Resi Becker (Essent): 'I Find the Combination Between Executive and Supervisory Board Stimulating'
10-12-2024 | Interviewer: Hans Bongartz | Author: Angelo van Leemput | Image: Roderik van Nispen
Fire! Or at least: fire alarm. The photographer from Management Scope just got Essent CEO Resi Becker in sight when the alarm went off. There seemed to be no panic, with everyone assuming it to be a 'false alarm', as the historic brick PNEM building that serves as Essent's headquarters in Den Bosch was undergoing extensive renovations, but the message was clear: everyone was requested to leave the building as quickly, yet calmly and orderly, as possible. And outside the first winter showers were battering the headquarters. It was precisely then that Becker realized she had to demonstrate that leadership requires setting the right example, consistently. 'I could not, as CEO, have said that I want to stay inside because I am getting my picture taken,' she said with a laugh to Hans Bongartz, partner at executive interim firm Boer & Croon, once the 'false alarm' signal was given and all 'Essenters' returned to their warm workspaces.
Becker has been CEO of Essent since February 2022. She came on board to help shape the energy transition, but once she settled into her office, the unforeseen circumstances rained down: Russia invaded neighboring Ukraine, energy prices skyrocketed, and Becker had to deal with the consequences – the most significant energy crisis since the 1973 oil crisis has materialized.
How do you look back on that time?
'It was an extremely hectic period, with tremendous uncertainty, especially regarding the availability of energy and the soaring energy prices that followed. It had a significant impact on our customers and our company. We were overwhelmed with questions about the affordability of energy bills. Uncertainty became a major theme. Quite soon, the government introduced a price cap – a maximum price for electricity and gas. It was a good decision but a huge task to implement.'
These unforeseen circumstances disrupted your original transition agenda... To what extent was your schedule in recent years in fact 'unforeseen'?
'I think almost half of it. But that is to an extent a characteristic of this industry. The only thing you know for sure here is that you do not know what will come your way.'
Did the crisis yield anything positive?
'Absolutely. What I am proud of is that we were able to handle the consequences for our customers well. I am also very satisfied with the pace at which we were able to do it and the quality level we maintained. We have made our internal organization faster and more flexible. We are now able to bring new propositions to market faster. The knowledge gained has been applied, for example, in smart charging, a clever way of electric charging.
Furthermore, the crisis has significantly increased our customers' awareness of energy consumption. We are now better able to assist them with insight into energy consumption and with tips on how to use less gas and electricity. We have also made strides with digitalization and use of the app. I am not saying all this would not have happened without the crisis, but it has certainly accelerated it.'
During that period, you also focused heavily on energy affordability. In various statements, you advocated for affordable energy bills. Where did the drive come from?
'I feel responsible for giving people control over their energy. We are the largest energy supplier in the Netherlands, serving 2.5 million customers. Many of those customers were affected by high energy prices. Energy is a significant cost, every month. But I want everyone to stay connected. And I want prices to remain affordable. I have always had this drive.
Part of it is also upbringing. I come from a family of six children, my parents provided us with every opportunity to develop, but it was never assumed to be a given. I am very conscious to the fact that it makes a big difference where you are born and what opportunities you have as a result. I want to do something about that. The sad thing is that people who do not have the means to make their homes more sustainable, often end up paying the highest bills. That is a contradiction.'
What does all of this say about you as a CEO?
'I do not think maximizing profits can be our only goal. We also have social responsibilities to take on, both for our employees and for our customers. Exactly because we are such a large company, we can shape and give substance to this. We should not let this opportunity pass by. That is what I want to commit to. Let us form partnerships and tackle societal challenges together, trying to bring everyone along. This is one of the reasons why it is so rewarding to contribute to the energy transition: there is always progress and improvement involved.'
What Do You See as Your Biggest Challenge for the Coming Period?
The most important thing is that we approach the energy transition in an integrated way. That means involving all parties: energy companies, governments, grid operators, and customers. We have sufficient financial means to allow everyone to take steps in the energy transition. The big challenge is to translate it practically to neighborhoods or industrial areas. Furthermore, one of my biggest personal challenges is vulnerable households. These often are the worst-insulated homes. We need to work together to do something about this, for example, by having the Ministry of Housing and Spatial Planning insulate houses street by street.
The most significant challenge is to find execution power within collaborations that keeps the pace high and preferably accelerates it. The industrial area in Veghel is a good example of how it can and should be done. There, we all worked together smartly to provide energy supply at speed. Companies there collaborate closely to prevent overloading the grid. I also think we need to look locally. We are very focused on expanding the network in the Netherlands. That is good, but it is not the only solution. We also need to, together with the grid operators, look at smart storage. There is no point in positioning a high capacity battery somewhere where Stedin or Enexis cannot use it.'
