EDF Energy, United Kingdom


The present case study presents the Balanced Scorecard performance management process at EDF Energy, one of the largest UK electricity providers. The case study is part of the research work “Acting on information – Performance management in the public sector” underpinned by Andy Neely (2006) and his research fellows, Pietro Micheli and Veronica Martinez on behalf of the Advanced Institute of Management Research, UK.


About EDF Energy

EDF Energy is part of the EDF Group, one of the three largest energy companies in Europe. EDF Energy employs over 20,000 people and is the largest producer of electricity in UK. The company is also one of the largest suppliers of electricity in the country, delivering its electricity utility services to over 8 million customers, homes and businesses.


EDF Energy is structured into four business units:

  • Existing Nuclear: operates 8 nuclear power stations
  • Nuclear New Build: tasked with the delivery of the new generation of nuclear plants
  • Energy sourcing and Customer Supply: runs power stations and wind farms, trades energy and deals with all the customer pool
  • Network Branch: administrates and operates the public network (EDF Energy website, 2010)


As the largest UK energy company, EDF Energy is of strategic importance for the UK and thus operates in a regulated environment managing the demands of multiple stakeholders among which:

  • The government department that regulates the provided services
  • Local authorities that moderate and negotiate service delivery
  • End users of the services


Balanced Scorecard and Strategy Map adoption at EDF

During 2000, the company faced several challenges amongst which:

  • A 3% income reduction
  • Re-adjustment of regulatory law
  • Strong pressure to improve customer’s supplies
  • Integration of two newly acquired companies


In order to face all these challenges the company decided the implementation of a performance management and measurement architecture based on the Balanced Scorecard that would be able to address four critical strategic objectives:

  • Improve productivity
  • Enhance reputation
  • Improve customer service, and
  • Be more focus on the use of its resources


The EDF Balanced Scorecard framework is build on the company Strategy Map that translates the company strategy and ambitions through an interconnected set of strategic objectives mapped according with the four traditional Balanced Scorecard perspectives.


Strategy Map - EDF Energy - BSC20.com


Characteristics of the EDF Balanced Scorecard performance management system

EDF Energy – BSC system characteristics

  • The corporate scorecard and strategy map is rolled out into the organization, forming the base of the scorecards and strategy maps from the departmental level
  • The BSC system is aligned throughout the entire organization being deployed up to the individual level – each employee has 3 to 5 measures that are responsible of
  • The corporate BSC and strategy map has a limited number of  measures in order to stress their critical strategic importance and serving as a reference point for all employees
  • At the strategic level the BSC process is facilitated by the operating officer and senior managers that agree on strategic objective, measures and targets for the corporate scorecard
  • Targets are based on past performance and future aspirations, are stretched but not imposed
  • Employees can set their own targets and change them under supervision of their senior managers
  • At the operational level measures are designed in cooperation with employees and middle managers
  • Performance improvement and learning takes a central role in the management process and involves employees of the entire organization



Balanced Scorecard decision making process

The performance management architecture based on the Balanced Scorecard enable the company to:

  • Highlight current status of organizational performance
  • Prioritize actions
  • Provide comparative information about branch performance
  • Provide historical performance information
  • Make available lessons learned from previous decisions in the form of experiences


The performance management process at EDF Energy is based on the following steps:


EDF Energy - Performance Management Process - Balanced Scorecard

  • Gathering of performance data
  • Gathering of contextual data – when and how the problem arose
  • Meet and discuss performance data
  • Evaluate the impact and priority of particular issues  in relation with the Strategy Map directions
  • Analyze the issues that need to be addressed and generate potential solutions
  • Establish a list of initiatives and identify the impact of each potential action
  • Implement the action plans
  • Constantly monitor and evaluate the status of initiatives
  • Analyze the impact of the solutions, enhance the solutions and identify the point when they are not longer needed
  • Use  a structured performance review process at different organizational levels
  • Provide feedback from the operational to strategic level and enable the decision making process
  • Disseminate and store good lessons that have been learned in order to enable and enhance the organizational learning process



For more details on the EDF Energy Balanced Scorecard case study you can follow the reference link.



BSC in practice : Case studies


Certified KPI Professional training

smartKPIs Premium

Performance Management Books