Shifting the mindset of an energy solutions provider to build a reimagined future
An Alderley interview within the EIC Survive and Thrive 2022 report
Published on 4 July 2022
Alderley is thrilled to be published within the EIC Survive and Thrive 2022 report alongside 62 leading companies within the supply chain.
In this feature, Alderley’s Head of Group Marketing and Strategy, James Kavanagh, shares our transformation story with The EIC’s CEO, Stuart Broadley, discussing how the business has shifted the mindset of an energy solutions provider to build a reimagined future.
- How is Alderley thriving?
Previously reliant on large, capital intensive oil and gas projects, Alderley realised it had to adapt its business model and engineer a mindset shift throughout the organisation. Once formed of many regional autonomous business units, the company is now operating under a one-group ethos and seeking to balance its portfolio of work, positioning itself as a solutions provider for clients to maximise the efficiency of their energy assets. With CEO Colin Elcoate on board since 2019, the new strategy has been gathering momentum ever since, not least in the context of the pandemic, which has served as a catalyst to move even faster. Alderley’s new focus extends to the growing low carbon sector, including emerging technologies such as hydrogen and CCUS as well as the oil and gas industry.
- The challenge
If the oil crisis that hamstrung the energy sector during the middle of the last decade has taught us anything, it is that service providers and suppliers need to diversify their project portfolios in order to spread risk. Back then, Alderley was a company heavily reliant on traditional oil and gas projects, developments that were capital intensive. Indeed, the firm was operating on an 80% CAPEX basis, a reality which has been exposed as unsustainable in recent years, not least during the COVID-19 pandemic, when many projects were brought to a standstill.
Alderley used to function as a series of autonomous business units spread around the world, each geared up to support their local markets’ large energy projects. CEO Colin Elcoate arrived knowing that these dynamics needed to change. The company needed to develop a more balanced portfolio to build up resilience and, ultimately, better serve the realities of a modern-day energy sector in rapid transition.
- The solution
The dual-pronged service and cultural transformation kickstarted towards the end of 2019, just before the pandemic struck – an event which served as a catalyst to impart change even faster and deeper.
In terms of services, Alderley is pivoting towards becoming an end-to-end solutions provider, able to support clients through various stages of their project lifecycles in order to maximise the efficiency of their operations. This is what clients have been demanding. The first step of the transformation was to re-engage clients and take stock of their changing needs. The company also realised that more sustained communication was needed to stay abreast of key developments.
Targeted recruitment was prioritised, especially in digital and aftermarket skills. Here, Brian Scorer (hired in February 2020) has already proven an influential addition to the team as the Head of Aftermarket Services, which is on track to make £20 million this year – more than double what it was a couple of years before.
Alongside this repositioning, there has been a cultural and structural shift towards a one-group company. Scorer, for example, has a global remit in his role and represents one of many reporting line changes designed to simplify standards across business units, and liberate the talent within the organisation. Indeed, heavy investment has been made in training and rewarding talent, and communications between management and employees has become much more frequent and wide-reaching in scope.
Importantly, Alderley now operates with two internal teams (Business Improvement and Culture), which are responsible for boosting collaboration, instilling cultural values and driving internal feedback mechanisms.
With a new structure and ethos well on its way to being cemented, the company can now look ahead with positivity. This is reflected in its financial targets, which centre around deriving 50% of revenues via aftermarket services, consultancy, and digital solutions by the end of 2023. This year, the firm is on track to achieve a revenue split of 60-40 in terms of CAPEX and solutions-based services, underpinning a profit forecast of more than £1 million.
An important part of this will come from Qatar, where Aftermarket Services Country Manager Nithin Jacob has been delivering promising results. Through his focus, the Qatar market has grown from £30,000 in aftermarket services bookings in 2019 to over £800,000 in 2021 and, with his growing relationships in-country, he has also supported recent systems and project (CAPEX) wins as the market re-engages following the pandemic. Bookings in Qatar are forecast to reach £15-20 million this year.
Given Alderley was in loss-making territory between 2018 and 2021, this is tremendous step forward and gives cause for optimism for the coming year. Alderley now is match-fit and ready to take on the challenges of the 21st century energy transition.
- About Alderley
Alderley is the end-to-end integrated solutions provider for the global energy industry. The company’s priority is to maximise the value and efficiency of its clients’ energy assets – from concept to operation and beyond. Alderley achieves this through its end-to-end integrated solutions: Advanced Consultancy, Systems and Projects, Digital, Aftermarket Services and Training Solutions to meet the challenges and needs of a global energy system in transition.
As an independent solutions provider, it’s Alderley’s people that make the difference. Alderley’s regional teams work closely with its clients to understand their needs and deliver the right solution – with the flexibility, integrity, and customer service you would expect from a family business.
Read the full EIC Survive and Thrive Volume VI 2022 here.
Alderley at a glance
Advanced digital, mechanical, hydraulic, electrical, process, metering, consultancy, systems, and aftermarket services to meet the challenges and needs of a global energy system in transition.