2017 the utility management conference tue03 - a 360 ... the utility management conference tue03 - a...

2017 The Utility Management Conference

TUE03 - A 360-Degree Perspective for

Enabling Effective Utility Management

February 7, 2017 Tampa, Florida

3100 Zinfandel Drive, Ste. 300, Rancho Cordova, CA 95670 | we-inc.com | p. 916.889.8600 1

A 360° Perspective for Enabling EUM2017 UMC | Tampa, Florida

Spe

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ies Doug Spiers, President | Westin Engineering

During the past 35 years, Mr. Spiers has successfully managed numerous strategic planning, asset and maintenance management assessments, organizational assessments, information technology enhancements, and business work practice improvements to help many of the most forward- looking water and wastewater utilities in North America.

Mr. Spiers specializes in providing a variety of business and management consulting services to public-sector utilities to improve their overall efficiency, effectiveness, and level of customer service. He works closely with his clients’ executive team to help them achieve optimal performance by aligning their organization, operations, business processes, work practices, information systems, and performance measures with their desired strategic business goals. Through Board and executive management visioning sessions, manager and staff workshops, performance assessments and audits, and extensive knowledge of industry best practices, Mr. Spiers has helped his utility clients solve their most complex, cross-organizational issues in order to significantly improve their performance and level of customer service.

Corey Williams, President & CEO | OptimaticsCorey Williams, PE, is the President and CEO of Optimatics, the leading water infrastructure optimization software company in the world. Corey oversees all aspects of the Optimatics’ business, including management of its personnel throughout North America and Australia. Corey will promotes Optimatics software tools to strategic clients, federal and state agencies, financial organizations and institutions, and the global infrastructure community; provides best practices in client support; and continues the Optimatics transition to cloud-based software.

John Rossi, General Manager, Western Municipal Water District

As General Manager of Western Municipal Water District, John Rossi is responsible for the 527-square mile water resource agency. Mr. Rossi’s duties include planning, direction and management of the water, wastewater, nonpotable and recycled water activities and operations of the District. Mr. Rossi is a court-appointed Watermaster for the Santa Ana River Watershed and Western judgments. Western is a member agency of the Metropolitan Water District of Southern California, the Santa Ana Watershed Project Authority (SAWPA) and the Western Riverside Council of Governments (WRCOG).

Cecil McMaster, Chief Information Officer | New York City Environmental Protection

Cecil McMaster was re-appointed the Chief Information Officer and Deputy Commissioner of OIT in July 2014. Cecil had previously served a total of 13 years at DEP, including as DEP’s CIO for seven of those years, from 2004 to 2011. Two years prior to his most recent appointment at DEP, Cecil was the Director of Infrastructure at Web.com, as well as the New York City Consulting Practice Manager for Microsoft. With technology continually changing and playing an increasingly important part of how we do our work, Cecil’s range of experience and in-depth knowledge of the agency helps DEP fulfill its mission.

Russell Haupert, CTO and Director of Technology & Innovation | City of Tampa

Russell has been helping governments and government utilities improve their operations through technology for more than 25 years. Russell has a Bachelor of Business Administration with a major in management from Florida Atlantic University. He is a past examiner for Illinois Performance Excellence (ILPEx), an organization dedicated to helping governments, hospitals, manufacturers and other businesses implement the continuous improvement management model using the Baldrige Criteria for Performance Excellence. His early professional life in information technology began with the City of Coral Springs, Florida—a pioneer in strategy, performance and results management in local government and continues today as the CTO and Director of Technology and Innovation for the City of Tampa.


A 360° Perspectivefor Enabling EUM

Speaker Biographies

Rod van Buskirk, Principal Consultant | Westin Engineering

Dr. van Buskirk is Westin’s lead technology planner. In dozens of projects with Westin clients throughout the United States and Canada, Rod has successfully guided utility clients through integrated solutions, information management and technology, and business applications plans.

Dr. van Buskirk has more than 20 years of experience in applying information technology to enable and support business and operational processes in utilities (water, wastewater, gas, and power utilities) and municipal facilities management agencies. His experience includes strategic information management and technology planning; business process management; solutions spec/design; systems integration architecture.

Biju George, Chief Operating Officer, DC Water

Biju George is Chief Operating Officer for DC Water. In this role, he is responsible for the performance management of all operations. He participates in the implementation of the Authority’s strategic plan and works with the Chief Financial Officer in overseeing the development of operating budgets and operating policies. Additionally, Mr. George reviews divisions’ operational and financial performance and meets with department heads to discuss the feasibility of strategic initiatives. He also assists the General Manager in developing and implementing the Authority’s business plans. Mr. George has more than 27 years of diversified technical and management experience.



Speaker Biographies


A 360° Perspective for Enabling EUM2017 UMC | Tampa, Florida WORKSHOP TUE03

8:30 am Introductions; Overview of Agenda; Opening Remarks

Speaker | Doug Spiers, President, Westin Engineering Introductions of Panel Members Opening Remarks

8:45 am Have the Keys to EUM Success Shifted? What refinements or updates will you

need for the Keys to Success?

Facilitator | Corey Williams, President & CEO, Optimatics Leadership Refined Strategic Business Planning Refined Organizational Approaches Refined Measurement Refined Continual Management Improvement Framework Refined

9:15 am EUM Key 1| Leadership, Management & Governance

Speaker | John Rossi, General Manager, Western Municipal Water District Perspectives of Utility CEOs, CFOs, Engineering Directors, Operations Directors, and CIOs regarding EUM What management team members want to achieve via EUM How all utility executive or supervisory leadership can contribute to an EUM initiative Utilizing governance best practices

10:00 am Round Table Exercise #1 | Leadership, Management & Governance

How is your Utility doing in the areas of Leadership, Management and Governance? What is working and why? What is not working and why?

