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Energy without limits december | january 2012 Nº24
PhotograPhic EssayThe best pictures
of the WindFloat Project
sPotlightMiguel setas, EDP Director & Vice-President in Brazil
Volunteering is a part
of us
af imp cityon EN 220x300.indd 1 1/24/12 6:19 PM
editorial
3 edpon
Companies have an important role to play in empowering civil society in the search for solutions to old problems. We’re not talking about giving back to society what it gives to companies; rather we’re talking about companies being actors of change in collective behavior.Volunteering is a powerful way for the private
sector to create an atmosphere of openness, belonging and confidence between itself and society.What a company can offer in organizing something that is born of free and individual will is the ability to plan, manage and provide a strategic content for volunteering, which in turn has a positive social impact and within a certain structure enables tertiary institutions. As an organization with a history of philanthropy, EDP seeks to inspire others to replicate its spirit of volunteerism elsewhere in society. Within this scope, the Group has created the Hours Exchange management platform, which tracks “supply” and “demand” between EDP and the institutions that benefit from its volunteer efforts, and has launched the Volunteer Program throughout its many countries of operation.But we did much more: On International Volunteer Day, Dec. 5, we launched the Volunteer Portal (www. voluntariado.edp.pt) — an open platform through which volunteers and their partners can present projects and share experiences in a privileged space. Here you can become familiar with all the initiatives under way in this area and find out how you can help others. In addition, soon you’ll be able to connect with co-workers and other colleagues on Facebook and Twitter to discuss your community service experiences and perhaps even identify new volunteer opportunities. So, turn your story into a source of inspiration! And don’t forget that volunteering promotes teamwork, enhances the business environment, and, besides increasing personal satisfaction, promotes responsibility and caring for others.
If you have not yet become a volunteer, sign up now and be part of a project that makes all the difference!
Volunteering:a source of inspiration
EDP’s spirit of volunteerism seeks to create a true effect of
social replication
by Paulo Campos CostaBrand and Communications Manager
4 edpon
december | january
In a new strategic vision for the future, EDP’s employee volunteer program will enable the Group’s companies to take isolated actions and perform them in a coordinate, comprehensive fashion.
PUBLISHER Península Press sl / rua dos Correeiros 120, 4º esq / 1100-168 lisboa EXECUTIVE DIRECTOR stella klauhs [email protected] REDaCTIOn eduardo marino (editor), joana Peres (redaCtor) aRT marta ConCeição PHOTOGRaPHY hugo gamboa, joão reis e adelino oliveira, istoCkPhoto, sxC EDP COORDInaTIOn margarida glória | FREE DISTRIBUTIOn In PORTUGaL — 23.000; sPain — 2.000; brazil — 2.500 | lisgráfiCa - imPressão e artes gráfiCas, rua Consiglieri Pedroso, nº. 90, Casal de sta. leoPoldina, 2730-053 barCarena - Portugal. tel +351 214 345 400 (main); fax +351 214 345 494
26 35o n c o v e r edP’s “Parte de nós” (Part of us) initiative mobilized hundreds of volunteers to help in hospitals throughout Portugal.
EDP On IS a BImOnTHLY EDITIOnProperty of edP - energias de Portugal, sa Praça marquês de Pombal, 12, 1250-162 lisboatel: 210 012 680 fax: 210 012 910 [email protected] Paulo Campos Costa
Energy without limits december | january 2012 Nº24
PHOTOGRAPHIC ESSAYThe best pictures
of the WindFloat Project
SPOTLIGHTMiguel Setas, EDP Director & Vice-President in Brazil
Volunteering is a part
of us
i n d e x
edpon 5
36WHo’S WHoexpert mathias kirchmer shares his thoughts on business process management.
40In DeBATethe ocean is a source of opportunities. how do we manage this asset?
42oUr enerGY
44HUMAn cAPITALglobal edP human resources meeting gathers 200 employees.
64In focUSluís faria, director for energy development, is profiled.
06 forUM edpon asks: how can employee mobility most benefit the edP group?
07STock
08MArkeT the new edP brand arrives in spain and is present in all edP stores in Portugal.
12eDP cULTUre
Chairman antónio de almeida receives the Carreira award from the President of Portugal.
20InnovATIon openspace, tool for sharing knowledge.
24c A U S e S
58 63PHoToGrAPHIc eSSAY Windfloat was successfully launched and now navigates Portuguese waters.
48 53SPoTLIGHTmiguel setas, director and vice president of edP brazil, talks about the key challenges facing his company: creating value, innovation and sustainability.
54 55SUSTAInABILITY
Your energy: edPon looks back on three years of educating youth on the importance of energy efficiency.
6 edpon
The growth of business and the permanent search for new challenges have led to a clear expansion of the EDP Group and hence to the development of a global employee mobility policy. EDP fervently believes that, in terms of human resources management, mobility is one of the key tools at our disposal for increasing motivation among staff and developing the organization to its full potential.
ON waNts tO kNOw: In your vIew, what Is the maIn advantage of mobIlIty wIthIn the group?we received 263 answers.
MOBILITY
• 45.6% A factor in career development, personal and professional growth: 120 answers
• 19.8% An opportunity to diversify functions and meet new challenges: 52 answers
• 9.9% A resource for the sharing and management of knowledge about the EDP culture: 26 answers
• 8.74% A way to promote skills and productivity: 23 answers
• 7.22% A way to better understand the business and the EDP Group: 19 answers
• 4.94% A way to foster change: 13 answers
• 3.8% A way to monitor the company’s internationalization process: 10 answers
EDP offers employees three types of mobility: intra-company, inter-company (in different companies in Portugal) and international. In terms of process strategy and management, the Group created a mobility policy, international mobility policy and internal mobility procedures
manual, all of which can be accessed through EDP’s intranet. Recognizing employee mobility as a key strategic issue, the executive board of directors passed a resolution to create a mobility committee. In 2010, the total number of employee mobility events topped at 1,120.
Between Jan. 01 and Oct. 31, 2011, that number was already at 915, more precisely: 394 intra-company, 501 intercompany and 20 international mobility events. According to Maria João Martins, the Group’s director of human resources,” We have made mobility into something
more robust; we dialogued more about it. And the truth is that, today, it is a more natural state. We know that we all grow and that knowledge management is achieved through the circulation of employees both nationally and internationally within the Group. The 1,120 mobility events recorded in 2010 prove it!”
Mobil ity within the EDP Group
+
Investigation, development and innovation - EDP ASKS
Forum
edpon 7
the strings of the market
10/31/2011
11/03/2011
11/08/2011
11/11/2011
11/17/2011
11/23/2011
11/28/2011
11/30/2011
12/05/2011
12/08/2011
12/12/2011
10/03/2011
10/06/2011
10/13/2011
10/20/2011
10/27/2011
11/03/2011
11/10/2011
11/17/2011
11/24/2011
12/01/2011
12/09/2011
0
0.5
1.0
1.5
2.0
2.5
10/14/2011
10/19/2011
10/25/2011
10/31/2011
11/04/2011
11/10/2011
11/16/2011
11/22/2011
11/28/2011
12/05/2011
12/09/2011
0
1
2
3
4
5
0
5
10
15
20
25
30
35
40
10/31/2011
11/03/2011
11/08/2011
11/11/2011
11/17/2011
11/23/2011
11/28/2011
11/30/2011
12/05/2011
12/08/2011
12/12/2011
10/03/2011
10/06/2011
10/13/2011
10/20/2011
10/27/2011
11/03/2011
11/10/2011
11/17/2011
11/24/2011
12/01/2011
12/09/2011
0
0.5
1.0
1.5
2.0
2.5
10/14/2011
10/19/2011
10/25/2011
10/31/2011
11/04/2011
11/10/2011
11/16/2011
11/22/2011
11/28/2011
12/05/2011
12/09/2011
0
1
2
3
4
5
0
5
10
15
20
25
30
35
40
10/31/2011
11/03/2011
11/08/2011
11/11/2011
11/17/2011
11/23/2011
11/28/2011
11/30/2011
12/05/2011
12/08/2011
12/12/2011
10/03/2011
10/06/2011
10/13/2011
10/20/2011
10/27/2011
11/03/2011
11/10/2011
11/17/2011
11/24/2011
12/01/2011
12/09/2011
0
0.5
1.0
1.5
2.0
2.5
10/14/2011
10/19/2011
10/25/2011
10/31/2011
11/04/2011
11/10/2011
11/16/2011
11/22/2011
11/28/2011
12/05/2011
12/09/2011
0
1
2
3
4
5
0
5
10
15
20
25
30
35
40
Portugal
Renewables
In euros
Brazil
In reais
In euros
Analyst
BPI - Portuguese Investment Bank
HSBC
N+1
Santander
Morgan Stanley
Goldman Sachs International
BBVA
Merrill Lynch
Espírito Santo Investment Bank
Millennium BCP
UBS - Investment
JP Morgan
Recommendation
Accumulate
Overweight
Sell
Underweight
Overweight
Buy
Outperfom
Buy
Buy
Buy
Buy
Overweight
Target Price
2.80
3.00
2.39
2.75
3.30
3.40
2.90
2.80
2.80
3.05
3.00
3.00
Date
11-30-2011
11-22-2011
11-16-2011
11-07-2011
10-31-2011
10-31-2011
10-24-2011
10-21-2011
10-18-2011
10-14-2011
10-13-2011
10-13-2011
ANALYST RECOMMENDATIONS
2.48
4.40
38.8
8 edpon
The most effective methods and the values that serve as examples
Market
EDP debuted its new corporate identity in Spain on Nov. 15. It was another step in the rebranding, which was first taken in Portugal on July 1. The HC Energía and Naturgas Energía (the brand under which the Group operates in the Basque Country) head offices now show off the EDP Group’s overall unique corporate logo. The new brand was already a reality in Spain in some departments. Many changes took place in early July in the internal communications departments of the Spanish companies. But now, it’s more real to everyone: Customers, suppliers and society are already familiar with the Group’s
innovative new corporate image.In recent months, the Group worked hard to present the new brand logo on November 15, through signage, forms, car stickers, new brand design supports, new stationery ... The projection of the new logo at the Kursaal convention center in San Sebastian was the beginning of this change. From there, different activities, from the change of symbolic elements such as the cube of light at HC Energía headquarters, or the planting of trees by students dressed in T-shirts printed with the new logo, serve as a means to convey EDP’s new corporate identity in Spain.
New brand already in Spain
A new fAce foreDP StoreSFollowing the rebranding, EDP shops welcomed changes reflecting the Group’s new values and identity.Two logos were chosen to identify EDP service centers throughout the country, a total of 406 points of direct contact with the public.All proprietary stores (34), citizen stores (9) and EDP agents (286) have a new outdoor sign representing the identity of the innovative and sustainable brand, reflected through the use of more resistant, durable and easy to maintain materials. This country-wide operation involved the participation of a 33-person team, which installed 18,000 linear feet of LEDs, 290 meters of tensioned canvas, 30 meters of frosted glass, the production of 312 exterior flags and 35 interior monosurfaces, and 10 vans that toured the country during assembly.
edpon 9
eDP renewables in north America First large-scale wind farm in Ohio State
In October 2011, EDP Renewables hosted the opening ceremony of the Timber Road Wind Farm II, the first industrial-scale wind farm in Ohio. About 250 guests, including landowners, project stakeholders and EDPR North America employees, gathered together for the ceremony. “It is with great pride that we are here today to celebrate our first wind farm in Ohio,” said
EDPR North America’s Gabriel Alonso, chief operating officer of EDPR North America, during his speech at the event. “Developing, designing, building and operating a wind farm is like building a puzzle; each wind farm project requires the homogeneous union of many complex parts. On behalf of EDPR’s North American platform, I thank the landowners and community
stakeholders for trusting us and for providing the essential steps necessary to build this wind farm.” In the U.S., EDPR has been working with more than 100 local landowners since 2008 to develop and build Timber Road. Located in the region of Paulding, Ohio, Timber Road II Wind Farm has an installed capacity of 99 MW generated by 55 Vestas V100 1.8 MW-type turbines. Timber Road
II will is expected to generate enough electricity to power approximately 27,000 homes in Ohio. This is the first of four stages for the wind farm, which is being built in northwest Ohio. In 2010, EDPR executed a 20-year Power Purchase Agreement with AEP Ohio, a unit of American Electric Power (NYSE: AEP), for the purchase of clean electricity generated by this wind farm.
EDP in EuropEan SummitA summit for European CEOs and CFOs was held in Munich and organized by BME, the German Association of Materials Management, Purchasing and Logistics, focusing on “Enhancing Profitable Growth.” The event was attended by 200 procurementand financial executives (from 15 countries) from the largestEuropean companies in the EDP Group, including Microsoft, TATA, Siemens, Volkswagen, Thyssen, Schindler, Merck and other multinational firms. Luis Ferreira, the EDP Group’s CPO (Chief Performance Officer) and director of the Trading and Procurement Department, was invited as the summit’s main speaker. His speech focused on large structural projects and the risks associated with failures in deliveries and delays in execution. He presented as an example the construction and maintenance of the Tocantins River Peixe Angelical (Enerpeixe-Brazil) Dam and the impact it caused, as well as the difficulties inherent to the construction and supply of equipment associated with the management of multiple vendors in this endeavor.
market
10 edpon
earnings grow 6%
EDP’s net results reached 824 million euros in the first nine months of 2011, an increase of 6% over the same period in 2010, in tandem with the growth of the renewable energy business and operations in Brazil. According to António Mexia, 59 percent of these results are generated “outside Portugal,” and he added, “it has to do with the growth in new
geographies, but also with the fact that new investments in Portugal only started to produce results later this year.” Such is the case in the reinforcement of the Picote and Bemposta dams, which went into operation in December 2011.EBITDA rose 4.7% to 2,775 billion euros “supported by the regulated networks (more than 137 million euros), wind farm activities
(75 million) and the growth in renewables in Brazil (more than 59 million).” Concurrently, net operational costs fell by 2.7 percent to 1.307 billion euros. Between January and September of 2011, “there was an increase in efficiency and cost control that turned the company into the most efficient concern in the industry in the Iberian Peninsula,” said Mexia.
António Mexia stresses that, in the
Iberian Peninsula, EDP is the most
efficient company in the industry.
D A t A
824M€ net Profit
+4.7% EBiTDA(2.775 billion euros)
-2.7% Operating Costs(1.307 billion euros)
Thanks to the growth of the renewable energy business and operations in Brazil
third trimEStEr rESultS
EDP Renováveis was distinguished with the first of three awards in the second round of the Awards of Excellence for Spanish Companies of Portuguese Capital, an initiative undertaken by the Circle of Spanish and Portuguese Entrepreneurs and Managers (CEGEP). its CEO, Ana Maria Fernandes, accepted the award during a ceremony held at the intercontinental Hotel in Madrid on October 20.The CEGEP selected EDP Renováveis as the
no. 1 in Excellence based on six quantitative criteria. The renewable energy company distinguished itself by creating jobs and financial autonomy, in that 77 percent of its assets are self-financed. it also came in second in terms of productivity.HC Energía, an EDP Group company, was awarded third place in this ranking.in total, over 25 percent of more than 600 Spanish companies are owned by Portuguese interests.
