The Role of Performance Measurement in Management of Energy Suppliers: Indications from Germany and California

By Michal Sobotka and Ken Platts.

Published by The Organization Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

Our study questions the assumption that the more comprehensive a performance measurement system is, the better the organisation's performance. This paper offers an overview of the existing literature on the applications of performance measurement and the roles it may fulfil in organisations. It presents insight from two case studies, which were carried out at comparable, but differently managed, energy utility companies. In one of them the culture of “tactical” performance prevails, forcing managers to make their employees deliver on performance indicators (sometimes at the expense of coordination); in the other, the predominant culture is one of achieving desired efficiency levels through corporate relations based on trust, responsibility and mutual aid. We propose a matrix for visualising the different functions performance measurement may fulfil in organisations and show how diverse approaches to performance measurement correspond to differing roles of the measurement system. Subsequently, we discuss the observed factors such as leadership, structure and culture which interplay with performance measurement and allow companies to achieve superior performance.

Keywords: Performance Measurement, Organisational Culture, Organisational Change, Gas and Electric Supply Industry

The International Journal of Knowledge, Culture and Change Management, Volume 7, Issue 10, pp.87-98. Article: Print (Spiral Bound). Article: Electronic (PDF File; 718.290KB).

Michal Sobotka

Research Associate, Engineering, Manufacturing and Management, University of Cambridge, Cambridge, UK

Michal Sobotka is a Research Associate at the Centre for Strategy and Performance at the Department of Engineering, University of Cambridge. He holds a Diploma in Electrical Engineering from Cologne University of Applied Sciences (Germany) and Warsaw University of Technology (Poland). Michal gained professional experience working with energy utilities in Germany and California.

Dr. Ken Platts

Reader, Engineering, Manufacturing and Management, University of Cambridge, Cambridge, UK

Dr. Ken Platts heads the Centre for Strategy and Performance at the Department of Engineering, University of Cambridge. He graduated with a first degree in engineering from Cambridge in 1973 and spent the first part of his career working in manufacturing engineering and manufacturing. Ken went on to head the Computer Aided Manufacturing Group at TI Research labs, before returning to Cambridge in 1987.

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