought: Embrace the different perspectives as a superpower instead of a challenge. It’s this mix that brings innovation and stability.🎨 6. Provide Support: Offer adaptive support for both orientations. Recognize the quick wins, but also celebrate milestones on the longer journey. 🫱🏼🫲🏾 Striking this balance isn’t easy, but it brings a harmony to our team that was incredibly powerful. The short-term energy keeps the team alive, while the long-term vision kept us aligned. How do you strike this balance? How has your time orientation shaped the way you lead? I’d love to hear your thoughts! 👇🏼 🕐🌟 #Leadership #Diversity #CulturalItelligence 📸 Jon Tyson : A picture of many clocks piled on top of eachother.

Here's one of he hardest leadership lessons I’m (STILL) learning. Recently, I asked a high-performance strategist to do a brutal audit of my leadership patterns. The goal is to uncover hidden blockers keeping me from reaching my next level as a CCO and executive leader. What I got back wasn’t just tactical. It was personal. It stung — and it lit a fire. One of the “Final Truths” she gave me still echoes in my mind: “Your next growth curve requires embracing being occasionally misunderstood today for building a game-changing system tomorrow. Discomfort is data.” Read that again. Not “being liked today.” Not “being celebrated today.” Not even “being seen accurately today.” Being misunderstood — intentionally. As a Learner (CliftonStrengths #1 for me), my instinct is to absorb, adapt, and connect the dots. As a Strategic thinker, my default is to solve, optimize, and harmonize. Those traits have served me well, but what if they won't for the future? At this stage, building enduring impact demands a different muscle: ✅ Willingness to be out of sync with the current mood ("vibe", as the cool kids say) ✅ Commitment to systems that pay off after the current quarter ✅ Trust in the long game even when the short game gets noisy Many in customer leadership roles pride themselves on quickly and emphatically understanding, aligning, and empathizing. But paradoxically, our next breakthrough may require temporarily not being understood. 🔮 It’s one thing to listen to the voice of the customer. 🚀 It’s another to build the system the customer doesn’t even know they’ll need yet. If you’re feeling friction in your leadership evolution — It might not be failure. It might be evidence you’re precisely where you’re supposed to be: Out ahead. Alone for a minute. Building the next frontier. Would love to hear from other CCOs, CS/CX leaders, and strategic operators: 👉 How have you navigated being misunderstood when driving long-term bets? 👉 When did discomfort become the best data you could ask for? #Leadership #CustomerExperience #StrategicThinking #GrowthMindset #HighPerformance #LearningCulture

The Power of "Messy" in Creating Your Next Chapter Innovation is messy. It’s a truth we know, yet how often do we allow ourselves to embrace the mess… especially when it comes to our careers? As senior leaders, we’re wired to bring: • order • clarity • solutions But in the journey to create something uniquely ours... messiness isn’t a pitfall to avoid. It’s an essential part of the process. When you’re pivoting from a traditional W-2 role into your next chapter, here’s the reality: You’ll be navigating through uncertainty and experimentation, and there’s power in that. Because messy isn’t unproductive... it’s where breakthroughs happen. Here are some actionable insights pulled from a recent conversation with clients in our CreateNext Community to help you leverage “messiness” for growth... as you build your next chapter: 1) Reframe Messiness as Movement, Not Failure Shift your mindset from viewing “mess” as a detour and start seeing it as a forward step. Each imperfect action you take... each exploration and adaptation... moves you closer to what you’re building. These aren’t mistakes; they’re milestones in the journey. 2) Create Space for Messy Thinking Take 15 minutes each morning to free-write ideas, questions, or challenges without editing yourself. This open-ended reflection builds clarity over time and allows innovative ideas to surface. You may be surprised by what connects when you give yourself permission to explore without judgment. 3) Lean on Others to Help You “Sort” the Mess Often, we avoid sharing ideas that aren’t polished. However, involving trusted peers in these raw stages not only helps refine your thinking... it strengthens your network of supporters who understand and believe in your vision. Be open about the early stages with people you trust... it brings: • alignment • ideas • energy    4) Anchor Yourself in the Bigger Vision When messy moments feel overwhelming, reconnect with your end vision. Remember why you’re creating this new chapter. Knowing what you want to build and the impact you aim to make can fuel your resilience and keep you focused amid uncertainty. 5) Celebrate “Messy Wins” Regularly Document small wins from each week, even the messy ones. Did you have a tough conversation that opened up new insights? Did you try a new approach, even if it didn’t go as planned? Each step, no matter how small or imperfect, is a victory worth acknowledging. As senior leaders, we have mastered complexity in many forms. When we embrace the same “messy” energy in our personal pivots, we open ourselves up to entirely new opportunities. Don’t let the discomfort hold you back. Lean into it, learn from it, and allow it to fuel your next chapter. If you didn’t feel pressured to have it all figured out, what new possibilities would you allow yourself to pursue?

