GRAND RAPIDS PUBLIC UTILITIES Strategic Business Plan

Transcription

1 GRAND RAPIDS PUBLIC UTILITIES Strategic Business Plan August 15, 2008 Collaboration Unlimited & Grand Rapids Public Utilities Copyright 2008 ~ Reproduction Strictly Prohibited

2 The GRPU Strategic Planning Team (SPT) has prepared this Strategic Business Plan with assistance from Collaboration Unlimited and input from: GRPU s Customers GRPU s Employees The GRPU Commission The GRPU Advisory Panel The City of Grand Rapids The Strategic Business Plan communicates the overarching Strategic Framework that provides broad and enduring guidance to the more focused Annual Business Plan that consists of operational goals, financial goals, and resource requirements. This plan begins with a vision to the year Strategic Objectives have been prepared for a fiveyear implementation period from 2008 to

3 GRPU STRATEGIC PLANNING TEAM Commission: Stephen Welliver Commission Chair Glen Hodgson Commissioner Dale Adams Commissioner Greg Chandler Commissioner June Johnson Commissioner Management: Anthony Ward General Manager James Ackerman Tyanne Betts Daniel Chase Dennis Doyle Christina Flannigan James Hietala Wastewater Treatment Plant Manager Finance Manager Systems/Customer Service Manager Water Treatment Plant/Safety Manager Administrative/HR Assistant Electric Department Manager 3

4 Community Advisory Panel: GRPU formed a Community Advisory Panel to provide a broader perspective to its Strategic Business Planning process. The Community Advisory Panel met on three separate occasions with the GRPU Commission and Management in facilitated work sessions. At the beginning of the process the Community Advisory Panel contributed ideas, opinions and information concerning GRPU s Strategic Business Plan and, throughout the process, reviewed and provided comments on the planning documents as they were prepared. Members of the Community Advisory Panel were: Mark Hawkinson Hawkinson Construction Rod Leistikow Independent School Dist No. 318 Betsy Johnson Joseph Mayer Mary Ives Greg Chandler Wendy Roy Mike Andrews Kris Ferraro Bud Stone North Central Experimental Station UPM Blandin Mike Ives Realty UPM Blandin Grand Rapids Area Community Foundation IEDC Broberg & Ferraro Chamber of Commerce 4

5 INTRODUCTION The fundamental purpose of GRPU s strategic business planning process was to identify, consider and act on the internal and external issues that are expected to have the greatest influence on GRPU s ability to successfully accomplish its vision and core business purpose in the future. The strategic business planning process addressed the following fundamental questions for the planning period from 2008 through 2015: 1. What is our core business now and what will it be? 2. What should we be like and how should we accomplish our core business purpose in the operating environment that we anticipate? 3. What must we do to get to the successful future that we envision? 4. What obstacles stand in our path to the future and do we have the means to overcome them? The Strategic Business Plan, as presented here, is a concise written communication among policymakers, managers, and employees that conveys (1) a shared understanding, of GRPU s present and desired future situation, and (2) a shared commitment to focus the organization s attention and resources on the relatively few strategic initiatives that are most likely to ensure continued success. This Strategic Business Plan is also intended to communicate GRPU s future direction to its customers, elected City officials, other community leaders, and external stakeholders. 5

6 STRATEGIC FRAMEWORK The Strategic Business Plan begins with an overarching strategic framework that provides broad guidance to GRPU s other longrange planning processes and to the development of annual business plans (operating plans and budgets). The strategic framework articulates GRPU s vision, core business purpose (internal and external), core values, and mission statements (internal and external). It also includes broadly stated long-range strategic objectives in each of six key result areas where performance is critical to future success. The strategic framework is comprised of elements that are expected to be relatively stable in the life of the organization. Although unexpected circumstances may call for changes in the strategic framework, it is more common that an organization will review these elements of the Plan every two or three years. STRATEGIC INITIATIVES Evolving from the strategic framework are the strategic initiatives that drive future actions and use of GRPU s resources. Strategic goals are dynamically related to such externalities as regulation, business market operations, and customer expectations/satisfaction. They are also related to internal issues that affect GRPU s ability to effectively deal with its externalities. This part of the Strategic Business Plan is much more dynamic than the strategic framework. In other words, strategic initiatives should change with changing external circumstances and as goals change or are accomplished. GRPU Management must continuously review the need for and evaluate the effectiveness of its strategic initiatives in order to keep this part of the Strategic Business Plan relevant. IMPLEMENTATION 6

