sarah mcleod - presentation to women in electricity forum, august 2013

AGL Generation - the challenges

Sarah McLeod

August 2013

2

» AGL Generation – the challenges

» August 2013

1. Introduction to AGL Merchant Energy

2. Current market challenges

- how AGL is tackling these challenges

3. Operational Excellence – the need for cultural change

- impediments to cultural change

4. Workforce Diversity at AGL

AGL Generation – the challenges

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» Presentation Title

» February 2008

» AGL Internal

Introduction to AGL Merchant Energy

4

GAS

RENEWABLE

THERMAL

TRANSMISSION DISTRIBUTION

OUR BUSINESS FOCUS

INDUSTRIAL &

COMMERCIAL

CUSTOMERS

ENERGY PRODUCTION RETAIL

ACHIEVED BY

LIVING OUR VALUES

RESIDENTIAL

CUSTOMERS

BUSINESS

CUSTOMERS

One Team Authentic Delivery Safe & Sustainable Vitality

AGL’s Integrated Business Model

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» August 2013

Introduction to AGL Merchant Energy

-

1,000

2,000

3,000

4,000

5,000

6,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

In

sta

lled

Gen

erati

on

Cap

acit

y (

MW

)

Coal Gas Hydro Wind Other Renewable

6


» February 2008

» AGL Internal

Current Market Challenges

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Current Market Challenges

Low wholesale electricity prices

no foreseeable lift in electricity demand

surplus generation in market

rising business costs

NEM in short term “energy recession”

Carbon impact ???

MRET target facing political uncertainty

Disruptive change from Queensland LNG projects impact long term gas prices

Gas generation displaced by coal mid decade

Gas market “short swing” by end of decade

Increased competition in Business Customers


» August 2013

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Implications for AGL

• AGL generation output has grown significantly since 2004:

• ~500MW to ~6000MW

• ~50 staff to 1,500 plus

• Requires a much greater emphasis on the

operational side of our business

• Vital to become as productive and efficient as

possible to secure a long-term future through

significant industry challenges


» August 2013

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August 2013

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Questions to ask

• Can we work better, smarter?

• How can we focus more on those things that add value and less

on those things that don’t?

Challenging business environment drives need to become

Operationally Excellent


» August 2013

11


» February 2008

» AGL Internal

Operational Excellence at AGL

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What is Operational Excellence?

It is:

• an embedded Excellence culture of high performance, continuous

improvement and feedback loops

• Optimized systems/processes, optimized performance & better

training opportunities

• involves everyone, not just management

It is not:

• A one-off audit

• A ‘business review’

• An IT Systems review

• A ‘management fad’


» August 2013

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Operational Excellence

Key focus areas:

• Market based margin & risk based decision making to meet needs of increased portfolio

• Optimized maintenance – Reliability Centred Maintenance /Condition Based Maintenance

• Efficient Maintenance

(1% improvement in direct activity for a 100 strong workforce = 1,780 hrs/year = 1 FTE)

• Improved technical training opportunities

• Roll out of Lean Six Sigma capability


» August 2013

14 Cultural Impediments


» August 2013

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Cultural Impediments


» February 2008

» AGL Internal

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» February 2008

» AGL Internal

Workforce Diversity at AGL

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Workforce diversity at AGL

35% are caring for children and 6% are

caring for an aging parent or other relative

AGL’s first Diversity & Inclusion Census results.

49% worked flexibly in the last year

AGL’s Aboriginal or Torres Strait Islander workforce is

2% (more than the Australian average)

43% have caring responsibilities outside work (children, partners, aging

relatives)

More than 40 different cultures, with 22 languages

7% identify as being

lesbian, gay, bisexual, or transgender

3% are living with a disability and 3% are caring

for someone living with disability

AGL’s public gender diversity target is on track after its first six months (of a 3 year

target).

Currently 34% of employees in AGL’s top

300 roles are women (up from our starting position

of 33%).

The target is 38% by June 2015.


August 2013

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Gender diversity at AGL


» August 2013

AGL Women Men % Women % Men

Executive 1 8 11% 89%

Senior Leaders 18 46 28% 72%

Top 300 Positions

2015 Target = 38% 34% 66%

Total Workforce

1052 1891 37% 63%

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Gender diversity at AGL


» August 2013

Women Men % Women % Men

Merchant Operations

Top 300 Positions

2 29 6% 94%

Torrens Island 4 172 2% 98%

Loy Yang Generation

8 236 3% 97%

Loy Yang Mine 10 274 4% 96%

AGL Hydro 4 72 5% 95%

(1)

(2)

(2)

(5)

(2)

Technical Positions NO Female Apprentices!!

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So what can WE do?


» August 2013

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The Mining Industry Example


» August 2013

Women in Mining Network (WIMnet) (Australian Minerals Institute)

•Sponsorship

•Mentoring

•Networking

•Events

•Blogs

•Seminars

•Career Days

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WE can do something

Collaborate to help us meet industry challenges and enhance cultural & gender diversity to bring about cultural change?

Set up an industry working group:

- how to attract more women to our industry

- retain women in our industry

- provide industry-wide mentoring

- hold industry events

[email protected]


» August 2013

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» February 2008

» AGL Internal

Thank you