Performance management at EDF Energy: ambition into action

Abstract

Purpose

Survey research suggests that 85 per cent of companies world‐wide have performance management systems. Of that number, many adopt such systems with the ultimate objective of increasing productivity and profitability. The purpose of this paper is to show how EDF Energy decided to adapt existing theory to create an in‐house version of the balanced scorecard, with the objective of creating and sustaining a continuous improvement culture.

Design/methodology/approach

This paper outlines the integration of fundamental principles of performance management systems in the context of a large UK energy company. It highlights good practices in the design, alignment, implementation and communication of such systems.

Findings

The key findings of this paper are the importance of the use of goal‐setting theories, particularly in the design and alignment of company ambitions and objectives. In doing so, value‐mapping provides the mechanism to align individual performance with company strategy. This case also highlights the importance of a “performance dialogue” to support the strategic alignment of organisational goals and build a culture of continuous improvement.

Practical implications

Organisations that are planning to review or implement performance management systems should first, consider the alignment of company ambitions and goals with the operational and individual objectives and second, build structured but adaptable communications channels to convey and reinforce the ambitions, objectives and values of the organisation.

Originality/value

The paper provides insight into the way in which standard and accepted approaches to performance management, based around the Balanced Scorecard framework, can be modified to reflect the context of a specific organisation, and the lessons that have been learned along the way.

Citation

Bromley, M., Cuthbertson, R., Martinez, V. and Kennerley, M. (2006), "Performance management at EDF Energy: ambition into action", Measuring Business Excellence, Vol. 10 No. 3, pp. 23-30. https://doi.org/10.1108/13683040610685766