7 When it comes to implementation, GRPU Management will conscientiously apply the Rule to its strategic initiatives. No organization can effectively implement all of its important initiatives simultaneously. The essence of an effective Strategic Business Plan is that it focuses the organization s attention and limited resources on the 20% of strategies that are likely to achieve 80% of the most important results. GRPU s approach to strategic business planning should support the discipline needed to focus on a manageable number of business priorities. Although the business priorities will change over time, this discipline ensures that the GRPU organization will not be overwhelmed in its attempt to implement more strategies than it has the will or resources to accomplish well. An effective Strategic Business Plan includes a monitoring program by which management tracks and reports on the implementation of the Plan and the results achieved. The monitoring plan for GRPU will include specific and well-defined performance measures, target values and reporting methods for quantitative strategic goals. It will also include appropriate reporting methods for qualitative strategic goals and components of the action plans. The effectiveness of a Strategic Business Plan can be severely limited if policymakers, management, employees and other stakeholders do not understand the plan, its current status of implementation, and the results achieved. GRPU s communications program will consider and respond to the differing needs of each audience in terms of content, form, and timing. The communications program will also be responsive to the requirements of public disclosure and sensitive to the competitive implications of sharing strategic information. GRPU S STRATEGIC FRAMEWORK The Strategic Framework includes these elements: 7

8 Vision The Vision paints a complete picture of what GRPU aspires to be and do in its expected future operating environment. Core Purpose (Internal and External) The Core Purpose explains GRPU s reason for being from the perspective of the community that it serves (external) and the community of its employees (internal). Mission (Internal and External) The Mission describes how GRPU strives to achieve its core purpose from the perspective of the community that it serves (external) and the community of its employees (internal). Core Values (Internal & External) Core Values express the collective beliefs that the people of GRPU (Commission, Management and staff employees) espouse about the way they will work together internally and the way they want to the community they serve to know them. Key result Areas and Strategic Objectives Key result Areas and Strategic Objectives put focus on specific areas of performance where favorable results are critical to success. 8

9 GRPU S VISION 2015 The following vision statement is written from the perspective of an observer in the year It describes the future in terms of the following elements: The Grand Rapids Community GRPU s Customers The Community s Perception of GRPU GRPU s Competitors and Partners GRPU s Governance GRPU s Organization GRPU s Infrastructure and Operations The vision statement describes the future that GRPU s leaders hope to realize. The vision element for the Grand Rapids community is influenced by many factors that are beyond GRPU s direct control; however, the remaining vision elements focus on factors that GRPU can significantly influence by the way in which it achieves its core purpose and mission. 9

10 GRPU S VISION 2015 The Grand Rapids Community Upon returning to the Itasca County area after several years away, it is immediately clear that things have changed for the better. New industries and business are providing additional, high-paying jobs to complement employment in existing industries and retail businesses. The existing paper mill has maintained its competitive position, expanded its operations, and continues as a vital part of the economic and social life of the community, and as a valued customer of GRPU. The quality of life is high, with excellent educational institutions (elementary through four-year colleges are available locally), attractive green spaces and parks, and a clean environment. Grand Rapids is noted for its historic areas and its thriving cultural and arts activities, including theaters and museums. The community retains a clean, busy, and friendly appearance. The community is growing geographically and in population, and contains a good balance of all age groups. The workforce is well educated and highly motivated. The tourism and hospitality sector has continued to grow, with the addition of an expanded convention center and easily accessible recreational facilities. Local and regional transportation needs are met with a variety of available systems, including highways and streets, rail and air. GRPU s Customers GRPU s customers are well educated and informed, and have high expectations for reliability and cost effectiveness. Customers have access to GRPU s services twenty-four hours a day, seven days a week. The utility s customer base is a balanced mix of industrial and commercial companies, along with single and multi-family residential customers who live in well-planned, environmentally friendly neighborhoods. 10