EDP REnovávEIs RECEivES AwARD FOR ExCELLEnCE
market
edpon 11
Edp lEadS EngagEmEnt ratingThis year EDP topped the Engagement Rating ranking, which measures the transparency of its business engagements with their stakeholders in the sustainability arena. The 2011 results for ERP (Portugal) and ERS (Spain) rate the performance of each company in five areas: economic, social, environmental, strategy and management. The selection of the companies analyzed in the ERP 2011 was based on the “500 Biggest & Better” list published by Exame magazine, a partner in this project. in Spain, the selection process for the ERS 2011 was based on the 25 largest companies in the “500 Biggest Spanish Companies” ranking, published by magazine.
More thAn 200,000 cuStoMerSreceive electronic invoicing
CoMMERCIAl systEMs DATA MAnAGEMEnTEDP Commercial Systems launched its data management implementation model late September. Factors that contributed to this operation, include: organizational and operational complexity, with the existence of commercial data wholly or partially shared between processes across several companies; complexity of information systems, implying the need to ensure data consistency among different systems (electricity, gas and services); demanding legislative and regulatory context, unbundling (of network operators) within regulated and unregulated activities and companies; confidentiality and personal data protection and enhancement of compliance and internal control requirements; and increased information available to the market and the regulator. In the meantime, the first Data Management Project Steering Committee meeting
took place October 7 with the attendance of BOD members, António Martins da Costa and Jorge Cruz de Morais, as well as representatives from EDP Serviço Universal, EDP Distribuição, EDP Gás, EDP Comercial, EDP Soluções Comerciais and the Corporate Center (DAI, DGR, DSI and DMK).António Martins da Costa said that this new structure, which will be led by José Carlos Teixeira, director of the Data Management Office, would strengthen some key skills in the management of the EDP Group’s business cycle. The focus of the project will be the creation of this structure with its Data Management’s design, job descriptions, responsibility matrix, policy and processes definitions. The scope also includes a data quality pilot and a road map of the complementary initiatives necessary for its full functionality.
João Matos FernandesEDPCs Director
José Carlos teixeiraData Management office Director
+
HC Energía and naturgasEnergía signed up more than 200,000 customers for electronic invoicing, resulting in a cost savings of up to € 284,240, thanks to the reduction in paper mailings, and a decrease of 8.4 tons of CO2, which contributed to the two companies’ commitment to achieving greater environmental friendliness and sustainable development. within this scope,
the companies developed the “A Contract for a Tree” campaign, which consists of planting a tree for each contract that is billed by electronic invoice. The number of new contracts is increasing, with the goal being to plant more than 75,000 trees. Customers can check their electronic invoices through the Customer Area, which accessible through the HC Energía and naturgas Energía websites.
12 edpon
The most effective methods and the values that serve as examples
edpculture
António de Almeida, chairman of EDP’s General and Supervisory Board, received the CAREER Award, in homage to his 50 years of professional dedication. The award was presented by President Cavaco Silva at the official opening of the 4th National Conference of Economists, held at ISCTE. Here is his testimony:
“The CAREER Award, handed to me by the president of the republic on Oct. 19, 2011, had a very special meaning for me and my family who endured my frequent absences,my frequent absences — all because of the ephemeral mirage of my career. I made a conscious decision to be an economist, then came positions in management, as a politician, a columnist, a teacher and a supervisor, both in Portugal and abroad. Fifty years went by. I lived through the many phases of our national life, some of euphoria and others of depression. In different guises, history will repeat itself, albeit aggravated by the results of the mistakes we make today but which we can only truly recognize
later. I made mistakes. I paid for some, but always tried to dignify my profession, as well as the offices entrusted to me. I did it based on study, reflection, risk taking, the limiting of concessions and straightforwardness. But mainly I did it through and example. I never asked for a job. I will die with a clear conscience that what I did was always because I was invited. Because I belonged to a generation that was born during the Spanish Civil War, in the extreme poverty that pervaded my birthplace, Celorico da Beira, wasteful actions and the image of glamour are not part of my profile. Such images are fleeting. Only the examples we set, our character, and what we do
and bequeath to posterity — if it does not fall into oblivion — may one day be remembered. The offices of chairman of the Board of Directors for EDP during the first phase of its privatization, chairman of the Audit Committee when it adopted the monist model, and chairman of the first Supervisory Board Committee, during the shift to the dualistic model, represent the diamond in the cache of my career — a career fast approaching its final phase. The unstoppable time clock, not the award, will be the final judge of my actions during my 50 years of work, as well as what, due to my inability, lack of courage or obstacles I was unable to accomplish.”
António de AlmeidA Receives cAReeR AwARd
edpon 13
Operators from Pecém in SinesOne more internship cycle came to an end for our co-workers from the Porto de Pecém power plant, located in the Brazilian state of Ceará. Between May 30 and Aug. 24, the Sines Production Center (PTSN) provided practical training to the third class of on-site and off-site operators. The internship began with the integration
of trainees (five on-site and 10 off-site operators) into the driving teams in shifts, which then unfolded into two distinct phases. In the first phase, we focused on the transfer of knowledge pertaining to the equipment and its function, while the second phase was directed primarily at operating and driving the equipment.
It is important to remember that in 2008 EDP embraced the challenge of building a thermoelectric project in Brazil, in São Gonçalo do Amarante, also in Ceara. The project chosen was a coal plant with an installed capacity of 720 MW. It is to be patterned after PTSN as an inspiring organic model of energy production and distribution.
The first synchronization of the Picote ii hydroelectric plant with the national power grid, which reached 70 Mw of output, occurred on Oct. 19, 2011, at exactly 5:21 p.m. The startup of industrial service took place one month ahead of schedule vis-a-vis the initial planned date — marking an unprecedented event in the history of edP’s large hydroelectric construction projects. On Oct. 21 the Picote group successfully achieved full capacity, at 246 Mw, and experimental service runs took place at the end of November. Bemposta ii also represents the first 78Mw mark for the group in an initial synchronization with the national grid, an event that happened on Oct. 31 at 4:21 p.m. This highly significant milestone in the reinforcement of Picote’s and Bemposta’s hydroelectric power capacity was witnessed by edP Produção’s director, António Ferreira da costa, the director of projects, António Freitas da costa, as well as the project, worksite and commissioning teams.
Picote ii e Bemposta ii: The First synchronization
edp culture
14 edpon
EDP University launched the new School of Renewable Energy. Good winds struck Madrid and Houston, where the inaugural sessions took place. These included the presentation of the course “Introduction to Electricity Generation,” a component of the Technical Training School program.The one-day training event, which fell under the responsibility of Phil Wharton, director of engineering at EDPR North America, and Francisco Galvan, director of optimization and support systems for Europe, provided a structured and easy-to-understand overview of various electrical generation technologies. It also allowed the participants to become familiar with the greatest technological challenges facing EDPR, as well as the activities performed by the company’s different technical areas and their interactions with one another. Luis Adão da Fonseca, director, and Naila Dindarova, executive director, of EDP University, diligently to identify the best practices in key areas of business. Thus, the school seeks to do more than just offer technical and other straightforward training courses and become a platform for the sharing of knowledge and experiences.On Oct. 20, as had already happened in Lisbon, the first senior management course was held at the university’s School of Natural Gas. The theme, which focused on “Natural Gas Organized Markets,” generated discussions around topics such as the natural gas organized markets, the existing European hubs and the evolution of the Iberian gas market.
EDP UNIVERSITY New schools aNd New locatioNs
Talent, art, thought, communication, science and sports are forms of energy that also move the world. Thus, HC Energía was also moved to participate once again in the Prince of Asturias Awards, which recognize entities and individuals that have made significant contributions to science, humanities and public affairs. A member of the Prince of Asturias Foundation, HC Energía is dedicated to offering business support to those who make a difference in their professional areas. The awards ceremony showed everyone the energy that the regionof Asturias is able to concentrate and produce. As such,HC Energía has committed to working with all people,known or unknown, who are able to give back to theworld their energy and talent in its purest form.
wiNNers Arts - Riccardo Muti, one of the world’s premiere classical music conductors.
social sciences - Howard Gardner, father of the multiple intelligences theory.
communication and Humanities - The Royal Society, the world’s oldest scientific community.
Technical and scientific Research - Joseph Altman, Arturo Álvarez-Buylla and Giacomo Rizzolatti: three scientists Rizzolatti, for their scientific leadership in the field of neurology.
Literature - Leonard Cohen, one of the most influential authors and lyricists of our time.
international cooperation - Bill Drayton, creator and driving force of the social entrepreneurship model.
concordia - The Heroes of Fukushima, for their tremendous effort and sacrifice in avoiding the nuclear disaster caused by the 2011 tsumani.
sports - Haile Gebrselassie for his achievements in long-distance running and the exceptional example he sets for a generation of athletes worldwide through his social and humanitarian work in Ethiopia.
FOR MORe iNFORMATiONhttp://www.fpa.es/premios/2011/
PRINCE OF ASTURIAS AWARD
Pure energy
edp culture
edpon 15
More than 100 researchers gathered for Oviedo in a conference organized by HC Energía , to discuss pressing scientific issues. One highlight of the “With Science in Energy” conference was that participants were able to watch in real time a demonstration that, until very recently, you could only see at the laboratories of the Massachusetts Institute Technology: WITricity, or power without cables. Eric Giler, the leading expert in this technology, demonstrated that wireless electrical energy, while still in the experimental stage, is very much a reality. The American scientist believes that four or five years from now, this technology will be available to everyone, anywhere.Eric Giler captured the interest of all when he demonstrated how batteries with a magnetic field around them can lead to wireless electrical energy without causing any health problems. “It is a low-density field where the transition to electrical power is less dangerous than talking on a mobile phone,” said the scientist. Currently, the distance that wireless electrical energy can reach is a few tens of centimeters. Giler is already working on energy resonances that can widen this capability.At EDP Group, we have already watched this reality live.
Researchers discuss wireless electricity
The 2010 EDP Renováveis Annual Report website was nominated “Best Institutional Website” by the 2011 Sapo Awards. This initiative, which rewards the best work in the field of advertising, marketing and communications, gave full thumbs-up to this online version of the company’s report, through
a distinguished panel of well-known professionals.The technical part of the website was developed in partnership with ‘Excentric,’ a Portuguese digital media agency, with the specific goal of delivering the annual report as a more dynamic, efficient and accessible product to all of its different audiences.
EDP Renováveis Financial Statements Website recognized for excellence
edp culture
16 edpon
EUROPEAN BEST EVENT AWARDS’11Concert on the Douro River internationally recognized
The “Golden Energy Concert” was the big winner in the 8th European Best Event Awards ‘11, in a ceremony held in Milan, Italy. The show on the Douro River received six awards: Best Celebration/Festival; aspecial prize for Best IntegratedEvent; a first-place award for Best Musical Event, Best Event Agency – Global Challenge Ativism [OK word?], and the second-place prize for Best European Award and Best Public Event. Forty-six agencies from different European countries participatedin this competition, which was held on July 1, 2011, to celebrate EDP’s 35th anniversary. The
concert offered the Portuguese people a unique and memorable moment, one never before experienced on the Douro. Performers such as Rui Veloso,The Gift, and Rodrigo Leão &Cinema Ensemble entertained the audience from a floating stage in the midst of Lisbon’s famous river. In addition to about 100,000 spectators assembled on the banks of the Douro, the show was seen in real time by an estimated 1.3 million people on the SIC TV channel. A landmark event of the year in Portugal, the Concert on the Douro has now received recognition throughout Europe.
The winners of the first “As empresas Mais (‘The Mos t… companies’)” Award were announced in November, after the second Human Resources Portugal conference, under the theme “innovation in People Management.”
The edP Group won in four categories: Best ceO (Antonio Mexia); Best Human Resources director (Maria Joao Martins); Best Place to work; and company with the Most Team spirit.
“As eMPResAs MAis”
Paulo Campos Costa, DMC EDP Director, with Pedro Henriques from Global
Challenge Ativism and DMC’s Barbra Avelar.
edp culture
edpon 17edpon 17
Best corporate tV, second- best publishing and third-best intranet in europe. tedP took home these honors from the 2011 Feiea [Federation of european Business communicators associations] Grand Prix awards for internatl communications.the ceremony, which took place in london on Nov. 17, recognized the edPon in-house television with a first-place prize in the audiovisual communication category. edPon Magazine, obtained second place in the multilingual publication category while edP’s intranet was considered the 3rd best of the competition.Founded in 1955, Feiea is a federation of in-house communication associations that brings together professionals from 11 countries throughout europe.
Gr and Pr ix Feie A 2011
edP coMMuNicatioN distiNGuished iN euroPe
edP BraNdGlows in the Louvre!
The EDP brand is on exhibition at the Center of Decorative Arts of the Louvre Museum in Paris, as part of an exhibition dedicated to Stefan Sagmeister, the designer of EDP’s new corporate image. A sampling of the works by this Austrian designer based in the U.S. proves that there is no divide between the world of cultural and commercial graphics. To illustrate this point, for this exhibition Sagmeister chose
the EDP logo, along with his other emblematic creations, ranging from his collaboration in the creation of images for the Rolling Stones’ or Lou Reed’s musical releases, to his work for brands like Levi’s Jeans or BMW, or even to The House of Music logo in Porto. Through February 19, you will have the opportunity to see the EDP brand at the Center for Decorative Arts in the Louvre.
steFaN saGMeister creator of edP’s new corporate image
edp culture
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EDP’s new medical center in Lisbon covers a 1,000 m2 surface area and serves 9,400 patients. Featuring 16 doctor offices, four nursing rooms, a minor surgery suite and a pediatrics unit. OR and unit dedicated to pediatric care. The clinic is supported by a medical and nursing staff, as well as administrative personnel.The clinic is equipped with the most advanced medical technology and equipment available for the delivery of health care in the areas of internal
medicine, pediatrics and specialties such as surgery, orthopedics, dermatology, psychiatry and oncology. In addition, a state-of-the-art computerized health management system streamlines patients’ visits, starting in the reception area, where a patient-interactive kiosk helps orient them upon their arrival.From the waiting room, with its surround-sound TV, to the signs, corridors and offices, the new facility has been designed for comfort and the easy flow of patients,
staff and visitors throughout its corridors. The lighting system was also not neglected: It includes an energy-efficient light sensors and an emergency power supply that can be accessed through wall sockets in some of the offices and, in particular, the minor surgery suite. Located in one of the main streets of Lisbon, Avenida da República - 90C, the medical center can be reached by the different types of transportation available (metro, buses and trains) along the Entrecampos hub.
1,000 m2
surface area in the new clinic
9,400 patients
16 medical offices
4 nursing rooms
1 exclusive area for minor surgery, including a recovery room
1 pediatrics unit
Av. da República, 90 c (across from the old Feira Popular Amusement Park)
New medical center opens in Lisbonlocated on one of lisbon’s main arteries, this new clinic is served by different means of transport and is equipped to meet the needs of all edP employees.
edp culture
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when edP valor was created, you concentrated disparate services from the various Group companies. Ten years later, do you believe a spirit of team success exists? EDP Valor has steadily promoted team spirit and corporate identity without losing sight of EDP’s culture.The spirit of team success has been achieved over time through the identification of numerous improvement projects, the rejuvenation of our staff and the achievement of results, both in terms of quality and efficiency. The improved results that we have obtained from surveying our employees’ satisfaction level have, over the years, been consistent and the 2011 outcomes have come in even higher than the overall average for the EDP Group.
