UNIVERSITY PARK, Pa. — One recent evening, three student teams shuffled into the Steidle Building and were swiftly handed a detailed corporate briefing on Blue Vector Gas, a fictitious national pipeline company. For this capstone course experience, students spent the next 21 hours assuming the role of company leaders.
Minutes later, the teams learned of an explosion at one of Blue Vector’s compressor stations, prompting students to serve as the company’s executive team to face a rapidly accelerating crisis, where every move had financial, public relations and safety implications to consider.
The simulation is part of the Energy Crisis Leadership Challenge, the final project for an energy business and finance (EBF) course in the John and Willie Leone Family Department of Energy and Mineral Engineering (EME). The project was designed to emulate the decision-making and stress of an unfolding crisis and force students to manage contradictory objectives from diverse stakeholders.
Gwendolyn Cullen, a sophomore majoring in EBF, was shocked by the complexity of the challenge — even after studying and analyzing numerous case studies on energy crises throughout the semester.
“We didn’t know what we were walking into,” Cullen said. “We were just given a time and place, and we were expected to be there. I had no idea it would feel so real.”
Each team received a continuous barrage of messages and alerts throughout the night to simulate the dynamics of a situation spiraling out of control. Some messages were even delivered in yellow envelopes slipped under the door.
“It was very overwhelming trying to navigate in the ambiguity when there was a new update every 15 minutes that would change everything,” Cullen said.
Teams eventually received a notification from the chair of Blue Vector Gas requesting to meet the next morning, followed by a press conference with a flurry of probing questions from the media. Penn State alumni and EME faculty with experience in the energy sector and media relations played the contentious board members and field reporters.
This year’s simulation marked the first time students faced the board and media in person, with previous leadership challenges held virtually due to COVID-19 restrictions. Peter Rigby, a 1979 Penn State graduate in petroleum and natural gas engineering and the simulation’s main architect, was excited for the experience an in-person challenge would provide.
“I think it’s easier to hide in front of a camera when you’re on Zoom, versus standing on your feet where you get that instant feedback; you see the audience’s body language and hear their breathing,” Rigby said. “If you’re a student in the simulation, you get to experience that little bead of sweat rolling down the center of your back and that pit in your stomach as you’re trying to make your case. It’s a big difference, as close to reality as a simulation can be.”
Cullen, whose team won the challenge, also walked away with the best individual leadership performance prize. She noted how rewarding it was to present in front of a contentious audience.
“The stakes felt so high,” Cullen said. “I just came out of my shell, which I don’t think I would have in a regular situation like a presentation or conference. Just being there in person helped me understand a lot about the intricacies of a good leader, and I think it made everybody more excited to be in those positions in the future.”
Rigby explained that moving the challenge into a physical environment also presented opportunities for students to build effective teamwork and communications skills.
“Putting a bunch of students in a war room for six hours on a Friday night where they can’t walk away, forces them to put things on the wall, debate and come to a decision more quickly,” Rigby said. “The temperature starts to rise in there, and I think it heightens the team’s effectiveness.”
Cullen’s team member, Sihan Liu, an EBF major, agreed that navigating how each member handled stressful situations proved to be an unanticipated hurdle that led to a better understanding on the value of trust and teamwork.
“I never expected different working styles could be a problem,” Liu said. “We were tired and hungry, and we all felt overwhelmed and frustrated as we worked through some initial miscommunications and the limited time, but we quickly found ways for everyone to be resourceful and let people do what they’re good at.”
Liu, who is interested in a career in management consulting, expects the lesson to yield immediate dividends during her summer internship and a future consulting with different types of firms and environments.
“Since this experience, I feel more comfortable taking ownership of my projects and taking the initiative even if things are not 100% clear,” Liu said. “I also understand the importance of delegation better, and how to take that first baby step of building a team and finding the team’s unique rhythm.”
Rigby said the course distinguishes itself from any other class in EME and gives students the problem-solving skills and collaborative experiences employers in the extractive industries are looking for.
“Students may think they’re starting off their career as a geologist pounding rocks or as an engineer in the field drilling a well, but particularly if you’re a Penn Stater, you’re eventually going to get into a management role and will you’ll need to know how to collaborate, how to be innovative and how to structure solutions for unstructured problems,” Rigby said.
With the 2022 Energy Crisis Leadership Challenge wrapped up, Rigby has already begun scheming up next year’s challenge, which he said promises to involve more students and more lively scenarios.
“Each year, we’re just getting better and better at it and learning more ways to ratchet up the tension, make it more real,” Rigby said.