HomeMy Public PortalAboutExhibit MSD 11A27 Effective Utility Management Self Assessment March 2011Exhibit MSD 11A27
DRAFT
Metropolitan St. Louis
Sewer District
Effective Utility Management
Self -Assessment
Final Report
March 2011
IEF FE ON
• WELLS
I-1. .:,..
RFC
RAFTELIS FINANCIAL
CONSULTANTS, INC.
RFC
RAFTEUS FINANCIAL
CONSULTANTS, INC.
March 18, 2011
1031 S. Caldwell Street • Suite 100
Phone 704 • 373 • 1199 5 www.raftelis.com
Charlotte • North Carolina • 28203 Fax 704 • 373 • 1113
Mr. Jeffery Theerman
Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103
Dear Mr. Theerman:
We have completed the Effective Utility Management ("EUM") Assessment for the
Metropolitan St. Louis Sewer District ("MSD"), which was the initial Phase of the MSD
management audit. The attached report presents the findings and suggestions resulting
from the collaborative work of MSD and the consultants.
We appreciate the participation and effort of the MSD team throughout the EUM process.
We are confident that you will find the contents of this report useful as you work to
position MSD closer to the ideal EUM state.
If you have any questions concerning this report or any aspect of the EUM self -
assessment phase of this engagement, please contact me at (336) 209-1347 or at
dthomas@raftelis.com.
Very truly yours,
Darin Thomas
Director of management Consulting
Metropolitan St. Louis Sewer District
Effective Utility Management Assessment
Final Report
Table of Contents
Subject
Page
Introduction
2
Assessment Objective
2
About Effective Utility Management
2
Approach
4
Overall Findings
5
MSD Attribute Assessment
6
Suggestions
8
Attributes
9-15
Keys to Management Success
15-17
Appendices
A
Sense of the Stakeholder Interviews and Online
Survey
B
Employee Focus Group Notes
C
Manager/Supervisor Focus Group Notes
D
Attribute Measures
E
Keys to Management Success Workshop Notes
F
Strategic Business and Operating Plan -Fiscal
Years 2011 — 2015 - Summary Comments and
Strategic Frameworks — EUM Format
1
Metropolitan St Louis Sewer District
Effective Utility Management Assessment
Report
Introduction
Jefferson Wells and the management consulting division of Raftelis Financial
Consultants ("SUNESIS") were engaged to conduct a management audit in accordance
with the Metropolitan St Louis Sewer District ("MSD") charter. The first phase of the
project, which was primarily SUNESIS' responsibility, was to work with MSD
management to conduct a self -assessment of MSD in relation to the Ten Attributes of
Effectively Managed Utilities ("Attributes") and the Five Keys to Management Success
("Keys") as presented in Effective Utility Management, A Primer for Water and
Wastewater Utilities prepared through an agreement of the Environmental Protection
Agency (EPA) and six national water and wastewater associations.
The self -assessment compared MSD's operating practices with the ten Attributes and the
five Keys identified in EUM. In general, MSD addresses all of the EUM Attributes and
has implemented significant portions of each of the Keys. However, conforming more
closely to EUM should enable MSD to improve its overall organizational performance
and better prepare the organization for the coming challenges it faces in implementing a
major capital program in conformance with a consent decree with the United States
Environmental Protection Agency ("EPA") and other regulatory and customer
requirements.
Assessment Objective
MSD is an innovative utility with a simple vision, Quality Service Always. To provide
consistent high quality service, MSD must use the best management approaches within
the water and wastewater industry. With this in mind, the objective of the EUM
assessment was to:
Review MSD's status relating to the EUM standards and to develop an approach and
plan that will enable MSD to move closer to an ideal EUM state.
