Title: Introducing a Balanced Performance Scorecard for Electric Cooperatives: A Tool for Measuring and Improving Results
Abstract: Introduction We deliver safe, reliable, affordable energy for the benefit of our members. Thus reads a typical statement for most electric cooperatives. It's the essence of what we do. Yet how do we really know if we are accomplishing our mission? What measures do we use to determine success or failure? How do we interpret results and identify improvement strategies? Currently, many electric cooperatives have difficulty systematically measuring their performance in the mission areas of reliability, safety, cost control and member satisfaction. In part, this is because benchmark data--particularly for safety and reliability--has been difficult to come by. Yet, survey research and field experience show that many best-in-class cooperatives already measure their results in these critical areas, often using some form of a Balanced Performance Scorecard. Consequently, Touchstone Energy Cooperatives has teamed up with NRECA and CFC to develop a new Balanced Performance Scorecard for all electric cooperatives. Using the new scorecard, electric cooperatives will, for the first time, be able to benchmark performance in all four mission-critical areas against their goals, peers, and best-in-class performers. The information has been compiled and presented on Cooperative.com. (1) What will you find? * A standardized set of 10 metrics to measure reliability, safety, cost control, and member satisfaction for electric cooperatives * An on-line database where reliability, safety, cost control and member satisfaction information can be easily accessed and obtained * A Balanced Performance Dashboard, which can be used to help your co-op set goals and evaluate performance Using the new Balanced Scorecard and related website, you can compare your performance against others by quartile rank, by region, by size, and by density. And you'll be able to download your own draft Scorecard Dashboard to begin to invest your Board, staff, and employees in the effort to systematically measure and report strategic performance. Here's an example of what you will find: Background Why develop a Balanced Performance Scorecard at all? To quote the old saw, leaders and employees pay attention to what is measured. Conversely, we typically do not manage well what is not measured. This limits the ability to gauge the impact of our operating decisions on actual outcomes. To truly understand how well we are serving our members, we must first know where we stand, and we do that through measuring key aspects of the service we provide. Then we can improve. Consider: * The challenges of measuring whether plant investments actually pay off in increased reliability. * The challenges of measuring whether the rising cost of power significantly impacts member satisfaction. * The challenge of knowing whether investments in safety education pay off in better safety performance, particularly when compared to other cooperatives. * The need to understand the relationship between the critical performance areas--how they impact each other--and their overall impact on the cooperative's ability to achieve its mission. The following diagram (Figure 2) outlines the four recommended performance areas and associated measures necessary to successfully achieve the electric cooperative mission. Each performance area has a direct influence on the others. Together, they present a balanced view of success. Improved reliability pays off in higher member satisfaction. Controlling costs also lessens the impact of rate increases, which in turn helps member satisfaction. There is also a direct correlation between high safety performance and overall organizational efficiency, cost, and quality. [FIGURE 2 OMITTED] Let's review each performance category and their associated metrics, in turn. …
Publication Year: 2009
Publication Date: 2009-12-22
Language: en
Type: article
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Cited By Count: 2
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