Utility Analysis & Improvement Methodology Thursday February 6, - - PDF document

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Utility Analysis & Improvement Methodology

Thursday February 6, 2020 1:00 – 2:30 PM ET

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How to Participate Today

• Audio Modes
• Listen using Mic &

S peakers

• Or, select “ Use

Telephone” and dial the conference (please remember long distance phone charges apply).

• Submit your questions using

the Questions pane.

• A recording will be available

for replay shortly after this webcast.

Spea Speaker Topi

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time time

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Ma Mark Po rk Poling ling Intro troduction uction

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Scot

• tt Haskins

t Haskins Top

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s and De Deliv liverabl erables s for for C Collaborativ llaborative Ef Effor forts

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Craig E g Edlund nd Docume menting nting “As I Is” Processes esses

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Ge Getachew Melsew Analysis of alysis of Business P siness Processes

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Mer Mert Muf Muftugil Des Design gning Des Desired (“ (“To Be”) Be”) Pro Processes

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Cello Cello Vi Vitaso sovi vic Next Step t Steps and and Par Participation icipation

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Sc Scot

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Utility Analysis and Improvement Methodology

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2/6/2020 3

Mark Poling Clean Water S ervices S cott Haskins Jacobs Engineering Craig Edlund MCES Mert Muftugil Portland Water Getachew Melsew DC Water Cello Vitasovic 9D Analytics

For Management

Utility Analysis and Improvement Methodology 5 6

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Key UAIM Goals

• Provide a value-based methodology

thodology for improving management of water

sector utilities

• Enable effective peer to peer collaboration between water sector utilities
• Develop, grow, and strengthen the network of water sector organizations and

professionals engaged in UAIM

Docu Document Curre Current Con Condition Ide Identify fy It Items F For r Impr provement ement Desi Design gn Impr provement ements (T (To Be)

• Be)

Plan Plan Acti Actions fo for Impr provement ement Im Improve

Mode Model Analyze Analyze De Design sign Plan Plan Impro Improve

People Organization

Business Processes

People Interact Within the Organization to Execute Business Processes

Interact Execute

Technology

Enables Enables

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2/6/2020 5 People Organization

Business Processes

Current Focus: Improving Business Processes

Interact Execute

Technology

Enables Enables

Agenda

Spea Speaker Topi

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time time

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Mark rk Po Poling ng Introd

• duction

uction

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Scot

• tt Haskins

t Haskins Top

• pics and

s and De Deliv liverabl erables s for for C Collaborativ llaborative Ef Effor forts

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Craig E g Edlund nd Docume menting nting “As I Is” Processes esses

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Ge Getachew Melsew Analysis of alysis of Business P siness Processes

• cesses

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Mer Mert Muf Muftugil Des Design gning Des Desired (“ (“To Be”) Be”) Pro Processes

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Cello Cello Vi Vitaso sovi vic Next Step t Steps and and Par Participation icipation

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Sc Scot

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t Haskins Fac acili ilitating Q ting Q&A

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2/6/2020 6 Collaborative Work: Modeling, Analysis, Design

• Capital Proj

Capital Project Deliv t Delivery

• Developing A

ng Asset M set Manage gement P nt Plans

• Enterprise Risk Managem

terprise Risk Management nt

• Business C

ness Case E Eval aluatio uation and P and Prioritization ioritization of CIP P Projects

Docu Document Curre Current Condition ndition Ide Identify fy It Items F For r Impr provement ement Desi Design gn Impr provement ements (T (To Be)

• Be)

Plan Plan Acti Actions fo for Impr provement ement Im Improve

Mode Model Analyze Analyze De Design sign Plan Plan Impro Improve

Utilities Share Knowledge, Peer-to- Peer Collaboration

UAIM Utility Partners

San Francisco PUC (CA) Metro Vancouver (Canada) DC Water MCES (Minneapolis) Clean Water Services (OR) Charlotte NC Louisville MSD (KY) City of Grand Rapids MI VCS (Denmark) Great Lakes Water Authority (MI) Toho Water (FL) Orange County FL UK Environment Agency Portland Water (OR) Tacoma Water (WA) Kansas City Water (MO) Washington Suburban - WSSC (MD) Docu Document Curre Current Condition ndition Ide Identify fy It Items F For r Impr provement ement Desi Design gn Impr provement ements (T (To Be)

• Be)

Mode Model Analyze Analyze De Design sign

Shared Kno Shared Knowledge Base ledge Base

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As Is As Is Dr Draft aft To To B Be