Recently, new services have been transferred to edP valor, including financial administrative services. How important is this operation?Over the years, various activities that did not fall under EDP Valor’s aegis initially have been integrated into our company, as the Executive Board of Directors believes that this is the Group company that can best develop
these tasks in terms of quality and price. The transfer of both some accounting activities (which previously belonged to the Corporate Center) and the Iberization of various financial management activities are examples of how concentrating some types of processes in EDP Valor creates value for the company as a whole.
Has the role of edP valor as a provider of services to different geographical areas, particularly in the iberian Peninsula, met the expectations that presided over this geographic expansion?EDP Valor must follow the process of EDP’s business globalization, at every turn trying to assess processes that can be centrally managed with at least the same existing level of quality and more efficiently. In this manner, our evolution has been very positive, and we know that there is always more to improve in the future.
At the end of 10 years of edP valor’s existence, what are your wishes for the future? EDP Valor looks to the future with increased motivation and pride for its contributions to the overall success of the EDP Group in terms of quality and efficiency.
Focused on value creation, edP Valor has widened its range of services, kept up to date with trends, and followed a path of continuous improvement without losing sight of the reasons for its creation: to rationalize resources, streamline processes and reduce
costs, all of which are accomplished through the care of motivated employees. this has been the company’s path, characterized by the constant sharing of knowledge and experiences with customers, where success depends on the ability to
make each employee feel like both the author and actor of change. to mark this important anniversary, we interviewed cFo Nuno alves, who chairs the Board of directors of edP Valor and who in recent years has led the shared services edP Group company.
10 yeARs EDP Valor /Ten years after its creation on Dec. 18, 2001, the company has covered a long and solid path. The Group’s strategy, including the globalization of business, has made EDP Valor a player of greater relevance.
“EDP Valor has steadily promoted team spirit and corporate identity without losing sight of EDP’s culture.”
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I nnovation
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inovação
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OPENSPACE/
Forget about the time lost in meetings and emails. Openspace, a teamwork and knowledge-sharing concept, was created to make life easier for EDP employees. In the future, this concept will be reproduced on a global scale throughout the Group with the arrival of the new intranet!
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Imagine you are very busy, have dozens of meetings scheduled, and a mailbox with hundreds of emails to read and send. In fact, all of us can absolutely identify with this scenario. But the truth is that within the EDP Group there are already platforms that make our time management and knowledge sharing easier. One of the most innovative is called Openspace, and it allows people, information and knowledge to be only two clicks away.Openspace is a new teamwork concept based on collaborative work and ongoing information and knowledge-sharing. Created early in 2009 by EDP Inovação, this concept is supported by a technology platform that provides the means and tools necessary for any work team to be able to create, manage and use their collaborative space — a website or space — that virtualizes an ideal working environment, regardless of the geographical location of the team. Currently, there are more than 50 active collaborative spaces. What is interesting is that this access to knowledge is an individual act from the recipient that can occur at any time without the intervention of third parties. It is not even necessary to know the sender.With Openspace, each work team collaboratively creates the space according to their needs with the appropriate tools and the people and usage profile they see fit, along with the necessary level of approachability compatible with the environment the team decides is useful for the purpose at hand. All this on a “self-service” mode without the intervention of third parties. In other words, with this system being so “user-friendly”, one does not need to be an expert in information technology to create or act in a particular space. Using Web 2.0 technologies and tools, Openspace encourages us to publish content rather than send emails; it allows us to open discussion forums right away, instead of scheduling meetings for later; it “connects” people and prompts us about occurrences in our collaborative space.
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http://openspace.edp.pt
innovation
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PEDrO CArrEIrAProject Manager EDP Distribuição R&D
“As a frequent user and administrator of Openspace, I consider it a platform to enrich the culture of sharing and involvement within the organization. With the Openspace tool, we can gather and exchange information and comments with the most remote locations of the organization. In the management of innovative projects, the gathering of comments and ideas is critical to anticipate risks and identify opportunities. It is also important to align these projects with the real needs of the organization so as to not fall for the “exotic innovation” concept. The “Public Lighting” space allowed us to share with the entire organization the work of “Initiative 6 - Public Lighting,” a project of the “Excellent Quality of Service” axis. And through the “Copper Theft” collaborative space we were able to integrate all the actions being undertaken throughout the company to overcome this problem, [NOTE: what is the problem? Is copper being stolen?] allowing us to identify and promote the best practices.As for knowledge sharing, I posit its importance with the following: “Think of times in the past when you were taken by surprise, probably by someone in your organization or in your network of contacts who knew about a problem. However, they didn’t know what they knew, and they did not know you needed to know”- Peripheral Vision.
Openspace emerged as a window of opportunity for simplifying the application process for the Dow Jones Sustainability indexes. The idea of assessing the potential use of Openspace appeared in November 2010 as an item in the DJSI Action Plan 2010-2011. It became a reality this past April, when the process of preparing the 2011 inquiry began and the stakeholders in the application process were invited to participate in the collaborative space “Indexes_Sustain”, namely by the uploading of contents, answers and documents that demonstrated EDP’s sustainability performance. Since this space was designed
as a collaborative work tool to store and manage information, I am a frequent user, avoiding, whenever possible, resorting to the “DJSI” DSA folder. Previously contributions were collected via email for the first time since using Openspace, the work developed in a more rapid, participatory and traceable way, both internally and externally. Openspace allowed us to improve the flow of information as well as avoid the risk of losing it. In addition, the change in our working methodology allowed for greater involvement of all the stakeholders in EDP’s application to the DJSI. This collaborative space is intended to become the embryo of a true Sustainability portal, where stakeholders may participate, integrating and providing all the information about EDP’s sustainable development practices and performance. It is towards this goal that I will work.”
HEnrIqUE OlIvEIrADirector, Lince Project
“For me, Openspace is a very useful tool. It was through this very user-friendly Web platform that we created Lince Space — an intranet for the Lince Project — which provides information such as news, documents, contacts, project milestones, etc, on that project. We wanted to create a space for sharing and communicating information that would not consume many resources, and this was achieved due to Openspace’s characteristics, not only because it is an easy platform to build and maintain, but also because it can be quickly accessed by most of EDP’s external consultants and employees. Given that the Lince Project is a multi-location project, this platform has been very useful in that we were able to move to a Web platform our three basic pillars for the creation of a privileged communication project: update information about the project and relevant events continuously; guarantee documentation availability; and ensure efficient team support. So far, 623 users from all over the world have visited Lince
Space. There are several practical advantages to using the existing platform. For example, documentsdeveloped and used in a project, such as “Business Blueprint” (BBP), are content-heavy, hampering their distribution via regular mail. Given these difficulties, the platform has been our vehicle of choice fordissemination. In addition, Lynx Space allows access to external consultants through a Contacts list, which, besides the consultants’ data, also contains all the people involved in the project. Thus, whenever someonenew comes onboard, this is the preferred means of introduction.
GIlDA CAEtAnOSustainability and Environment Department
innovation
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Naturgas Energía takes business to the university
LED TECHNOLOGY IN EXPANSION
This past September at the Higher Engineering School of the Basque Country University, in Bilbao, Juan Ramón Arraibi, general director of “regulated business,” and Ángel Maria Gutierrez, head of Naturgas Energía’s R & D + i, presented research, development and innovation projects that students will develop in school during the 2011-2012 academic
year. The seven R + D + i projects to be implemented cover such diverse topics as renewable natural gas or bio-methane; forecasting internal demand for domestic natural gas; and thermal and electric micro-cogeneration of energy. These projects can be viewed in detail at the university’s website:http://1mz.kc.sl.pt.
Arquiled, a leading manufacturer of LED lighting, has invested 1.8 million euros in expanding its plant in Mora, a technological advance of which EDP Ventures has held 40 percent interest since 2010. The expansion was spurred by the increasing demand for LED technology in a market governed by growing concern with cost reductions and rational energy use, increases the demand for this type of lighting. The new plant, equipped with
the most advanced production and analysis equipment, has a production, research and testing laboratories area of about 1,200m2. an investment that will provide the plant with the capacity to meet the demands of the international market, which is expected to reach 70 percent over the next three years. The company employs a young and innovative team aligned to meet the expectations of the domestic and international markets.
FABlAB EDP An open door to a child’s creativity
EDP’s Fablab, the first digital lab in Portugal, has expanded its target audience by offering workshops to fifth-grade children. Several 110-year--olds from the Filipa de Lencastre School experienced their first contact with rapid prototyping technologies. The aim of this lab is to stimulate the creativity of children and demystify innovation early on. According to Catarina Santos, a member of the EDP Fablab team, “There are no age boundaries as far as the assimilation of knowledge goes.” It’s an idea that will soon be disseminated to all schools and EDP Group children.
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Naturgas aNd HC ENErgía
HELP THE CHILDREN OF LORCA/More than 2,000 children from the municipality of Lorca in southeastern Spain participated in a solidarity initiative sponsored by Naturgas Energía. Targeting local youngsters, the project aimed to make conditions more bearable after the destruction wrought by the great earthquake that struck the area in May 2011. To minimize the effects of the catastrophe and improve the emotional well-being of the municipality’s youngsters, the company sponsored the creation of a free play area. Located on Alameda de las Columnas, it is open every Friday from 6 to 10 p.m. and features a 200-square-meter playground housing several inflatables for younger children. Additionally, youngsters who visited the premises during the during the first few weeks of the opening of the structure received small gifts. This initiative was made possible by the commitment of 28 employees from EDP Naturgas’ center in Murcia, who volunteered their time and energy to the project.
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2.000 children 200m2 28 volunteers
edpcausesEconomic capacity and social commitment
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1. Murcia’s Group of Schools - Provision of financial support and supplies for Parenting and Guardians School
2. Parents and Guardians Association from the Vila Velha de Rodão’s Group of Schools - Conservation of green spaces and production of ornamental plants, involving the participation of children, youth and area seniors.
3. APPACDM Castelo Branco - Donation of equipment for silkworm production
4. Social Solidarity Association - Arca – Improvement of the building’s thermal efficiency conditions and installation of photovoltaic panels to sell energy
5. Cercimarante - Technical AssistanceBank
6. Grijó Parish and Social Center - Funding for therapy equipment
7. Sambade Parish and Social Center - Technical Assistance Bank
8. Rural de Carvalhais / Mirandela Professional Agriculture and Rural Development School - Construction of community vegetable gardens
9. MIMOS - Valadares Agricultural, Services and Arts Cooperative - Installation of greenhouses to supply local institutions
10. Carrazeda de Ansiães – Home-repair services
The EDP Solidarity Dams program seeks to promote the development of communities in the company’s areas of influence
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Support for 10 more projects
THE WINNERS
EDP develops communities
Community vegetable gardens, conservation gardens, silkwormprodu tion, home-repair services,
donation of orthopedic equipment, retrofitting of facilities with solar panels, parenting schools — these are a few of the 10 projects funded last year under the EDP Solidarity Dams program. In 2011, a record 92 applications were received, with organizations participating in program from the Portuguese municipalities of Alfandega da Fé, Alijó, Carrazeda de Ansiães, Macedo de Cavaleiros, Miranda do Douro, Mirandela, Mogadouro, Murça, Torre de Moncorvo, Vila Flor, Amarante, Cabeceiras de Basto, Celorico de Basto, Ribeira de Pena, Mondim de Basto, Castelo Branco and Vila Velha de Rodão, Sever do Vouga, Oliveira de Frades, São Pedro do Sul and Vale de Cambra. Established in 2009, EDP Solidarity Dams is part of a set of initiatives promoting local development. Through programs in entrepreneurship, innovation, social inclusion, education and culture, EDP Solidarity Dams seeks to meet the expectations of local populations and to share the benefits generated by increasing hydroelectric production. And there’s plenty to do. After all, the EDP Group possesses the largest hydro energy plan in Europe, with investments forecasted in excess of 3 billion euros and the projected creation of some 35,000 jobs, directly and indirectly — proof of the Group’s commitment to improving the communities in which it operates.
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The nature of the relationship between companies and society is changing. Nowadays, companies are evaluated by their stakeholders and by society at large, not only in terms of their ability to generate profit, but also by how sustainably they do it while maintaining equilibrium in the economic, social and environmental components. On the other hand, the nature of the relationship between employees and their companies is also changing. People are more demanding and evaluate businesses, for their social commitment and their ability to, in some way, give back to the community.Volunteering is, in this sense, the most powerful way to present the company to
society and, at the same time, bring society into the business environment. EDP has given many volunteer hours to diverse causes. Directly or indirectly, thousands of people all over the world have benefited. The electrification of the Kakuma refugee camp is one of the greatest examples of EDP’s human capital involvement. It’s a drop in the bucket where a lot remains to be done, but the human potential at EDP is huge and can make a difference. Last year, the results of a survey carried out at EDP revealed that 70 percent of its employees would like to volunteer. In the same survey, 80 percent of our social partners responded that they needed both technical skills and volunteers. The formula could
not be more perfect: There are enormous needs in the community and many people wanting to be part of the solution.
DOING GLOBALLYThese are more than valid reasons for EDP to create an integrated program throughout the entire Group. And the moment came at the right time: 2011 was precisely the European Year of the Volunteer. With the creation of EDP’s Volunteer Program (PVEDP), isolated actions created by the different EDP companies are now being implemented in an orchestrated and globalized way. “What makes it different from what has existed in the past, and from the current
O n coverEDP’s Volunteer Program
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Have you done your share?What can a company add in an area that typically depends on individual will? A lot say those responsible for EDP’s volunteer program. From now on, isolated actions created by the different Group companies are being implemented in an orchestrated and globalized manner. To learn more, take a look at the following pages and check out our website at: www.voluntariado.edp.pt.
corporate volunteer programs in other major companies worldwide, is the articulation between our human resources management and its application in the community,” stated Sérgio Figueiredo, director of EDP Fundação, a driving force behind PVEDP, who with Maria João Martins, EDP Human Resources Director, co-chairs this program.This strategic alliance between the Foundation and EDP’s Human Resources Department imbues this approach with a new and efficient dynamic. The Foundation, with its vast knowledge of the territory it covers and the populations in need there, minimizes the risk of missteps. The team manager is thus more confident
when releasing an employee for a volunteer action. “It is essential to break the stigma that the volunteer is someone who is avoiding work. And this is also a way of saying to our shareholders that volunteering is not a waste, rather an investment, because we are doing something that supports the business,” says Sérgio Figueiredo. Another way to manage this process efficiently is not to leave the system to chance. You have to make it happen with a structured program in place, such as the “Hours Exchange,” which matches the issue at hand with the best possible provider: for example, by placing someone who knowledge of accounting or law in institutions that need an accountant or lawyer.
