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This case is about Colbun, Chile's second largest electricity generator, which is facing significant uncertainty regarding the cost and availability of alternative energy sources. Problems with the contracted supply of natural gas and the volatility of oil prices, coupled with pressure from collective activists, force Colbun to revise its business strategy and its sourcing mix. The case also deals with the pros and cons of various energy sources in view of their perceived environmental impact. The company's CEO, Bernardo Larrain Matte, has to take all these different considerations into account when planning Colbun's future, especially in the light of new opportunities and challenges posed by global climate change. The case analyzes the operations of Colbun to illustrate the complexities associated with conducting business under the influence of global energy markets, political uncertainty, and environmental activism.

This note describes the Congruence Model, a method by which an organization can assess whether its building blocks (critical tasks, formal organizational arrangements, people, and culture) are aligned (congruent) with its strategy. The model postulates that misalignments are at the root of performance gaps within the organization.

Sykue Bioenergya (Sykue) was formed in April 2006 with the goal of building four 30 megawatt (MW) bioelectricity power plants in Brazil's Bahia province, 1,500 kilometers north of Sao Paulo. Bahia's savannah-like conditions were perfect for growing elephant grass, a biomass with substantial energy-generating potential. In November 2010 the first plant was online and Power Purchasing Agreements (PPAs) had been signed for 27 MW of the 30 MW capacity. Despite this accomplishment, however, the four years between conception and implementation were littered with management setbacks, including lack of capital, an abundance of debt, and increased skepticism among prospective investors and clients about the potential of the project. This case is taught in the HBS executive education Global Agribusiness and Energy executive education seminars. The case is also appropriate for the organizational congruence module of the first-year MBA course Leadership and Organizational Behavior, and second-year MBA electives Innovation Management and Leading Energy Businesses.