Draft To Be Processes As Is Processes

To To B Be Ve Version 1 1.0

Version 1 Recommended Processes

Post st V Versio ion 1.0 n 1.0 Reco ecomm mmended ended Processe sses, A Artif tifact cts s to P to Portal

Shared Kno Shared Knowledge Base ledge Base

Model Revisions from As Is to To Be Model Revisions from As Is to To Be

Benefits for Utility Partners

• Exchange of ideas/ experiences with peers from different

utilities

• In-depth examination of important topics/ business areas
• Access to knowledge base (models, artifacts)
• Defined best practices that can be applied within a utility
• Adopted standards for:
• Metrics associated with specific business processes
• Documentation of business processes (e.g. format, notation,

hierarchy)

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Agenda

Spea Speaker Topi

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time time

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Mark rk Po Poling ng Introd

• duction

uction

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Scot

• tt Haskins

t Haskins Top

• pics and

s and De Deliv liverabl erables s for for C Collaborativ llaborative Ef Effor forts

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Craig E g Edlund nd Docume menting nting “As I Is” Processes esses

10 10

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Ge Getachew Melsew Analysis of alysis of Business P siness Processes

• cesses

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Mer Mert Muf Muftugil Des Design gning Des Desired (“ (“To Be”) Be”) Pro Processes

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Cello Cello Vi Vitaso sovi vic Next Step t Steps and and Par Participation icipation

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Modeling Business Processes

Docu Document Curre Current Condition ndition Ide Identify fy It Items F For r Impr provement ement Desi Design gn Impr provement ements (T (To Be)

• Be)

Mode Model Analyze Analyze De Design sign

Organization Technology

Enables Enables

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2/6/2020 9 Detailed Models of Specific Processes Detailed Models of Specific Processes

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2/6/2020 10 “Swim Lanes” Indicate Business Units Activities

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2/6/2020 11 Systems & Data Decisions

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BP Models Describe…

Who is involved in the business process (swim lanes) Work flow (sequence paths of activities) What decisions need to be made (and by whom) What resources (e.g. time, staff, equipment) are needed The metrics impacted by the process What data is required to execute work (and make decisions) Where (in what systems) the required data resides

Water Sector Value Model

UAIM Utility Partners

San Francisco PUC (CA) Metro Vancouver (Canada) DC Water MCES (Minneapolis) Clean Water Services (OR) Charlotte NC Louisville MSD (KY) City of Grand Rapids MI VCS (Denmark) Great Lakes Water Authority (MI) Toho Water (FL) Orange County FL UK Environment Agency Portland Water (OR) Tacoma Water (WA) Kansas City Water (MO) Washington Suburban - WSSC (MD)

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Value Chain Elements As Is Process for Developing AMPs

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2/6/2020 14 Revised Process for Developing AMPs

Shared Knowledge Base

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Agenda

Spea Speaker Topi

• pic

time time

1

Mark rk Po Poling ng Introd

• duction

uction

6

2

Scot

• tt Haskins

t Haskins Top

• pics and

s and De Deliv liverabl erables s for for C Collaborativ llaborative Ef Effor forts

10 10

3

Craig E g Edlund nd Docume menting nting “As I Is” Processes esses

10 10

4

Ge Getachew Melsew Analysis of alysis of Business P siness Processes

• cesses

10 10

5

Mer Mert Muf Muftugil Des Design gning Des Desired (“ (“To Be”) Be”) Pro Processes

10 10

6

Cello Cello Vi Vitaso sovi vic Next Step t Steps and and Par Participation icipation

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Sc Scot

• tt Haskins

t Haskins Fac acili ilitating Q ting Q&A

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Context and Explanation

This workshop lasted four days: Monday through Thursday. It covered four topics in parallel sessions, with two days dedicated to each topic:

Topic Schedule Utility/Topic Lead CIP Delivery Monday and Tuesday Team 2100 UK Environmental Agency Managing Enterprise Risk Portland Water Business Case Evaluation Wednesday and Thursday DC Water Developing Asset Management Plans Minneapolis Council of Environmental Services

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2/6/2020 16 Preparing for Workshop: As Is Models

1.4

Do Document/model t ment/model the As e As Is pr processes: ses: For e r each o

• f the fo

e four ur to topics, pics, for a for a specific specific topic topic

S traw Man As Is business process models for the topic specific to a utility

“As Is” Models Prepared for Each of the Four Topics

Ma Managing En naging Enter terprise rise Risk Risk De Developi ping ng Asse Asset Manag Management nt Plans Plans Bu Busi sines ness Ca Case se Ev Evaluation uation CIP Deli CIP Delivery

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2/6/2020 17 CIP Delivery As Is Models from Different Utility Partners Summary of input from others for a specific topic

