From technology-driven industry to ecosystem

The energy industry has traditionally been the domain of technical experts. CEOs have typically been engineering graduates with deep technical expertise, having spent their entire careers within the sector. Over recent decades, however, the sector has undergone a transformation that is reshaping the CEO profile. What was once a concentrated and heavily regulated industry has fragmented, and the business model has become bidirectional: energy is no longer only produced, sold and distributed to consumers – consumers themselves can now act as producers.

Leadership profiles are diversifying

As this transition unfolds, technically oriented leaders have been joined by CEOs with backgrounds in business, environmental sciences and sustainability. Energy production is increasingly intertwined with economic, environmental and climate discussions.

At the same time, the energy sector is likely to take on more of the characteristics of the software world: customer behavior and energy flows will increasingly be managed through smart technologies. As a result, professionals from business, marketing, services and technology – including software and data – are becoming more relevant candidates for senior roles in the energy sector.

A broader and more diverse sector opens attractive opportunities for leaders with different backgrounds. What was once a tightly regulated industry is beginning to resemble more typical business environments built on value chains and networks.

Multi-disciplinary capabilities are needed

The profile of an energy-sector CEO is increasingly shaped by a broad base of experience. Sector knowledge remains important – but it is valuable for leaders to have worked in other industries too. For example, an energy retail company benefits from strong B2C and brand-building expertise, a services company from deep technology, software and commercialization capabilities, and a production company from a broad understanding of how to utilize renewable energy.

The courage of the board is decisive

The energy transition is underway – and its pace will also depend on board decisions. Boards have the opportunity to support and accelerate renewal by opening the door to new kinds of leaders.

CEO appointment is the clearest statement about the future the company wants to build. The critical factor is the board’s willingness to look at leadership through a fresh lens. When boards are prepared to recognize potential beyond the traditional profile, they create the opportunity to renew not only their own company – but, over time, the sector itself through bolder leadership choices.