To draw up a strategy in collaboration with the client for the product heat, and to do so on the basis of market developments, specific cases and the internal capabilities available while matching the company’s mission and vision with the wishes of the shareholders. The strategy must state whether the client should play a role in the heat project, and if so, the nature of that role.
Our client is the company’s Business Development department. The proposition ‘heat’ falls under the responsibility of this department. A number of shareholders asked our client to re-assess their position with regard to heat. There are also several specific heat projects in the offing for which our client has been asked to play a role. The Dutch government has made changes to the Heat Act (Warmtewet) that could make heat projects more attractive financially.
How to determine a strategy concerning ‘heat’, both city heating and small-scale heating projects.
JBR made an analysis of the market. The operation and design of both large and small-scale heat projects were assessed. The business case of a specific heat project was examined thoroughly and various scenario and sensitivity analyses were made. A comprehensive risk inventory was made, which included both project analyses and full chain risk analyses. An analysis was also made of the company’s available capabilities in the field of heat and a match was made with the company’s vision and mission. This external, internal and financial analysis resulted in a conclusion regarding the potential role of the client in the area of ‘heat’, and the implications this would have. The conclusion was presented to the client’s Board of Directors.
A clear strategy document containing a summary of the analyses together with the background to the recommended strategy. The conclusion was well received by the Board of Directors (in Dutch: RvB). Obviously, the board’s decision may not be stated here for reasons of confidentiality.