Bohlouli Ghashghaee, Bijan, Dhawan, Rohit and Misra, Anandita
(2013)
EON – Business development challenges and opportunities.
[Dissertation (University of Nottingham only)]
(Unpublished)
Abstract
E.ON is one of UK’s largest power and gas companies. E.ON’s new initiative known as ‘Target Operating Model’, which is believed to enhance customer experience and deliver operational benefits, is currently underway. The initiative includes enhancements in various areas such as training, processes, systems and website development. E.ON has a top-down approach in adopting the KPIs for these initiatives, starting from defining strategic objectives and cascading them to business function level.
Strategic, operational, financial and team/individual performance represent a major objective for an organisation. To appreciate the extent to which corporate objectives are achieved and in order to evaluate the efficiency of business strategies, it is vital to define an integrated system of performance indicators capable of assessing processes with respect to the set targets and objectives at a given point in time. Moreover, managerial decisions should be based on a thorough knowledge of the current state of the business which cannot be attained in the absence of a performance measurement system. Such a system should be capable of informing management about the results obtained in all initiatives of the company. Given the importance of performance measurement systems for the success of a business, this report evaluates the adequacy of the KPIs used by E.ON. In addition, a business model is presented highlighting the best practices in ‘customer complaint resolution’ divisions within the utility sector.
Primary research was conducted in the form of survey questionnaires and Structural Equation Modelling technique was adopted to detect a pattern in the complainants’ responses to the questionnaire. The survey measured consumers’ judgement about their respective energy suppliers’ customer complaint resolution process. We believe that the findings of this research have an imperative practical implication as the constructs of the model are chosen to test the appropriateness of KPIs in addressing the underlying principal determinants of ‘Loyalty’, which is the ultimate objective of the customer complaint resolution division. The research also tests the adequacy of the KPIs which are intended to meet the requirements identified by “Which?”, “Consumer Future” and Ofgem in order to bolster E.ON’s stance in the top rankings.
Furthermore, a gap analysis is performed to identify KPIs that could be adopted by E.ON with respect to its strategic objectives. Using AHP methodology, the list of new KPIs are ranked based on SMART (Specific, Measureable, Attainable, Realistic and Time-sensitive) criteria. Finally, the report provides recommendations to E.ON summarising the KPIs that could be replaced and/or adopted as part of the organisation’s performance measurement system.
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