Utilities posted related 129 artifacts in 5 weeks Content included:

Business process models Guidance documents (e.g. for Developing Asset Management Plans) Finished products (e.g. Asset Management Plans)

Category Who What CIP Delivery DC Water CIP Planning Process CIP Delivery MCES Project Delivery Analysis CIP Delivery MCES Project Delivery Analysis Milestones CIP Delivery MCES Project Delivery Analysis Flowchart CIP Delivery Metro VC MVC ‐ PM Guidelines CIP Delivery Metro VC CIP Investment Planning CIP Delivery Metro VC Collated Pinch Points CIP Delivery Toho Water Authority CIP Project Summary Sheet CIP Delivery UK Team 2100 Capital Delivery CIP Delivery UK Team 2100 Process Overview CIP Delivery UK PR ‐ OM ‐0002

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2/6/2020 18 Open discussion - Editing “straw man”

Participants present their views, ideas,

• n this topic. Identify which processes

may need to be added to the S traw Man to make it more generic, check if other utilities may have additional processes included in this topic. Add sticky notes to the S traw Man hierarchy, try to make the model more universal and/ or complete Revised S traw Man As Is business process models for the topic

Business Case Evaluation

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2/6/2020 19 Identifying Challenges

Challenges in As Is business processes for the topic specific to a utility Participants identified challenges in managing the topic (their perspectives), create a list Revised S traw Man As Is business process models for the topic

BCE Challenges

People Process Technology Strategic 4 8 1 Tactical 1 5 Operational 1 2

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2/6/2020 20 Identifying Business Goals

Business goals associated with the topic Participants identified key business goals for the topic (their perspectives), create a list Revised S traw Man As Is business process models for the topic

BCE Goals

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2/6/2020 21 Identifying Performance Metrics

Performance metrics associated with the topic Participants identified performance metrics for the topic (their perspectives), create a list Revised S traw Man As Is business process models for the topic

BCE Metrics

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Agenda

Spea Speaker Topi

• pic

time time

1

Mark rk Po Poling ng Introd

• duction

uction

6

2

Scot

• tt Haskins

t Haskins Top

• pics and

s and De Deliv liverabl erables s for for C Collaborativ llaborative Ef Effor forts

10 10

3

Craig E g Edlund nd Docume menting nting “As I Is” Processes esses

10 10

4

Ge Getachew Melsew Analysis of alysis of Business P siness Processes

• cesses

10 10

5

Mer Mert Muf Muftugil Des Design gning Des Desired (“ (“To Be”) Be”) Pro Processes

10 10

6

Cello Cello Vi Vitaso sovi vic Next Step t Steps and and Par Participation icipation

14 14

7

Sc Scot

• tt Haskins

t Haskins Fac acili ilitating Q ting Q&A

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To-Be workflow development – main steps

Leads develop draft as‐is Team web meetings In‐person workshop (OR) Leads develop draft to‐ be Team web meetings In‐person workshop (CA) Metrics & change mngmnt

Initial draft for team review Revised draft with team input Final as-is Input for to- be Business goals Challenges Initial draft for team review Revised draft with team input Final to-be Metrics input Final touches Input to change management process

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Draft Model for Managing Enterprise Risk Revised Model for Managing Enterprise Risk

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Business goals help shape the major to-be workflow steps

Risk identification (category and ranking) Grow view of risk management Define risk tolerance Rationalize enterprise wide decision making Improve employee engagement Enterprise‐wide agreement on priorities ‐ path forward Lower risk profile Enable business continuity Improve corporate sustainability Compliance with risk management standards Transparency ‐ reduce complexity Greater integration/cohesion across the

• rganization

Ensure corporate goals are met Minimize surprises: What should I have known? Support risk‐based decisions Resilience across staff changes

Challenges for utilities to achieve the To-Be workflow were identified

• Subjectivity in assigning consequence of failure ratings to strategic risks
• Difficulty in judging the relative likelihood of identified risk events
• Setting the risk tolerance/appetite level between coming up with an actionable list (due to

resource availability) and not overlooking important risk

• Assigning risks to risk management teams not suitable to manage them due to skills and/or

resource availability

• Disconnect between Management and Risk Management Strategy teams in interpreting what

“appropriate” mitigation strategies are

• Timeline assigned to a mitigation strategy not attainable by the executors
• Scheduling a periodic update of strategic risk status and assigning new risks outside a

strategic plan process

• Agreement on the consequence of failure scoring matrix
• Management Team engagement, support, and securing funding
• Change management and accountability

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2/6/2020 25

Most recent to-be workflow

This zoomed out view is included to illustrate the level of detail and not for review of its content.

