CASE STUDY
Powering the Future
Navigating the challenges of CEO succession for a remote, government-owned energy retailer.
Navigating the challenges of CEO succession for a remote, government-owned energy retailer.
Our client is a government-owned Australian electricity retailer who have been operating within the Northern Territory since 2014. They play a central role in providing electricity, primarily to residential and small business customers, as well as to commercial and industrial users. In addition to supplying electricity, they also provide behind-the-meter solutions.
Our client’s former CEO decided to relocate from Darwin to Melbourne for personal reasons, and therefore had to resign their position at the end of their term. This left our client with a huge gap to fill in their most senior role, facing the enormous task of replacing their leader. While finding the candidate for the CEO role presented some challenges in its own right, the unique location added a layer of complexity in attracting interest from potential leaders. Additionally, given its status as a government-owned organisation, the role demanded a sophisticated approach to stakeholder management, reflecting the distinctive dynamics of public sector relationships. With a focused team of around 75 employees, the company offers a tight-knit, impactful environment which can be appealing to the right candidate, though naturally requires a specific leadership mindset. Finally, the industry itself is highly regulated, meaning that candidates would be required to have worked in a similarly regulated environment (such as banks, water companies, electricity providers etc.), ruling out those who may have the necessary skills to take over the role, but perhaps with insufficient experience in a similar field.
So, why us? The client initially elected to partner with 6 Group due to their relationship with our head of Global Energy, Matthew Woodall. For his former employer, Matthew had recruited their CEO, as well as three other members of the executive leadership team, and two members of the board, including the chair. This meant that the client already had a very strong connection with 6 Group through Matthew, knowing that he had previously delivered very successful results with recruiting members of varying executive leadership roles.
One of the challenges that comes with recruitment for government-owned companies, is that we were mandated to follow the instruction of the client as part of the Northern Territory governmental process. This meant that the role had to be advertised on relevant NT government websites, as well as the primary independent platform in Australia, Seek. We also ran an extensive headhunt campaign alongside the job adverts, targeting C-Suite candidates in other smaller retailers, EGM or GM-level candidates in larger electricity retailers, and relevant candidates in adjacent regulated sectors, such as water and banking. In doing so, we had to ensure that candidates based in the NT were assessed and approached and subsequently provide reasoning as to why no local candidates were eventually suitable (which was part of the recruitment recommendation submission to the NT Government). The ultimately successful candidate had prior experience working as a MD/CEO in an electricity retailer in Western Australia, and relocated with their family to Darwin.
The outcome for our client, therefore, was hugely positive, as they were able to secure a candidate with deep industry experience. This had been a point of major concern due to the small size of the company, and the remote location of operations. 6’s unique approach was highly successful, in that we were able to not only provide a shortlist from a mixture of sources (advertising the role on the relevant NT Government websites, executive headhunting), but we were also able to provide a diverse range of people from other sectors to supply a broad selection of prospective candidates. We were able to confidently state that we had mapped the local candidate pool in the NT, and could concretely demonstrate why the successful candidate offered a better fit to the client than the best local talent sourced from the NT. Furthermore, the Chair also thoroughly enjoyed regular weekly updates with Matthew as well as our Director of Delivery & Intelligence Valentin Unverricht (whose information can also be found under the ‘Team’ section of our website) throughout the recruitment process, keeping the client consistently well-informed with all of the developments during the course of the search.
Despite the successful candidate coming from outside the company and the Northern Territory, we were specifically asked to assess an internal candidate who was put forward, providing an unbiased opinion of their suitability to the role. The internal candidate was shortlisted, but ultimately fell short and was unsuccessful.
As an external 3rd party executive search firm, we were able to better inform of the candidate’s status and our final decision. We knew all about the candidate’s competition, and we were able to discuss it with them. They stayed with the company despite missing out on the role, and have remained an integral part of the leadership group within the organisation. As part of our search process, we made recommendations to both the successful, external candidate in support of their incoming role as the new CEO, and the unsuccessful, internal candidate on how to proceed following the unfortunate decision not to be selected for the role. For the unsuccessful candidate, we were able to dissipate any immediate disappointment and turn the negative decision into a positive career step, keeping the door open to putting them forward for future roles that may come into fruition while maintaining a positive relationship with the company.
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