How to maximize shareholder value across the enterprise.
How can utility companies ensure investment dollars are being allocated wisely?
Utilities aim to maximize the performance of their assets in order to maximize overall shareholder value when attempting to solve various business problems. Examples include how to improve the returns from business units that are still new and have yet to prove their viability; where to invest to sustain the fiscal-year performance of a star business unit; or how to decentralize decision making and empower field engineers.
Corporations often fail to realize that optimizing individual asset performance doesn’t always create optimal enterprise value—even though local asset level performance might be aligned with the overall corporate strategy. More often than not, financial performance data is collected and analyzed at an asset level, while the ultimate corporate goal is to optimize business performance at a portfolio level.