IMD Annual Report 2021

93 Learning

Building a “vision house” for lasting value creation

Aerial view of the Itaipu Hydroelectric Dam on the Parana River.

How IMD helped Brazilian energy group Eneva chart a course for 2030 When Brazilian energy group Eneva needed to develop a new, long-term plan for transformational growth, its leadership discovered that the best way to do so was to step out of the everyday — and be challenged to build its “Vision House”. The concept, developed with IMD, established key “must- win” battles that are stepping stones to the successful achievement of fresh strategic direction, embodied in a Vision House. Having emerged from bankruptcy in 2017, Eneva developed a short-term plan with IMD a year later that delivered significant initial success. The company rapidly staked out a leading position in Brazil’s gas exploration and production market by focusing on extracting gas in territory onshore and feeding it directly into the electricity grid. Success came not just in strategic terms: its share price rose to impressive levels. The plan set out the aspiration in a simple diagramknown as Vision House, consisting of three “must-win battles” for 2023, the core behaviors needed to win those battles, the sources of value creation, and an overall mission. Then, in 2021, with its initial plan moving faster than expected, Eneva re-engaged with IMD on a new plan for the next eight years, involving striking the right balance between exploiting its core strength in gas exploration and converting gas into electricity, while pushing into

renewables and becoming a key part of Brazil’s energy plans — all while nurturing sustainable communities where Eneva operates. “I think there is a huge opportunity in the Brazilian market. When you look at the … needs of the country in terms of energy and infrastructure, what you see is a massive opportunity in renewables. So, we have to position ourselves to focus on supporting the country’s growth for not only the next eight years, but 10 to 20 years,” says Pedro Zimmer, Chief Executive. Key toachieving thiswith IMDwas awillingness to step out of theeveryday and takestock, withseniormanagement exchanging ideas with each other, challenging each other and ultimately developing new ideas. “It was a fantastic opportunity to see new trends and focus and discuss a lot about our group plan,” saysMarcelo Habibe, Chief Financial Officer. “And nowwe have a very robust plan to pursue for the next eight years.”

Helping Eneva chart a course for 2030