10:30 am Break

10:45 am EUM Key 2 | Strategic Business Planning – Integrating Business and Technology Strategic Planning

Speaker | Cecil McMaster, Chief Information Officer, New York City Environmental Protection

Strategic Business and Technology Planning in New York City. Business and Technology Leaders need to be at the strategic planning table together as a team Smart Water strategies require integrated planning, and so does EUM. Strategic Business and Technology Planning impact on EUM.

11:30 am Online Audience Survey | Audience will complete an online survey via their smartphones/iPads.

https://www.surveymonkey.com/r/EUM360



WORKSHOP TUE03

11:45 am Lunch Break

12:45 pm EUM Key 3 | New Organizational Approaches

Speaker | Russell Haupert, CTO and Director of Technology & Innovation, City of Tampa EUM initiatives at Tampa Water. Enabling EUM via organizational approaches. Optimizing business processes through modern software applications Practices such as Lean/Six Sigma

1:30 pm EUM Key 4 | Measurement to Actionable Intelligence

Speaker | Rod van Buskirk, Principal Consultant, Westin Engineering Managing and integrating data with performance management in mind Ensuring data quality via governance and management Turning data into information, information into knowledge, knowledge into action, action into measured

performance improvements. Dashboarding versus Reporting; surfing through data versus shuffling through paper; views from the surfboard.

2:15 pm Break

2:30 pm EUM Key 5 | Continual Management Improvement Framework

Speaker | Biju George, Chief Operating Officer, DC Water Continual improvement is at the heart of EUM’s success for achieving the vision to be a world-class water utility. DC Water’s programmatic approach DC Water’s disciplined process for making fundamental decisions and shaping DC Water’s future

3:15 pm Audience Round Table Exercise #2 | Online Audience Survey Results Review

Present key survey findings regarding EUM Readiness (yep, it’s on a dashboard, so it’s almost real-time) Questions for audience | Are your organizations ready for EUM? How do you know? What are the readiness

gaps, challenges, issues?

4:00 pm Closing Panel Discussion | Panel Discussion and Audience Interaction

Facilitators | Doug Spiers, President, Westin Engineering and Corey Williams, President & CEO, Optimatics

Facilitated panel discussion and interactive audience inquiries. 4:45 pm Concluding Remarks | Take-aways and Next Steps

Speaker | Doug Spiers, President, Westin Engineering Top take-aways from today’s workshop. Next steps for participants.

5:00 pm Adjourn

Introductions; Overview of Agenda; Opening Remarks

Speaker | Doug Spiers, President, Westin Engineering, Inc.

Good Morning and Thank You for Attending!

Workshop TUE03 | A 360° Perspective For Enabling EUM 2


Our 360 EUM Panelists Facilitators: Doug Spiers, President, Westin Engineering

Corey Williams, President & CEO, Optimatics

Key 1: John Rossi, General Manager, Western Municipal Water District

Key 2: Cecil McMaster, Chief Information Officer, New York City Environmental Protection

Key 3: Russell Haupert, CTO and Director of Technology & Innovation, City of Tampa

Key 4: Rod van Buskirk, Principal Consultant, Westin Key 5: Biju George, Chief Operating Officer, DC Water


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Our Goals Today: • Discuss the principal EUM elements • Address the 5 Keys to Management Success • Address the 10 Attributes of Effectively Managed Utilities

• Discuss updated approaches using best practice examples

Discuss how to apply the new principles for continuous success.



Utility Management Frameworks 2004 2008 2017

EUM has been continuing to evolve. Have You? Workshop TUE03 | A 360° Perspective For Enabling EUM 5

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Have the Keys to EUM Success Shifted? What refinements or updates will you need for the Keys to Success?

Facilitator | Corey Williams, President & CEO, Optimatics

Optimatics was founded by engineers who recognized the potential of Computational Intelligence to revolutionize water system planning.

Our advanced algorithms enable analysis of tens of thousands of trial solutions. Using Optimizer results in an overwhelming decrease in the cost associated

with capital projects and on-going operation and maintenance expenses. Optimatics applies and develops technology that provides water and

wastewater utility clients with defensible solution options to make decisions across daily operations through to long term master plans.



Optimatics is a software company focused on using machine learning techniques to automate the selection of mathematically optimal projects and operational settings

This redefines the role of network planners and delivers data-driven strategic insights with which the utilities can make robust and adaptive decisions

The software has been utilized by over 250 utilities with a combined cost- avoidance of over $3B

Optimatics helps: • Communities build, rehab,

and maintain more affordable infrastructure.

• Keep costs for capital and O&M, at any scale, under control and within the boundaries of reasonable financial practices.

• Improve the performance of existing and new assets in the water and wastewater system

• Engineers and planners focus on the strategy and effectiveness of the overall plan.



Leadership Refined - Leadership and Management must be in concert. Today’s Utility Manager must lead as well as make ever-increasingly complex decisions; the utilities need leader-managers (not just one or the other); and then develop solidarity via governance and common performance targets.

Strategic Business Planning Refined – Must be able to justify all strategic, tactical, and operational decisions; they must link together in cost-effective ways to create business value; and the Return on Investment is on everyone’s mind.

Organizational Approaches Refined – EUM must be executed via proven performance improvement methods (Lean; Six Sigma; Analytics-Driven Decision Making; Smart Water, etc.).

Measurement Refined – EUM requires Forward-Looking Analytics (what’s next, rather than what happened).

Continual Management Improvement Framework Refined – Enabled by Dashboards and other means of visualizing and sharing.