FROM THE BOTTOM UPThe PVEDP is emerging simultaneously over all our areas of inf luence. “Our ambition is for this to be a program that is built and participated in by our volunteers in Oviedo, Bilbao, Espírito Santo, São Paulo, Lisbon and Porto. It is a priority to create a sense of sharing as opposed to the feeling that this is a product exported by the Group’s holding company —that would be halfway to failure,” says PVEDP’s compelling driver. This is a much more bottom-up rather than top-down process. Top-down had to do with having the to professionalize the program’s management. Bottom-up has to do with EDP using its “sensors” — i.e, v
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the people in the field — to identify and target the most pressing needs.The “Part of Us II” Christmas campaign was the first PVEDP initiative to reach all geographies across the Group simultaneously. Two populations were selected to be the recipients of the program’s benefits: the institutionalized elderly, who during the holiday season feel their loneliness even more intensely, and hospitalized children. The initiative took a globalized approach without losing its local focus. As Sérgio Figueiredo maintains, these kinds of actions actions are sustained by close relationships: “We do not convince anyone to volunteer for causes that do not concern them. Volunteering must begin with a spontaneous, genuine decision on the part of the volunteer. Our hope is that sum of these individual decisions of goodwill ultimately will generate a program in greater scale.
COMMUNICATION STRATEGYIn a universe of about 12,000 employees spread over 13 countries, communication has to be very effective so that it can deliver the message to everyone. In this sense, team leaders are facilitators in the transmission of information.
PVEDP’s communication strategy began with a road show – happening in all EDP locations (with the exception of EDP Renováveis, which will soon participate in the program) in which there was a recognized need heighten awareness among the different management hierarchies of the volunteerism effort’s value as a strategic initiative of choice for EDP. As Maria João Martins explains, “in these training sessions, organized by HRD-CC and EDP Fundação, where Sérgio Figueiredo and I wanted to show, face to face, the strength of the differentiating factor in the management of our people. Specific information was distributed about volunteer work through EDP and promotion and operation of the program. The management hierarchies now have the information needed to answer possible questions from their teams.”The holding company’s HR director adds, “We now have a volunteer policy. We will henceforth stimulate work environments at EDP and improve what is happening around us.”
A NEW LEVEL OF ENGAGEMENTIt all started about a year ago, when António Mexia, Executive Board Chairman, presented the new volunteer
EDP VOLUNTEER PROGRAM OBJECTIVES:
• Strengthen the spirit of solidarity and mutual support among EDP employees;
• Promote a culture of social responsibility and corporate citizenship;
• Give back to the communities to which EDP belongs;
• Be an example and a reference as a “Solidarity Company”;
• Working for sustainable development of countries in which EDP is present;
• Comply with EDP’s strategic sustainability values in order to improve the quality of life for current and future generations.
CHARTER OF PRINCIPLES FOR THE EDP VOLUNTEER
1. EDP recognizes the strategic importance in the adoption of a volunteer policy;
2. EDP affirms that its human capital is a priority tool for training tertiary sector institutions;
3. EDP actively supports its employees in the practice of their Volunteer social service [hours];
4. PVEDP’s objective is to generate volunteer opportunities;
5. PVEDP promotes the “EDP Community” concept;
6. PVEDP’s management will occur based on a technical platform;
7. EDP will monitor and audit the resources used and impacts achieved.
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“Our premise is that the sum of individual wills generate a program in greater scale”.
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policy, calling EDP’s community of contributors “to a new level of social engagement in causes and projects that do not find solutions in the public apparatus or the free-market system.”The principles of volunteerism are part of EDP’s culture, and they are enacted by the company allowing employees to have four hours per month for volunteer actions. With PVEDP we went further. “In order to increase organizational flexibility to mobilize volunteer initiatives, each leader holds an ‘Hours Exchange’ - four hours the number of employees in the particular team - to be used for volunteering activities,” added Maria João Martins.2012 promises to be as a year of great challenges in terms of the demand for volunteers, and the conditions have been created so that EDP employees can support those in need. The company is counting on all of its employees to maintain its benchmark in social responsibility, thereby strengthening its global leadership position in terms of sustainability, particularly in the Dow Jones indexes. “Personally, I consider this opportunity an incentive to develop a culture of greater cohesion and cooperation. If we are more united, looking at and helping those in
need and assisting the community, we promote a more complete implementation and strategic differentiation of this initiative,” says Maria João Martins. “Anyone who has participated in volunteer projects before knows that the sense of purpose increases as they become closer with their colleagues; it creates an environment in which communication flows more freely and there is a new complicity of purpose among all, generating lots of positive energy.”
A MORE ALIVE COMPANYReality shows that EDP has indeed become more “alive,” more vibrant. It was the undeniable result of the massive adoption of the “Part of Us” initiative, held in Portugal in September 2011. One of the many episodes of this great effort took place in Porto. The challenge was thrown to EDP Produção, calling for the engineers to become managers of “Part of Us.” They accepted, even without knowing quite well what they had signed up for. After a meeting with the program’s coordinators, some of them felt a little constrained and even somewhat fearful that they would not be up for the challenge. The truth is that the
initiative was a success. And people so much liked being part of the solution in resolving problems in hospitals that they offered to be there for the next immediate action. Conclusion: “EDP is a more alive company, more open, more active socially, closer to the people, and its employees are prouder to work at the company after participating in the ‘Part of Us’ effort”, says Jorge Mayer, EDP Volunteer Program’s manager: “Today, people see volunteering in quite a different light. They don’t want to feel that they are performing charity, but rather become part of the solution to problems arising in civil society by giving their expertise and experience. PVEDP’s vision is to give those in need (social partners) the means to become self-sufficient and autonomous. Using a common phrase, albeit understood by everyone, instead of providing the fish, ‘give them the fishing rod and teach them how to fish.’ “One thing is certain: Volunteering is an increasingly strong tool for mobilizing and motivating teams within EDP — a group that insists on leaving its mark on society, at each location in which it operates.And you, have you done your part yet?
“I consider this opportunity an incentive to develop a culture of cohesion and cooperation”
Composition of our hierarChies
790 GRADUATES worldwide
1,580 HOURS of training provided
96 HOURS of trainers
43,000TOTAL kILOMETERS traveled by the training teams (enough kilometers to go around the world and still have 3,000 kms to travel from Lisbon to Stockholm)
60 HOURS in airplanes(not including the time spent at airports)
90HOURS of travel includingair travel
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EDP GROUP
A WORLD OF VOLUNTEERS
95%Employees whowould like todo volunteerwork throughEDP
Employees withvolunteer experience
26%
68%
Employees who would like to do volunteer work through EDP
Employees withvolunteer experience
23%
53%Employees who would like to do volunteer work through EDP
Employees with volunteer experience
20%
Employees withvolunteer experience
68%
Employees whowould like to dovolunteer workthrough EDP
71%
Employees withvolunteer experience
36%
Employees whowould like to dovolunteer workthrough EDP
71%
BRAZIL With more than 200 volunteers, the EDP Institute in Brazil
contributes to the promotion of quality of life and social development in the communities surrounding EDP’s areas of in�uence in that country. In order to encourage volunteer teams, the "Goodness Challenge" initiative was launched during the second half of 2011, consisting of teams working in the social arena with NGOs and schools supported by the institute. In all, eight volunteer groups (made up of EDP employees) have invested their time and talent in the creation of social improvement, visual and educational projects in institutions throughout the states of São Paulo, Espírito Santo and Tocantins, bringing solidarity and focusing on children undergoing medical treatment, students, youth at risk, among other populations.
• Among other activities, volunteers participated in the EDP Schools program, which works to improve the quality of public
education and has already bene�ted more than 150,000 students in the last 10 years.
EDP RENEWABLES
Activities in the U.S. • Employees participated in a series of initiatives undertaken in
Houston: "Trees for Houston," an organization dedicated to the planting and protection of trees; cleaning beaches in Galveston; labeling and loading / unloading of donations for area food banks; BARC, an association dedicated to the animals.
• The National Public Lands Day is the nation's largest, single-day volunteer event. Its purpose is the improvement and enhance-ment of American public land. EDPR volunteers repaired and replaced native plants and trees in the Hermann Park Bayou Parkland.
Actions in Europe• Initiative at CEPRI, a nongovernmental organization for children
with autism, involving all EDPR Europe employees. • Workshops at a summer camp in Madrid, which was attended by
70 children at risk of social exclusion.
Naturgas Energía Caritas and the Down Syndrome Foundation have been the two
institutions in which Naturgas volunteers have mostly been involved.
The latest activities have included volunteers spending a day with 20 children and young people and their respective families living in Caritas shelters, escorting a group of seniors in their visit to the Guggenheim Museum, in Bilbao and collaborating with the Alavesa Multiple Sclerosis Association on their popular chocolate to raise funds. In the past few months, most of the volunteers partici-pated in a common goal put in place by the company in the town of Lorca, in Murcia, which was hit by an earthquake in May 2011.
PORTUGAL There are many volunteering activities sponsored by EDP in
Portugal in which employees from the Group's many di¤erent companies can participate. Among the best known are selection and management of the food bank's inventories for the “Associação Novo Futuro” (New Future Association); a reading area, an energy savings plan, clothes sorting/selection, collection of donations, meal preparation, and provided support to homeless people in the “Comunidade Vida e Paz” (Life and Peace Community).
EDP Gas's commitment volunteerism is evident in several initiatives designed to foster a spirit of solidarity among its employe-es. One example is the third o¤site event at “Casa do Rapazes” (Boys Home), in Viana do Castelo, where the company combined volunte-ering with a teambuilding activity, or the “Fontainhas' Nursing Home” project, through which a group of volunteers organized three di¤erent afternoons for the elderly in the last quarter of 2011.
Also, within the scope of the European Year of the Volunteer we highlight “Projeto Reparar” (Repair Project) EDP Valor’s Negotiation and Procurement departments sponsored various repairs and house cleaning events for the homes of elderly people in need, doing everything possible to make their houses a little more comfortable. In addition, Valor's corporate sta¤ repaired and painted three rooms in the “Raízes – Associação de Apoio à Criança e ao Jovem” (Roots - Supporting Children and Youth) installations.
In the European Year of the Volunteer, EDP employees did not forget others, as you can see from the following key actions implemented in the Group's countries of operation.
SPAIN
HC EnergíaSeveral work teams have been created to give company employe-
es the opportunity to participate in several joint initiatives, adding their own personal contribution, skills, knowledge and experiences in the process:
• Energy Development Team17 people from various company departments and with di¤erent pro�les, each united by a common goal: each the realization of studies and technical and economic projects that supply water and energy to di¤erent areas in underdeveloped countries where these projects will later undergo execution and start-up.
• Food TeamComposed of four people who work in collaboration with the food bank on activities related to the management and collection of surplus food. The food is then distributed to various charitable organizations and "Kilo" operations. The team also participates in a communication and awareness campaign in schools.
• Childhood TeamMade up of seven volunteers working with children at several Minor Protection Centers, under the aegis of the Asturias Principality, engaging in school assistance and tutoring activities.
In addition to these teams, there are other volunteers who are, individually, developing various activities with organizations that support people with social integration di¯culties.
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EDP GROUP
A WORLD OF VOLUNTEERS
95%Employees whowould like todo volunteerwork throughEDP
Employees withvolunteer experience
26%
68%
Employees who would like to do volunteer work through EDP
Employees withvolunteer experience
23%
53%Employees who would like to do volunteer work through EDP
Employees with volunteer experience
20%
Employees withvolunteer experience
68%
Employees whowould like to dovolunteer workthrough EDP
71%
Employees withvolunteer experience
36%
Employees whowould like to dovolunteer workthrough EDP
71%
BRAZIL With more than 200 volunteers, the EDP Institute in Brazil
contributes to the promotion of quality of life and social development in the communities surrounding EDP’s areas of in�uence in that country. In order to encourage volunteer teams, the "Goodness Challenge" initiative was launched during the second half of 2011, consisting of teams working in the social arena with NGOs and schools supported by the institute. In all, eight volunteer groups (made up of EDP employees) have invested their time and talent in the creation of social improvement, visual and educational projects in institutions throughout the states of São Paulo, Espírito Santo and Tocantins, bringing solidarity and focusing on children undergoing medical treatment, students, youth at risk, among other populations.
• Among other activities, volunteers participated in the EDP Schools program, which works to improve the quality of public
education and has already bene�ted more than 150,000 students in the last 10 years.
EDP RENEWABLES
Activities in the U.S. • Employees participated in a series of initiatives undertaken in
Houston: "Trees for Houston," an organization dedicated to the planting and protection of trees; cleaning beaches in Galveston; labeling and loading / unloading of donations for area food banks; BARC, an association dedicated to the animals.
• The National Public Lands Day is the nation's largest, single-day volunteer event. Its purpose is the improvement and enhance-ment of American public land. EDPR volunteers repaired and replaced native plants and trees in the Hermann Park Bayou Parkland.
Actions in Europe• Initiative at CEPRI, a nongovernmental organization for children
with autism, involving all EDPR Europe employees. • Workshops at a summer camp in Madrid, which was attended by
70 children at risk of social exclusion.
Naturgas Energía Caritas and the Down Syndrome Foundation have been the two
institutions in which Naturgas volunteers have mostly been involved.
The latest activities have included volunteers spending a day with 20 children and young people and their respective families living in Caritas shelters, escorting a group of seniors in their visit to the Guggenheim Museum, in Bilbao and collaborating with the Alavesa Multiple Sclerosis Association on their popular chocolate to raise funds. In the past few months, most of the volunteers partici-pated in a common goal put in place by the company in the town of Lorca, in Murcia, which was hit by an earthquake in May 2011.
PORTUGAL There are many volunteering activities sponsored by EDP in
Portugal in which employees from the Group's many di¤erent companies can participate. Among the best known are selection and management of the food bank's inventories for the “Associação Novo Futuro” (New Future Association); a reading area, an energy savings plan, clothes sorting/selection, collection of donations, meal preparation, and provided support to homeless people in the “Comunidade Vida e Paz” (Life and Peace Community).
EDP Gas's commitment volunteerism is evident in several initiatives designed to foster a spirit of solidarity among its employe-es. One example is the third o¤site event at “Casa do Rapazes” (Boys Home), in Viana do Castelo, where the company combined volunte-ering with a teambuilding activity, or the “Fontainhas' Nursing Home” project, through which a group of volunteers organized three di¤erent afternoons for the elderly in the last quarter of 2011.
Also, within the scope of the European Year of the Volunteer we highlight “Projeto Reparar” (Repair Project) EDP Valor’s Negotiation and Procurement departments sponsored various repairs and house cleaning events for the homes of elderly people in need, doing everything possible to make their houses a little more comfortable. In addition, Valor's corporate sta¤ repaired and painted three rooms in the “Raízes – Associação de Apoio à Criança e ao Jovem” (Roots - Supporting Children and Youth) installations.
In the European Year of the Volunteer, EDP employees did not forget others, as you can see from the following key actions implemented in the Group's countries of operation.
