Southern Company Case Study Essay
Southern Company Case Study
June 5, 2013
1. Evaluate the effectiveness of the roles that the strategic leaders played in the formation of the performance management strategy.
Southern Company is an electric utility company headquartered in Atlanta, GA. The company owns electric utilities in Alabama, Florida, Georgia, and Mississippi and services roughly 4.4 million customers. Southern Company also provides fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are below the national average. Historically, Southern Company hired at the entry level and promoted individuals internally to fill leadership …show more content…
Southern Company saw an opportunity, took the initiative to improve their leadership development system by adopting the leadership framework by Ram Charan, Stephen Drotter, and James Noel in their book “The Leadership Pipeline: How to Build the Leadership-Powered Company (Goldsmith & Carter 2010).
Southern Company’s leadership teams played a significant role in the formation of their performance management strategy. Once performance standards were identified, leaders were able to better understand what was expected of them at each leadership level as well as across the entire company. Managers were reporting that their evaluations were better geared towards common company goals. This cultivated development of high potential individuals. This initial response to the implementation of this new strategy was clustered and it needed to become more streamlined throughout the entire company. This strategy was looked at as an HR initiative when it needed to be driven by managers in order to flood Southern completely.
A leadership committee was created in order to implement the strategy throughout every part of the company. In order for this to be successful all parties needed to be represented and therefore senior line