Pampa Energia

Where is the company going and what is the strategy for getting there?

Pampa Energía is an integrated energy company in Argentina with Power Plants in four states and 12% of the country's installed energy generation capacity. Its business includes electrical generation, transmission and distribution, gas and oil exploration and production, and transportation of gas and petrochemicals.

About Pampa Energía

Pampa Energía is an integrated energy company in Argentina. It generates electricity through thermal and hydro power plants and wind farms. It co-controls Transener, which transmits 86% of the electricity in Argentina, and Transportadora de Gas del Sur, which transports 60% of the gas consumed in the country. It explores and produces oil and gas in 11 production and 4 exploration blocks. It is also the main producer of polystyrene and styrene in Argentina. Its shares are listed on the Buenos Aires Stock Exchange under the ticker PAM.

Pampa's policy of continuous expansion through new projects and acquisitions contributes to its growth. In generation, it has several geographical locations, each with its own technologies and culture. To scale, it needed a modern management methodology to enable communication, integration of information, and strategic decision making.

Pampa rolled out a strategy map and aligned each Power Plant's scorecard to the organizational scorecard, so each area's contribution is clear. In ClearPoint, it tracks its objectives, indicators and initiatives and can easily communicate results organization-wide. The plan improved internal processes and also serves as the PEGA (Strategic Power Plants Management Plan), a key step toward ISO 55001 certification.

Teams communicating differently within the business

As Pampa grew, the many businesses it added to its portfolio had different ways of managing. Each Power Plant had its own indicators, so benchmarking was impossible. Data available to the leadership team wasn't communicated back to the Power Plants because it was scattered and not always reliable. That made it hard to see cause and effect in the results, which hampered decision making and continuous improvement across the organization.

The main objective became aligning all the management processes: taking the best part of each and establishing a standard process. The framework also had to be flexible enough for each Power Plant to adapt it to its goals while results rolled up easily to the top-level strategy.

Establishing the same standard for every team

Pampa started its strategic planning with its people at the center. The plan drew on political, economic, technological, social, legal and environmental context, plus the organization's existing strengths and opportunities. It was designed to help the company achieve its purpose through a series of tangible results.

They knew the plan would not succeed unless people could easily understand how their actions and decisions affect processes organization-wide. They chose ClearPoint to support the plan and enable communication and transparency in the plan and processes.

In ClearPoint, each Power Plant has its own scorecard with the same structure as the corporate scorecard - objectives, indicators and initiatives. Each of these elements is linked to the corporate scorecard so that it is clear how each Power Plant contributes to the plan.

Generating strong insights and engagement from new alignment

Now all members of the organization have clear information on the corporate plan and can take part in evaluating and evolving it. They analyze results and propose corrective actions and improvements, which directly affect the success of strategic objectives.

All members of the organization can easily answer two important questions:

1. Where is the company going and what is the strategy for getting there?
2. How am I expected to contribute to the strategy?

This led to higher performing teams, better company morale, and better teamwork. Everyone has the information they need to make good decisions, improving results organization wide.