SPAIN
HC EnergíaSeveral work teams have been created to give company employe-
es the opportunity to participate in several joint initiatives, adding their own personal contribution, skills, knowledge and experiences in the process:
• Energy Development Team17 people from various company departments and with di¤erent pro�les, each united by a common goal: each the realization of studies and technical and economic projects that supply water and energy to di¤erent areas in underdeveloped countries where these projects will later undergo execution and start-up.
• Food TeamComposed of four people who work in collaboration with the food bank on activities related to the management and collection of surplus food. The food is then distributed to various charitable organizations and "Kilo" operations. The team also participates in a communication and awareness campaign in schools.
• Childhood TeamMade up of seven volunteers working with children at several Minor Protection Centers, under the aegis of the Asturias Principality, engaging in school assistance and tutoring activities.
In addition to these teams, there are other volunteers who are, individually, developing various activities with organizations that support people with social integration di¯culties.
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32 edpon
• One day (September 24)• Mobilizing 1,500+ EDP volunteers • 50+ companies involved in the activity• 12 Upgrading pediatric and maternity
wards in 12 hospitals in Portugal• Painting, gardening and small repairs• Raising awareness of the need for blood
and bone marrow donations• Activity will benefit more than 1 million
Portuguese
In the European Year of the Volunteer, EDP challenged its employees and partners to join a national project to improve the pediatric and maternal care areas in 12 hospitals throughout Portugal. The challenge was clear: In a single day, a team of volunteers had to help restore and upgrade conditions in the buildings, infrastructure and public spaces of various institutions in the health sector, particularly maternal and children’s areas. The result was surprising. More than 1,500 volunteers and over 50 companies “gave themselves” to the project. For Sérgio Figueiredo, director of EDP Fundação, this great mobilization — which benefited more than 1 million Portuguese people — “allowed us to contribute toward improving those 12 hospitals and have a direct impact on the welfare of patients and employees.““It’s an example of the involvement of civil society in health,
especially in the case of hospitalized children. And it is also an example of corporate social responsibility, and this is very important, “noted Céu Machado, the director for the Department of Family and Children, at Santa Maria Hospital (in Lisbon).But for everything to be ready on September 24, work began seven months earlier. “It all began in February when we proposed this challenge to EDP’s largest suppliers, to reclassify, humanize and improve living conditions in the hospitals,” said Vanda Martins, from the “Part of Us” organization.On August 16, a technical team consisting of 160 people — engineers, builders and architects, working in tandem with the communications and event organization team — threw itself into the more technical aspects, such as electricity work, window frame installation, installation of air conditioning equipment, among other tasks. After the ground soil and structural work were prepared, the great team of volunteers went into action. A lot of EDP employees wanted to leave their mark for a better environment in hospitals. From gardening (planting grass, plants and other landscaping) to painting many areas with decorative images to make them more fun and enjoyable, to even small touches
(refurbishment and upgrading of spaces), this team’s effort was global.
AN IMPORTANT PART It was only with the help of the more than 50 partners who joined EDP that the company was able to create synergies so that the “Part of US” initiative would become an even more global. Evert volunteer brought to the project not only their know-how and materials, but also the support and participation of their colleagues, family and friends, who helped to swell the EDP community. One example was the Painhas Company from Viana do Castelo: “We participated with volunteers from our company, as well as handling all costs related to the activities performed at Hospital Santa Luzia in Viana do Castelo, because we think this initiative represents a good opportunity. We are in the European Year of the volunteer and a context of great social need is currently present. So we said ‘yes’ to this initiative,” explains CEO Helena Painhas. “This kind of initiative is very important, because giving is good for the giver and the receiver. Therefore, a company’s commitment to social responsibility is very important to us, because society is the primary reason for the creation and existence of companies. I would like to say to EDP: You are to be congratulated!”
PART OF US
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“On behalf of the children and young people whom we serve, and on behalf of our employees as well, I have the privilege, honor and pleasure to acknowledge the unique experience enjoyed with all EDP staff and volunteers” Helena Jardim, Director of Porto’s Hospital Center
“I am the one who is grateful for having the privilege of working on such a project! That Saturday when I got home, I was ‘full’ of pride.”Rui Cabral, EDP Valor Volunteer
“Once again EDP has shown that it is not only a large company, but also a HUGE company in how it considers its mission and its ambition. Count on us for more ‘Part of us’ events in the future!”José Gonçalves, Accenture Volunteer
“I am grateful for the opportunity to experience such a very HAPPY DAY! There are days that make all the difference. These are the days that we remember. Together we make more sense.“Isabel Costinha, EDP Produção Volunteer
“I wanted to express my thanks and show my admiration for for this laudable initiative and its success. Our thanks to EDP Fundacao, an excellent organization that continues to think and worry about those who have the most needs.” Carlos Rosa, Lisbon Director, Portuguese Institute of Oncology (IPO)
“It was a great pleasure to be a part of it. I’m looking forward to new projects.”Lina Oliveira, EDP Distribuição Volunteer
“As a citizen of this country, and a user of the National
Health Service, but above all as a human being, thank you for the personal enrichment it gave me.” Susana Marques, Caixa Seguros Volunteer
“The ‘Part of Us’ program is, without a doubt, a major milestone in EDP’s volunteer program. We should be very proud of it.“ Manuela Silva, EDP Business Solutions Volunteer
“It’s just amazing what we did ... and it was so little!” Joel Pereira, DHL Volunteer
“The initiative was a resounding success, and it provided a unique day in our lives and for EDP.” Adília Pereira, EDP Produção Volunteer
“We all feel rewarded for contributing to this noble mission, thereby enhancing the team’s solidarity and spiritual values.”Rui Rego, Painhas Group
“It was a pleasure to have contributed to the effort, and have by my side Clara Maya from DPI, Elisa from Distribuição and Joaquim Gomes from EDP Gas, as well as many others. Credit is due to leaders with vision, leadership, strategy and above all solidarity.“ Sergio Ribeiro, EDP Produção Volunteer
“For us, the greatest recognition was the opportunity to participate in an event of this kind. We sincerely hope to participate in similar initiatives.”Manuel Martins AREP President
“Thanks for the opportunity to participate and to help on behalf of EDP. We are always available.”Paulo Soares, EDP Distribuição Volunteer
testimonials
JOAqUIM URBANO HOSPITAL
MAGALHãES LEMOS HOSPITAL
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34 edpon
MARIA PIAHOSPITAL
SANTO ANTóNIOHOSPITAL
IPO
A real-time invasion ...In three and a half hours in a direct RTP1 emission, we happened upon an unexpected and moving event. A lady, 90 years old, was having trouble calling the phone number that was being shown on the footer of her TV screen, so she decided to make the contribution “in loco” and live. She left her house, went to Hospital Santa Maria, and without
realizing it, she was being broadcast live while delivering a $20 bill donation to José Carlos Malato. RTP’s host handled the situation in an exemplary manner and grabbed the most memorable television moment of the day.
... now that’s an artist ...TV has this kind of power. Up north, Dona Aurora, a retired 83-year-old artist, was watching the special transmission of the “Part of Us” program from her bed, when feeling moved, she decided to take her art supplies and go to Santo António Hospital in Porto. The EDP team received her affectionately, gave her a job, and properly equipped her with a T-shirt and cap. Aurora was also “adopted” as an inspiration and a symbol for the dozens and dozens of other volunteers.
... And an unexpected blessingThe team deployed to the Hospital of Guarda was ready to start the live show. Everything was all taken care of -- the interviews, the set props... when they realized something essential was missing: the incubator that the maternity ward didn’t have, and that “Part of Us” had guaranteed. RTP wanted to show this important piece of medical equipment, which could help save the lives of many premature babies, but it was
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SANTO ANTóNIO AP HOSPITAL
impossible... because it was being used! A newborn needed the incubator, which lit the day for this team of volunteers.
Street episodes:
Surprise:Walking down the street to promote awareness for the blood donation and bone marrow campaign resulted in a real box of surprises, especially when the volunteers’ T-shirts and leaflets delivered to people were marked with the EDP Foundação logo. One of the most surprising reactions occurred when the recipient realized who was sponsoring the campaign and responded with and direct question: “And does this give me a discount on my electricity bill?”
Creativity: As the area authorized for use at the Park of Nations was very small, a volunteer from EDP Producao noticed that every time she walked up to someone, the person already had one or more leaflets. In a moment of inspiration, the volunteer decided to head to a nearby pharmacy. Why? “Those who visit the pharmacy are more aware of health issues.”Creativity Award of the Day!
Spontaneity:In the true spirit of the “EDP Community,” this scene happened with someone who is not from EDP, but was being accompanied by her family while handing out leaflets on the streets of Lisbon. She was as excited as she would be if it were an Accenture initiative, her employer and one of our 50 partners. In approaching a mother holding her son’s hand, our volunteer hardly had time to say anything to the parent, because she was immediately interrupted by the child:“Mom, what is it for?” She explained that there were sick children in hospitals in need of blood. The child, in shock, did not hesitate, “Go, then. You have to go and give all your blood, because if you don’t, the children will die.” It was his mother’s blood he was talking about, of course, and not his! Still, it was worth the “Award of the Day” for altruism!
Curiosity: Early in the morning, the person coordinating this activity at the national level, always with phone in hand, making and receiving calls from Viana to Faro, had a call to answer. It was Jorge Cruz Morais, an EBoD director who spoke into the phone: “I’m in Chiado right now, and I have just been approached by a person wearing our foundation’s T-shirt convincing me to go give blood!” Mystery Shopper Day Award!
SANTA MARIA HOSPITAL
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“BPM has reached a good maturity level”
What has been your career path? I have worked in the BPM (business process management) arena for 22 years. I started my career in a small German consulting firm, after which I moved to other companies where I could apply my knowledge in this area. Six years later, already at a more mature phase, I moved to the United States. I went to work for a company that started from zero and grew to 300 people. We then introduced BPM as a discipline in the U.S. in a more holistic way. Afterwards, I spent one year in Japan helping to set up the structure at some organizations, a very enriching experience for me. I returned to the U.S. with Accenture as a client. After I’d presented my ideas to them, they invited me to become part of the staff. I have been with Accenture for five years, and I manage the entire process management area.
At the same time, you have had an enriching academic experience, right? I started 12 years ago, sharing my experiences in the area of BPM at the University of Pennsylvania. It has been one of the most attended courses. Eight years ago, I worked with Whitman, where I
created one of the first “master’s programs” focused on BPM, and I have continued that collaboration on a regular basis. I am still a “guest” teacher at the University of Santiago do Chile, where I give an annual lecture on the subject from a very practical perspective.
In the meantime, you have published several books on the subject ...I have published five books, and the sixth is under way. I have also had hundreds of articles published. I combine work with a great deal of travel, and I see great similarities among the various locations I visit. I always try to transfer the knowledge from one client to another. All these experiences contribute “lessons learned” to each one of them.
In your last book “High Performance Through Process Excellence,” you mention that the subject of “process optimization” has been getting popular. As this topic is considered difficult or even boring for many, why this change of attitude?I think the reason many people find this
subject boring has to do with BPM’s evolution. If we look back at when I started, there were only a few thoughts from experts in the field. No tools and no methodology approach existed. Over the years, there were people who saw the potential in BPM and quickly focused on the development of methods with the objective of systematizing all knowledge.The first approach, which relied on complex prototypes, was not very exciting for entrepreneurs. This perception has changed only in recent years, in my opinion, for several reasons. On the one hand, the business environment has become much more dynamic, which means that nowadays a company cannot neglect its processes and be confident that they will still apply in five years. They have to adjust and optimize these processes continuously, and in order to achieve this goal, they need a method and a disciplined approach. This is where BPM comes into play. Second, we have witnessed the rapid and impressive development of information technologies (ITs), which gives us in order to keep up with this flexibility, we must constantly adapt each
PROCESS OPTIMIZATION IS A TOPIC INCREASINGLY POPULAR IN BUSINESS.
ONE OF THE WORLD’S LEADING EXPERTS IN THIS MATTER EXPLAINS WHY.
MATHIAS KIRCHMER
w h o i s w h o
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process. BPM helps us achieve the results we need from these technologies. Thirdly, and perhaps most importantly, BPM has achieved a good level of maturity. It is an indispensable methodology if a company wants to achieve its planned results. All this has given BPM an entirely new dimension, making it more appealing. And now we can talk about quality, efficiency, compliance, utility, transparency and other issues of concern to everybody, things that BPM gives us in return.
In your book you state that MPE (management of process excellence) has many similarities to jazz music. Can you expound on this idea?I am a big fan of jazz. If we look at anorganized company as an orchestra, it has a conductor, there is sheet music and everyone performs notes as they are written on the staves. That’s the way the business environment worked 30 years ago: everything was relatively stable; each person knew exactly what his or her role was. Currently, this is no longer possible. With so many ongoing changes, we must learn to play like a jazz band. There is still a leader who chooses the music and gathers all the musicians together, but the members switch roles interchangeably. Along the way, different soloists take turns being backed by others. That is, we lead and we follow the one who is the expert at playing his instrument. That’s how companies must work today; they need to follow the different dynamics based on innovation. Jazz is improvisation. And to improvise means to invent new things and present them to the audience, in this case the market. In a band, however, the musicians can’t improvise without knowing what their colleagues are doing. There must be harmony, structure and rhythm. This improvisation must also have a structure and direction, and that’s not easy to achieve.
In your point of view is MPE buzzword in the area of business process management, or is it truly different and does it even go beyond traditional BPM?In my last book, I decided to use theMPE designation to emphasize that anew era in business process management is emerging. It is a way of saying that BPM is undergoing a transformation from a methodology that continuously seeks the next model of processes optimization to a more agile, efficient discipline focusing on execution and results-oriented management. It’s a trend that is being observed: BPM is moving towards results-oriented management.
who is who BPM (Business Process Management) Expert
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What is the importance of the BPM Centers of Excellence in a company? These centers are the “processes of process management” command core. Just as payroll processing and evaluation procedures are directed by the Human Resources Department, BPM coordination is the responsibility of the BPM Center of Excellence, where the convergence of all innovative ideas to be applied in a logical structure for the company happens. Each company has its own Centers of Excellence structure according to the importance that it attributes to them. There are some structures with several hundred people: business analysts, process architects, system administrators, process designers, software tool assistants ... people with very diverse profiles.
We often hear that a strategy of relentless and flawless execution is what distinguishes a great company from one that is simply regular. What role can process management play in executive strategy? If you’re attentive to what companyCEO’s say, you can conclude that thegreatest challenge for an organizationis to develop good execution strategies. BPM offers the mechanisms necessary to structure the output of an information—based strategy — in other words, at its core, BPM acts as the “translator” that allows people and IT’s to execute businessstrategies.
Taking into account your vast international experience in this area, how do geographic issues, in your opinion, influence the adoption of BPM?Having lived and worked in various places in Asia, Europe and the U.S., I can say that each culture tends to deal with different topics in its own way. In the U.S. people show a great affinity for technology. They like to start from that point, and they want results almost immediately. I had conversations with some managers who tell me: “If this has no impact in the near term, we are not interested.” In Asia it is very different; they look at this as a long-term proposition, focusing a lot on the details. The organization and the personal aspects are the starting point. It’s a longer trip. Europe is a compromise between the two.
