Many utilities are unprepared to handled the challenge ofcompetitive markets because their internal organizations have beenneglected, says a recent report.

According to “Utilities Next Challenge: Deregulating theOrganization,” written by Joseph Pilotta, an associate of ProsperBusiness Development and professor at The Ohio State University,many utilities have not addressed the effects deregulation willhave on their organizations and management. The changes brought onby deregulation are being further impacted by general businessmodel changes created by new communication technologies, such asthe internet. “The internet, as the tool of the knowledge-basedeconomy, requires employees that are knowledgeable about howcompetitive markets function in relationship to their organization.Anything less is failure,” says Pilotta.

The briefing says traditional structures are being reshaped andare falling down. Once-successful companies are finding sure-hitformulas no longer work. The briefing recommends utilities adopt amore knowledge-based, organizational structure.

“To survive and thrive in competitive markets, utilities need torethink their overall organizational structure,” says Pilotta. “Nowutility executives must face a new role and they have no ‘bestpractices’ to copy.

“It is important to note that deregulation is not the oppositeof regulation but is rather a different form of regulation.Deregulation is certainly a process of law, but it is also aprocess of organization.”

The report is available for $99 at the Prosper web site, Joe Fisher, Houston

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