Change Corporate Culture

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When company considering to change in its performance, improvement, business development, re-engineering and transformation options, boards are looking to achieve a balance between change and continuity, and focus upon areas of greatest opportunity. As situations alter and circumstances change, capabilities, processes and working practices need to be reviewed (Thomas, 2008).

A change in a company creates a major issue developing by organizational culture. Due to recent world financial crisis almost every single company is acting upon it and changing its way of managing business. Sometime a change is unpleasant and become challenging, especially when financial condition is not smooth in overall.

Marketing and selling process is one of the main factors of management. By taking over British Energy, EDF Energy has strengthened its market share where it became obvious necessity to implement change among the companies. The synergy of the company is to reduce duplication of jobs and responsibility and also to locate right people in the right place to get maximum benefit out of its human strengths.

Operations Management the activity of managing the resources which are devoted to the production and delivery of products and services (Slack et al, 2007, p 4). To manage the organization divides into several functional departments. To manage those organisational functions are the part and responsible of the organizational jobs. Also those who perform the activity are called directors, managers, or different kinds of designation are given with responsibilities. To perform in the right ways the operations management knowledge is necessary for organisational personnel.

Answer to the question no 1.

Name of the focus area (company): EDF Energy PLC.

Established as EDF Energy: 2003

Employees: Nearly 20,000

EDF Energy is the largest electricity network operator, distributing electricity to over a quarter of country's population. EDF Energy is also a major generator of power in the UK, and over 5.665 million customers to supply gas and electricity (EDF Energy, 2010). It have coal and gas generation, wind farms as well as combined heat and power plants and also a part of the EDF Group, one of the largest energy companies in Europe, with key business operations in France, the UK, Germany and Italy.

The Operation of EDF Energy Customer Branch:

Provides a meter reading, maintenance and data management service and domestic and business supply sales and marketing.

Very recently EDF Energy has taken over British Energy to strengthen in production capability through its nuclear power stations to produce more electricity to make comparatively affordable electricity to every household. EDF Energy believes in being more than just an energy company. They believe they have a commitments to the community in which they operate and support a range of different charities and initiatives (EDF Energy, 2009).

Electricity Market Sector

According to Market Report (2007) the terms of sales, the UK electricity market is divided into the following sectors:-

  • Domestic
  • Industrial
  • Commercial
  • Public
  • Transport
  • Agriculture

The above markets are all covered by EDF Energy in general. The main challenge of EDF Energy is facing in respect of managing one of the organisational divisions that is not getting enough sales to keep the organisations' ratio wise balance scale of the business where they are losing more customers then the acquisitions. Here it is considered only SME Sales because of time constrains and not enough information available at present from rest of the departments.

Answer to the question no 2

Total Quality Management (TQM) is being adopted in early 1950's and became popular in early 1960's (Padhi, 2002). According to Oakland (2003), any organisation basically competes on its reputation -for quality, reliability, price and delivery- and most people now recognises that quality is the most important part of these weapons in the business.

During the last decades the usages of Total Quality has largely increased by all types of organisations. The aim of Total Quality may differ from each other in the organisations, but it is a fact of common interests of being able to compete globally in terms of quality assurance; quality control; and of course inspections of being able to judge the conformance to specifications of products, processes, or services.

The development of system for controlling and managing quality has rapidly evolved. For an example if we look at the ISO 2008 survey result data for certification being issued 322 700 more than the 2008 (ISO Survey, 2008).

According to the above data it understandable that day by day businesses are being more and more conscious about its customers and as a result they are trying to offer better services as in a completion mode.

The type of TQM differs from business to business, large to small, private to public, manufacturing to service oriented etc. This means manager in every organisation is expected to establish a benchmark. Benchmarking is a self-improvement tool for organisations. It allows them to compare themselves with others, to identify their comparative strengths and weaknesses and learn from them how to improve. Benchmarking is a way of finding and adopting best practices (ACU, 2010).

