Shortly after Antje Kanngiesser took up her role as CEO of the Swiss energy group Alpiq, it was hit with a near-existential crisis. A surge in energy prices in 2021-22 exposed a flawed business practice. To reduce exposure to market risk, energy is sold (hedged) mainly on energy exchanges three years in advance, at market price. To ensure delivery the seller has to deposit cash at market value at the clearing exchanges. When prices rose sharply, the cash guarantees to be deposited on daily basis surged. Instead of tens of thousands of francs, hundreds of millions had to be deposited within 24 to 48 hours. An emergency operation to
free cash from operations and ensure a shareholder loan was necessary, while a fundamental strategic overhaul could not be delayed.
As it turned out, she found herself in a strong position to revamp strategy. “I learned the true freedom of the CEO is having a board which is stressed and not having a strategy in place, and having the trust to do what you think you should be doing.”
“We were put together to make us think about how we come to this result”
The EMBA, which she had completed just three years earlier, proved to be essential preparation. “You build your confidence,” she observes. “The most important learning was not on the so-called hard facts, it was that IMD gave me names for things that I did not [previously] relate to leadership.” She refers in particular to the concept of “secure-base leadership”, which means “you can be a caring person, but still very demanding. They go together.” This approach is now a core principle in Alpiq’s culture and leadership ethos.
In the relatively conservative, male-dominated culture of energy firms in Switzerland, Antje’s appointment stood out. She has been told that she is “too friendly” or “laughing too much” for a CEO role, but has disarmed her critics by the strength of her strategic vision, and her capacity to make tough decisions and to inspire the people to join the ride.
A lawyer by training, Antje has spent most of her career in the energy sector. In many ways it is an apt choice, because
she fizzes with energy; a strong personality accompanies her keen intellect.
By the end of a year of rescue and recovery, she had developed a close working relationship with her chairman, who came to acknowledge that a cheerful disposition and sense of humour were not incompatible with good strategic judgement.
Revamping the energy hedging was not the only change needed. She disposed of 18 businesses in 10 countries, mostly in eastern Europe, and focused on core competencies and jurisdictions.
One controversial decision was to disinvest in some categories of renewable energy. This was not due to lack of concern about CO2 emissions. It reflected a reality that Alpiq was late to invest in solar and wind. Its core strengths lie in power plants, technology and competencies built on managing flexible assets such as hydro power and flexible thermal power plants. The company has divested in coal, 80% of its assets are flexible and the same proportion of the electricity produced has zero emissions. But the headline of the decision was uncomfortable for some and had to be managed sensitively.
Since graduating from IMD, most of her cohort have formed a closely knit group. They meet regularly for self-organized discovery expeditions, and also to celebrate birthdays, marriages, or for other social events. These relationships “are incredibly precious to me”, she says.
“You can be a caring person, but still very demanding. They go together”
The cultural diversity of the cohort made a significant impression. She recalls a business simulation exercise in which everyone was of a different nationality. Some were impatient, others wanted to be more methodical. “We were
the laggards at the beginning,” she recalls. “But collaboration really began because we started listening to each other. In the end, we were not that bad, but it took us, really, five days’ experience to move together as a team, and the first 48 hours were really bumpy.”
She adds: “Also, we were put together to make us think about how we come to this result, not the result itself.” Another learning is that: “The loudest isn’t necessarily the smartest, but the loudest still has something important to say.”
In business leadership, she observes, plans typically fail owing to the human factor, not lack of resources or skills.
Awareness of employee engagement prompted a spontaneous intervention by her at a company event at the occasion of the inauguration of a unique pump storage power plant in the Swiss Alps. It was held in a giant marquee and several hundred staff attended. By mid-evening, the beer had run out. Supply “was a calculation based on Swiss consumption” she recalls – staff from other nations turned out to be rather more thirsty.
She arranged an emergency extra supply and enlisted the help of other senior leaders to stand behind the bar with her and serve customers themselves. “It was so cool. The people were so happy because they felt taken care of.”
Arguably the finest leaders can show a friendly side, tell a joke, and serve drinks at a company event – provided of course that they remain sound in judgement and authority. Maybe it’s those who are stony-faced and stay in the executive suite who are the insecure ones.