Your electricity bill just became the canary in the coal mine for America's biggest infrastructure worry The numbers from this month's energy report aren't just statistics—they're market signals calling for attention. Electricity prices surged 4.5% in May alone. That's nearly double the overall inflation rate. Behind this spike? Data centers have tripled their consumption to 176 terawatt hours in the past decade. Industry projections suggest they could double or triple again within three years. Think about that timeline. We're not talking about gradual shifts over decades. This is explosive demand growth hitting aging infrastructure that was designed for a completely different world. Here's what caught my attention: private companies are now moving into private power generation because the grid simply can't keep up. When Fortune 500s start building their own power plants, that's not innovation—that's admission of system failure. Strategic Reality Check For senior energy leaders: This demand surge represents the biggest grid modernization opportunity since rural electrification. The question isn't whether we'll invest in infrastructure—it's whether clean energy gets the lion's share of that investment or we default back to fossil fuel buildout. For project developers and engineers: Data centers represent concentrated load that's perfect for on-site renewable development. These facilities need 24/7 power, have capital to invest, and increasingly have net-zero commitments. That's your ideal customer profile. For emerging professionals: Understanding the intersection of digital infrastructure and energy systems is becoming table stakes. The companies solving this puzzle will define the next decade of energy markets. What Nobody's Talking About The IEA projects that by 2030, the U.S. will use more electricity processing data than manufacturing aluminum, steel, cement, and chemicals combined. Yet most of our grid planning still assumes demand growth patterns from the 1990s. Smart money is already moving. Utilities that figure out how to partner with hyperscalers on integrated renewable + storage solutions will dominate the next investment cycle. Those that fight distributed generation will lose customers to private power altogether. The grid wasn't designed for this moment. But the infrastructure we build to handle it will define American competitiveness for the next fifty years. Are we treating this AI demand surge as a problem to manage or as the biggest infrastructure investment opportunity of our careers? Because right now, it feels like most of the energy sector is still figuring out that the game has changed. #GridModernization #CleanEnergy #DataCenters #EnergyTransition #Infrastructure

America’s grid faces a stress test: demand is surging, but supply can’t keep up. Data centers, EVs, and electrified heating are pushing U.S. electricity demand up 21.5% this decade. AI alone is creating jaw-dropping energy needs, with Microsoft and Google racing to secure 24/7 clean power for their data centers. Yet new plants and transmission take years, stuck in queues, permitting delays, and regulatory gridlock. So how do we meet demand today without waiting a decade for steel in the ground? A recent paper by Norris, Profeta, Patino-Echeverri, and Cowie-Haskell highlights one answer: load flexibility. Instead of treating demand as fixed, flexible loads (data centers, industrial plants, EV fleets) can temporarily scale back when the grid is stressed. The findings are striking: - With just 0.25% annual curtailment (~1.7 hrs/yr), the U.S. could integrate 76 GW of new load. - At 1% curtailment, that expands to 126 GW. - In PJM (the nation’s largest power market, serving 65 million people across 13 states) 18 GW of new demand could be added without building new plants. Flexibility isn’t a silver bullet, meaning it can’t replace the need to build new clean generation, transmission, and storage. But it buys time, reduces costs, and makes the system more resilient. Software, sensors, and batteries can unlock efficiency at a fraction of the price of new steel in the ground. The lesson is simple: flexibility is capacity. Execution is survival. But we need both efficiency and investment if we want a grid that keeps up with the 21st century. Here's the full paper from Nicholas Institute for Energy, Environment & Sustainability at Duke University: https://lnkd.in/gBh_3Fva

