How is Management and Leadership associated to the Business Environment?
Management, Leadership, and the Business Environment
Anglian Water is functioning and operating in an environment that is characterized by climate change, rapid economic and population growth, unstable and volatile International Market with co-dependent domestic markets, regulatory structure and financing of the water industry, environmental accountability and protection laws, and significance of customer experiences and satisfaction.
Situational leadership is the leadership approach that will enable the company to focus on developing Business Strategies to address the prevailing conditions of the business environment (Afsar et al., 2016). The company won the ‘Responsible Business of the Year’ in 2017 and ‘Utility Award of the Year’ in 2018 for its responsible and sustainable approach that extends to employees, customers, stakeholders, and the environment. Leadership has a crucial role in the decision-making procedure that informs and shapes adopted business strategies (Northouse, 2018).
Moreover, the company, is fulfilling its objective of environmental and societal prosperity, has aligned its initiative to the UN Sustainable Development Goals. Out of the 17 SDG’s, the company has prioritised ‘Good Health and Well-Being’, ‘Quality Education’, ‘Clean Water and Sanitation, ‘Decent Work and Economic Growth, ‘Industry, Innovation, and Infrastructure’, ‘Sustainable Cities and Communities’, ‘ Responsible Consumption and Production’, ‘Climate Action’, ‘Life Below Water’, and ‘Life on Land’ to align their activities and outcomes. The operations of Anglian Water have been mapped out to these ten parameters that inform the company’s 2020-2025 business plan. This approach has enable Anglian Water to be part of a wider social global movement and set itself as one of the leading authorities on the same.
Assessment of the economic situation is a required regular undertaking (Deresky, 2017). The economic and subsequent market stability of a nation is pivotal to the running and operations of the business organisations. Anglian
Water is committed to ensuring the consumers are given a fair charge while they make a fair profit. To meet the rising costs of living, Anglian Water has taken efficient and quick steps to address the difficulties of affordability and gain from market developments. In a bid to raise trust and build transparency, Anglian Water became the first private water company to Cayman Islands account as further proof of its accountability. The company employs revenue correction and sustainable savings schemes to show fiscal responsibility and efficiency. The company became the first European utility company to issue a sterling Green Bond in 2017 worth £250 million and then another worth £580 million. Sustainability is at the heart of all of Anglian Water business decisions while its culture of proactive governance, leadership, and management ensure that the company generates daily value for customers and stakeholders and society while also contributing to the ecological and environmental development.
The contemporary business environment also required the operation management of Anglian Water to adopt a different strategy to build on its efficacy while also contributing to societal and technological change and development- innovation. In October 2018, the company unveiled its adapted naval technology that revolutionised leakage level reductions. Anglian Water’s ‘The Innovate Shop Window’ at Newmarket that was a real chance to present to their customers and supply chain won gold in the ‘Performance Improvement and Operational Solutions’ category. The company bagged silver in the ‘Smart Systems and Digital Water Economy’ for their Integrated Leakage and Pressure Management System. The company has also develop innovative projects for water abstractions, resilient infrastructural systems, and progressive water management and recycling systems.
Sustainability is not only a way of life but also a business approach, especially with regard to the environment. To supplement the goal of becoming carbon neutral, Anglian Water has taken proactive measures to arrest its carbon emission in construction and operational activities. The company developed a framework to be applied to operations to reduce dependency on traditional energy sources and opt for renewable energy. Anglian Water successfully generated biogas from Combined Heat and Power engines, which in turn were powered by biogas from the company’s sludge treatment centre. This also serves as an illumination of Anglian Water’s other initiatives: zero waste and supply and demand management.
Thus the factors that determine the business environment play a significant role in the decisions made by managers and leaders in the business strategies and direction of the company. Certain factors, on the other hand, like the increased emphasis on customer experience and satisfaction have brought about direct functional changes to the management and leadership bands. Anglian Water has developed and implemented the ‘Customer Experience Transformation’ programme and the ‘Make Today Great’ initiative that trains managers, leaders, and front-line staff in a rigorous customer service exercise module and introduced them to changes and developments in technology and business policies that function solely to better the everyday of the company’s customers. Managers and leaders streamline their training and function to appropriately fulfil their roles in the organisation and within the workforce.