About Effective Utility Management
EUM is a comprehensive approach to help utilities respond proactively to both current
and future challenges. Developed by a consortium of six water and wastewater industry
associations and the United States Environmental Protection Agency, EUM practices
have been developed to support utilities as they seek to position themselves as successful
21St century service providers. The EUM process works to assure that a utility addresses
the Ten Attributes of Effectively Managed Utilities, which are at the core of the EUM
2
process. As extracted from the Primer "Effective Utility Management", dated June 2008,
these Attributes, which have been adjusted to meet the needs of a wastewater and
stormwater agency, are:
1. Product Quality - Wastewater: "Produces treated effluent, and process
residuals in full compliance with regulatory and reliability requirements and
consistent with customer, public health, and ecological needs."
2. Product Quality - Stormwater: "Improves area water quality by preventing
harmful pollutants from being carried by storm water runoff into local water
bodies."
3. Employee and Leadership Development: "Recruits and retains a workforce that
is competent, motivated, adaptive, and safe -working. Establishes a participatory,
collaborative organization dedicated to continual learning and improvement.
Ensures employee institutional knowledge is retained and improved upon over
time. Provides a focus on and emphasizes opportunities for professional and
leadership development and strives to create an integrated and well -coordinated
senior leadership team."
4. Financial Viability: "Understands the full life -cycle cost of the utility and
establishes and maintains an effective balance between long-term debt, asset
values, operations and maintenance expenditures, and operating revenues.
Establishes predictable rates —consistent with community expectations and
acceptability —adequate to recover costs, provide for reserves, maintain support
from bond rating agencies, and plan and invest for future needs."
5. Community Sustainability: "Is explicitly cognizant of and attentive to the
impacts its decisions have on current and long-term future community and
watershed health and welfare. Manages operations, infrastructure, and
investments to protect, restore, and enhance the natural environment; efficiently
uses water and energy resources; promotes economic vitality; and engenders
overall community improvement. Explicitly considers a variety of pollution
prevention, watershed, and source water protection approaches as part of an
overall strategy to maintain and enhance ecological and community
sustainability."
6. Stakeholder Understanding and Support: "Engenders understanding and
support from oversight bodies, community and watershed interests, and regulatory
bodies for service levels, rate structures, operating budgets, capital improvement
programs, and risk management decisions. Actively involves stakeholders in the
decisions that will affect them."
7. Customer Satisfaction: "Provides reliable, responsive, and affordable services
in line with explicit, customer -accepted service levels. Receives timely customer
feedback to maintain responsiveness to customer needs and emergencies."
8. Operational Optimization: "Ensures ongoing, timely, cost-effective, reliable,
and sustainable performance improvements in all facets of its operations.
Minimizes resource use, loss, and impacts from day-to-day operations. Maintains
3
awareness of information and operational technology developments to anticipate
and support timely adoption of improvements."
9. Operational Resiliency: "Ensures utility leadership and staff work together to
anticipate and avoid problems. Proactively identifies, assesses, establishes
tolerance levels for, and effectively manages a full range of business risks
(including legal, regulatory, financial, environmental, safety, security, and natural
disaster -related) in a proactive way consistent with industry trends and system
reliability goals."
10. Infrastructure Stability: "Understands the condition of and costs associated
with critical infrastructure assets. Maintains and enhances the condition of all
assets over the long-term at the lowest possible life -cycle cost and acceptable risk
consistent with customer, community, and regulator -supported service levels, and
consistent with anticipated growth and system reliability goals. Assures asset
repair, rehabilitation, and replacement efforts are coordinated within the
community to minimize disruptions and other negative consequences."
11. Resource Adequacy: "Ensures wastewater capacity consistent with current and future
customer needs through long-term capacity analysis, conservation, and public education.
Explicitly considers its role and manages operations to provide for long-term aquifer and
surface water sustainability and replenishment."
The management techniques that EUM considers the Five Keys to Management Success
that effectively managed utilities use to address the Attributes, are also defined in
"Effective Utility Management", and include:
1. Leadership: "Critical to effective utility management particularly in the context
of driving and inspiring change within an organization."