Are time-of-use (TOU) rates good or bad for the electric grid? While TOU rates aim to reduce system-wide peaks, they can increase grid stress and costs under many current designs—especially with the rapid growth of #electricvehicles and #electrification. Here’s why: Residential TOU peak periods typically end around 7-9 pm (survey of 30 large utilities). Many EV owners start charging immediately after off-peak rates begin, but these periods are based on system-wide loads, not local distribution peaks. Now, picture a neighborhood with 10 homes on a shared transformer, where 5+ homes have EVs. With each EV drawing around 7 kW, the load can more than double each household's load. The result? Transformer failures are the first sign of strain. As electrification grows, the stress will extend to feeders, substations, and beyond. So, should we abandon TOU rates? Regulators favor them because they shift load off-peak, are low cost, and are backed by historical results. But the more compliance, the more severe the local #grid stress. Another challenge: shifting peak periods. As #renewables like #solar and #wind expand and grid-scale #batteries become common, peak times are moving. California’s "duck curve" shows demand now shifting to different parts of the day. We now need to encourage EV charging mid-day in solar-rich areas! Constantly re-educating consumers on changing peak/off-peak times is impractical. What’s the fix? OPTION 1: Move off-peak to midnight. Some utilities now start off-peak for EVs at midnight when household demand is low, reducing but not solving the surge problem. OPTION 2: Stagger TOU start times. Spreading start times across households could ease local strain but is complex and unpopular with regulators. OPTION 3: Adopt dynamic solutions. The best option for now is managed EV charging (until we get #V2G). Customers set a "ready by" time (e.g., morning), and utilities optimize charging based on battery status, grid conditions, and costs. This keeps costs low for both consumers and the grid and the consumer gets a full charge without any intervention. 3A: Whole house vs. EV specific rates? Different appliances have different characteristics, time-based value, and needs. I think it makes sense to treat EV pricing separately that the other appliances in the house, just like we do for solar rooftop. While dynamic solutions like managed charging are the future, a mix of pricing options is essential. No single approach will work for every customer or address the grid’s evolving needs. Your thoughts? P.S. I've included a link to a longer PLMA (@PLMAflm) discussion about electricity pricing that includes ideas from myself and Ahmad Faruqui. #energy #utilities #gridmanagement #TOU #EVcharging #tesla #rivian #electricvehicles

Rob Gramlich and I wrote a piece in the MIT Tech Review on advanced transmission technologies (ATTs), a key opportunity to modernize the electricity grid. In the face of the challenge of addressing rising demand for electricity, we argue that ATTs are the closest thing out there to a $20 bill sitting on the sidewalk. These technologies have been widely adopted in other countries, from Belgium to India to the United Kingdom. Some ATTs cost as little as 1% of the price of building new transmission lines. But the structure of U.S. electricity markets – where utilities profit by spending money, not saving it – and outdated U.S. regulatory practices discourage their adoption. Policymakers should take action to support adoption of ATTs. These should include policies to:   - Require transmission providers to use ATTs in certain contexts - Require transmission providers and regulators to conduct robust analyses of the value of ATTs - Create financial incentives for transmission providers to adopt ATTs where they can provide high net benefits - Require transmission providers to release additional data on the grid and build digital tools to inform ATTs adoption We’re eager to hear your thoughts. https://lnkd.in/eGP7sjwH

We in the US love to believe that we innovate while the world follows. Yet as innovators inside and outside of utilities struggle to get #vpps integrated into utility planning and operations, especially to accommodate data centers and large loads, the UK has a model we should all be paying attention to.   All six distribution network operators (DNOs) have demand-side #flexibility optioneering integrated into their planning processes, and signposting for grid constraints >5 years out. This is enabled by the UK's performance-based regulatory model, which rewards utilities not for driving up capex but by keeping capex + opex (= totex) below a budget, with additional incentives for reliability, customer service, and innovation. Flexibility is procured through regular tenders for grid service products that are (mostly) standardized across the DNOs.   In a recent report we analyzed the outcomes of this model, which revealed tendered capacity across flexibility markets growing at 64% CAGR, reaching 6.4 GW in delivery year 2023-24. The performance-based model has had a major impact on utility earnings, with return on regulated equity (a metric that estimates shareholder returns) as high as 12.5% for Electricity North West and as low as 3.7% for Scottish & Southern. This illustrates the earnings risk as well as the opportunity for utilities and their investors, and the powerful signal facing utilities to hit performance metrics at low cost to customers.   The UK's model aligns reliability, decarbonization, utility earnings and customer cost savings goals. It's worth taking a hard look at this side of the pond.