"Demerger" - The creation of a new company from EPCOR

Organization's web page url

https://www.capitalpower.com/

Note: This information was produced using AI analysis of the video presentation transcript and has not yet been reviewed and approved by the client or the consultant.

EPCOR made a strategic decision to create a separate company, Capital Power Corporation, for its power generation business. This included a comprehensive organization design and implementation process. This presentation provides a fascinating look at the creation of a separate company.

The Issue:

Too many job levels
Job titles that were not consistent or clear,
Opportunities to be better in a ‘‘hot market’’ at attracting and retaining top talent
Not getting optimal performance (e.g., lack of clarity of accountabilities
A proliferation of silo mentalities)
Lack of expected results from a major process improvement project.

Results:

Improved vertical alignment of positions (e.g., increase requisite alignment and decrease gaps and compression).
Improved functional alignment of positions (e.g., have ‘‘like’’ functions better clustered together).
Improved clarity of positions (e.g., improved position descriptions together with education and training in natural work teams).
Improved clarity of employee and managerial accountabilities and authorities (e.g., included in position descriptions and supported by education and training).
Improved clarity of cross functional accountabilities and authorities (e.g., included in position descriptions and supported by education and training).
Improved ﬁt of employees to positions (e.g., develop and implement Talent Pool process and measure ﬁt of employees to positions) to improve current ﬁt and determine future requirements (e.g., talent shortages).
Improved level of organization design capability (e.g., transfer of materials, methods and skills).
Improved functioning of critical related systems (e.g., Human Resources and Organization Planning and Review).

Project Information:

Industrial sector	Types of organization	Governance	RO Stratum of the organization	Number of Employees	Labour relations	Region	Country
Public utilities - electric, gas, water	Electric power generation	Private	6	3000	Unionized	North America	Canada

Types of interventions	Specific functions targeted if any	Strata in which RO interventions were used	Approximate Years of project interventions
			2007 to 2010

Link to other project-related information on the site:

Capital Power Corporation "Demerger": The creation of a new company

Summary

In a detailed presentation involving key personnel from Capital Power and EPCOR, the focus was on organizational restructuring and human resources strategies following the demerger of these entities. Brian Vaggio, CEO of Capital Power, was absent, but Scott Bratley and Peter Arnold led the discussion. Peter Arnold, the Senior Vice President of HR at Capital Power, discussed the strategic decision to spin off Capital Power from EPCOR through an IPO to facilitate growth in both the water and power sectors. This spin-off allowed Capital Power to operate independently, enhancing its ability to raise capital and focus on energy trading without city interference, mimicking a publicly traded company structure.

The discussion covered the importance of organizational design in aligning positions and matching personnel effectively during the demerger. The rapid implementation process prior to the IPO required swift and strategic alignment of teams and roles within both organizations. Arnold highlighted the cross-functional accountabilities and business planning processes that have been critical in maintaining operational efficiency and strategic focus post-restructuring. Additionally, the session emphasized the need for ongoing engagement and strategic involvement of HR to sustain organizational design and align it with business objectives, ensuring long-term viability and adaptability of the new structures.