2. Strategic Business Planning: "An important tool for achieving balance and
cohesion across the Attributes."
3. Organizational Approaches: "Contribute to overall effective utility
management that are critical to the success of management improvement efforts."
4. Measurement: "Critical to the management improvement efforts associated with
the Attributes."
5. Continual Improvement Management Framework: "A plan, do, check, act
framework."
Approach
SUNESIS managed and facilitated the EUM assessment that included the following
tasks:
❑ Reviewing existing documents including measures, organizational charts, existing
strategic and operating plan, customer survey results, and financial information.
4
Q' D e v e l o p i n g a n a s s e s s m e n t p l a n .
Q' C o n d u c t i n g a n i n t r o d u c t o r y w o r k s h o p w i t h M S D s e n i o r m a n a g e m e n t t o a s s u r e a
c l e a r u n d e r s t a n d i n g o f t h e p r o j e c t , d e v e l o p a c a l e n d a r , a s s i g n a t t r i b u t e t e a m s , a n d
i d e n t i f y p o t e n t i a l i n t e r v i e w e e s .
Q' I n t e r v i e w i n g k e y s t a k e h o l d e r s i n c l u d i n g m a n a g e m e n t , s e l e c t e d B o a r d M e m b e r s ,
a n d R a t e C o m m i s s i o n m e m b e r s .
Q' C o n d u c t i n g a n d a n a l y z i n g a n o n - l i n e s u r v e y o f M S D m a n a g e m e n t p e r s o n n e l
a d d r e s s i n g t h e E U M A t t r i b u t e s a n d k e y s .
Q' H e l p i n g A t t r i b u t e c h a m p i o n s a n d t e a m s p r o v i d e i n f o r m a t i o n a n d i d e a s c o n c e r n i n g
A t t r i b u t e m e a s u r e s a n d c o r e s t r a t e g i e s .
Q' C o n d u c t i n g t e n f o c u s g r o u p s e s s i o n s w i t h s e l e c t e d i n t e r d e p a r t m e n t a l g r o u p s o f
a p p r o x i m a t e l y t e n e m p l o y e e s e a c h ( f i v e s e s s i o n s w i t h m a n a g e r a n d s u p e r v i s o r
l e v e l g r o u p s a n d f i v e w i t h n o n - m a n a g e m e n t e m p l o y e e g r o u p s ) t o d i s c u s s t h e i r
p e r c e p t i o n s o f M S D ' s a c t i v i t i e s r e l a t e d t o A t t r i b u t e s a n d K e y s .
Q' C o n d u c t i n g a t w o - d a y w o r k s h o p w i t h s e n i o r m a n a g e m e n t d i r e c t e d t o w a r d t h e
A t t r i b u t e m e a s u r e s a n d a c t i v i t i e s .
Q' F a c i l i t a t i n g a w o r k s h o p w i t h s e n i o r l e a d e r s h i p a n d t h e A t t r i b u t e c h a m p i o n s t o
a d d r e s s M S D ' s a p p r o a c h t o t h e F i v e K e y s t o M a n a g e m e n t S u c c e s s .
Q' R e v i e w i n g a p r e l i m i n a r y l i s t o f s u g g e s t i o n s a t a w o r k s h o p w i t h s e n i o r l e a d e r s h i p
a n d t h e A t t r i b u t e c h a m p i o n s t o e v a l u a t e p r i o r i t i e s o f p o t e n t i a l s u g g e s t i o n s a n d t o
d e t e r m i n e t h o s e t h a t w o u l d r e q u i r e f u r t h e r p l a n n i n g b e f o r e i m p l e m e n t a t i o n .
Q' P r e p a r i n g t h i s f i n a l r e p o r t .
