Impacts of Distributed Energy Resources on T&D Organizations

August 2015

As a leader of your transmission and distribution (T&D) organization within vertically integrated or “wires-only” utilities, you face sweeping change. Pressing challenges, such as decreasing load, increasing distributed energy resources, aging infrastructure, market and regulatory changes, an advancing Smart Grid, and FERC Order 1000, present disruption to utilities.

As a forward-thinking leader, you will likely implement strategic and operational shifts to address these challenges. One of the often-neglected first steps is to fully clarify functional accountabilities before making changes. Role clarity in the midst of sweeping change is critical. The use of a management accountability model to confirm, strengthen, or redefine current accountabilities is an effective way of ensuring such role clarity.

Management accountability models are used by leaders across the industry to:

  • Align actions to ensure everyone is on the same page
  • Facilitate needed changes in functional work practices that cross organizational boundaries, such as operations, maintenance, planning/asset management, construction/project management, etc.
  • Clarify centralized roles versus those found in regional/local organizations
  • Define the “one way, best way” to run a business unit, department, or function
  • Concentrate functional leadership in the hands of the company’s most qualified leaders

If your T&D organization is comprised of both regional/local operations and centralized support functions (e.g., transmission maintenance, engineering and design, construction, etc.), the potential for role confusion increases. As grid operations and grid services become more complex, your need for a management accountability model becomes more compelling.

No matter the structure of your T&D organization, ScottMadden recommends the GOSP (governance, oversight, support, and perform) management accountability model. GOSP is an industry-accepted model that has been used by many utilities to redefine/shift roles and responsibilities, drive standardization, and improve/focus performance.

The GOSP model applies a functional view of your T&D organization to clarify work assignments using the following components of accountability:

ScottMadden has helped clients, in particular T&D organizations, apply the GOSP model effectively and efficiently. The GOSP model provides accountability across your organization, which has become even more critical in light of the myriad changes facing the industry and facing you.

To learn more about ScottMadden’s view on GOSP, please contact us.

ScottMadden has helped utilities apply the GOSP management accountability model. The GOSP management accountability model helps utilities to redefine/shift roles and responsibilities, drive standardization, and improve/focus performance.

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Contributing Authors

Michael Montgomery Director

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