Making history

The first Chief Executive of ESB Jimmy Kelly, 1923 – 1982

By Michael Hayden

The background to the appointment of Jimmy Kelly as Chief Executive in 1970 goes back to the founding of the ESB in 1927 and the original organisation structure that consisted of a full time Chairman with a number of Chief Officers e.g. Engineering and Finance, reporting directly to him. The ESB in the 1960's was widely regarded as one of the outstanding Irish organisations and it enjoyed high status, both at home and abroad. The tremendous success of the early ESB can be attributed to the pioneering zeal and vision of the key managers who were typically strong leaders and colourful personalities.

Ireland in the 1960's was going through a period of major socioeconomic change and the ESB was caught up in the turbulence of the times. To address these challenges and to deal with the ever expanding business it was recognised that organisational change was required. The Chairman of the day, Tom Murray, commissioned McKinsey Consultants to undertake a major review of the organisation and out of this came the new management structure of the ESB. This included the appointment of a Chief Executive and four Executive Directors. It is the same structure which has, in effect, carried the ESB through the second forty year cycle of its existence.

The appointment in 1970 of Jimmy Kelly as Chief Executive can be no great surprise. He was highly regarded and well liked by all those who dealt with him.

A native of Kilcullen, Co Kildare, he obtained a first class Honours Engineering Degree from UCD in 1945. He joined the ESB by chance, having gone down to the Pigeon House Power Station with a pal for a spin and was offered a job on the spot!

In 1951 he was seconded to the Department of Industry and Commerce, as Manager of the Peat Gasification Project, to study in the US and in Europe the possible production of synthetic ammonia from peat. He returned to the ESB in 1953 and worked for a number of years in the Mechanical Design and Construction Division of Generation Department. In 1964 he was appointed Regional Engineer of the Midland Region. In 1965 he became Assistant Chief Engineer and in 1968 Deputy Chief Engineer. He was awarded a Masters of Engineering in 1958 by UCD.

Jimmy Kelly was a friendly, unassuming and modest man, but he exuded competence and quiet determination. A front row forward with the Lansdowne Rugby Team, his strength of purpose was clearly evident. People trusted him and were prepared to rely on his good judgement in challenging circumstances.

The 1970's were certainly challenging times for the ESB. The early years were spent addressing the issues of sustained growth and the implementation of the sweeping changes associated with the reorganisation. Management and staff relations were put on a new footing. All of this took place against the backdrop of the Northern Troubles, which effectively put a stop to North South cooperation on electricity matters, including the interconnector. The Senior Team led by Jimmy, with the deep involvement of Paddy Moriarty, Dick Ryder, Larry Barry and Seán Tinney, tackled the changes with considerable verve. Regrettably, Dick was to die prematurely after a short time as a Director.

The mid-seventies saw the oil crisis, the collapse of economic growth in the Western world and the collapse of electricity growth in Ireland with all the obvious consequences for ESB staff and finances.

When growth resumed circa 1977 there was a rapid upsurge, which brought its own new challenges. Jimmy Kelly steered the organisation through these changing times with a steady hand and a clear sense of direction. He was enterprising and led or supported key initiatives that laid the foundation for the future development of the ESB. These important initiatives included:

• Wide-ranging management delegation and empowerment of staff
• The placing of policy formation and strategic planning on a more structured footing
• Considerable emphasis on formal training and development of staff
• New forms of comprehensive staff agreements
• New financing and funding initiatives to meet growing capital expenditure
• Strategic diversification of fuel supplies, in particular, the construction of the Moneypoint Power Station
• Start up of ESB International consultancy
• Harnessing of the newly discovered Kinsale gas field

In the late seventies Jimmy suffered a devastating blow. He had a major heart attack, which he was lucky to survive, but resulted in permanent damage to his heart. His much loved wife Sally, who had not enjoyed good health, died tragically following an accidental fall. All of this, coupled with the huge pressures of the job, took a heavy toll. While he made a good recovery from the heart attack to the point where he successfully completed the Sligo walk, he was living on borrowed time.

He received great support from his ESB fellow Directors and the Chairman, Charlie Dillon. Paddy Moriarty, in particular, carried a lot of the burden at that time. At a personal level, Charlie and Una Dillon and Paddy and Esther Moriarty were very kind to Jimmy. Despite this, however, he died in 1982 at the relatively young age of 59.

During his decade as the first Chief Executive of the modern ESB, he provided great leadership and successfully forged the future of the organisation. In evaluating contribution a key question is whether someone has left the organisation they have inherited in a better or worse shape On that count alone, the legacy of Jimmy Kelly is quite outstanding.

Michael Hayden, who is the former Managing Director of ESB International and the incoming President of the Irish Academy of Engineering, worked closely with Jimmy Kelly from 1968 onwards. He has written this article in recognition of the role Jimmy played in forming the modern ESB.