O v e r a l l F i n d i n g s
O v e r a l l , S U N E S I S b e l i e v e s M S D i s o p e r a t i n g i n a c c o r d a n c e w i t h t h e m a j o r i t y o f t h e
c o m p o n e n t s o f E U M . S p e c i f i c a l l y , w h i l e o p e r a t i n g a v e r y s u c c e s s f u l u t i l i t y t h a t p r o v i d e s
e x c e l l e n t w a s t e w a t e r s e r v i c e s a t r a t e s t h a t a r e r e l a t i v e l y l o w c o m p a r e d t o o t h e r
c o m m u n i t i e s , M S D h a s :
Q' I d e n t i f i e d m e a s u r e s d i r e c t e d t o w a r d s e a c h A t t r i b u t e .
Q' I m p l e m e n t e d a c t i o n s r e l a t i n g t o t h e v a r i o u s A t t r i b u t e s .
Q' G e n e r a l l y c o n f o r m e d w i t h E U M i n a p p r o a c h e s t o m o s t o f t h e A t t r i b u t e s .
Q' F o c u s e d e x t e n s i v e e f f o r t s o n c u s t o m e r s a t i s f a c t i o n c o n s i s t e n t w i t h i t s v i s i o n o f
" Q u a l i t y S e r v i c e A l w a y s " . T h e r e s u l t s o f t h e s e e f f o r t s a r e c o n f i r m e d b y
c o n s i s t e n t l y p o s i t i v e c u s t o m e r s u r v e y r e s u l t s .
5
Q' D e v o t e s s i g n i f i c a n t e f f o r t s a n d m u c h o f t h e s t r a t e g i c p l a n t o s t a k e h o l d e r
c o m m u n i c a t i o n s . T h i s i s l i k e l y t o b e c o m e i n c r e a s i n g l y i m p o r t a n t a s M S D
i m p l e m e n t s i t s c a p i t a l i m p r o v e m e n t p l a n t h a t w i l l r e q u i r e s u b s t a n t i a l r a t e
i n c r e a s e s i n t h e f u t u r e .
Q' I m p l e m e n t e d p o r t i o n s o f e a c h o f t h e F i v e K e y s t o M a n a g e m e n t S u c c e s s t o a
s i g n i f i c a n t d e g r e e . S o m e o f t h e s p e c i f i c a p p r o a c h e s t o t h e k e y s c o u l d b e
i m p r o v e d .
M S D A t t r i b u t e A s s e s s m e n t
A s p a r t o f t h e o n l i n e s u r v e y , w h i c h h a d 4 7 m a n a g e m e n t l e v e l r e s p o n d e n t s , M S D ' s
m a n a g e m e n t t e a m c o n d u c t e d a c r i t i c a l a n a l y s i s o f t h e r e l a t i v e i m p o r t a n c e o f e a c h
A t t r i b u t e t o t h e o r g a n i z a t i o n a n d t h e o r g a n i z a t i o n ' s e f f e c t i v e n e s s f o r e a c h A t t r i b u t e .
T h e p u r p o s e o f t h i s a n a l y s i s w a s t o d e v e l o p a s e n s e o f p r i o r i t y i n t e r m s o f p o t e n t i a l
i m p r o v e m e n t a c t i o n s . T h e r e s u l t s o f t h e c r i t i c a l a n a l y s i s a r e p r e s e n t e d b e l o w .