Is there some evidence of a significant correlation between successful companies and the adoption of BPM?That is a complex question. We would first have to understand what it means to be a successful company. Accenture more studied
v
Dr. Mathias Kirchmer is executive Partner for Process excellence at Accenture. He leads the development and delivery of Process Excellence offerings, as well as the continuous improvement of business process knowledge assets.For almost 18 years before joining Accenture Dr. Kirchmer was with IDS Scheer, a leading provider of business process excellence solutions, known for its BPM software, the ARIS Platform. His last position was Chief Innovation and Marketing Officer. Before that, he managed the Americas and the Japanese operations of the company. He also founded the firm’s global business unit for process-oriented SAP implementations.During his professional career Dr. Kirchmer has developed deep knowledge in approaches, methods and software for the design, implementation, execution and continuous improvement of business
processes. He has applied this know-how in Europe, the Americas and Asia. Dr. Kirchmer is an affiliated faculty member of the Program for Organizational Dynamics of the University of Pennsylvania, as well as a faculty member of the Business School of Widener University, Philadelphia. In 2004, he won a research fellowship from the Japan Society for the Promotion of Science. He is the author of numerous publications, including five books. The last one is in preparation and will be entitled “High Performance through Process Excellence.” As to his educational background, Dr Kirchmer holds a PhD in Information Systems from Saarbruecken University (Germany), a Masters in Business Administration and Computer Science from Karlsruhe Technical University (Germany) and a Masters in Economics from Paris-IX-Dauphine University (France).
Biography
BPM (Business Process Management) Expert who is who
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more than 500 high-performance companies to identify the key characteristics associated with them. Suddenly, the financial crisis exploded and half those companies were in real trouble. What we can say is that, in general, that create long-term value always incorporate BPM components into their management practices.
There are two types of companies in terms of business development: those that grow organically and those that grow through acquisition. What benefits can BPM offer for each situation?BPM can support both scenarios. When we adopt BPM, we create a transparency that supports these two strategies. In the case of acquisition, BPM cannot help much in the primary assessment. We need to take a good look at the type of business, the operating model that it needs, if it makes sense to buy (or not) a company that has nothing to do with its portfolio ... Once it’s acquired, and in whatever manner it’s integrated in the group, even if it remains as a separate unit, the organization of this company may be effected with the help of BPM tools. Thus, BPM takes on a more preponderant role in the post-acquisition integration phase. In the case of an organic growth business, BPM helps companies discover, through the use of simulations, how to move on and how to invest from its starting point. In terms of organizing innovation processes, for example, a BPM approach can help a company adoptprocedures that allow it to introduce new services and therefore generate more revenue.
What examples can you give us of other companies that have benefited
from their processes being properly managed? Are we speaking mostly of incremental or transformational changes?If you’re asking me what kind of companies benefit from BPM the answer is “all.” But those that benefit the most are the ones undergoing constant change. About 20 years ago, there were discussions in the public sector — where we always did everything the same way — and the prevailing thought was that BPMwouldn’t be quite appropriate. Today,due to the cuts that have occurred inthe public sector, we have good clientsin public administration. The situation has changed dramatically; all organizations have to work in a new business environment. The real question is, what are, specifically, the most important benefits for each company? I found that here at EDP the pillars are founded on growth, cost efficiency and management of risk. If we look closer, we see these are the areas that BPM supports.
In your book, you say you need two things to succeed in the U.S.: “funny” and “money”. What about Europe? The difference is that in Europe and Asiapeople have a closer relationship withthe companies they work for. If they see a situation that is good for the company in general, they are usually motivated, even if they won’t benefit directly. In the U.S., where people constantly change jobs, they think more in terms of personal compensation.Their line of thinking is, “If I won’t get anything out of this personally, why do I have to do it?”.
Globalization, speed and fierce competition are some of the challenges that modern companies now face every day. To succeed, companies must be more agile and develop new business models. For companies, streamlining and innovating is no longer optional, but rather critical capabilities needed to survive in the long-term.Business processes are the critical link between strategy and execution. BPM allows the streamlining of processes within an organization, turning ideas into practice, contributing to the development and implementation of new business models across the entire organization. “High Performance Through Process Excellence - From Strategy to Operations,” by Mathias Kirchmer, is a work that describes how certain proven practices can help you achieve the best results for a company when combined with new management processes. Process Excellence is possible and no longer just an option—it is now inevitable.
EDP was awarded as “Best Practice Partner” by the APQC (American Productivity and Quality Center) for process management. This award recognizes the efforts developed by EDP since 2008 that were coordinated from
the Corporate Center by the DDO, in terms of the definition and implementation of a common approach to managing its core business processes, geared to the progressive metrics and optimization of its performance, and having as its main goal the creation of added value for the Group. The kickstart meeting for this new project took place in Houston on November 9, preceded by the APQC’s annual meeting in which
the DDO was selected to present the key points in the approach and practices already in place for the process management at EDP.The APQC is a North American association based in Houston. Founded in 1977, it is a world leader in benchmarking ‘best practices’ and business performance activities, counting with a client base of more than 750 companies from the “Fortune Global 1000” list. As part of its activities, the APQC regularly implements investigation projects of ‘best practices’ in the specific area of business process management, and this year it selected EDP for “Best Practice Partner” for the “Building Strong Process Management Capabilities” project.
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EDP IS AN APQC “BEST PRACTICE PARTNER” FOR PROCESS MANAGEMENT
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In debateAn ocean of opportunities. With the WindFloat project, sustainable energy exploration of the oceans gains new meaning for EDP.
EDP has chosen as one of its priorities innovating in offshore wind energy, an arena that is gaining critical mass and
accelerating its development wind energy.The Portuguese, and the general Mediterranean and Atlantic coasts for have relatively large depths. In order to prepare for the future exploration of offshore wind energy, EDP has installed the WindFloat demonstration project, a floating support structure for offshore wind exploration in water depths greater than 50 meters. The ocean, specifically its potential as a vast source of sustainable energy, signifies new opportunities for skilled employment, considerable intensive activities in research, development and innovation, and the creation of sustainable value.
The ocean is much more than energy, and we must manage this asset harmoniously: fishing, transports and logistics, tourism ... these are just some of the vectors.Another aspect relates to EDP’s ability to face the challenge of offshore energy exploration in a different way, creating sustainable competitive advantages over its competitors.There are a number of issues to consider: How can we reconcile all of the ocean’s uses in a harmonious and sustainable way? What kind of criteria should be considered in deciding which activities to bet on primarily? And does EDP have the necessary skills to embrace the challenge of sustainable energy exploration of the ocean? How can we create/foster these skills, placing us apart from others in this area? We brought the challenge to a panel of distinguished guests, who will certainly help us with their opinions in clarifying these questions!
ANTÓNIO VIDIGAL - CEO of EDP Inovação
The ocean is much more than energy, and we must manage this asset harmoniously.
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The opinions of the different experts
+ +António Vidigal is general
director of the EDP Group and president of EDP Inovação and Labelec. Throughout
his diversified career, he has concentrated
in energy technologies and information
systems, served as executive director of
EDP’s “Holding” arm, and held the title of
“chief risk officer” for the EDP Group, an area he created. In addition,
António was part of the team that launched
the mobile operator Optimus, a company where he served as
managing director, and helped to create Edinfor
(now Lógica Portugal), becoming the company’s
first CEO. He holds an electrical engineering
degree from IST (Instituto Superior Técnico) and
is a member of the
“The ocean, specifically its
potential as a vast source of sustainable energy, signifies new
opportunities for skilled employment,
considerable intensive activities in research,
development and innovation, and the creation of
sustainable value.”
The oceans are actually a great source of resources of economic and scientific interest, some of which are already under exploration, for example, in the transport, fishing and energy sectors, while others remain to be discovered, such as in the areas of geology, medicine, biology and new energies, to name a few. Thus, Portugal has been undertaking important work, which will expand the jurisdiction of marine resources under our country’s stewardship and identify the existing untapped potential. With regard to the business sector in which EDP operates, the production of energy from waves, tides and offshore winds offers new paths to explore, although they are technologically at different levels of maturity. In my view, EDP should focus primarily on the most mature and efficient technologies, always seeking to maximize the integration of knowledge and use of a national workforce through partnerships with manufacturers, service providers, and research and scientific support institutions. To this end, the EDP Group possesses the necessary skills to assure the execution of projects through their initial evaluation, the monitoring of the manufacturing and assembly phases, and finally, to the testing and operation of systems and equipment.
The history of Portugal is closely connected to the ocean, and it is well known that we have the largest exclusive economic zone of Europe. Many thinkers agree that our future is intimately tied to the great potential that the ocean provides, thus we must exercise the necessary vision and ability to utilize this resource. However, this source of wealth manifests slowly, which makes it all the more disturbing to see that other countries have been able to take advantage of it. The impressive growth in the emerging economies has increased maritime traffic, and our ports should be a part of this activity. The economic diplomacy should also help attract prototypes of energy technologies (e.g. waves, offshore wind, etc.) for testing in the pilot zone established in our coast, a coast possessing unique conditions.
The most advanced technology for extracting from the sea part of the enormous renewable energy potential it contains is definitely offshore wind. At the end of 2010, a total of 3554 MW of offshore wind power was installed in the world (97 percent of which was in Europe). When EDP started working on this technology, back in 2008, it realized immediately that the outstanding know-how acquired in onshore wind was not enough; many of the competences necessary to be successful in offshore wind are coming from the oil & gas marine industry. The complexity and the scale of offshore wind projects are much higher than the ones associated with onshore initiatives and actually are more directly comparable with the exploration and exploitation of oil and gas resources at sea. Three years after its first move, EDPR has set up its offshore wind center of excellence in Edinburgh, where a team of more than 30 people is operating. At the same time, a pipeline of about 2400 MW has been secured and a strong partnership with Repsol (not by accident one of the major oil and gas players) established.
Luís Carrilho · Board of DirectorsLabelec
Pedro Neves Ferreira · Energy Planning Department
Carmelo Scalone · EDP Renováveis
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Under the auspices of a Seia township initiative and a partnership with EDP Produção, through the Mondego Production Center, the “Museum in the Heart” initiative took place on Sept. 25. About 300 people participated in a walk that began in the Desterro Forest, part of the Serra da Estrela Natural Park, ended at the EDP Museum of Natural Electricity. EDP offered T-shirts to participants and opened the Desterro Plant, giving them a guided tour.
A heartfelt walk
A devotional event to honor Santa Bárbara (St. Barbara) was held in the month of July to celebrate the beginning of the subsurface excavation and groundwater in the work of the future Ribeiradio-Ermida Hydroelectric Development. In Foz-Tua, the celebration was held in September, near the entrance to the future hydroelectrical station access tunnel. Highlights were the blessing of three images of Santa Barbara (the patroness of miners, stonemasons and architects, gun-ners, manufacturers of fireworks and in-mates) to be placed at the several worksites. The archaeologists donated one of those images. The expression of this popular de-votion, invoking divine protection for those working in underground locations, now as-sumes particular visibility due to the many works in progress, under EDP’s hydroelec-tric capabilities expansion plan.
Santa Bárbara in Ribeiradio-Ermida and Foz-Tua
This past April, José Manuel Fernandes, a member of the European Parliament (MEP) for the Social Democratic Party (PSD), visited the Venda Nova III construction site, accompanied by some regional mayors. This project, located in Vieira do Minho and scheduled to start operating in 2015, will have the largest installed hydroelectric
power capability in Portugal. In September, Socialist Party (PS) MEPs António Correia de Campos and Vital Moreira visited the construction site of the future hydroelectric development of Ribeiradio-Ermida, a project encompassing a two-county area, Oliveira de Frades and Sever Vouga. This visit had the participation of PSD and PS Deputy Representatives Maria Esther Vargas and Acácio Pinto, respectively, as well as that of several mayors in the region. These initiatives are part of EDP’s strategy to keep all the political echelons apprised of the principles and evolution of the company’s hydric projects in progress.
MEPs visit Construction Worksites
In tandem with the activities happening at the National Agency for the Devel-opment of Scientific and Technological Culture, the usual summer visits of the Live Science (Ciência Viva) Engineering program took place between August and September. For this purpose, EDP made available the facilities of the Alto Lin-doso, Castelo do Bode, Carrapatelo, Lares, Sines and Ribatejo. This initiative seeks to familiarize the general public, usually consisting of families, with ongo-ing engineering projects for electricity production, as well as provide them with deeper knowledge of EDP’s production facilities.
Live Science at the Production Centers
O ur energy
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The medical center at the future Foz-Tua Hydroelectric Development, located in the province of Trás-os-Montes, services the districts of Vila Real and Bragança, and started operating on July 4. The sur-veys conducted among the population in the new dam’s areas of influence put job creation at the top of the residents’ list of concerns. Taking into account these ex-pectations, EDP decided to recruit local professional nurses. The Foz-Tua project is currently in the initial phase of construction and will be completed in 2015. This investment of more than 300 million euros is expected to create 4,000 jobs, 1,000 of which will be direct hires.
Medical Center Foz-Tua
Never before has the Douro, or “Golden,” River been the object of the tourist demand that it now experiences, or lived with so much hustle and bustle, mainly in the summer months. This thriving activity has developed as a result of the locks operating in the different dams, which allow for secure navigation along the river in what is described as the “national” course. The numbers speak for themselves!
LoCk oPERATIoN
560Lock
operations
1.556Vessels
80.446Passengers
A group of members of the Southern Regional Chapter of the Portuguese Association of Environmental Engineering paid a technical visit to the Alqueva Hydroelectric Station. Accompanied by a technician, the 35 guests had the opportunity to browse through the dam galleries and the internal dam facilities, where they listened to a presentation. From the top of the station guests were able to view and enjoy the dams infrastructure.
Engineers visit Alqueva
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Human capital
“Innovate, align, communicate, recognize and value,” were some of the words used during a meeting on September 30 in the town of Torres Vedras that brought together nearly 200 EDP Human Resources employees.
“Each one of us is precious”
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The day began with a visit to the Sobral Wind Farm. From here, the participants traveled to the Campo Real Hotel in Torres Vedras, where Maria João Martins received them. EDP s director of Human Resources reminded everyone of why they had come together and the importance of people in the company today. “We are absolutely unique human beings capable of inspiring the entity we participate in, in the way we are, live or stand for what we do, and what we have experienced. This unique way of being is impossible to replicate and makes each one of us, a very precious being,” she said. Sérgio Figueiredo, CEO of EDP Fundação, spoke about the company’s last great act of volunteering. “The ‘Part of Us’ program emerged as a teambuilding initiative, but grew and was a success because everyone gave it their best effort. i should emphasize the enthusiasm with which the co-workers lived through this experience, because they did have their hands full,” he added.The session was enriched by the presence
of António Mexia, EDP s chairman of the Executive Board of Directors, who spoke on the strategic priorities of HR managers. In his opinion, “All people are responsible for finding their energy and their contribution to the organization.” They must know exactly what the company wants, where it’s going, what are their challenges and framework.” To equip people is a daily fitness must, and each person has to get their fitness level. EDP University is a typical case of how we help people get equipped. It is necessary that “everyone have access to information and opportunities to ask questions and get answers. It is mandatory that everyone know the dimension of the challenge put before this industry.” It is imperative that people understand “that they are lucky to be part of an organization like this one and that that confers upon them an additional responsibility in the performance of their jobs,” he said. After lunch, work was resumed with a message from António Pita de Abreu,
EDP’s executive director, who also recalled the importance of people being informed and knowing the challenges of the market and companies, in order to acquire a wider strategic view of the business. Assistant Director Rui Cabrita and Brand Manager Filipa Roquette represented the Brand & Communication Department at the meeting. The conversation revolved around communication and the challenge that this area faces daily, in a global company with a Group culture that respects the cultural, social and business individualities in each area of influence. The idea that “people are our inspiration” inspired the motto for the next issue. Maria João Martins also spoke about the HR axes — Simplification, Growth, Innovation, Sustainability, Proximity, Alignment, and Dialogue — and presented the “Who’s Who in HR,” a compilation of all the people who work in Human Resources in the different countries, which was a boost to all present.