11 GRPU S VISION 2015 The Community s Perception of GRPU The utility has a reputation as being community based, friendly, helpful and efficient, and is seen as the most desirable community employer. GRPU employees exhibit a high level of knowledge and expertise about their utility products and services, and are respected as experts in their field. GRPU is known for its high level of environmental stewardship, When talking to community leaders, it is evident that the utility is highly respected for its excellent and responsive customer service, low rates and effective programs for promoting renewable energy and conservation. City leaders consider GRPU a valued partner in the community, providing a reasonable return of both tangible and intangible benefits. GRPU s Competitors and Partners Competitors include both public and for-profit utilities in the area, but none have been able to provide the level of reliability and reasonable rates that GRPU offers, making GRPU the utility of choice across the entire region. Over the years, GRPU has formed working partnerships with other utility providers to deal with common issues, especially in the environmental arena. GRPU has established alliances and interconnects with other electric suppliers, sharing generation and transmission facilities. Reliable and costeffective water and wastewater services are provided to Grand Rapids citizens as well as to neighboring communities. 11

12 GRPU S VISION 2015 GRPU s Governance While attending a scheduled Commission meeting, it is evident that GRPU governance is enlightened and progressive, focusing on stakeholder needs and expectations, policy direction and support of staff. Governance is characterized by respect, support, and open communication between Commissioners and management, and between management and the general workforce. The Commission sets clear expectations through a well thought out, flexible strategic plan, and management is held responsible for executing the plan. GRPU s Organization A visit with GRPU employees reveals that the work force is well trained, friendly, happy, motivated, and proud to be GRPU employees. Employees exhibit respect for each other, a sense of purpose, and commitment to GRPU, the city, and the larger community. Employee relations are based on respect and appreciation for the worth and dignity of each employee. Management strives to allow each employee to achieve maximum potential and its actions are balanced, consistent and decisive. Management-Union relations have been transformed over the past few years, and employees consider themselves part of a team, and are eager to work for GRPU. GRPU S VISION

13 GRPU s Infrastructure & Operations All GRPU infrastructures are well maintained, and aging components are replaced systematically. Wastewater treatment facilities have been relocated out of residential areas and odor control systems are in place. Smart metering systems are in common use. Data on customer habits and characteristics are routinely collected and used to keep informed about, and meet, customer needs. How GRPU Achieved Its Vision When asked how this remarkable progress has been achieved, the General Manager and Commissioners cite the utility s concentration on customer needs, maintaining reliability, and providing effective energy and cost saving programs, along with the adoption and implementation of a strategic business plan that is reviewed and adjusted annually. They also state that the Utility has taken a proactive approach to its business operations that anticipates and responds positively to changes, and invests wisely in its employees, community and infrastructure. The utility has strengthened and improved its working relationship with the City of Grand Rapids, has maintained its strong financial position, and has developed other indicators of success, including community service, customer satisfaction and support for broader community objectives. GRPU S CORE PURPOSE AND MISSION 13

14 The Core Purpose and Mission are expressed both internally and externally. This is done to show the essential connection between strategic evolution of the organization and strategic evolution of the business: External Core Purpose Answers the question: Why does GRPU exist for its customers and community? Describes the purpose underlying GRPU s external mission. External Mission Answers the question: What do GRPU s customers need and expect from GRPU? Explains why customers would choose to obtain products & services from GRPU. Captures GRPU s value from the customer s perspective. Internal Core Purpose Answers the question: Why does GRPU exist for its employees (present and future)? Describes the purpose underlying GRPU s internal mission. Internal Mission Answers the question: What do GRPU s employees need and expect from GRPU? Explains why people would choose to work for GRPU. Captures GRPU s value from the employee s perspective. GRPU S CORE PURPOSE AND MISSION 14

15 External Core Purpose GRPU s Core Purpose for its customers is to enhance the value of their locally owned and controlled utility systems. We do this by managing the assets entrusted to us in ways that return added value in the form of economic efficiency and environmental responsibility to our customers and the greater Grand Rapids community. External Mission GRPU provides safe, high quality, reliable and competitively priced utility services to customers in the greater Grand Rapids community. GRPU also collaborates with customers to develop the knowledge and expertise that customers and GRPU need to make prudent decisions about the production, delivery, and use of electric, water and wastewater services. Internal Core Purpose GRPU employees are fulfilled in their work when they can contribute value in visible ways to the people they know and to the community in which they live. Internal Mission GRPU provides an organizational environment in which employees excel in their work life through the achievement of individual and shared goals and through the development of their professional knowledge and skills, all for the benefit of GRPU s customers. GRPU S CORE PURPOSE AND MISSION 15