Benchmark does not mean to copy others but it requires to study own organisation or work and create a customised standard to do better then present or marked standard and it also to find out gap in betweens (Accounts Commission for Scotland, 1999).

Some company take different kinds of approach according to their needs. In EDF Energy - Leadership, quality, team work, reliability and environment responsibility etc approaches are mostly considered. To be successfully implementing TQM, organisation must concentrate on the eight elements:-

  1. Ethics;
  2. Integrity
  3. Trust
  4. Training
  5. Teamwork
  6. Leadership
  7. Recognition
  8. Communication

TQM is built on a foundation of:-

  • Ethics;
  • Integrity and trust;

Same was fostering the above TQM keep building its structure to reach onto the roof of the recognitions which includes • Training, • Teamwork and, • Leadership. To keep all these elements to bind together • Communications plays a viral role here. And it requires two way listening and understandable communications to get the job done properly.

To give an example, a public utility company in Hong Kong adopted TQM for long time benefits and to improve its services. To accomplish the target, company set its' target to get reorganisation publicly by gaining quality award to achieve its business ambitions to create a benchmark among the similar industries. As a result of adopting the TQM, company provided Performance Excellence Model criteria to locate the improvement area by facilitating training to achieve different kinds of award (Hong Kong Productivity Council, 2000-5).

TQM is a concept ties all the work together to get a better result. It is believed that TQM is one of the processes that might bring the alternative result of process. During my study I have reviled that TQM is not only working in industries it actually put impact in personal life here and there. And in the near future people might comeback with a scientific evidence of TQM uses in day to day life managements.

 Answer to the question no 3a

TQM is a plan wise working process where it helps to get a job done in accordance with other management skills and developments. In this present century organisations are always trying to practice as per latest management finding / developments for which they also in some extent participate to develop new ideas to contribute in the industries.

Here, to my understanding that EDF Energy (SME Sales) is operating TQM in its contract management. As we know that every company follows at a system approach which is nothing but like a machine that requires fuel or energy; the possible raw materials and it perform some kind of process of conversion on the fuel / energy / raw materials and then it output of the conversation.

To achieve its best result company is following a performance measuring tool called SMART concept objectives and use for all the team members.

SMART Objective of EDF Energy, (EDF Energy, 2010)

Specific         Numbers of sales need to be calculated to measure
Measurable    Only the actual successful registered sales figure will be considered to measure
Achievable    Whether the target is given practical or not to measure
Realistic        As per current market situation and position
Time bounds Within the time frame

To maintain this SMART objective EDF has developed a individual performance measuring scale known as CFS (Coaching For Performance) by which every 4 (Four) months each and every employee are evaluated by his / her performance and also a one to one (1-2-1) basis advice are offered to develop his / her performance. It is also well documented in individuals personnel file whether the employee performed according to expectation or not. The process is similar to EFQM diagram which may have been followed by the organisation.

In EDF Energy the leadership team provides direction by considering global leaders' directions and ambitions. They also delegate the responsibility to the corporate levels from where the corporate levels management provide new set of direction for the particular SBUs'. They also establish result they want within a time frame by driving strategies and policies set by leadership team.

By establishing to manage appropriately the process approaches to people to perform and mange them to get the result with or without a third party relationship. To verify whether the employees are performing, supervisors are asked use the SMART objective and also use CFS review at least thrice a year to evaluate an individual's yearly performance.

To get a customer result again the managers are asked to use the same measuring scale and deliver a result to the central human resources database for record to be kept for future reference.

It is observed that every department has its own system of approach and we are here only discussing overall SME sales department. FSAs are given a sales target to achieve and send the sold contract to the registration process immediately on the same evening to start registration process within 2 to 3 working days and can be possible to get back to the customer with the set time given by Ofgem authority.

The only way to measure the success result of an individual FSA's is to see the numbers of sales being carried out through out the process in a specific time period and also to see the attendance levels in the field.

Contract registration team being a part of process they process the registration and send all the data to the competitors to establish new relation with customer and notify the present supplier of acquisition or to the billing section where they only change detail of new business.

