Traditional incentive systems slow the pace for smart city development

City as a customer offers the chance to initiate solutions across segments. But most multi-nationals are structured in a segmented way, organized in business units with sales targets set up within.

When talking to multi-nationals and even to regional energy suppliers the segmented structure is seen as an organisational problem to address holistic projects. If you look at energy companies most of them are structured in e.g. production (subsegmented in e.g. gas and power) and distribution /grid. Same applies for conglomerates (=Mischkonzerne) on industry side with e.g. divisions Energy, Grid, Energyefficient Buildings, Mobility, Security, Water.

Although corporate strategy defined an approach cross segments KPI for incentives is broken down on business units, cascaded down even on product group level. No wonder that the sales force focusses on turnover in their own specific area.

Conclusion: Cross segmented targets for sales are the prerequisit for holistic solutions within SC projects. And the strategy to approach city as a customer needs a reflection in KPI, sales targets and organisational structures.


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