E
f
f
e
c
t
t
y
e
n
e
s
s
L
0
W
e
r
H
i
g
h
e
r
5
4
3
P Q
S W
I S
2
P Q
W W
F V
C S
S S
0 0
E D
C S U
O R
1
R A
1
2
3
4
5
6
7
8
9
1 0
1 1
H i g h e r I m p a c t L o w e r I m p a c t
I m p o r t a n c e R a n k i n g
K e y : P Q W W = P r o d u c t Q u a l i t y W a s t e w a t e r , P Q W W = P r o d u c t Q u a l i t y S t o r m w a t e r ,
C S = C u s t o m e r S a t i s f a c t i o n , F V = F i n a n c i a l V i a b i l i t y , 0 0 = O p e r a t i o n a l O p t i m i z a t i o n ,
E D = E m p l o y e e / L e a d e r s h i p D e v e l o p m e n t , I S = I n f r a s t r u c t u r e S t a b i l i t y , W R = W a t e r
R e s o u r c e A d e q u a c y , C S U = C o m m u n i t y S u s t a i n a b i l i t y , O R = O p e r a t i o n a l R e s i l i e n c y ,
S S = S t a k e h o l d e r U n d e r s t a n d i n g a n d S u p p o r t
6
As shown in the grid, respondents did not rate any Attribute at an effectiveness level
worse than 3. The overall quality of MSD's effectiveness supported this ranking in
general. Through the review of the relative ranking of each Attribute's effectiveness,
areas were found in need of improvement. Specifically, the analysis suggested the
following:
❑ Product Quality Stormwater and Infrastructure Stability are of significant concern
because of their relatively performance evaluation as compared to the other
Attributes.
❑ MSD's effectiveness in Financial Viability may have been evaluated too highly
since the stormwater issue and the need for substantial future rate resulting from
required infrastructure improvements (and potential resistance to these rate
increases), will probably negatively impact performance relative to this Attribute.
❑ While the organization's effectiveness in each of the most important Attributes
was evaluated highly, MSD should continue current efforts in Product Quality —
Wastewater and Customer Satisfaction to assure that ongoing high performance is
maintained.
❑ Stakeholder Understanding and Support, which was ranked as the sixth most
important Attribute, is receiving substantial attention in management actions and
the strategic and operating plan. This appears appropriate considering substantial
expected future rate increases would be likely to lower a future evaluation of
effectiveness and increase the Attribute's importance.
❑ While Resource Adequacy ranked as the lowest of the Attributes in importance,
the Attribute team addressing this subject believes that it is actually critically
important to the long-term sustainability of the Utility and should be addressed
aggressively.
In addition, it is clear from the self -assessment phase of this engagement that MSD
management believes that it:
❑ Has the necessary human resources (people and skills) to achieve its mission,
although lack of funding is beginning to impact this as a result of layoffs and open
positions.
❑ Communicates internally and works well across departmental lines.
❑ Measures and monitors performance, although it does not directly tie measures to
the strategic plan.
❑ Prepares and updates an effective strategic plan, capital improvement plan, and
other key plans necessary for operating the Utility.
❑ Executes its strategies and activities with a sense of urgency.
7
Q' O p e r a t e s a n e f f i c i e n t U t i l i t y , h o w e v e r , w i t h b u d g e t c u t s a n d s a l a r y f r e e z e s , s o m e
t a r g e t e d a d d i t i o n a l r e s o u r c e a l l o c a t i o n s m a y b e d e s i r a b l e .
Q' I s a b l e t o r e a c t t o a n d r e s p o n d t o c h a n g e .
Q' C o m m u n i c a t e s w i t h s t a k e h o l d e r s , a l t h o u g h m a n a g e m e n t r e c o g n i z e s t h a t t h i s w i l l
b e c o m e i n c r e a s i n g l y i m p o r t a n t i n t h e c o m i n g y e a r s a s M S D r a t e s i n c r e a s e t o p a y
f o r c a p i t a l i m p r o v e m e n t s .
T h e a b o v e i s s u e s , a n d o t h e r s , s h o u l d b e s u b j e c t e d t o i n d e p e n d e n t t e s t i n g i n P h a s e I I o f
t h i s m a n a g e m e n t a u d i t p r o j e c t .
