When Link formed in 1994, de-regulation was a key market driver of growth, mergers, and acquisitions. This is obviously no longer the case, yet greener energy is setting the stage for major growth and innovation in the energy industry.
1) "Green" technologies cover an exceedingly wide spectrum - - beyond wind and solar of course to include biofuels, gasification/combustion of wastes, biomass-to-charcoal conversions, energy conservation (frankly dominated by insulation technology), to even lube oil recycling - - and even cleaner-coal and nuclear can be considered as greener. Link not only understands the various technologies and the relative sustainability of each from a life-cycle perspective, but also has hands-on experience:
Link's perspective is quite unique in that we first of all strive to truly understand the client's short and long-term objectives, and then we work to create outcomes that achieve those objectives. For instance, if a client desires its own culture and administrative processes infused into a facility or broader organization - - we respond accordingly rather than incorporate our own. We also understand first-hand what it's like to deal with the realities of an operating facility, whether it involves the odors, noise, truck traffic, labor unions, local politics, changing feedstock prices, OSHA compliance, or plant security. We are thus always trying to protect the client's interests in those regards.
2) The "back-to-the-basics" agenda at most energy facilities entails searching for cost reductions and performance improvements in an already lean environment, with workforces that are often less than motivated - - and with minimal capital investment. LINK is working with several energy companies to step back and re-assess the basics of the process infrastructure and the productivity and morale of the workforce. Are the processes efficient? Is there maximum utilization of technology, for example in one-time data entry, predictive maintenance, enterprise information sharing, etc. Do employees understand their role in the strategic plans, and did senior executives incorporate their perspectives? Can Sustainability Initiatives create a focus on efficiencies and shift the culture to one more conducive to future needs? And so on.
3) The economics of a large number of highly-leveraged energy facilities have changed, resulting in costs and revenues out of sync with their pro formas. Uncertainty about the future demand as well as fuel costs make decisions difficult. While many owners are considering the sale of these distressed assets, buyers are not yet seeing fire-sale prices. LINK's role in this environment is to assist clients in assessing the operational, process, and people risks versus the opportunities inherent in particular facilities. LINK can act in an advisory role, or can assume full accountability for the desired outcomes. For example, in some cases owners and buyers have not considered all options for improved performance or reduced costs. In addition to the basic approaches relating to more efficient staffing, process optimization, supply chain management, and so forth, we find that there are also sometimes more innovative opportunities.
4) An alternative for some clients who are having difficulty enacting positive change in their organization is to outsource their operations and maintenance to a third party such as Link. A "new" operator is often inherently in a better position to leverage improved relationships with vendors, employees, and other stakeholders. In such a role, LINK would develop its Transition Plan focused on achievement of the client's objectives, and would base its compensation on achievement of Key Performance Indicators.