Once successfully registration process completed then the data will be sent to payroll to pay appropriate commission to the concern FSA. A portfolio manager is also engaged for particular customers to minimise any mistake occurred while completing the sales in field or in time of registrations.

The benefit I am receiving form this particular process is that we know now where is the contract and the status of its registration flows. As we are the face of the company we are the first the customers tries to communicate to come back to them with a result of registration which some may possible to reply back to them with a result and some may not.

To identify key improvement areas; it is necessary to explore process chain system of EDF Energy's contract registration system. Because of time constrain and availability of evidence of all the necessary information the full process will not be discussed and here only the contract signed and registration process will be considered.

Every sales advisor are provided data of prospective customer for sales cold call with some information of name, address, telephone no, when EDF lost this supply or present supply status etc.; so that the FSA (Field Sales Advisor) could speak to his / her customers with initial information to offer EDF products. The below is contract registration process chain for illustration:-

Contract Registration Process Chain

The policy is considered by the EDF Energy is some kind of bureaucratic management way, where no FSA is allowed to communicate registration personnel even if, if it is for their own sold contracts information updates. Form the feedback from different FSAs and my personal experience it reviled to me that if this bureaucratic system can be eliminate then some of the problems could resolved then and there and also expedite the registration process and helped to increase the registration success.

Issues of Concerns:

As we know once any contract signed it need to be communicated back to them from the registration depart within 10 days of signing the contract. It can only be attempted to register thrice in one quarter or 90 days period.

EDF Energy commission policy is that any signed contract if they can not register it because of registration mistakes or delays over 28 day it has be paid it's commission to the concern FSA, otherwise it is only payable to FSA on successful registration. To prevent unnecessary payments of unsuccessful customers registration has taken a decision of trying the contract within 28 of received and only twice no thrice as between registration it need to give at least 2 weeks time gaps.

As a result of above all the sales employee because unhappy and not motivated. As a consequence of this sales figure has started plumped to almost 80-90% less than previous year. And all sales forces are becoming disloyal to the company and trying to do some other sales job while working for EDF Energy.

Action plans suggestion:

  1. Communicate to the FSA on a regular basis.
  2. Let FSA communicate directly by registration department to resolve pending any issue from customer side; so that both party can be benefited out of it.
  3. Eliminate all unnecessary administrative work loads, such as Fields Sales Managers job should be in the field rather than working in the office.
  4. Clear result of successful registration, so that the entire employee knows what exactly happened in the registration.
  5. Provide correct data, and crate trusting atmosphere so that whole sales force believe as apart of the company.

The above action plans need more elaborate discussion and need to locate real problem so that it will be easy for any business level managers to take decisions. It is also suggested that company should adopt bottom up decision making process and also they should sit together and make a suitable plan to be successful.


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  • Accounts Commission for Scotland (1999), Measuring Up to the best. Module CD ROM.
  • Dahlgaard, J.J. (2006), The TQM Magazine, Vol. 18 No. 3, 2006,pp. 263-281 [Online] Available from: , [Accessed on 10 January 2010].
  • Oakland, J.S (3003), TQM - Text with Cases, 3rd ed. Oxford: Elsevier.
  • Padhi, N. (2002), The Eight Elements Of [Online] Available from: - Accessed 9 January 2010.
  • Performance Excellence Model Development Programme for a Public Utility Company in Hong Kong (2010), [Online] Available from: excel_hk1.jsp, [Accessed 09 January, 2010].
  • Raturi and Evans ( 2005), Principles of Operations Management, Thomson: USA
  • The Association of Commonwealth Universities (2010), What is benchmarking? [Online] Available from: [Accessed 22 January, 2010].
  • The ISO Survey (2008), The ISO Survey of Certifications 2008, [Online] Available from: [Accessed 22 January 2010].
  • Wiggin, E. (2007), Market Assessment, Utilities, 3rd ed. Key Note.