AGL Generation faces challenges from low wholesale electricity prices, surplus generation in the market, and rising costs. To address this, AGL is focusing on operational excellence through cultural change, optimized maintenance, and lean six sigma. However, cultural impediments exist. AGL also aims to improve workforce diversity but faces challenges in attracting and retaining women, particularly in technical roles. An industry working group is proposed to help meet these challenges through sponsorship, mentoring, networking and other initiatives.
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» 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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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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» AGL Generation – the challenges
» 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
InstalledGenerationCapacity(MW)
Coal Gas Hydro Wind Other Renewable
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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
» AGL Generation – the challenges
» 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
» AGL Generation – the challenges
» 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
» AGL Generation – the challenges
» August 2013
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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’
» AGL Generation – the challenges
» 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
» AGL Generation – the challenges
» August 2013
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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.
AGL Generation – the challenges
August 2013
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Gender diversity at AGL
» AGL Generation – the challenges
» 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
» AGL Generation – the challenges
» 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?
» AGL Generation – the challenges
» August 2013
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The Mining Industry Example
» AGL Generation – the challenges
» 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
sarah.mcleod@agl.com.au
» AGL Generation – the challenges
» August 2013