“All people are responsible for finding their energy.”António Mexia
Due to its previous success, EDP again held the second “Valuing the Experience” program. Started in September 2010, this project focuses on employees with 30+ years of employment with EDP in different professional groups (from technicians to senior managers) from around Portugal. Just as before, the program will unfold into two different phases. The kick-off phase was held in Lisbon, Porto and Caldas da Rainha, with awareness sessions for 123 hierarchies and 143 participants, to whom the program and next steps were presented. By the end of 2011, selected employees will also have participated in the workshops of the first phase.A second phase started in early 2012. Three hundred employees are expected to participate in total, just like in the first program.
We continue to value the experience
Maria João Martins met with HR managers and directors from different countries in the morning.
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human capital
Pedro, Ana, Emmanouil, Francesco, Rúben, Diogo and Jaime are the protagonists in this story. They have different profiles and academic backgrounds. They come from different places and schools. What they have in common is the fact that in the summer of 2011 they participated in EDP’s internships and consider this experience “very rewarding.” Pedro Domingos (electrical and computer engineering), completed an internship with an academic context –the Lisbon MBA at EDP Distribuição. In his view, the most interesting part of this experience “was to learn in greater detail what is the business of EDP, particularly the Energy Management Division (DGE)” where he was placed. For this young man, who found the environment at EDP to be “a pleasant surprise,” interaction with the DGE was direct and informal and communication with colleagues from other departments was always helpful. “Despite the large size of the Group, I did not even feel like a typical intern, given how well I integrated into the team,” he says. According to Ana Correia (human resources management), the internship that she had at EDP Valor, was “an early entry into the labor market, a first contact with the workplace, providing practical experience of the theory taught in my bachelor’s program.” Once again,
the inclusive involving environment was important: “The way I was received and the type of work environment I experienced also contributed to the success of this internship.” Emmanouil Vomvolakis (electrical engineering, specializing in renewable energy sources), an IAESTE intern, opted for EDP because the Group works and is a world leader in his field of training and “participates successfully in many projects in the different countries where it operates.” This young man, who came to us from the Technical University of Athens, saw in this experience “a great opportunity to get to know, in a more practical way, what is learned in theory at school.” Francesco Marulo (international management), a CEMS intern in Lisbon, arrived at EDP directly from Milan, through the CEMS MIM joint program with EDP Distribuição’s Department of Maintenance. Francesco remembers that he had the opportunity to participate in the implementation of a new asset management system, which helped
develop his understanding and assessment of risks related to the physical assets of a company. Rúben Nogueira (economics), a summer intern at Universidade Nova’s School of Business and Economics, who interned at EDP Comercial, spoke about the enrichment on a personal level. “To get acquainted with people, the friendships you make, the perception of what we derive from the interaction with people at work, and the day-to-day workings of a big Portuguese company are for me as much, or even more important, than the professional experience itself,” he acknowledged. Diogo Ribas, a summer intern from PEJENE, believes that the internship he did was short but very interesting because it “allowed him to see in practical reality what is learned at the university.” He highlighted as strengths in this experience the fact that he had “an opportunity to participate in a company like EDP Produção and see how the maintenance department works.” Jaime Ribeiro, a summer intern from the Instituto Superior Técnico’s Master of Electrical and Computer Engineering program, felt that, besides enriching his curriculum, he got the sense of what it is like to work in a large company and fall into its work rhythm.
Young pEoplE rEcognizE AdvAntAgEs of thE summEr intErnships At Edp
About 60 young adults applied for summer-internships in in the different departments of EDP’s various companies. ON spoke to some of them to understand what they had learned from their experiences.
the promotion of internships is part of Edp’s Attractiveness strategy
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human capital
Children of employees make lifestyle choices
June, July and September were the months chosen for the three sessions of the “Life Choices Today” initiative. In 2011, the activity, which was developed under the +Reconcile program, involved about 90 youngsters (all children of EDP employees). Life Choices Today seeks to give young people a greater awareness about life. According to Pedro Santos, trainer for EDP’s outsourced partner Sintese Azul, who conducts the training, the goal is “to ensure that these young people broaden their horizons and do not just do what everyone else does; to alert them to the fact that they are the ones who control their lives, and that all their decisions have a consequence.” Throughout the
simulation, Life Choices participants are able to “manage” the life of a character, created by them, set long-term goals and make decisions, both personally and professionally, that contribute to the achievement of those goals. Over three sessions, held in Lisbon and Porto, young people were challenged and the proposal was well received. In the opinion of Sara Cunha, one of the participants, the training was “fun and educational.” In her point of view, the activity is very useful in order to understand “how difficult it is to maintain a balanced life with proper management of time and money.” She added that this is an activity that she would like to suggest to friends.
“When you find a job that you love, you never work again.” This was the motto of the conversation that António Mexia had with about 120 new employees who, in April, participated in the Integration Meeting. This event marks the culmination of a process that starts on the day the person joins EDP. Over the length of a year, the new employee is driven through different stages as if it were a journey one that includes initiatives whose objectives are to facilitate employee
integration into the company, provide them with fundamental knowledge about the culture and the business, promote internal networking, and help so that they feel +EDP. Full of visits and activities, this intensive program is designed so that the employees can learn more about better about EDP, feel the culture of the company and drink in the inspiration emanating from the various people that welcomed them in the different structures through which they passed.
And there were many expressions of delight. For Duarte Duarte from EDP Distribuição, “Not only was this meeting very important, the year-long welcoming process was also important. I enjoyed the presentations that were made, the people that I met who started the same year as me, and understanding what each one of them does in the different EDP companies.” In his opinion, “This meeting conveyed a great deal of motivation”.
intEgrAtion - clAss of 2010
A great deal of motivation
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“We have been meeting our goals right on target!”
“I think we are being consistent with the Group’s vision, a vision of leadership in the creation of value, innovation and sustainability,” states EDP Brazil’s director and vice president.
EDP Brazil has recently inaugurated the Inovcity project in the city of Aparecida. What does it mean for the company to launch the first smart grid in Brazil?This project is undoubtedly an important milestone for EDP in Brazil. As we know, the EDP Group has consolidated experience in the field of intelligent networks. We obtained approval for the first smart meter in Brazil, through the entity that regulates the metrology sector (INMETRO). This project was the result of a partnership with a Brazilian company (ECIL) that allowed us to penetrate the market with the first effective value proposition for smart metering in Brazil. In addition to the concepts of smart metering, in Aparecida we will also test concepts of distributed generation with renewable sources of electric mobility and LED street lighting in what will be the first smart grid in Brazil. I think we are
being consistent with the Group’s vision in achieving leadership in the creation of value, innovation and sustainability and in proving that leadership.
What led to the choice of this city?Besides being situated in the heart of EDP Bandeirante’s concession area, it is a city with 15,000 customers — the minimum dimension that we require for our investment to be included in a research and development project. It corresponds to 1 percent of our EDP Bandeirante customer base, an investment that should reach 11 million Brazilian reais.Aparecida is also a city with historical past and full of religious symbolism, the equivalent to Fátima in Portugal, albeit each one being distinctive. Every year, it receives more than 10 million pilgrims. It is a pilgrimage destination of great prominence in Brazil, a fact that helps in the dissemination of the project. v
mIguEl sEtAs
s p o t l i g h t
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Did the know-how culled from the Inovcity project in Évora help the similar launching in Brazil? Of course! Although some technological solutions are distinct, because they must comply with the Brazilian Technical Standards, the project is, in its essence, very similar to Inovcity in Évora. Our team in Brazil has also had all the necessary support from our colleagues at EDP Distribuição and EDP Inovação in Portugal.
Electrical mobility is one of Inovcity’s strongest characteristics. EDP Brazil has previously performed totally innovative experiences in this segment. What feedback have you had? Can we expect a culture change?We were the first company in Brazil to launch an electric vehicle supply chain. Last year, we installed 20 supply points — 10 in São Paulo and 10 in Espírito Santo. Additionally, we donated about 90 electric bicycles for governmental security and law enforcement agencies. Thus, we are experimenting with a three-pronged approach: innovation, environment and social responsibility. The feedback has been generally good. In some regions it was easier to change people’s habits than in others. We are already applying this experience to the University of São Paulo (recently ranked as the best university in Latin America) to strengthen the campus’ security services. We installed our first solar station at the university and donated motorcycles to their campus’ security services.I believe that electric cars here will be introduced at a slower pace than in
Europe, because Brazil has a strong tradition of using ethanol as an alternative fuel. In fact, most of the cars currently sold in Brazil are ‘Flex’ cars and can consume gasoline or ethanol; thus it is natural that the electric car will not become a reality as quickly in the Brazilian market.
EDP Brazil has also been a pioneer in energy efficiency, having won the Procel Award for a project in mogi das Cruzes. What does this mean for the EDP group?Energy efficiency is an area where EDP has had a very intense role. In fact, this award is a repeat award. Last year, we achieved the same distinction with a project we implemented in the city of Guarulhos, an area where we also have a concession through EDP Bandeirante. The Procel Award basically recognizes the excellent work that our teams have performed in an area so critical to the sustainability of the electric sector and the rational use of energy. It is a facet of leadership in innovation and sustainability.
What is the importance of sustainability vis-a-vis innovation and vice versa? How do these areas complement each other?Indeed, in our industry, sustainability and innovation are two sides of the same coin. They coexist in a symbiotic environment. The innovation projects always tend to help minimize the impact of our activity on the environment and society. The sustainability projects are often innovative and set new paradigms in the industry. So we decided to join the two areas in a concept we
From left to right: Business Excellence, Technological Development, and Innovation and Sustainability
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An engineering physics majorwith a master’s degree inelectrical and computer engineeringfrom the Instituto Superior Técnicoand an MBA fromthe Universidade Nova de Lisboa,Miguel Setas joined the EDP EnergyGroup in 2006 as chief of stafffor the chairman of the ExecutiveBoard of Directors. He was CEO ofEDP Comercial and a member ofEDP Inovação’s, Portgás’ and EDPFundação’s management team. he has been living in São Paulo since 2008 and hasheld the positions of director and vice president for EDP Brazil and EDPInstitute. Since 2010, he has served asEDP Bandeirante’s and EDP Escelsa’smanaging director. Having started hiscareer as a consultant at McKinsey& Company, where he developedactivities in sectors such as energy,distribution, banking, insuranceand industry, Miguel was alsoa director for Lisboagás and GalpEnergia, as well as CP– Combóios de Portugal (Portugal’strain system).
+
Vice President of Distribution and Innovation for EDP Brazil
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spotlight
internally call “innovability” (innovation + sustainability). From now on, the two areas work together, following current global trends, sharing priorities, plans, resources and budgets, and also collaborating closely with the EDP Institute. I think we’re pioneers who are organizing this structural convergence in the organization. In the area of sustainability, EDP Brazil has been widely recognized. Recently, we were voted “Best Sustainable Energy Company” in Latin America by the ‘New Economy’ magazine. In addition to beingincluded in the Bovespa SustainabilityIndex since 2006, this year, we wereranked the most sustainable electricitycompany in Brazil, by the Germansustainability rating agency Oekom.In the area of innovation, in 2010,the magazine IstoÉ Dinheiro named us the most innovative company in the Brazilian electric sector.
since you moved to Brazil, do you now consider yourself more of a “field” manager of an in-house manager?Neither. There are times to be in the office and others to be in the field. There are moments for planning and strategy and moments for mobilizing and energizing. I think we must complement them within these two perspectives. The opportunity to lead a business unit with approximately
2,000 employees (1,000 at EDP Bandeirante and another thousand at EDP Escelsa) showed me the importance of leadership through people. And that requires proximity, it requires presence. That is why, at least twice a year, I visit the most remote regions of our concession areas. I do what we call the “Distribuição Roadshow.” I travel to 10 cities in the states of São Paulo and Espírito Santo, present our results, talk to the electricians, hear their concerns, and try to motivate them to achieve our business goals.
With almost two years as the Vice-President of Distribuição in Brazil, what changes and transformations would you choose to highlight during that period?The work we are doing in distribution is based on the legacy of those who preceded us in this mission. Today, we are where we are because EDP learned how to take good care of its operations in Brazil.In 2010, when I became vice president, I involved all our managers (about 100) in a strategic planning exercise that was to unfold subsequently over three years. We selected 10 action priorities. Later, all the people who wanted to participate voted on these priorities openly on the intranet. We had the assistance of 600 people to decide on EDP Bandeirante’s and EDP Escelsa’s strategy. I believe it was a useful exercise
because it aligned knowledge about what is important for the company. This exercise was also a pioneering initiative, since traditionally strategy behind closed doors by a small group of people.The transformation of the distribution unit has been focused on the strategic pillars of our vision, aiming to establish ourselves as a benchmark in the industry in the creation of value, innovation and sustainability. Value creation has meant maximizing revenue and cost efficiency, through increased productivity and operational excellence. I would highlight the enormous “Revenue Assurance” effort we have been making that has allowed us to reduce commercial losses and bad debt, with a savings of 100 million reais for these areas. I would also stress the cost reduction and operational excellence projects, as is the case in the “Opex” and “Lean” categories, which have allowed us to significantly improve our efficiency and productivity ratios. If all goes as expected, 2011 will be one of the best in the history of the Brazilian distribution unit’s EBITDA (for EDP Bandeirante and EDP Escelsa). There is still much to do, but we have been meeting our goals right on target!
the lean project changed the face of distribution in Brazil. How was it achieved?Without a doubt! This year, we concluded
v
From left to right: EDP Institute, Brand and Communication, and Board Meeting (Agostinho Barreira, EDP Escelsa’s technical director, Francisco Fernandes, EDP Bandeirante’s technical director; Michael Setas; Michel Itkes, EDP Bandeirante’s Commercial director, Carlos Motoki, EDP Escelsa’s commercial director, and Ewaldo Nogueira, business excellence executive manager)
The sustainability projects are often innovative and set new paradigms in the industry. So we decided to join the two areas in a concept we internally call “innovability” (innovation + sustainability).
