Strategic Planning: Charting Your Utility’s Future...Scott Focht Senior Director Business Strategy...
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Transcript of Strategic Planning: Charting Your Utility’s Future...Scott Focht Senior Director Business Strategy...
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Strategic Planning: Charting Your Utility’s Future
Powering Your Life
Powering Your Life
APPA 2018 National Conference, June 15-20, New Orleans
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Leadership Through Pioneering and Excellence
Pioneering Excellence
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Strategic Planning-Why?
Helps you to think beyond the day-to-day
Forces you to realistically examine your company
Creates a clear road map for employees, managers and board members
Helps with capital planning
Demographics help you to understand you customers
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Strategic Planning Process
HometownConnections
Advisory TeamBoard of DirectorsGeneral Manager
Directors
Implementation Team
General ManagerDirectors
SupervisorsStaff
Hometown Connections
APPA CensusData
CommunityPanel
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Action Items vs Strategic Plan
Board of Directors approves values & goals under each
area of focus
Implementation Team determines
Action Items
Staff completes Action Items
Managers communicate
progress on Action Items to Board of
Directors
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Evolution of Board Meetings
Work the Plan
“Is this motion or presentation related to a Strategic Plan goal?”
If it isn’t, “Why are we doing it?”
Consensus of Direction among the board and staff. Reduces surprises.
“Safety First in All we Do”- Safety moment at board meetings immediately following prayer and Pledge of Allegiance
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Goals
• PPS will set the bar as the regional standard for reliable service.Reliability
• PPS will balance long-term financial stability with fair rates.Financial Strength
• PPS will invest in the success and quality of life in the Paducah community.
Community Development
• PPS will set the bar for exceptional customer service.Customer Service
• PPS will develop and sustain a highly skilled workforce focused on our strategic priorities.Workforce Development
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Staff Involvement
Conversations reveal company culture and attitudes
Safe space to share wild ideas and concerns
Staff wants to be heard
Employee involvement leads to ownership of the plan
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Communicate Before, During and After the Process
Explain the process
Take away the mystery
Get them involved
Hold department meetings
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What is the strategic plan?
For the community, customers, board members and employees-Brochure
For the board of directors-High level summary (Strategic areas of emphasis and goals for the utility)
For employees-Continually updated book of action items planned and in progress
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Everyone Implements The Plan
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Mission Statement vs Vision Statement
Mission Statement-The mission of Paducah Power System is to provide our customers with reliable and economical electric service of the highest quality and be a valued partner in the community and it’s development.
Vision Statement-Paducah Power System will be a trusted partner in the vitality of our community and a leader in our industry.
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The Alternative to Good Strategic Planning
Image property of Maker’s Mark Distillery
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Questions or Comments?
Dave Carroll, General Manager, Paducah Power System
mailto:[email protected]
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Strategic Planning: Charting Your Utility’s Future
APPA 2018 National ConferenceJune 19, 2018, 1:30 – 2:30 p.m. | New Orleans, LA
Scott FochtSenior Director Business Strategy and DeploymentOmaha Public Power [email protected]
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Envisioning our Future
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An organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that
employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and
adjust the organization's direction in response to a changing environment.
- Balanced Scorecard Institute
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Strategic Planning Process Framework
Environmental Assessment
Strategy Formulation
Strategy Planning
Execution & Results
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Strategic Direction
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Governance Philosophy
OPPD Board Polices: Strategic Direction ● Governance Process ● Board Staff Linkage
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Industry Trends
Cost
Pre
ssur
es Revenue Grow
th
• New & evolving regulations
• Customer behavioral changes & demand for choices
• Technological advances
• Renewable energy investments
• Aging infrastructure costs
• Grid modernization
• Distributed generation
• Cyber/security threats
• Employee benefits
• Sub 1% or negative growth
• Low RTO market prices (gas and wind)
• Increased energy efficiencies & demand response
• Economic pressures
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Industry trends are accelerating transformational change, creating significant pressures on traditional strategies and business models of electric utilities.
Charting Your Utility's Future
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CUSTOMER/STAKEHOLDER OPERATIONS
ORGANIZATIONAL CAPACITYFINANCIAL
People Technology
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Our Strategic Direction
What might we look like in 3, 5 and 10 years? How will we measure our success? (goals/directives)
What are our core strategies?
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Business Transformation: Strategic Plan
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“Leading the Way We Power the Future”
Our Mission: We provide affordable, reliable and environmentally sensitive energy services to our customers.Our Values: We have a PASSION to serve – We HONOR our community – We CARE about each other
Financial StewardshipWe are stewards of financial resources creating strength & flexibility benefitting our customer owners & communities.
Technology SolutionsThrough partnerships, we provide innovative and value added technology in a secure and reliable manner to achieve strategic initiatives and operational goals.
Powered Through PeopleWe know employees drive our success. We provide a safe, healthy environment where our diverse and highly skilled workforce can do their best work.
Strategic Direction Policies
Trusted Energy PartnerOur customers and communities can count on us to bring them value, caring and excellence as their trusted energy partner.
Operational ExcellenceWe drive operational excellence by focusing on safety, reliability, cost, environmental stewardship and innovation.
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Aligning for successOPPD Business Transformation
Corporate Operating Plan
Business Unit
Key Accountabilities
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Assessing and adjusting direction
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Annually• Annual Planning• Budget/Resource• Performance Reviews
Quarterly• Corporate Perf. Review• Employee Town Hall• Key Accountability Reviews• Roundtables• MOR Meetings (skip level)
Monthly• Direct Report Meeting• BU/Division Meetings• Corporate Strategy Updates
Weekly or Bi-Weekly• Staff/Team• 1:1• Problem Solving
Daily• Morning Staff• Team Huddles • Stand-Up Meetings
A regular, predictable managerial meeting practice is a powerful tool to demonstrate clarity, connection and care. It helps leaders drive awareness, resource alignment and execution of
strategic and operational priorities to achieve performance goals.
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Optimizing engagement
Alignment Capability Belief
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Open Discussion
Scott Focht, Senior Director, Business Strategy & Deployment
Omaha Public Power District
Slide Number 1Strategic Planning: Charting Your Utility’s FutureLeadership Through Pioneering and ExcellenceStrategic Planning-Why?Slide Number 5Action Items vs Strategic PlanEvolution of Board MeetingsGoalsStaff InvolvementCommunicate Before, During and After the ProcessWhat is the strategic plan?Slide Number 12Everyone Implements The PlanMission Statement vs Vision StatementThe Alternative to Good Strategic PlanningSlide Number 16Strategic Planning: �Charting Your Utility’s Future Slide Number 18 Envisioning our FutureSlide Number 20Slide Number 21Strategic Planning Process Framework Slide Number 23Industry TrendsSlide Number 25Business Transformation: Strategic PlanSlide Number 27Slide Number 28Aligning for successAssessing and adjusting directionOptimizing engagementOpen Discussion