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Leadership Refined

Leadership vs. Management The US EPA has challenged the industry to

“get moving” (i.e., we need to lead, not just manage)

From external perspective, our industry is slow to adapt and resists innovation Holistic statement that addresses utilities

and their suppliers We like to believe the pressures are ‘ever

increasing’ but maybe they are just different No longer can we claim lack of data to

make sound decisions Performance targets must be shared, cascading

(often overlooked), consistent, and manageable. Must track tangible outcomes – not inputs or

outputs

Advocate

LEADER

Educator Coach


Strategic Business Planning Refined

Strategy must link to tactical and operational actions and decisions

Can strategy be realized, actualized, and measured?

What is included in Return- On-Investment, is it purely financial?

Capital and Operational

Expense

What other relevant factors are important in the ROI equation

Translate to quantifiable ($$) criteria

Unacceptable to just consent to any answer provided

Environmental, Political, Social, Regulatory, and Other Influences


Organizational Approaches Refined

Formal Management Frameworks (e.g. Lean, Six Sigma) vs. ‘Enablers’ (e.g., “Smart Water ”) Not mutually exclusive, but rather

work in concert As critical part of EUM, utilities need to

embrace Smart Water concepts and supporting technology The buzz words are real and present a

transformative change the nature of the industry

We have long said ‘water isn’t like other industries’ but how true is this perception In the very near future, politicians and

other stakeholders can reliably ask why you are not using analytics to influence your leadership

Workshop TUE03 | A 360° Perspective For Enabling EUM

Automated or Process Change

SMART Water

Platforms

Management Framework

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Measurement Refined

Measurement is not about changing something it is about informing the decision

Don’t allow your current condition to define your future state

Recognize financial realities will require unique and innovative solutions

Identify short-term, high-value activities as an initiation point


Continual Management Improvement Framework Refined

Continual Management is heavily supported by analytics

Informed Dashboard Analytics Presentation

Modified Action and Business

Process

A dashboard isn’t just a new way of looking at a report, it’s a measurement of success or failure


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EUM Key 1| Introduction

Western background

Effective Utility Management

concepts

Western’s approach and

accomplishments Closing thoughts


EUM Key 1| Background

Independent Special District Formed in 1954 Imports supplemental water to

western Riverside County Water resource management


EUM Key 1| WMWD Service Area

527-square miles of western Riverside County

Population of 850,000+ … 1.5 million by 2030

8 wholesale agencies

23,000+ retail customers

125,000 acre-feet of water annually or 34 billion gallons

435 miles of pipelines

38 water storage reservoirs


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EUM Key 1| Imported Water Supply: Metropolitan Water District

Member agency of Metropolitan Water District of Southern California

State’s largest water supplier

85% Imported Water 15%

Groundwater/Desalted

State Water Project

Colorado River Aqueduct

Metropolitan Water District


EUM Key 1| Effective Utility Management Concepts and Framework


EUM Key 1| Effective Utility Management Cycle


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Speaker | John Rossi, General Manager, Western Municipal Water District

ADD COMPANY BACKGROUND

EUM Key 1| Keys to Management Success: Strategic Business Planning

Long Range Planning

Development of Business

Strategies

Major Infrastructure and

Systems

Investment Strategies

Central theme ~ Superior

Service


EUM Key 1| Impacts of Drought on Water Supply


EUM Key 1| Impact of Drought – Oroville Lake


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EUM Key 1| Current Hydrologic Conditions

Shasta Lake

Lake Oroville

San Luis Reservoir


EUM Key 1| Customer Satisfaction and Community Sustainability Drought Initiatives

Assess alternative sources of water supply

Determine potential partnership opportunities for

additional water sources

Provide extensive drought outreach and community

engagement via:

Periodic Town hall meetings

California Friendly Landscape Training

Drought Workshops for Customers

Demonstration garden


EUM Key 1| Western Regional Water Supply Reliability


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EUM Key 1| Infrastructure Strategy: La Sierra Pipeline Expansion

$36 Million Project 5 Miles of 30-inch pipeline 3,500 acre-feet of new, local, drought – proof water supply 18 month project Key Initiative ~ Helps region meet current and future water needs


EUM Key 1| Infrastructure Strategy: Chino Desalter Authority

Regional partnership

New secure water source –

14 million gallons per day

Expand local supplies using

cost-effective, eco-friendly

technology to eliminate

perchlorate and nitrates

from groundwater

More than 55% of the

project is funded by State

and Federal partners


EUM Key 1| Stakeholder Understanding & Support WRCRWA Expansion

Consistent Outreach to Community Provide Plant Tours to demonstrate

processes Increased understanding and reduced

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EUM Key 1| Operational Optimization Goal of Asset Management


EUM Key 1|Financial Viability and Transparency

Lawson Software – Tracking and reporting mechanism Budgeting tools for investment decisions


EUM Key 1| Operational Optimization: CMMS

CWMS Reporting

Work orders are used to record all

maintenance and repairs performed

on District assets.

Employees may subscribe to a Daily

Summary report which shows all

Initiated, Reassigned, and Completed

Work Orders.