S u g g e s t i o n s
N u m e r o u s s u g g e s t i o n s r e l a t i n g t o t h e A t t r i b u t e s a n d K e y s t o M a n a g e m e n t S u c c e s s w e r e
d i s c u s s e d d u r i n g t h e w o r k s h o p s . T h e a g r e e d u p o n s u g g e s t i o n s t h a t t h e S U N E S I S t e a m
a n d M S D m a n a g e m e n t b e l i e v e w o u l d m o v e M S D c l o s e r t o E U M s t a n d a r d s w i t h a n
i n d i c a t i o n o f t h e a c t i o n r e q u i r e d ( I = I m p l e m e n t I m m e d i a t e l y o r I P = D e v e l o p
I m p l e m e n t a t i o n P l a n i n m a n y c a s e s i m p l e m e n t a t i o n p l a n n i n g i s a l r e a d y i n p r o c e s s ) a r e
p r e s e n t e d o n t h e f o l l o w i n g p a g e s . T h e s e s u g g e s t i o n s a r e c a t e g o r i z e d a s :
Q' H i g h P r i o r i t y : C r i t i c a l l y i m p o r t a n t t o M S D ' s s u c c e s s a n d m u s t b e i m p l e m e n t e d .
Q' M o d e r a t e P r i o r i t y : I m p o r t a n t t o M S D ' s s u c c e s s a n d s h o u l d b e i m p l e m e n t e d .
Q' O t h e r s : C o n s i d e r e d p o s i t i v e s u g g e s t i o n s t h a t s h o u l d b e c o n s i d e r e d f o r
i m p l e m e n t a t i o n a s t i m e a n d r e s o u r c e s p e r m i t .
I t s h o u l d b e n o t e d t h a t m a n y o f t h e s u g g e s t i o n s i n c l u d e d i n t h i s s e c t i o n r e l a t e t o
r e g u l a t o r y r e q u i r e m e n t s o r h a v e r e g u l a t o r y i m p l i c a t i o n s , w h i c h s h o u l d b e c o n s i d e r e d i n
f i n a l i m p l e m e n t a t i o n d e c i s i o n s .
8
Attribute Suggestions
Attributes
Suggestions
Product Quality
High Priority
1. Implement additional efforts to reduce SSOs and CSOs, while
maintaining focus on sewer cleaning and rehabilitation program.
2. Continue efforts to upgrade the Laboratory Information Management
System and Operations Reporting Software.
3. Improve data management with the continued clean-up of data in
Maximo.
4. Replace and rehabilitate aging infrastructure through implementation of
the capital improvement plan.
5. Expand parts of the system to reduce need for bypasses.
Moderate Priority
6. Continue GIS mapping improvements.
7. Monitor emerging regulatory requirements, especially those that will
require changes to MSD plants.
Action
Required
IP
I
IP
IP
IP
IP (for
assets not
addressed)
I
Product Quality - Stormwater
High Priority
8. Continue efforts to address stormwater funding
9. Monitor and address new and emerging regulations.
10. Maintain strategies regarding MS4 permit renewal.
11. Educate the public on stormwater issues and the impact of lack of
funding.
I
I
I
(in
process)
9
Attributes Cont'
Suggestions
Action
Re ' uired
Product Quality — Stormwater Cont'd)
Moderate Priority
12. Proactively address watershed/303(d)/TMDL issues.
13. Expand program to incorporate green into stormwater customer
solutions (if becomes part of consent decree will move to higher
priority).
14. With sufficient funding, consider helping municipalities address
customer floodplain issues.
In process
I
In process
(depends
on lawsuit
outcome)
Customer Satisfaction
High Priority
15. Provide enhanced information to customers impacted by sewer back-up
on steps to take, responsibilities, MSD insurance program, etc.
Moderate Priority
16. Review and consider changes to the MSD customer survey and assure
appropriate sample size and include customers who are impacted by
MSD construction, contractor construction, and engineering services as
discrete parts of the customer survey process.
17. Continue to evaluate efforts of contractors with customer contact and
assure that they display MSD's focus on customer satisfaction.
IP
I
I
10
Attributes (Cont'd.)
Suggestions
Action
Re ' uired
Customer Satisfaction (Cont'd)
Others
18. Create a single phone number for customers and a database for
customer complaints and issues, while avoiding a complex telephone
tree.
