EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
our employees updated through
more regular townhall meetings,
an expanded-Labor Management
Council, and use our annual Leaders’
Assembly to keep our leaders
informed on the company’s business
objectives and aspirations.
In addition, as a key component of
EDC’s transformation journey and
to get 100% of the employees on
board EDC’s strategic directions, we
launched the PowerUp sessions in
the second half of last year. PowerUp
is a three-day event that provides
employees with key information about
our industry, where the company
is going, and how we intend to get
there through our growth strategies.
We spend a whole day on our Lopez
Values and end the third day with the
Employee Value Proposition, which
proposes a compelling employee
total experience anchored on
partnership, resilience, rewards, wellbeing,
and higher intent. As of today,
around 966 employees or 40% of
EDC’s total employee population,
have completed PowerUp. Based on
the feedback we have gathered, this is
most likely our most potent program
for changing our culture, engaging our
employees and gaining alignment.
As a result of all this focus, in 2014,
our employee engagement score,
measured using the Sustainable
Engagement Model of Towers
Watson, shot up to 88%, now a full 3%
higher than the Philippine national
norm, 9% higher than 41 energy and
utility companies that make up global
best benchmarks, and 4% higher than
the 27 highest performing companies
that make up global best benchmarks.
Why is all this important? It is crucially
important because engagement is
ultimately the employee saying that
they are willing to expend significant
discretionary effort for the good
of the company. It is the employee
confirming that they have the support,
tools, and information they need to
succeed. It is the employee confirming
that at EDC, while they are at work,
they are energized and inspired. This
phenomenal change over the past
four years augurs well for our culture
and our future.
6
BUSINESS UNITS: DRIVERS OF PERFORMANCE
AND ACCOUNTABILITY
The sixth building block is our
decision to change our business
model from being a functionally
driven value chain, to a business unitdriven
enterprise.
This shifted decision-making from the
Head Office to the business units where
employees have a better visibility of
the facts and a richer understanding
of the context. This allowed business
units to manage costs better, make the
speed of decision-making responsive
and make people accountable for the
bottom line. Business units now also
have control and accountability for
their health, safety, and environmental
performance.
EDC’s senior management team sets
the targets and objectives to help
guide the different business units.
These targets are monitored and
reported on a regular basis.
While we have made drastic changes
in the organizational structure,
particularly in the last three years,
the transformation is still far from
complete. We are now embarking
on several process changes that will
make the new business model more
effective and efficient.
7
LED BY ABLE LEADERS
The final building block I would
like to mention is our management
team. None of the positive results I
mentioned above would have been
possible without the leadership of
EDC’s senior management team.
While it is a bit unusual to delve into
this in detail, I would like to describe
each of them briefly.
Ernie Pantangco, our energetic EVP,
is a mechanical engineer, troubleshooter
and spokesperson for and
shaper of the electricity industry of the
Philippines. Ernie is a member of our
board of directors and has an MBA
from AIM.
Nestor Vasay, our SVP, CFO, and
Treasurer, comes to EDC by way
of First Gen and JPMorgan Chase.
Nestor, my alter ego, is an accountant
by training. He heads the crucial
finance function as well as insurance
and the supply chain. Nestor is known
by many as the “enforcer” given how
seriously he takes his comptrollership
role to heart.
Dom Camu, our SVP who worked
internationally for GE O&M and
Covanta, now heads our largest
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