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EUM Key 1|Operational Optimization Key Performance Indicators


EUM Key 1|Commitment to Leadership and Employee Development

Substantial investment in effective leadership

development training during the past 1 ½ years ‘2016 Top Work Places’ Employee Nomination

Knowledge Management Programs in

development:

Mentoring/shadowing opportunities Enhanced recruiting tools and techniques Dynamic organizational structure


EUM Key 1|Closing Thoughts

Utilizing the principles of the EUM Framework, Western has:

Assessed and improved our water supply portfolio

Implemented sustained organizational improvements

All aspects of our organization are evaluated and incorporated into long-term initiatives for prolonged sustainability

Continuously invest in employee and leadership development

Continuously increase stakeholder understanding and support to improve customer satisfaction and enhance community sustainability

Continuously develop and implement long-term financial strategies


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EUM Key 1|Closing Thoughts

Going forward:

Finalize implementation of measurement

processes and feedback loops

Increase customer education and outreach

efforts

Advance EUM implementation throughout

District

Complete implementation of asset

management program


Round Table Exercise #1 | Leadership, Management & Governance

How is your Utility doing in the areas of Leadership, Management and Governance?

What is working and why? What is not working and why?


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41 EUM Key 2 | Strategic Business Planning – Integrating Business and Technology Strategic Planning

Speaker | Cecil McMaster, Chief Information Officer, New York City Environmental Protection

6000 Employees Supply clean drinking water Collection and treating waste water Reducing air, noise, and hazardous materials pollution Top complaints made to 311 for 2016 - noise @ 212,318 19 Bureaus Bureau of Customer Services (BCS)

Bureau of Engineering Design and Construction (BEDC)

Bureau of Wastewater Treatment (BWT)

Bureau of Water and Sewer Operations (BWSO)

Bureau of Water Supply (BWS)



• Supply one billion gallons of water per day to 4.million City residents and one million upstate residents o Protect 2,000 square mile watershed,

including three upstate reservoir systems with 19 reservoirs and three controlled lakes

o Eight upstate wastewater treatment plants o550,000 water quality tests per year o

295 miles of aqueduct and tunnels o

6,800 miles of water mains

o 56 shaft sites; 500 pressure regulators; three pump stations

o 110,000 fire hydrants


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• Treat 1.3 billion gallons of wastewater per day

o 14 in-city treatment plants;

o 7,506 miles of sewer: 3,326 miles of combined, 2,218 of sanitary, 1,824 of storm, & 138 of interceptor

o 490 regulators (104 telemetered), 96 pump stations

o 148,000 catch basins o 11 marine vessels: three sludge boats, four

skimmer boats, two harbor survey vessels and two shoreline survey boats

o Four combined sewer overflow (“CSO”) facilities

• Manage stormwater with Green Infrastructure





OIT The mission of the

Office of Information Technology is to

consistently develop, deliver, and support

best-in-class information technology services and solutions

to support the core mission of the New

York City Department of Environmental Protection. OIT

supports over nineteen bureaus and offices.

OIT


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Human Resources and Culture

Better enable of Cross Team Collaboration Empower Project Management Standardization

Build a culture of secure computing through educational programs Implement Data Protection and Encryption to secure data for DEP mobile users on mobile devices Secure network and communication endpoints to prevent, detect, control, mitigate, and report on cyber-attacks, advanced malware, and zero-day attacks

Data Governance

Improve Data Classification Develop approach for “Actionable” Data

Identify, secure and organize the use of various data sets throughout the bureaus in the agency Create a data sharing model which gives all the bureaus appropriate access to DEP’s data sets

Improve Responsiveness Establish Platform and Process Standards LIMS, SCADA, GIS, IPS, CMMS, Emails, Files, CIS, CRM

Modernize & Consolidate Legacy Enterprise Applications (Reduce by 50%) Implement application management tools to reduce incident counts, and provide system uptime visibility to IT and Business Stakeholders

Infrastructure

Improve Networking Architecture Improve System Security Improve Remote Services Readiness

Reduce data center footprint Modernize DEP’s Networks Minimize Hardware Footprint (40% in 2 years) Increase bandwidth and resiliency to meet bureau’s business need


Build strong teams within OIT focused on strengthening bonds between management and staff Continuously improve how we communicate with each other by promoting positive attitudes Be persistent and vigilant in providing exemplary customer service in a professional and respectful manner Invest in staff

Security

Establish and implement Organization Wide Security Policies Refine and improve Security Operations

Modernization Applications Management





Visibility into projects

Weekly projects updates by the Project Manager

OIT Portfolio for major projects and OIT Small for quick projects


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• DEP completed an agency-wide program to achieve operational efficiencies

• Initiatives implemented as part of the OpX program have an annual financial impact of $98 million

• $45 million in cost savings • $53 million in additional revenue

• Initiatives include: • Creating strategic sourcing group

to improve procurement of chemical and service contracts

• Aggressively replacing large meters; 21,200 large meters replaced to date

• Optimizing dewatering and sludge thickening at wastewater treatment plants

• Improving aeration while reducing energy usage in wastewater treatment



Strategic Business and Technology Planning in New York City. Business and Technology Leaders need to be at the strategic planning

table together as a team; working as a unified management team to assemble consolidated strategic plans for business and technology.

Smart Water strategies require integrated planning, and so does EUM. Strategic Business and Technology Planning impact on EUM.


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Online Audience Survey | Audience will complete an online survey via their smartphones/iPads.

https://www.surveymonkey.com/r/EUM360


11:3

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http://www.surveymonkey.com/r/EUM360

http://www.surveymonkey.com/r/EUM360

55 EUM Key 3 | New Organizational Approaches

Speaker | Russell Haupert, CTO and Director of Technology & Innovation, City of Tampa

City of Tampa Currently in it’s 5th year of transformation under Mayor Bob Buckhorn Revitalized downtown centered on the recently completed Riverwalk New and redeveloped parks for Citizens More than $1B in downtown investments coming on line Operating with 700 less employees and reduced revenue coming out of

the economic downturn


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EUM Key 3 | New Organizational Approaches

This massive commercial, residential and job growth is… Driving business system changes Driving business process changes Driving productivity pressure

We have replaced and upgraded more systems in the last 4 years… Then in the 20 years before


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Effect Utility Management practices are part of Tampa’s DNA In the 90’s, many municipal water departments were under threat

of privatization Tampa Water/Utilities responded with total quality

management Flattened the organization Turned to measurement to drive change

In the lead-up to the Great Recession and lost revenue Tampa Water/Utilities responded with an efficiency and

effectiveness task force Implemented shared services in conjunction with other City

Departments Mapped and improved many internal processes to address

staffing decline But something was holding us back…


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…Technology! What did we have to work with?

