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Chilquinta Energía and the Chilean Energy Sector
In July 2004, when the project manager of Chilquinta Energia.s ¡°balanced scorecard¡± team received the award for best project management of the year, many of the people involved in the project were convinced that successful implementation of the balanced scorecard (BSC) system at Chilquinta Energia, Energas and TecnoRed had been achieved. After 16 months of uninterrupted work, the award marked the first public recognition of the strenuous efforts of top managers and the cross-functional team to introduce a new approach to measuring performance in their companies. However, within a few months, the team realized that, in fact, the BSC project represented a continuous learning process and that further time and effort would be needed before the implementation could be considered truly successful. Although two fundamental principles had been realized . executive leadership and translation of corporate and business strategy into strategic objectives . it would be essential to apply the two other fundamental principles as soon as possible: alignment of all employees with corporate and business strategy, and effective communication in order to win the support and commitment of everyone in the organization. This will doubtless constitute the next challenge for the entire organization.
Chilquinta Energia is the third largest distributor of electricity in Chile and one of the leading energy companies in Latin America (Exhibit 1). Based in the city of Valparaiso, Chilquinta Energia serves more than 500,000 customers, mostly in Chile.s V Region, an area of more than 11,400 square kilometers located just northwest of Santiago. The Chilquinta holding company also includes Energas S.A., which distributes natural gas to 34,000 customers in Chile, and TecnoRed, an energy service company. In 2004, combined revenues totaled approximately $240 million and more than 500 individuals were working for these companies.
As defined in its corporate mission statement, Chilquinta Energía is committed to offering excellence in the quality of its distribution, transmission and generation of energy, as well as in all its associated products, so as to contribute to the joint growth of employees, society and the company. Chilquinta prides itself on being an efficient organization that is committed to its local community and to the natural environment. These characteristics have allowed it to achieve its main purpose: excellence...