Use of benchmarking as a performance improvement tool: a case of Kenya power and lighting company
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Date
2006Author
Namu, Catherine W.
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Kenya Power and Lighting Company (KPLC) is a limited liability company operating In
Kenya, and is the sole transmitter and distributor of electrical energy. Although a monopoly,
the last two decades have seen the Company faced with increased pressure to step up to the
plate in terms of performance. Sources of this pressure include more empowered customers,
the government and regulatory bodies, and external development partners such as donor
agencies.
Best performing companies the world over have realised that competitiveness is hinged on
always seeking out new and improved ways of doing things, both from within and without the
enterprise. It is for this reason that benchmarking has garnered appeal as a tool for continuous
improvement.
Worldwide studies reveal scant knowledge into the use of this tool in public sector
organisations, while their counterparts in the private sector continue to register improvements
directly attributable to benchmarking. As a provider of an essential service, KPLC would
benefit greatly if the tool were to be applied to its core, value-adding function.
Research findings indicates that managers of the Distribution and Customer Service Division
were aware of the tool, and informally applied it from time to time, despite the fact that a
number feel that as a monopoly, the tool would not necessarily be of any value. The results
also indicated that performance benchmarking and functional benchmarking were most
popular, with most using a combination of more than one type. There was general agreement
on the need to identify what to measure first, before benchmarking. There was however lack of
information and knowledge sharing, and ability to learn were not considered as necessary to
success of benchmarking.
Lack of management support, poor attitude of staff and poor communication were found to be
the leading challenges to carrying our benchmarking successfully at KPLC. This is in concurs
with findings by other authors on the problems facing companies in the public sector. These
barriers can be overcome by knowledge sharing, a cross functional system of management
primarily through the use of process mapping, and systematically capturing and
communicating customer needs so that they become the focus of any improvement initiative.
Publisher
School of Business, University of Nairobi
Description
Master of Business Administration (MBA) Degree