16 The diagrams on the next two pages illustrate the essential connections between GRPU s external and internal mission and core purpose statements. Starting with either external or internal mission statements in the first diagram, one asks the question Why does GRPU strive to accomplish its missions? The answer to this question is expressed by the core purpose statements. Likewise, starting with either internal mission or core purpose statements, one asks the question Why does GRPU strive to accomplish its mission and core purpose for employees? The answer to that question always points to GRPU s customers and the greater Grand Rapids community. Starting with either external or internal core purpose statements in the second diagram, one asks the question How does GRPU accomplish its core purposes? The answer to this question is expressed by the mission statements. Likewise, starting with either external mission or core purpose statements, one asks the question How does GRPU accomplish its mission and core purpose for customers? The answer to that question always points to GRPU s employees. GRPU s strategic commitment to its customers and community must be matched by its commitment to employees and organization. GRPU becomes and increasingly valuable local resource only if employees, both individually and collectively, increase their capability and commitment to serve customers and community. 16

17 GRPU employees are fulfilled in their work when they can contribute value in visible ways to the people they know and to the community in which they live. WHY? GRPU s core purpose for its customers is to enhance the value of their locally owned and controlled utility systems. We do this by managing the assets entrusted to us in ways that return added value in the form of economic efficiency and environmental responsibility to our customers and the greater Grand Rapids community. WHY? WHY GRPU provides an organizational environment in which employees excel in their work life through the achievement of individual and shared goals and through the development of their professional knowledge and skills, all for the benefit of GRPU s customers. WHY? GRPU provides safe, high quality, reliable and competitively priced utility services to customers in the greater Grand Rapids community. GRPU also collaborates with customers to develop the knowledge and expertise that customers and GRPU need to make prudent decisions about the production, delivery, and use of electric, water and wastewater services. 17

18 GRPU employees are fulfilled in their work when they can contribute value in visible ways to the people they know and to the community in which they live. HOW GRPU s core purpose for its customers is to enhance the value of their locally owned and controlled utility systems. We do this by managing the assets entrusted to us in ways that return added value in the form of economic efficiency and environmental responsibility to our customers and the greater Grand Rapids community. HOW HOW GRPU provides an organizational environment in which employees excel in their work life through the achievement of individual and shared goals and through the development of their professional knowledge and skills, all for the benefit of GRPU s customers. HOW GRPU provides safe, high quality, reliable and competitively priced utility services to customers in the greater Grand Rapids community. GRPU also collaborates with customers to develop the knowledge and expertise that customers and GRPU need to make prudent decisions about the production, delivery, and use of electric, water and wastewater services. 18

19 GRPU S CORE VALUES Customer Satisfaction We are here only because of our customers. We should treat them like the owners of the business because they are. GRPU s future as a municipal utility is directly influenced by the satisfaction of our customers. Satisfied customers help create a positive attitude about our community which promotes community growth and business growth for GRPU. Giving our best effort improves GRPU s image and contributes to the success of our customers and the quality of life in the greater Grand Rapids community. When customers are pleased with our work, we know we ve done a good job. A high level of customer satisfaction reflects a well-run organization that employees can feel good about. We know that customer satisfaction depends, at least in part, on the decisions that our customers make about the use of our services. An increasingly important part of our job is to help them understand the implications of their decisions and make better decisions. When customers receive quality utility services and have the information and tools to manage those services effectively, costs are less likely to be a cause of dissatisfaction. 19

20 GRPU S CORE VALUES Accountability GRPU employees, both individually and collectively, are expected to be accountable for their decisions and actions. This means taking credit for good work and responsibility for mistakes. Accountability is essential to meeting the needs of our customers and is a critical part of employee and public safety and health. Employees who are selfaccountable are conscientious about what they need and must do to meet customer commitments. Employees who are self-accountable also pay attention to what they need and must do to meet their commitments to each other on the job. With accountability, the quality of work improves, more work gets done, and commitments are met more consistently. Accountability clarifies individual and group work responsibilities and expectations, which can reduce internal conflicts and blame for undesired results and other problems. When everyone is working toward similar well-defined standards of performance, working relationships improve and employees have more pride in their accomplishments. With high levels of accountability, everyone (customers, Commissioners and employees) receive greater value from their relationship with the GRPU organization. GRPU S CORE VALUES 20

21 Integrity Personal Integrity is based on the authenticity of speaking honestly about what you believe and acting in ways that are consistent with your beliefs. Organizational integrity requires personal integrity. It also requires everyone s good faith efforts to share and debate their differences, agree on the common principles that are in the best interests of the GRPU, and then support those principles consistently. Integrity builds trust inside the organization which leads to higher levels of public trust and confidence. Integrity also promotes higher standards of performance, encouraging everyone to improve, and leading to more desirable outcomes. 21