Most recent to-be workflow (continued)

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Agenda

Spea Speaker Topi

• pic

time time

1

Mark rk Po Poling ng Introd

• duction

uction

6

2

Scot

• tt Haskins

t Haskins Top

• pics and

s and De Deliv liverabl erables s for for C Collaborativ llaborative Ef Effor forts

10 10

3

Craig E g Edlund nd Docume menting nting “As I Is” Processes esses

10 10

4

Ge Getachew Melsew Analysis of alysis of Business P siness Processes

• cesses

10 10

5

Mer Mert Muf Muftugil Des Design gning Des Desired (“ (“To Be”) Be”) Pro Processes

10 10

6

Cello Cello Vi Vitaso sovi vic Next Step t Steps and and Par Participation icipation

14 14

7

Sc Scot

• tt Haskins

t Haskins Fac acili ilitating Q ting Q&A

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Overview of scope for Year 2

• Track 1
• WS

VM curation

• Guidelines
• Independent BP modeling, case studies
• Training
• Track 2
• New topics
• Case studies on existing topics

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2/6/2020 27 Track 1: Water Sector Value Model

Level 1 Value Chain Level 2 Value Chain Level 3 BPMN Level 4 BPMN Level ++ BPMN . . . Generic to all Utilities Specific to each Utility

Case Studies: Utilities Apply the Methodology

Private development warranty inspection One Water shared services CROMERR processes Industrial Waste Permittee Report Pump station R/ R process DIP Construction Inspection Tracking & Managing Private Development

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2/6/2020 28 Metrics: Simulated 53 cases over 365 days, 2 FTE From: City of Grand Rapids

As-Is Model

• Cost: $102,410
• Percent Complete: 100%
• Utility Hours of Review: ~515 hours
• Industry Hours for reporting: ~300

hours

To-Be Model

• Cost: $70,143
• Percent Complete: 100%
• Utility Hours of Review: ~93

hours

• Industry Hours for reporting: ~ 10

hours

Track 2: Collaborative Work on Selected Topics

• Capital Proj

Capital Project Deliv t Delivery

• Developing A

ng Asset M set Manage gement P nt Plans

• Enterprise Risk Managem

terprise Risk Management nt

• Business C

ness Case E Eval aluatio uation and P and Prioritization ioritization of CIP P Projects

Docu Document Curre Current Condition ndition Ide Identify fy It Items F For r Impr provement ement Desi Design gn Impr provement ements (T (To Be)

• Be)

Plan Plan Acti Actions fo for Impr provement ement Im Improve

Mode Model Analyze Analyze De Design sign Plan Plan Impro Improve

Ye Year 1 1 Ye Year 2 2

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People Process Technology Strategic 8 5 Tactical 3 1 Operational Managing Enterprise Risk People Process Technology Strategic 15 12 4 Tactical 6 4 3 Operational 7 3 3

People Process Technology Strategic 6 9 Tactical 4 4 Operational 5 3 3

CIP Delivery Developing Asset Management Plans

People Process Technology Strategic 4 8 1 Tactical 1 5 Operational 1 2

Business Case Evaluations

Results from Oregon Workshop

20 40 60 80

S trategic Tactical Operational

Challenges

46% 43% 11%

Challenges

People Process Technology

Value Creation

People Organization

Business Processes Interact Execute

Technology

Enables Enables

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New Topic: Focus on “People”

People Organization

Business Processes Interact Execute

Technology

Enables Enables

People

Operational Tactical Strategic

Process Technology

Year 2 Topics for Collaborative Efforts

• Organi

ganization & zation & Workforc rkforce

• Workforce

rkforce

• Organi

Organizati zation

• nal Culture and

al Culture and Go Govern rnan ance ce

• Change

Change Manag Manageme ment

• TBD

TBD

Docu Document Curre Current Condition ndition Ide Identify fy It Items F For r Impr provement ement Desi Design gn Impr provement ements (T (To Be)

• Be)

Plan Plan Acti Actions fo for Impr provement ement Im Improve

Mode Model Analyze Analyze De Design sign Plan Plan Impro Improve

Ye Year 2 2

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Pe People le Ex Execu ecute

Interact Interact Subtopic 1: Organization (Culture, Governance) Interact Interact

Orga Organi niza zati tion Pe People le Pe People le Scop Scope for “ for “Organizational Culture rganizational Culture” T Topic Orga Organi niza zati tion