Internally developed Multiservice System, Finance and Land Management Systems

Programmed in Cobol Running on an IBM mainframe 25 years of “enhancements.” 4 of 5 of the original coders retired

or set to retire Little or no support for

mobile devices


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Often Repeated Automation Advice:

“Don’t Pave the Cow Path”

IT All Other Issues Workshop TUE03 | A 360° Perspective For Enabling EUM 59

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Give a small coding shop 25 years, few resources and a lot of pressure and they will Pave the cow path Dig a subway under it Then build an elevated highway above it


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Enabling EUM via organizational approaches. We realigned IT to support the

business Created a dedicated teams for

Utilities Installed representation at

planning and staff meetings Said yes to business systems

changes Even as they threatened our

status quo


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Use a third party consultant to Survey the market and inform the budget Create a framework conflict-free for business unit cooperation

Ok, make that “reduced conflict.” Search for and select an appropriate system Guide the discovery, as-is and to-be sessions Ensure the customer, the vendor and the IT departments are held

accountable In a loving and supportive way.

Align the business units tech dreams with achievable reality Set a path for future growth in capability


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EUM Key 4 | Westin’s EUM Services

• Four Enterprise Perspectives

• Mobile, Integrated Systems Approach

• Holistic Process Improvement

• Automated Dashboards

• Improved Decision Making


EUM Key 4 | Measurement to Actionable Intelligence

Speaker | Rod van Buskirk, Principal Consultant, Westin Engineering

What are your primary gaps or challenges?

Are managers asking the right questions?

Are managers using the right metrics?

Are managers using metrics the right way?

Are managers getting accurate, reliable data?

Do managers believe that dashboards will help?



Business Policies Levels of Service KPIs Performance Targets

Decision Support Needs

Transactional Processing Needs

Data Processing Data Storage & Retention Data Analytics

Business Strategies

Business Processes

Data Management

IT Resources & IT Processes

Management Updates / Reviews / Reports

Status / Progress Actual Performance /

Performance Gaps to Targets

Actionable Information Software Tools / Applications for Analytics and Trending

Database Administration Data Analytics

Gaps No or insufficient Business Strategies No or insufficient Performance Metrics Lack of Policies to guide practices/processes Lack of Data Governance


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100.0% 90.0%

80.0% 70.0% 60.0% 50.0% 40.0%

30.0% 24% 20.0% 10.0%

0.0%

100% 88% 88%

82% 77%

71% 65% 65%

59%

47% 47% 41%

35% 29%



Common Utility Management Questions

How are we doing today compared to prior periods or as forecasted in future periods? How are business units performing compared to last year and compared to plans?

How well are we executing our operational plans and

meeting targets? How are we doing in comparison to our peers?



Metrics / Benchmarking (EUM Primer – 2017)

Ten Attributes of an Effectively Managed Utility

Five Keys to Management Success

38 measure categories; over 70 specific metrics


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Product Quality 1. Regulatory compliance 2. Service delivery

Infrastructure Stability 1. Asset inventory 2. Asset (system) renewal/replacement 3. Water distribution/collection system integrity 4. Infrastructure planning & maintenance

Customer Satisfaction 1. Customer complaints 2. Customer service delivery 3. Customer satisfaction

Enterprise Resiliency 1. Recordable incidents of injury or illness 2. Insurance claims 3. Risk assessment & response preparedness 4. Ongoing operational resiliency 5. Operational resiliency under emergency conditions

Employee & Leadership Development 1. Employee retention and satisfaction 2. Management of core competencies 3. Workforce development

Community Sustainability 1. Watershed-based infrastructure planning 2. Green infrastructure 3. Greenhouse gas emissions 4. Service affordability 5. Community economic development

Operational Optimization 1. Resource optimization 2. Water management efficiency

Water Resource Sustainability 1. Water supply adequacy 2. Supply & demand management 3. Watershed sustainability

Financial Viability 1. Budget management effectiveness 2. Financial procedure integrity 3. Bond ratings 4. Rate adequacy

Shareholder Understanding & Support 1. Stakeholder consultation 2. Stakeholder satisfaction 3. Internal benefits from stakeholder input 4. Comparative rate rank 5. Media/press coverage 6. Partnering in your community



Metrics – Strengths & Weaknesses (Examples from EUM Primer, 2017; Infrastructure Strategy and Performance

Performance Measure

Strengths Weaknesses

Inventory Coverage Tracking assets Must have Criticality Rating to manage consequences