19. Enhance billing documentation and consistency in handling customer
issues.
I
I
Employee Leadership/Development
High Priority
20. Improve usage and consistency of employee performance management
system.
21. Develop a formal succession plan within public sector constraints and
until completed, continue informal succession training. Review policy
on notification for retirement and determine how recruiting can start
before vacancy actually exists.
Moderate Priority
22. Enhance management and leadership development training for
managers and supervisors.
23. Document improved job expectations in updated job descriptions over a
period time.
Others
24. Conduct employee attitude survey, repeat communications survey, and
follow-up on results.
I
IP (review
and update
informal
plan)
IP
I
I
11
Attributes (Cont'd.)
Suggestions
Operational Optimization
High Priority
25. Train personnel on new systems with particular emphasis on smaller
systems that are not being addressed currently.
26. Further develop the Oracle reporting function.
27. Assure that budget expenditure reports are timely and accurate so
Operations personnel have an accurate view of their financial position.
Moderate Priority
28. Continue efforts to focus on inventory shrinkage and improve inventory
controls.
29. Enhance use of MSD purchasing power by combining purchases.
Others
30. Determine if additional plant process standardization can result in
efficiency enhancements.
Action
Required _
IP
I
(part of
Oracle
Plan)
I
(part of
Oracle
Plan)
I
IP (in
process)
I
Financial Viability
High Priority
31. Work with the Rate Commission to assure rates sufficient to fund
capital program and meet operational needs.
32. Continue communications concerning District costs, financial needs,
and rates with the public, the Rate Commission, municipalities in the
service area, and the financial community to assure better
understanding.
33. Aggressively pursue delinquent accounts.
I (in
process)
I (in
process)
I (in
process)
12
Attributes (Cont'd.)
Suggestions
Financial Viability (Cont'd)
Moderate Priority
34. Continue and enhance efforts to better understand and manage MSD's
full life -cycle cost.
35. Assure accurate integration of financial data with the asset management
program.
36. Continue and enhance the internal audit program to assure it focuses on
areas of strategic significance to the District and results in enhanced
financial performance and integrity.
Action
Required
IP
IP
IP
Infrastructure Stability
High Priority
37. Complete asset management program to include:
❑ Integrating asset management principles into system renewal.
❑ Establishing and supporting strategic cross functional asset
management team.
❑ Enhancing and assuring consistency in the condition assessment
process.
❑ Standardizing processes for system renewal.
❑ Developing long-term renewal plans for major pump stations and
plants.
❑ Assuring that the District meets all CMOM requirements.
❑ Establishing formal tolerance level for high risk areas.
38. Continue system integration to identify data gaps of asset attributes,
including integration with the financial system.
39. Implement current capital plan to meet regulatory and customer service
needs.
Moderate Priority
40. Enhance processes for inventory of new and rehabilitated assets.
IP in
process)
IP
IP
IP
13
Attributes (Cont'd.)
Action
Suggestions Required
Operational Resiliency
High Priority
41. Identify opportunities to enhance employee safety.
Moderate Priority
42. Review and exercise the emergency response plan.
43. Review opportunities to address single point of failure in the District's
IT infrastructure.
44. Review appropriate inventory levels and consider establishing an
emergency supply for critical parts.
IP
I (in
process)
I
I
Community Sustainability & Resource Adequacy
High Priority
45. Implement a comprehensive watershed management plan that includes
proactive watershed planning to address TMDLs for impaired streams,
and Usage Attainability Analyses.
46. Create equitable and adequate stormwater funding (if MSD does not
win lawsuit appeal).
Moderate Priority
47. Articulate/document decision process for evaluating green
infrastructure and natural resource protection and restoration in CIRP
process.
48. Continue to incorporate sustainability into all aspects of MSD activities
as it makes good business sense.
49. Communicate MSD community sustainability activities and steer the
community towards more green sensitivity and activities.
