Introduction

Harbour Energy plc is an oil and gas company that operates in the UK and is headquartered in Edinburgh, Scotland. In July 2014, the commodities trader Noble Group and the private equity firm EIG Global Energy Partners founded the company. During the foundation of the company, $50 million was invested by EIG Global Energy Partners and $150 million from Noble Group which helped in starting the operations of the firm (Reuters, 2014). The corporation became the largest stakeholder in Chrysaor Holdings because of providing financial support for Chrysaor Holdings to purchase assets from Royal Dutch Shell valued at US$3.8 billion (Financier Worldwide, 2024). The Viking Carbon Capture and Storage (CCS) Project is thus far the biggest project led by the company in partnership with BP. The following report is therefore based on the various macro-environmental drivers of change in the energy industry and a comparative analysis of the McKinsey 7S and ADKAR model.

PESTLE

Drivers of change

Technological developments in renewable energy

In the last few years, developments in renewable energy have significantly increased. One of the major reasons for such technological developments has been the focus of companies towards reducing the cost of energy and improvements in operations. Some of the major technology developments in terms of renewable energy have been a growth in terms of energy storage solutions which has significantly increased the adoption of renewable energy sources within the supply chains of various industries and organisations (Østergaard et al. 2020). Apart from that, the technological developments in terms of renewable energy have also led to the development of smart grid technology which accommodates effective distribution of electricity for better energy management. Compared to conventional energy grids, smart energy grids are much more stable and help reduce a significant level of energy waste (Li et al. 2022). Moreover, technological developments in terms of renewable energy have also led to the decentralization of energy production where multiple sources of renewable energy can be used for powering a particular grid.

Economic expansion and the need for energy in industry

Economic expansions and the need for energy in various industries have also been one of the major drivers of change in the energy industry. The demand for energy has increased significantly due to expansion in industrial activities which has prompted the energy industry to expand its existing capacity and improve the current infrastructure so that supply capacity can increase (Abbasi et al. 2021). Furthermore, the investment in energy infrastructure from various resources has also increased in the last few years which has also been another driver and influencer in change. In terms of drivers in change management within the energy industry, a significant shipped towards sustainable energy sources has also been noticed in the energy industry which not only leads to cost reduction in terms of energy consumption but is also focused on reducing carbon waste (Adedoyin et al. 2020).

Analysis of McKinsey 7S and ADKAR

Similarities

The focus on change management is one of the primary similarities of both these models which are designed to facilitate effective change management processes within an organisation. The models focus on a structured approach which can help in a seamless transition from one phase to another. Adding to that both these models offer a holistic approach towards change management where one model offers 7 steps to achieve change management in the organisational framework while the other offers 5 essential steps to achieve the same however through human resources (Suwanda et al. 2022). Both these models and their applications help in achieving a comprehensive view of the change management process.

Differences

The scope and focus of both the change management models are almost similar where the ADKAR model primarily focuses on certain changes which are directly linked with human resource management. On the other hand, the McKinsey 7S model keep its primary focus on various relative changes that tool place with the internal organisational framework. 7 key components are mainly highlighted in the McKinsey 7S model, out of which three primary aspects namely, people, processes and systems are mostly important (Razmi et al. 2020). Thus, on the one hand, applying the McKinsey 7S framework can effectively aid in creating valuable organizational changes, on the other hand, the ADKAR model can help in achieving relative changes and reducing any kind of resistance related to changes in human resources (Paramitha et al. 2020). This is a major difference between these two models and this can turn out to be determinant factor while utilising then is any certain situation.

Advantages

significant advantages are offered by McKinsey 7S model like by offering flexibility, the McKinsey 7S model is well-suited for tasks like managing change and identifying organizational weaknesses. Overall organisational strengths can be highlighted to aid in initiating the change management process, including systems thinking. Whereas, ADKAR is aimed at achieving specific objectives, making it suitable for both big and small changes in businesses (Sulistiyani et al. 2020). Moreover, the model primarily keeps its focus on the overall human aspect related to change, which further safeguards engagement of individuals during the process of change management. This further turns to be a major benefit for business entities of different forms, sizes, and structures.

Disadvantages

The downside is that the McKinsey 7S tool can be challenging to comprehend and utilize, and requires the integration of multiple components to achieve satisfactory outcomes (Odeh, 2021). Furthermore, the mechanism of this particular framework necessitates a substantial amount of reliable form of resources to gather all seven elements together for achieving optimum change management. The ADKAR model’s primary drawback is its emphasis on individual changes, which can result in the neglect of organisational elements that may also impact change management (Osolase et al. 2020). Furthermore, this model further facilitates the uncomplicated process of managing a complex change, leading to insufficient management of issues related to organisational change that can be destabilising for the overall procedure followed for change management.

Appropriateness of the models

Taking about appropriateness, mechanism of these models is certainly found to be more suitable for procedures related to strategic exchange management, primarily for any kind of businesses which aims in achieving a transformation that is large-scale. Hence, implementation 7s model can certainly be beneficial for companies to keep an alignment with their structure, operating system and strategy while improving their overall performance (Zincir and Tunç, 2020). Whereas, taking ideas from Jaaron et al. (2022), the appropriateness of ADKAR model is certainly for achieving change management within human resources, primarily levels of teamwork.

Conclusion

The findings in the above report state that driven by cost reduction and operational efficiency, technological improvements in renewable energy have led to smart grid technologies and decentralized energy generation, increasing acceptance. Demand for energy has increased due to economic development in several industries. This has led to investments in infrastructure and a move toward sustainable energy sources. Both the McKinsey 7S and ADKAR models emphasize organized change management; however, the former concentrates on individual development, while the latter addresses organizational aspects. Although it is complicated and requires a lot of resources, McKinsey 7S provides an extensive framework. While ADKAR emphasizes human connection and is easier to use, it may overlook more significant organizational challenges. Thus, it can be stated that while ADKAR works better for team-level adjustments, McKinsey 7S is better suited for strategic changes.

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