Asset Renewal / Replacement Rate

Reflects utility targets; accounts for risks for different asset classes

Doesn’t take into account the remaining life of an asset/asset system

Collection System Failure Rate

Failure trends No root cause analysis; no failure analysis



Incomplete Utility Information Management Vision

Lack of Data Management Program Coordination

Ineffective Data Management

Cumbersome Performance Management

Onerous Data Operations Management

Reporting Compliance Challenges

Inefficient Data Sharing

Little or no Information Management Objectives in Strategic Business Plan

No Top-Down, Enterprise-Wide Data Governance

Lack of Top-Down Data Management Guidelines Duplicate

Data Sources

Insufficient Communication of the Utility Technology Strategic Plan

Incomplete Alignment of Business Strategies and Data Management

Lack of Fully Communicated Vision for Smart Utility

No Enterprise Data Management Program Plan

Lack of Clearly Identified Data Stewards

Inadequately Documented and Communicated Data Standards

Lack of Sustained Monitoring and Control

Difficult Data Assembly for Analytics

Inconsistent Data Standards

Lack of Fully Communicated Vision

for Customer-Centric Utility Siloed Data Management Initiatives

Inadequate Alignment of Business and Technology Plans

Not taking advantage of Master Data Management

Insufficient Data Integration And Warehousing

Limited Access to Analytical Applications

Undefined and Uncommunicated Decision Processes

Lack of Top-Down Data Operations Guidelines

Lack of Formally Assigned Data Stewards

Duplicate or Redundant Systems of Record

Missing or Uncommunicated Vision For Enterprise Information Integration

Lack of Agreed-Upon Systems of Record

Inadequate DBA resources

Duplicate or Redundant Systems of Reference

Incomplete Data and Database Standards

Lack of Data Quality Assurance Processes

Lack of Agreed-Upon Systems of Reference

Undocumented and/or Uncommunicated Data Access and Data Definitions

Inconsistent and Unreliable Systems Integration

Inefficient Data Reporting and Report Assembly Processes

Limited Usage of Document Management System


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The “Noise” of Big Data



Are Water Sector organizations aware of the growing Fact Gap? Are Water Sector organizations ready to address the Fact Gap?



Imperatives for Management Decision Making

Facts, not opinions

Trends, not static points

Targets, not open-ended

Automated Analytics, not manual spreadsheets

Integrated systems, not isolated data sources

Data governance, not silos of excellence

Dashboards, not rows and columns


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Business/Operations Intelligence & Data Analytics

• Data-driven decision support through automated analytics. • Blends data from different sources and makes the results easy to view • Requires standardized, good business and data management practices




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Performance Dashboards & Scorecards

Supervisors Department

Heads Analysts General

Managers





Learnings

What can we learn from other industries?

Does the Water Industry have to make the same mistakes that other industries have already made?

Can Water take advantage of what has already been learned/implemented in other industries?

What can we learn from other countries?


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Source: The Data Warehousing Institute (TWDI) Research Community



Source: The Data Warehousing Institute (TWDI) Research Community 83


Source: The Data Warehousing Institute (TWDI) Research Community


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Questions for the Audience

What is your level of EUM Maturity? What is limiting progress towards higher levels of EUM

Maturity? What’s the root cause analysis for your utility

performance level(s)? What’s the tipping point for EUM? At what point will

you achieve a Return On Investment in EUM?


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EUM Key 5 | Continual Management Improvement Framework

Speaker | Biju George, Chief Operating Officer, DC Water


Service Area DC Water's service area is approximately 725 square miles.

People Served DC Water provides more than 672,000 residents, 17.8 million annual visitors, and 700,000 people who are employed in the District of Columbia with water and sewer/wastewater treatment.

Employees Approximately 1,118 people work for DC Water at various facilities throughout the District.

Water Pumped DC Water pumped an average of 101 million gallons of water per day on average in FY 2015.

Treated Water Storage DC Water stores 61 million gallons of treated water at its eight facilities. An additional 49 million gallons is stored by the Washington Aqueduct.

Water System 1,350 miles of water pipes, four pumping stations, five reservoirs, three water towers, 43,860 valves, and more than 9,510 fire hydrants comprise the DC Water water distribution system.


Vision To be a world-class water utility Mission Exceed expectations by providing high quality water services in a safe, environmentally friendly, and efficient manner


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GOALS 1 Develop, Maintain and Recruit a High Performing Workforce 2 Collaborate Locally, Regionally, Nationally Internationally

3 Increase Board Focus on Strategic Direction

4 Enhance Customer and Public Confidence, Communications, and Perception

5 Promote Long Term Financial Sustainability and Responsible Resource Allocation Objectives

6 Assure Safety and Security

7 Maximize Water Quality Treatment, Compliance and Efficiency

8 Optimally Manage Infrastructure

9 Enhance Operating Excellence Through Innovation, Sustainability, and Adoption of Best Practices


Strategy Performance




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Strategic Outcome Metrics:Example Water Main Breaks - # of breaks/100 miles

• Current State: 35 breaks/100 miles at an average cost of $14,800 each • Future State: Reduce water main breaks by 43% over the next 10 years

• Replacing 1% of linear assets is budgeted to cost DC Water $420 million over 10 years

• Achieving the 43% target reduction requires operational innovation:

Predictive Analytics, Alternative Technologies, Risk Based Asset Management, and Value Chain Efficiency Optimization


Year 2015 2020 2025

# of breaks 35 25 20




Financial Customer Operational Workforce


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Strategic Performance

Are we doing the

right things?

Business Performance

Are we doing things

right?



Enterprise 1. Develop enterprise

strategic outcome metrics

Business Unit

2. Develop business unit strategies and metrics

3. Develop individual

goals

Individual



DCWater Business Maturity Project Objective

To provide a structured continuous improvement tool to assess current state, identify gaps and develop a plan to achieve world-class performance

at the business unit level Methodology

1.Define key business processes and sub-processes 2.Define the “current state” of maturity for each process 3.Define strategies for advancing business process through

maturity stages 4.Develop and implement metrics for measuring business

process performance


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For the Meter-to-Cash customer value reference model seven core processes were identified:

1.Meter Installation

2.Field Services

3.Call Center

4.Meter Data

Management 5.Billing

6.Payment 7.Credit and Processing Collections

$3.34 $0.48 $1.97 $0.86 $1.32 $0.80 $1.61

The meter to cash lifecycle cost for each of DC Water’s residential customers with a meter 2” or less is $10.38

How does this compare with industry standard?