50. Monitor and focus resources on meeting regulatory requirements.
Others
51. Evaluate whether regional floodplain policy changes are necessary.
IP
IP
IP
14
I
Attributes (Cont'd.
Suggestions
Stakeholder Understanding and Support
High Priority
52. Educate the public concerning the rate issue.
Moderate Priority
53. Continue to implement stakeholder elements of the MSD strategic plan.
54. Identify opportunities to communicate to large groups of people using
social media and other emerging technologies and traditional methods.
Others
55. Work with employees to turn MSD people into spokespeople and
advocates for the organization.
56. Utilize schools (curriculum, teachers, etc.) as a vehicle to address future
key stakeholders.
Action
Required
IP
I
I (in
process)
IP
IP
Keys Suggestions
Keys to Management Success
Suggestions
Leadership
High Priority
Action
Required,
57. Develop a formal succession plan within public sector constraints and IP (review
until completed, continue informal succession training. Review policy and update
on notification for retirement and determine how recruiting can start informal
before vacancy actually exists (repeat from Employee and Leadership plan)
Development Attribute # 21).
58. Continue and enhance efforts to assure positive communication
throughout the organization to enhance employee understanding and
commitment to MSD.
I
15
Keys to Management Success (Cont'd.)
Suggestions
Action
Re ' uired
Leadership (Cont'd.)
Moderate Priority
59. Maintain focus on MSD's mission and better communicate the values
to all levels of the MSD organization.
60. Clearly communicate key Utility policies to employees and consider
conformance with those policies as part of the performance
management system.
61. Enhance management and leadership development training for
managers and supervisors (repeat from Employee and Leadership
Development Attribute # 22).
I
I
I
Strategic Business Planning
High Priority
62. Clearly tie a few high level measures to the strategic plan.
63. Develop departmental strategic plans supportive of the MSD strategic
plan in similar format. Implement a process whereby the departmental
plans are quickly developed in a one -day facilitated session attended by
key employees of the respective departments, followed by review,
revision, and follow-up.
Moderate Priority
64. Develop and implement a formal strategic plan implementation periodic
review and monitoring program.
I
I
I
Organizational Approaches
High Priority
65. Review span of control in some areas of Operations and reduce in areas
where span is not reasonable, with consideration of cost and MSD
organizational flattening efforts.
I
16
Moderate Priority
66. Provide facilitator/effective meeting training to potential team
facilitators and make use of these facilitators part of the MSD team
culture.
I
Keys to Management Success (Cont'd)
Suggestions
Action
Re s uired
Measurement
High Priority
67. Clearly tie a few high level measures to the strategic plan (Repeat from
Strategic Business Planning #62).
68. Reinstitute the "high level scorecard" for MSD, creating an index of
key performance measures for each Attribute.
I
I
Continual Improvement Management Framework
High Priority
69. Re -implement project reporting system that includes a project summary
status report (underway, but should be better integrated into MSD
systems).
70. Re-emphasize "sense of urgency" and importance of having projects
done on -time and on -budget to MSD employees, consultants, and
contractors, with emphasis on requirements of consent decree.
Moderate Priority
71. Develop and train appropriate MSD personnel on a formal continuous
improvement framework ("Plan, Do, Check, Act").
I
I
IP
Appendices
The appendices to this report represent interim deliverables and analyses resulting from
the various Phase I tasks, which formed the basis for the suggestions contained herein.
They are:
A
Sense of the Stakeholder Interviews and Online Survey
B
Employee Focus Group Notes
C
Manager/Supervisor Focus Group Notes
D
Attribute Measures
E
Keys to Management Success Workshop Notes
17
F
Strategic Business and Operating Plan -Fiscal Years 2011 — 2015 - Summary
Comments and Strategic Frameworks — EUM Format
This report presents a summary of the results of the EUM Self -Assessment segment of
the MSD management audit project. Questions or comments should be directed to Darin
Thomas at 336-209-1347 or dthomas@raftelis.com.
18