Jm in Colombia

Hi everyone.. I am going to talk about Hydro´s strategy and risks.

Hydro´s Strategy

The main objective of Hydro is to be the best transmission and distribution in North of America.

To achieve this main goal we separate it into seven different strategies which Hydro´ should pursue:

1. Safety – attaining to have the best safety record in the world.

2. Customer Satisfaction – despite the rate has been increasing over the past, a customer-focused strategy would require an ambitious 90% of client satisfaction across all segments

3. Reliability – They are aiming in reaching the top quartile transmission and distribution

4. Efficiency – An increase in efficiency through an increase in employee productivity and also by operational efficiency / slide 2 /

5. “A” Credit Rating – They were recently upgraded to level “A” and they should keep the rating in order to allow better financial conditions for future projects

6. Reputation – Due to the negative publicity in the Media, Hydro should entail itself into a change in the view of the company from the general public

7. And finally... Growth – there is an increase in demand which requires expansion in their network to fulfill customers´ needs

So… With this strategy well define we have a better perception of how their main goal, which is being the number 1 in North of America, is going to be achieved. In order to see which strategy is at stake, we will analyze all the risks and their possible impact in each strategy.

Hydro´s Risks

In this sense, we identified 10 key risks. We divided then by internal risks, the ones that the under the influence of the company, an external, the ones that the company does not have control.

Internal Risks

Regarding the internal risks, firstly we have:

1. Employees Motivation or lack of it – There is a misalignment between Hydro and the current employees which is reflected on the current 18-week strike from them. This is due to the recent work force...