S chein, E.H. (2017) Organizational Culture and Leadership, 5th Edition, Willey

• Revie

view/Consider metho r methods f s for r assess assessment of nt of

• rganiza
• rganizati

tiona

• nal cultu

culture

• Perfor
• rm assess

m assessme ment nts – s – As s Is Is

• Ident

Identify challe challenges nges and goals and goals

• Ident

Identify cultu cultural parame parameters suit suitable le for r wate ter r sector utiliti sector utilities (T s (To Be)

• Be)

Model As Is

Analyze Document

Analyze As Is Design To Be

Design

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2/6/2020 32

Pe People le Ex Execu ecute

Interact Interact Subtopic 2: Workforce Interact Interact

Orga Organi niza zati tion Pe People le Pe People le Ex Execu ecute

Interact Interact Scope for Subtopic 2: Workforce

Pe People le

• Review/Consi

/Consider der m methods thods fo for assess assessment nt of

• f workforce
• Perfor
• rm

m assess assessme ment nt (As (As Is) Is)

• Ident

Identify challe challenges nges and goals and goals

• Define chara

Define characteristic ristics of s of a a “grea “great” wo workfo force

• Expl

Explore Metho

• re Methods f

s for r impro improvement (mo (motiv ivatio ion, n, engageme engagement nt, collabora , collaboratio tion) Model As Is

Analyze Document

Analyze As Is Design To Be

Design

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2/6/2020 33

Pe People le Ex Execu ecute

Interact Interact Subtopic 3: Change Management

Orga Organi niza zati tion Pe People le

Interact Interact

Model As Is

Analyze Document

Analyze As Is Design To Be

Design

Plan Implement

Manage Change Scope for Scope for Change Management Su Change Management Subt btopic

• pic (Colla

(Collabor borativ tive Ef Effor forts) s)

• Review/Consi

/Consider der m methods thods fo for change mana manage gement

• Perfor
• rm assess

m assessme ment nts – s – As s Is Is

• Ident

Identify challe challenges nges and goals and goals

• Identi

tify p fy paramete ters fo for c r chan ange m ge management nagement proce processes/ s/prac actice ces appli applicable le to to water ter secto sector utilitie utilities (T s (To

• Be)

Be) Model As Is

Analyze Document

Analyze As Is Design To Be

Design

Plan Implement

Manage Change

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Apply Method to Each Element

Workforce Organization

Collaboration Motivation Communication Governance Alignment?

• Org. Culture

Mode Model Analyze Analyze De Design sign Plan Plan Impro Improve

Summary

• Research driven by needs of utility partners
• Collaboration and knowledge sharing
• Key deliverables:
• S

tandard methodology for modeling, analysis, improvement

• Knowledge base: shared business process models, artifacts
• Community of peers in water sector utilities
• Case studies

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How Can a Utility Participate?

• Track 1 (utilities work independently)
• Document (model) their own business processes of interest
• Design and implement performance improvements
• Prepare and post case studies
• Track 2 (utilities j oin teams to work on

specific topics)

• Attend collaborative sessions (conference calls)
• Attend workshops (UMC, WEFTEC)
• Prepare or review models for specific topics
• Post/ share relevant artifacts
• Collaborate on assigning metrics to business processes
• Design recommended processes for selected topics

How Does a Utility Join UAIM?

• Contact Water Research Foundation
• Different Models of Participation

Fidan Karimova, WRF – fkarimova@ waterrf.org David Morroni, WRF – dmorroni@ waterrf.org Cello Vitasovic, PI – cello@ 9DAnalytics.com S cott Haskins, Co-PI S cott.Haskins@ Jacobs.com Mark Poling, Co-PI PolingM@ cleanwaterservices.org

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2/6/2020 36

Agenda

Spea Speaker Topi

• pic

time time

1

Mark rk Po Poling ng Introd

• duction

uction

6

2

Scot

• tt Haskins

t Haskins Top

• pics and

s and De Deliv liverabl erables s for for C Collaborativ llaborative Ef Effor forts

10 10

3

Craig E g Edlund nd Docume menting nting “As I Is” Processes esses

10 10

4

DC DC Wate ter Analysis of nalysis of Business P siness Processes

• cesses

10 10

5

Mer Mert Muf Muftugil Des Design gning Des Desired (“ (“To Be”) Be”) Pro Processes

10 10

6

Cello Cello Vi Vitaso sovi vic Next Step t Steps and and Par Participation icipation

14 14

7

Sc Scot

• tt Haskins

t Haskins Fac acili ilitating Q ting Q&A

30 30

Mark Poling Clean Water S ervices S cott Haskins Jacobs Engineering Craig Edlund MCES Mert Muftugil Portland Water Getachew Melsew DC Water Cello Vitasovic 9D Analytics

71 72