Do you find the collaboration at the right level? Or is there still work to be done?
'There is definitely more work to be done. But it is not because there is no willingness. The problem is that everyone is busy with their own business and solutions. If we can connect these efforts, we can make significant gains. But the relationships are good. And we are moving in the right direction.'
Essent is not only part of the Dutch energy landscape. It has a foreign parent company: the German energy group E.ON. How do you experience that collaboration?
'I am very happy that we are part of a larger group. E.ON is active in many countries across Europe. I benefit enormously from the expertise from all those countries. It is something I can fall back on. And although Essent is an independent company and we need to stand on our own feet, I do deal with the German structure and culture. It is more hierarchical than what we are used to. Still, I feel free to operate in my own way. I notice that my style may be a bit different from what people at headquarters in Essen are used to, although I do not know whether that is due to the difference between Dutch and German cultures. I notice that I ask more questions than others. Questions about the process. Questions about the impact of decisions on employees or customers. But the relationship between Essent and ‘Essen’ is excellent. There are no differences of opinion about the strategy.
I also have an important advantage: Essent is ahead of E.ON in many respects. We are, for example, far more advanced with digitalization. Here, almost 90 percent of our customer contacts are digital. They are not close to this level in Germany. They definitely have their eye on how we do things here.'
How would you describe yourself as a leader?
'At Essent, we work with our Essent Business System, which describes how we run the business. This approach consists of four elements: connect, enable, deliver & improve. My focus is mainly on connect and enable. I knew from the start that I had to maximize the knowledge of others. And that means sitting down with many people. I find cross-functional collaboration extremely important. There must be a good balance between the business and the rest of the company. I want the input of different perspectives in decisions. That is why I find it important to build connections. I think it is important for people not to feel restricted. I also want to know what is not going well. That is a challenge for a CEO; people are not normally lining up to explain their mistakes. But creating a learning environment is crucial to me.'
How do you ensure that colleagues can show their vulnerability?
‘I always try to share my own struggles. To say what I am struggling with. To me, it starts with bringing different perspectives to the table and creating a learning organization to achieve maximum collaboration within and outside Essent, for the benefit of the energy transition. An example of this is the dynamic with our German parent company. Sometimes they make choices that make sense in the German market but will not fit the Netherlands. I share that. Or I share my learning experiences. In my previous role at PostNL, I knew the way and the processes. Here, at first, I knew nothing. When I took on this role, I stayed to myself because that was my only foothold. I ask many questions. To understand things or to hear someone's vision. My way of working is that I first want to listen and understand how things are before determining the course.'
We can congratulate you, because this year you are making your debut in Management Scope's Top 100 Supervisory Board Positions. What exactly do you look for in your supervisory positions?
'I looked for positions that meet three conditions. There must be an important transformation question, a social aspect, and a component of great complexity. I like to delve into complex issues with a large stakeholder landscape. Transformations have been a common thread throughout my career. I find it interesting to work on. How do you ensure that you give shape to a major development?'
What do these roles provide?
'I enjoy sparring with fellow executives, helping them, and challenging them. I find it interesting to discuss dilemmas. How do you weigh CO₂ reduction against revenue? How do you weigh customer interests against the impact on an organization? It also benefits me in my role as CEO. It is educational to hear how fellow executives approach issues. I find it instructive to see that they do things differently, and it still works. From supervisory board members with extensive financial expertise, I learn how to better assess investment proposals here.'
When you combine your work as a CEO and as a supervisory board member, do you see certain trends or similarities?
'On the whole the issues we deal with are becoming increasingly complex. We deal overall with large, complex issues that extend far beyond the companies themselves. This makes it extra important to carefully consider the composition of both executive and supervisory boards. You really need to have diversity in-house to oversee all these major challenges. There is an increasing amount of legislation and regulations coming our way, which is a significant challenge, especially because we must avoid ending up in a reporting squeeze. We need to ensure that the reports truly serve the strategy. This is precisely where we can make good use of each other's expertise.'
Are you transitioning from the executive role to the non-executive role?
'Certainly not. The CEO role suits me well. And I enjoy it. I especially like that I can make things happen every day. I am far from finished with it. But I do enjoy the combination of being on both executive and supervisory boards. The supervisory roles also help me stay sharp.'
This interview is published in Management Scope 01 2025.
This article was last changed on 10-12-2024