The Problem of Legacy Thinking in the Utility Industry

 In Industry Highlights
legacy thinking

Legacy thinking is problematic in the utility industry.  In essence, this refers to a resistance to change.  Although it’s human nature to dislike change, the industry – in fact, the world – is changing at such a rapid pace that failure to adapt will inevitably lead to failure. 

And when it comes to emergency planning, this tendency could literally be the difference between life and death in certain situations.  Sorry, it simply makes no sense to remain complacent or stagnant in today’s world, yet the main cause of this stagnation, legacy thinking, remains prevalent and is difficult to shake.

Can Utilities Overcome Legacy Thinking?

Overcoming legacy thinking in the utility industry is certainly easier said than done.  The industry is full of old-school tactics that should be updated, such as employing meter readers instead of deploying smart meters that enable remote usage recording, and using calendar-based maintenance schedules instead of maintenance that is based on real time equipment monitoring

Unfortunately, many of the causes of legacy thinking are not only based on human nature, but also money.  For example, it would take millions of dollars and several years for a small utility to deploy smart meters.  Even though the costs would be recouped on the backend, it’s a tough pill to swallow when the payoff is so far into the future. 

Because of the money issue, in most cases regulatory action is probably the main trigger that would result in action.  Sure, there are progressive utilities out there that are likely to (eventually) proactively modernize their systems and processes, but most small utilities will need a push. 

Therefore, the unfortunate reality is that legacy thinking will not be going away anytime soon.  I’d love to think that this is not the case, especially when it comes to emergency preparedness as this would definitely benefit from a more modernized approach, but that is not the world in which we live.  I think it’ll be more of a generational thing, with the next generation of utility executives, most of which will have grown up in a more technologically-advanced world, leading the charge to change.

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