22 GRPU S CORE VALUES Cooperation Cooperation means that everyone at GRPU is in it together, working with a common focus to achieve the vision, core purpose, mission, objectives and goals of the organization. It is one of the most effective ways for individuals and the GRPU organization overall to be accountable. Cooperation helps employees and work groups see each other in new ways, bringing greater respect to inter-personal relationships. It also builds a sense of community which is an important part of why we re here. Cooperation encourages sharing of knowledge and resources and helps employees discover and develop their talents. This leads to more passion and energy and enables GRPU to accomplish more complex and more difficult work. Cooperation also reveals duplication of effort, leading to improved efficiency. GRPU S CORE VALUES 22

23 Information Sharing People throughout the GRPU organization need accurate and timely information to make good decisions. Accurate and timely information is also needed to communicate effectively and consistently with customers and other external stakeholders, which helps build GRPU s reputation as a credible, professional organization. Information sharing builds trust and reduces anxiety. Information sharing helps employees see and feel that they are a part of the larger GRPU organization with important contributions to make and a stake in the overall results. It helps everyone focus on GRPU s organizational priorities and supports working together cooperatively (another core value). Information sharing encourages contribution of new ideas and solutions to problems. GRPU S KEY RESULT AREAS AND STRATEGIC OBJECTIVES 23

24 Key Result Areas put focus on specific areas of performance where favorable results are critical to GRPU s continued success. GRPU s Commission and Management have identified the following six Key Result Areas as part of its Strategic Business Plan: 1. Strategic Focus and Commitment 2. Customer Collaboration 3. Employee Development 4. Asset Development 5. Financial Resources 6. Governance This document presents the Strategic Objectives that establish GRPU s overall direction for each Key Result Area. Goals (not shown in this document) associated with each Strategic Objective establish Commission/Management focus along with specific desired actions and/or outcomes. 24

25 1. STRATEGIC FOCUS AND COMMITMENT Strategic Objective 1: GRPU will adopt, communicate, implement, and keep current a Strategic Business Plan that drives all high-level priorities, decisions, and resource commitments. 2. CUSTOMER COLLABORATION Strategic Objective 2A: GRPU will inform and maintain dialogue with its customers and other external stakeholders to ensure that services, programs, and strategic decisions are aligned with customer and community needs and expectations. Strategic Objective 2B: GRPU will focus on day-to-day customer satisfaction by equipping all employees to provide exceptional customer service and by instilling a Customers First culture. 25

26 3. EMPLOYEE DEVELOPMENT Strategic Objective 3A: GRPU will become a high-performing organization by enhancing the capability of its employees, strengthening its access to external human resources, and establishing systems that support accountability. Strategic Objective 3B: GRPU will become a dynamic organization which is aligned with strategic direction and able to respond quickly to changing priorities. Strategic Objective 3C: GRPU will create an organizational culture in which people, both individually and collectively, are motivated to do work that brings value to GRPU, GRPU s customers, and the community. 26

27 4. ASSET DEVELOPMENT Strategic Objective 4A: GRPU will proactively acquire a mix of electric power supply resources that are reliable, responsive to regulatory requirements and customer expectations, and economically competitive with those of other retail service providers in Minnesota. Strategic Objective 4B: GRPU will develop a comprehensive and formal planning and management program to ensure adequate capacity, functionality, security, economics, and aesthetics of its local production, delivery/collection, and general plant assets. Strategic Objective 4C: GRPU will meet or exceed all applicable regulatory requirements. Acting with other allied organizations, GRPU will bring the knowledge, expertise and interests of GRPU and its stakeholders to those legislative and regulatory processes that can benefit from such participation. 27

28 5. FINANCIAL RESOURCES Strategic Objective 5: GRPU will expand and enhance its financial planning and reporting capabilities to better manage its increasing financial risks and to be more responsive to the financial concerns of its customers and the greater Grand Rapids community. 6. GOVERNANCE Strategic Objective 6: The GRPU Commission will recommit its focus and efforts on the fulfillment of those corporate governance functions for which the Commission bears the greatest responsibility. These include corporate performance monitoring, policy and strategy development, governance relationship with its direct stakeholders (customer/owners, the City of Grand Rapids and other governmental units), and its working relationship with the General Manager. 28

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