EUM Key 5 | Business Process: Meter-to-Cash Customer Value Reference Model

1. Meter 2. Field Installation Services

4. Meter 3. Call Center Data

Management 5. Billing 6. Payment 7. Credit and

Processing Collections

INPUTS

Activity 1 Activity 2 Activity 3 Activity 4 Activity 5

OUTPUTS Workshop TUE03 | A 360° Perspective For Enabling EUM 101


• Person Dependent

• Documented Process

• Partial Deployment

• Full Deployment

• Measured & Automated

• Innovating

Level 0

Level 1

Level 2

Level 3

Level 4

Level 5


Business Process

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6 Key Business Processes | 26 Sub-processes

TALENT Acquisition

TALENT Employee Experience

TALENT Learning

OPERATIONS Total

Rewards

OPERATIONS Systems

EMPLOYEE & LABOR

RELATIONS

Employee Engagement

Plan Design

Sourcing Product Development Data Gathering & Analysis Dispute Resolution

Leadership Enrollment Development

Screening Education Assistance

& Tuition Reimbursement

Audit Training Programs Performance Management Job Classification

Selection Succession Planning

Internship Program Compliance Systems

Implementation Policy Development




SUB- PROCESS

MATURITY LEVELS

STRATEGIES TIMEFRAME METRICS Level 3 • Recruitment SOP TBC by 7/1/16 and

trained/deployed amongst hiring managers in 4QFY16 – 1QFY17

• December 2017 • Time to Fill • Time to Fill: Critical

positions • New hire retention (Year

1) • New hire retention

(Critical positions) • New hire quality:

Manager satisfaction with new hires

• % of Diversity Hires in Managerial & Senior Positions

• % of applicants who actively sought out DC Water (brand awareness)

• Qualified applicants per source and per role (which sourcing channels are most effective?)

• Process efficiency/effectiveness: o Screen to

submit/interview ratio

o Interview-to-offer ratio

o Offer-to-start ratio (Acceptance ratio

Recruitment Strategy

Level 4

• Automate applicant source selection with enhanced ATS (e.g., Dayforce, Jobvite).

• Identify and better target talent successes based on past quantity, quality, and cost of applicant source;

• Increase two-way dialogue with hiring managers to 1)develop an enhanced understanding of business unit, positions, and/or skill-sets needed; and 2) roll- out training on processes to enhance overall efficiency and effectiveness of service delivery.

• April 2017 • TBD • TBD

Level 5

• Implement data-driven strategies to better target resources in attracting and engaging top talent with specific skill-sets.

• TBD

2.5

2.0 2.0

2.9 Info Gathering &

2.0 2.8

Recruitment Strategy Onboarding Training Analysis Operations CBA Negotiations


HCM High-level Dashboard Indicators Attract Develop Retain Workforce Planning

• New hire retention • % of high performers with career • Turnover in key positions and amongst • Total management • New hire quality development plan

• % of high potentials with career development plan

high performers/high potentials • Employee engagement (overall) • Engagement levels of high

performers/high potentials

span of control

Talent Acquisition Compensation

HCM Key Business Process Indicators Employee/Labor

Benefits L&D Relations Systems

-Time to Fill

-Time to Fill: Critical positions

- New hire retention

-New hire retention: Critical positions

- New hire quality

-% of Diversity Hires in Managerial & Senior Positions

-% of applicants who actively sought out DC Water (brand awareness)

-Qualified applicants per source and per role (which sourcing channels are most effective?)

-Process efficiency/effectiveness:

o Screen to submit/interview ratio

oInterview-to-offer ratio o Offer-to-start ratio

(Acceptance ratio)

-Compensation to revenue percent

- Range utilization

-% of managers who have completed and by deadline

-% of goal achievement (exceeded, met, partially met, did not meet)

-Overall performance ratings (filtered per demographic)

-Declined offers – why did they decline?

-Total Rewards as recruitment and retention tool (via new hire survey and stay interviews)

- Benefit satisfaction - Enrollment

participation/deferral rates

- % of employees who took Health Risk

- Kirkpatrick Levels 1-5

- Training spend/cost per FTE

Team operations:

Measures consistent with effective execution of SOP, as they relate to case processing, such as:

- Assessment s as Total Reward recruitment and retention tool (via new hire survey and stay interviews)

-Requests received/ answered

-Production (courses, learners, hours)

Internship program: -Cost

- # of interns turned FTEs

-Repeat requests for interns from managers

- # of intern applicants

-Survey managers on value/contributions of interns

-Student assessment on Likert scale

- Time to open

- Time to complete

- Early vs on-time

Add more from SOP.

Audit process: -# of “holes” found in audits -Impact/criticality of “holes” found -How quickly resolved Systems implementation - End user adoption - Calls/tickets - Time frame -Customer/end user satisfaction Data Analysis & Gathering: -Customer/end user satisfaction - Report timeliness - Report quality -Team member competency/ proficiency


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Speaker | Biju George, Chief Operating Officer, DC Water


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SUB- PROCESS

MATURITY LEVELS

STRATEGIES TIMEFRAME METRICS

Level 2 • IT must use opportunity process for internal requests and all of IT must track service requests the same way in the same system

• All Service Requests have a LOE , due date, owner and customer and time is set aside each month to meet demand