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spotlight
the Lean project in EDP Bandeirante’s technical area in the six major distribution centers, and started with EDP Escelsa and the commercial areas. The results are impressive. We have discarded tons of paper, debris and scrap metal. and scrap metal, revitalized more than 50 workplaces, and implemented 473 improvement actions, which had a visible impact in the organization. But most importantly, the project caused an internal mobilization (involving more than 250 employees) and a very big cultural shift that contributed to an improvement in operational excellence. For example, a simple truck inspection, which before could have lasted more than 20 minutes, was done in just seven minutes. But there are other examples: We reduced the distance traveled by electricians between the distribution centers for the repositioning of materials, implemented a “supermarket” system in our warehouses, reduced material inventories and the time needed for their re-supply, standardized the storage of vehicles ... In short, we revolutionized the way we worked by streamlining processes, thus achieving visible economic impacts.
And now, what are the main challenges for distribution unit?I would say the main challenge for distribution at this time comes from
industry regulation. The rules are being changed for the Third Tariff Revision Cycle. The impact on our distribution companies’ profit and loss accounts is significant and, therefore, we need to rethink the business model and the optimization of our operations. Incentives and penalties established by the new regulation will require that we change the way we think about business. I would add that improving the quality of our technical service is a major challenge, especially during the heavy summer rains season that is approaching. Therefore, we are pushing forward a preventive maintenance effort. In the commercial arena, we are working hard to increase customer satisfaction while minimizing the causes that generate complaints.
How important is the “Vencer” (Win) project for EDP Distribuição Brazil?“Vencer” is an OrganizationalTransformation project, which waslaunched in 2009 and is led by EDPBrazil’s CEO, Mr. Pita de Abreu. Inseeking to improve the overall performance of the company, it has deeply changed the organization and the running of the company. We’ve reduced the number of managers by about 40 percent, and the number of hierarchical
levels has dropped from five to three. In addition, we’ve reviewed more than 20 critical processes, launched 12 strategic projects, and defined a new matrix of corporate culture and required behaviors. For Distribuição [Note: the distribution unit?], which employs more than 80 percent of the company’s human resources, this project was very impressive. Today, we have a much simpler and more agile organizational structure.And the leaders who were chosen forthis new organization were subjectedto a stringent evaluation and selectionprocess. Therefore, we now have a morecompetent and competitive managementteam. Without a doubt, after “Winning”(Vencer), EDP is a better company.
You have now been in Brazil for four years. How is it to work in another cultural environment?It’s been a very challenging experience, not only professionally but also personally. Professionally, Brazil is a continent of opportunities. In the electricity sector, we’ve experienced great transformations that have required a lot of articulation by EDP Brazil’s management team. Personally, I am really enjoying being immersed in Brazilian culture.
v
Road show Taubaté, Rodeo at EDP Escelsa and EDP Bandeirante, and the inauguration of InovCity
On a personal level, I am rather enjoying immersing myself in the Brazilian culture. The Portuguese and the Brazilians are people with very different characteristics, but who complement each other.
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spotlight
The Portuguese and the Brazilians are people with very different characteristics. Portuguese people are generally more rational and systematic, while Brazilian people are more emotional and creative. When I arrived in Brazil, I thought that our two peoples were culturally close, given the common language and shared genetic matrix. Today, I am aware that we are very different, but we complement each other well. Indeed, it is interesting to note that EDP is one of the few foreign companies that has been operating in the Brazilian electric sector for more than 15 years. Many foreign companies have come in and left after a few years!
How has the experience of writing every two weeks for Brazil Econômico and Diário Económico been?It’s been very interesting. I devote my Sundays to preparing these texts. It forces me to organize my ideas and research current issues. It is a demanding exercise because the issues have to be interesting for both the Portuguese and Brazilian audiences. And, as we know, both countries are living very distinct realities. Interestingly, even the language, which is the same, requires that there be a Brazilian version and a Portuguese one.
+
EBItDA increased in the last four years
From 2007 to 2010, EBITDA growth reached 28 percent. Value creation has meant maximizing revenue and efficiency in costs through increased productivity and operational excellence.
Concession Area
municipalities served
Population served
Customers served
(For the first nine months of 2011)
50.9 thousand Km2
98
7.8 million
2.8 million
Company Employees
Distributed Energy
Investments
Net Income
2,064
18,457,013 MWh
R$ 248,378
R$ 2,968,833
‘Lean’ in Suzano (before and after), and the opening of the Vila Rica Substation
gENErAl DAtA
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T he “Your Energy” concept was launched in 2008 at EDP Sustainability facility in Lisbon, a project to teach
youngsters about energy efficiency through classes given by “Energy Professor” and “Teacher Spark” — two characters who explain this subject in an instructive and fun manner. The project is developed in three platforms: classes at the EDP Sustainability facility, the “A Tua Energia (Your Energy)” microsite: www.geracaoedp.edp.pt/
atuaenergia, and the “Your Energy” Bus, which circulated throughout the country sharing knowledge and training with new generations, mainly in the areas of environment and energy.For a month the bus toured 14 cities and was visited by more than 4,500 students at 150 primary schools.But this initiative went even further and crossed borders! In Spain, particularly in the region of Astúrias, the program was implemented in December 2010 to great effect. “Viva Nuestra Energía” is its name,
but the goal is common to the program launched in Portugal: explaining energy to youngsters in a fun way. It gained wide acceptance from its inception, and we count a total of 8,927 students that have attended classes so far. An initiative that has spread to the Basque Country this past January.In Spain, “Viva Nuestra Energy” will be released also in Madrid and Murcia in 2012. The expectations for this school year (2011/2012) are huge both for the Basque Country and Astúrias.
Your energyThree years explaining energy to youngsters
SEnvironmEntal rESponSibility
ustainability
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We already have confirmed bookings until June of next year. In Asturias, the “Viva Nuestra Energia” project is expected to reach 50 percent of first- and second-grade classrooms during this school year. Expectations also run high for the Basque Country, since we already have 141 days reserved for classes and only nine days remain available. Through such initiatives EDP aspires to be not only a company that educates, but that inspires future generations to continue caring for the environment going forward.
For EDP managing biodiversity means ensuring the proper functioning of ecosystems, valuing the services and products supplied to us by nature, and creating opportunities for the sustainable use of our planet’s resources. We are committed to pursuing this path, clearly and transparently.
Therefore, we are making our 2010 performance report available to the public. To view the report, go to: www.edp.pt/sustentabilidade
biodiversitY report 2010
The Energy Bus, a project of EDP Comercial, started rolling on Nov. 10 on its tour to share knowledge about energy efficiency with the citizens of Portugal. Developed by DSA and DMK, and funded under the aegis of the PPEC (Promoting Consumption Efficiency Plan) approved by ERSE, this mobile public education project uses different languages to respond to different audiences: children, youngsters and adults. Through interactive and experiential communication, everyone can learn about the different themes, including the production and transformation of energy and methods for adopting new, more efficient and environmentally friendly behaviors.The “Your Energy” bus embarked on its journey from Marques de Pombal Circle in Lisbon and traveled on to visit some 54 cities in the interior of the country.
YOUR ENERGY BUS Energy efficiency on a cross-country trip
LaSTSTOpS
December 3 to 5 São João da Madeira
6 to 8 Santa Comba Dão
9 to 11 Figueiró dos Vinhos
12 to 14 Marinha Grande
15 to 17 Alcobaça
pORTUGaL At EDP Sustainability facility in Lisbon:69 classes1,431 students (January to October 2011)
“Your Energy” Bus 25 business days on the road14 district capitals148 classes144 schools4,604 students - 72 with special needs
SpaIN
ASTÚRIAS382 classes8,927 students69 schools8 cities (Oviedo, Gijón, Avilés, Nalón, Caudal, Narcea, Occidente and Oriente)(data from December 2010 through October 2011)
BASQUE COUNTRY432 classes8,956 students63 schools3 towns (Araba, Bizkaia and Gipuzkoa)
ustainability
a Tua Energia in numbers
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F oundation
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causas
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To learn more about this project or — who knows — hire a “Maria,” take a look this site: www.projetomarias.org
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Maria Rosa is from São Tome and is the mother of three children. She loves to surf the Net and, in the future, would like to improve her education. Dusso Baldé is a native of Guinea-Bissau, a native of Guinea-Bissau, where her four children still live. Recently, she started learning how to read and write. Licínia Monteiro came from Cape Verde seven years ago, and whenever she can, she goes to the beach to watch the sea. Rosa, Dusso and Licínia are three faces of the “Marias Project.“ As providers of domestic services, they clean, cook, do laundry, etc., for households. But more than that, they are entrepreneurs seeking long-term self-employment and financial self-sufficiency. That’s where their involvement in the Marias Project comes in. Founded in April 2010, in Amadora, a satellite city of Lisbon, this innovative social program aims to create large-scale employment opportunities in disadvantaged areas of the country? It originally formed part of the initiative “Bairros Críticos” (At-risk Neighborhoods) but has now received a major boost from Fundação EDP, which has assumed the role of patron. The Marias, who counted only four women in their ranks when the project began, are now a dozen. Along with housework, they give the project a sense of confidence and professionalism. In particular, the participants are responsible for recruiting more Marias and ensuring that each provide the high quality of service the project’s clients have come to expect. Considering themselves members of a cooperative of sorts, the Marias believe that the success of the group depends on the individual effort put forth by of each of them.Project management is ensured by Pressley Ridge, a member of the international nonprofit Alliance for Children and Families, which works with socially vulnerable families and their greater communities. In the case of the Marias Project, Pressley Ridge facilitates assessment and coaching of the participants, aiding in their recruitment and with other administrative processes.
These women seek financial self-sustainability through an innovative business
ThESE “MARIAS” ARE TRuEentrepreneurs/
Museum of ElectricityLisbonIllustrate 2012Exhibition of works by 50 finalists of the 5th International Biennial Exhibition of Children’s Book Illustrations. Opening in January.
EDP Fundação Porto SpaceUn Diario da Republica: A Photographic Journey of Portugal. Documented in 2010 b the Kameraphoto collective. Dec. 18, 2011 through March 4, 2012.
CuLTuR AL AGENDA
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WindFloat Project
photographic essay
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The first offshore wind energy mill has been successfully installed. The WindFloat system in true scale is equipped with a 2-megawatt (MW) air generator and is situated off the coast of Aguçadoura in Portugal. This facility represents the beginning of a new sector in the offshore wind industry. It is the first offshore wind power project in the world that did not require the use of any heavy offshore equipment. The whole process of final assembly, installation and preparation of operation took place on land, in a controlled environment. Over the next few weeks the procedure for commissioning, testing and start-up will be completed.
Windfloat already sailingin Portuguese waters/
photographic essay
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Under construction from February to September 2011 at Lisnave, in Setúbal, this pioneer project in Portugal represents a partnership between EDP, Lisnave, Principle Power (originator of the idea), Vestas (Danish company and leading producer of wind
turbines), A. Silva Matos (national metallurgy company), the Portuguese government (through InovCapital and FAI-Fundo de Apoio à Inovação) and several Portuguese partners, who together have implemented the concept developed by a team of European scientists.
WindFloat under construction
photographic essay
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photographic essay
• 1,200 tons slide in the Sado estuary.
• 3 tugs pull the WindFloat.• Over 100 meters in height.• 40 people involved in this
operation.• WindFloat takes six days to get
from Lisnave to Aguçadoura.
WindFloat at sea
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After Kakuma, what is the greatest challenge facing the Energy for Development department?There are about 1.5 billion people in the world who lack access to electricity, and the UN has launched a campaign to provide universal access to energy by 2030. In this context, our challenge is to replicate the social impacts obtained in the Kakuma refugee camp by helping to meet basic human needs in locations without access to power grids, while identifying opportunities to create value for EDP in the area of decentralized ...
What about this project motivates you the most?The worldwide innovation and the enormous challenge that is put before the whole team. However, my main motivation is the ... contributing toward more sustainable social development, with a greater focus on human beings.
Is this social responsibility or business?Both. On the one hand, I see the social responsibility perspective according to the ethic that underlies all the actions we take, actions that include corporate objectives with regard to demand and efficiency, but that always require the development of people, particularly those most in need. But it is also business, because these projects enable the transaction of goods, including solar energy systems (for homes and buildings, public lighting, etc.) as well as other products and services.
Why might this be a good deal for anyone who buys and sells?In this approach, needy families can ease the strain on their reduced budgets, since in developing countries about one- -third of income is spent on fossil fuels (kerosene, gas, firewood, etc.). At the same time, we reduce the time and risks associated with the yielding of these fuels and their daily burning. Governments and other institutions look at these
projects as tools for rural electrification or social responsibility. Manufacturers and service providers (including EDP Group companies) see a business opportunity. EDP Fundação acts as a nonprofit facilitator, identifies opportunities, ssupports fund-raising, oversees project implementation and ensures the financial self-sustainability of the activity.
In which countries are you already acting?
In Guinea-Bissau we are finishing a project in 15 schools, and in Angola we are finalizing the contracting of a solar village for 500 families. We hope to soon launch projects in Mozambique, East Timor and another refugee camp.
Do you believe it is possible to improve the lives of these people?I have no doubt. Just talk to refugees who have benefited from our pilot project in Kenya. Now we just need to do more and do better.
In focus
“Now we just need to do more and better”
Luis Faria, Energy for Development Director at EDP Fundação
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Learn More About Procurement Promoted by the corporate procurement department, this project promotes the sharing of knowledge. Oviedo.
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Presentation of Interns Presentation of new interns at HC Energia. Prince Felipe Auditorium in Oviedo.
Twelfth Night“Twelfth Night - EDP Family,” a + Reconcile initiative. Numerous workshops held to enhance the spirit of family at EDP. At the Museum of Electricity in Lisbon (1/6) and the Serralves Foundation in Porto (1/7).
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The “Let’s Walk”Walk-a-thonEDP Gas sponsors the “Let’s Walk” walkathon to raise money and awareness for the Portuguese League Against Cancer. In Viana do Castelo.
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Visits to FabLabEDP FabLab Junior and a + Reconcile programs hold workshops for children and young people at the EDP FabLab. The best “inventors” will receive prizes.
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Commitment WeekEDP Distribuicao meets with employees to share its commitments in 75 live sessions to be held around the country.
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Customer Appreciation EventEDPR NA hosts an event to raise awareness of the company among a select group of customers and potential customers. Attendees will be invited to attend the 2012 Final Four Basketball Championship.
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EDP Sports Awards This event distinguishes employees for achievement in sports. Prizes awarded in the “Amateur Sports” and “Physical Fitness” categories for ages up to 40 years and 40 years and older.
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Father’s Day RaceThis family running event requires joy, good humor and above all solidarity. Takes place in Porto and is sponsored by EDP Gas.
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Lisbon Half-Marathon 2012Six miles separate the starting gun from the finish line in this annual classic, which attracts thousands of participants. Besides the exercise, this event offers a great opportunity to see the city’s beloved April 25 bridge through different eyes.
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A Night at the DamIn this second initiative for youngsters, children and grandchildren of EDP employees spend a special evening exploring every corner of a dam.
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Senior Management Meeting EDP Distribuicao holds a meeting to assess the past year’s activities and identify new strategic directions. The challenges facing the company in 2012 will also be discussed.
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