Where is the company going and what is the strategy for getting there?
Pampa Energía is one of the most important integrated energy companies 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, development of activities in the exploration and production of gas and oil, and transportation of gas and petrochemicals.
Pampa's company policy of continuous expansion through new projects and the acquisition of different companies contribute to their growth. In the generation segment, they have several geographical locations, each with its own technologies and culture. In order to scale, they knew they needed to implement a modern management methodology to enable communication, integration of information, and strategic decision making.
By rolling out a strategy map and aligning each Power Plant's scorecard to the organizational scorecard, the individual contributions of each area of the business are clear. In ClearPoint, they track their objectives, indicators and initiatives, and are able to easily communicate results organization-wide. The implementation of their plan not only improved their internal processes, it also serves as their PEGA (Strategic Power Plants Management Plan), a key step in achieving ISO 55001 certification.
Teams communicating differently within the business
As Pampa grew, the many businesses that they added to their portfolio had different ways of managing. Each Power Plant had its own indicators, so benchmarking was impossible. Data that the leadership team had available wasn't communicated back to the Power Plants because it was scattered and not always reliable. This made it difficult to decipher cause and effect relationships in their results, hampering decision making and continuous improvement throughout the organization.
Their main objective became to align all the management processes, taking the best part of each and establishing a standard process. They also needed to make sure that they provided a general framework that had enough flexibility so each Power Plant could adapt it to meet their goals, while ensuring results easily rolled up to the top-level strategy.
Establishing the same standard for every team
Pampa embarked on their strategic planning journey, ensuring that their people were at the center of the process. They considered context from the political, economic, technological, social, legal and environmental perspectives, in addition to the existing strengths and opportunities of the organization, to create their strategic plan. The new plan was designed to ensure the company could achieve their purpose through a series of tangible results.
They knew their new plan would not succeed unless it was easy for their people to understand how their actions and decisions impact the processes organization wide. They chose to implement ClearPoint to facilitate their plan and enable communication and transparency in their 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 participate in its evaluation and evolution. They generate analysis and propose corrective actions and improvements, directly impacting the success of strategic objectives.
All members of the organization can easily answer two important questions:
- Where is the company going and what is the strategy for getting there?
- 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 great decisions, improving results organization wide.
