Tata Power Delhi Distribution Ltd: measuring beyond the metrics

Abstract

Subject area The focus is on a performance management system and its strategic alignment using a Balanced scorecard in a Public Private Partnership framework. This case study analyses the situation for Tata Power Delhi Distribution (TPDD) which needs to realign its strategy to meet the emerging sustainability challenges of inclusive growth and combating the climate change. The case covers the field of strategic management, strategy formulation and performance management system deployment using the balanced scorecard. It touches upon the emerging need for corporates to look beyond economic signals and take social and environmental impacts into strategy planning process. Study level/applicability The case can be used in the following courses; post graduate program in public administration; MBA/Post graduate program in management in strategic management; executive training program for Government executives in public sector organizations to highlight the concept of performance management system in PPP companies. Case overview After the initial tumultuous years, TPDD emerged as one of the efficient power distribution companies in Delhi region. One of the major management tools that was helpful to achieve this was the balanced scorecard. TPDD's general manager for corporate strategy & planning reviewed the process and the due diligence that went into designing and implementing the balanced scorecard. Now, after the balanced scorecard success story, he along with Dr Ganesh Das, Head of Group – Strategy wants to take it to a next level and integrate their strategies related to inclusive growth of community and combating the ill effects of climate change. They believe that the balanced scorecard method that had helped them to achieve their strategic goals will help them to achieve future objectives too. But whether the existing four perspectives: financial, customer, internal process and learning and growth would adequately address the emerging challenges or whether there was a need to introduce a new perspective – “The Social Perspective” – is what they contemplate in the case. Expected learning outcomes The case can be used to teach the following: the importance of strategy in an organization and how it helps the firms to realize their stated vision; to highlight the process of strategy formulation and its deployment; to help students realize the difficulties in realizing a strategic goal through performance management system; use the balanced scorecard as an effective tool for strategy deployment and organizational alignment; to introduce students the concept of sustainability in the organization and emerging global challenges; and to illustrate the complexities involved in a strategic planning process Supplementary materials Teaching notes.