• Create Service Request process and procedure document used by all of IT

• Create full service catalog

August 2016

Service Request Delivery

Level 3 • Enforce liaison role and customer engagement • SRs are transparent and viewable at individual and group

levels by all DC Water and can be initiated by anyone • Incorporate the SR process IT wide into a single system

that includes work and resource management for all IT work and resources

• Require customer participation in release process

November 2016 • Business Value • Service

Request Performance

• Backlog Report

Level 4 • Opportunity, release and change management processes integrated into SR Process in a single workflow

• Establish metrics based on adding business value • Automate service catalog

February 2017

Level 5 • Analyze data to find performance opportunities to improve

• Reduce application redundancy by consolidating architecture and moving towards SOA

May 2017


5 Key Business Processes | 25 Sub-processes

Enterprise Services

1.2

Infrastructure Services

1.8

Data-Info Management

Work Management

Cyber Security

1.6 1.5 2.3

Service Request Delivery Help Desk & Desktop Support

Data Integration Demand Management

Vulnerability Management

Release Management Capacity & Release Planning Database Management Cyber Security Training

Project Delivery Resource Management

Change Management Business Intelligence &

Decision Support Identity Management

(Access Controls) Change Management

Portfolio Management Disaster Recovery

Planning Data Archiving Systems Support

Independent Verification & Validation

Business Requirement Analysis

Network Telecom Data Security Project Management I.T. Asset Management



IT High-level Dashboard Indicators Service Delivery

• SLA Compliance • Project delivery on

time and on budget • Net Promoter Score

Planning • Cost effective capacity for all

resource utilization • Business Value Metrics • Reduced unsuccessful changes • Reduced Failure Rates

Compliance • Systems at Target levels • Authentication & Encryption metrics • Ongoing Security & Procedure Training rates • Industry & Government updates & metrics

IT Key Business Process Indicators Enterprise Services

-Business Value -Service Request Performance - Backlog Report - Systems at Target Level - Critical Patches Unapplied

-Capacity Planning/Utilization - Issue Resolution - Milestone Performance - Unsuccessful Changes

- Participation

- Net Promoter Score

- % of Unplanned Work

- SLA Compliance

- Adopted Requirements -Requirements Gathering

Infrastructure Services

-Net Promoter Score -Fi rs tcall resolution for Tier1 support i ssues - % compliance with SLA -Cost-effective capacity - All resource uti lization -Number of production incidents (capacity related) -Release Management - Deviation from Sche dule - Uns uccessful Changes - Emergency Changes - Communication (Positive Ratings) - Backup drive failure rate -"Recovery Times Objective (RTO)& Recovery Point Objective (RPO)"

- Network Availability -Phys ical to vi rtualmigration ofcapable systems -Uni fied Communications for capable systems - 100% IP Telephony

Work Management

- All approved projects have LSC- approved business case and feasibility

- Median duration for completing feasibility

- Median Duration for completing business cases

- All active planned work (service requests and projects) fully staffed

- Average allocation for all resources

-Resource assignments to projects and related service requests approved by IT manager -Portfolio is delivered within plus/minus 5% of budgeted cost -Portfolio ROI over a 5-year period -Achieve balance across portfolio strategies -Percentage of projects delivered on time & on budget -Percentage of stage gate compliance -Project sponsor satisfaction rating with delivered project -Minimum actual ROI for each project within 5 years of project

Data/Info Management

-Enterprise level reporting layer for key departments - WAM MDM -Enterprise Information Bus Bar using REST API - Strea mline DBAsupport model - Industry s tandard recovery timeline - Data source identification & management - Seamless DR -Sel f service reporting & Dashboard model for key businessareas - Open & Mobile Data Portal - Enterprise wide master data management -Standardize applications & i nterfaces & merge historical data - 100% Encryption ofsensitive data -100% compliance with data classification pol icy

Cyber Security

-30 Day Connection Policy - Implement NAC - FallOut Remediation - Completion Rate - Tra ining Implemented during Onboarding - Cyber Security Account Management - Authentication - Authorization

- Auditing - Tra ining and Documentation -Integration with Business Support Systems - Proces s Implemented on ICS networks - Retra ining - Accurate Inventory - Integrated Systems


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Aligning DCWater’s Performance

Mission

Blue Horizon 2020

Operational Priorities

Departmental Goals

Employee Goals


Roundtable #2

Roundtable Exercise Breakout into groups of 10-12.

Consider a specific Workflow for improvement. Examples: Customer

Meter Change-Outs; Water Pipeline Leak Repairs; Completing

Regulatory Compliance Reports; Commissioning a New Treatment

Plant; Resolving Service Outages;

Identify an Opportunity for Workflow Change or Improvement. Identify the Key Implementation Elements.

Establish Measures of Success. Set Target(s) for the Improvement.


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Closing Remarks:

Special Thanks to our Panel of Corey Williams, President & CEO, Optimatics

John Rossi, General Manager, Western Municipal Water District Cecil McMaster, Chief Information Officer, New York City Environmental Protection Russell Haupert, CTO and Director of Technology & Innovation, City of Tampa Biju George, Chief Operating Officer, DC Water Rod van Buskirk, Principal Consultant, Westin


Closing Remarks

Multiple Management System Frameworks

EUM


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Closing Remarks

Multiple Renditions of the Truth!


Closing Remarks

Today’s Take-Aways: • …


Closing Remarks

EUM Continues to Evolve:

Are You? Workshop TUE03 | A 360° Perspective For Enabling EUM 117

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Closing Remarks

Continuous Improvement Mentality

“If we keep doing what we’re doing, we’re going to keep getting what we’re getting.” Stephen R. Covey

Thanks for Attending! Doug Spiers (916) 807-3028 [email protected]


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mailto:[email protected]

2017 the utility management conference tue03 - a 360 ... the utility management conference tue03 - a...

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