Think Strategically, Speak Strategically One cooperative s journey with Strategy Execution. Doug Wilson Chief Information Officer
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1 Think Strategically, Speak Strategically One cooperative s journey with Strategy Execution Doug Wilson Chief Information Officer
2 Session Agenda Introductions History and Background PRECorp s Strategy Execution Approach Key Success Factors Lessons Learned Questions
3 History and Background Powder River Energy Corporation (PRECorp) 145 employees serving 12,777 members / 27,700 meters 11,300+ miles of line across 16,000+ square mile service territory of five counties in northeastern Wyoming as well as a small area of southern Montana PRECorp distributes approximately 2.75 billion kilowatt hours of power on an annual basis 9% Residential & Irrigation 22% Coal Bed Methane 45% Coal Mines 24% to other commercial & industrial members
4 History and Background PRECorp s Strategy Execution efforts have been evolving Traditionally lead and developed at the CEO level Standard approaches related to Mission, Vision, SWOT Analysis, etc. Recently more involvement and leadership by entire executive team Breakthrough results began once achieved involvement and engagement at all levels of the organization including both middle management and front line employees as well as support and direction from the PRECorp Board Have enlisted external assistance where needed and appropriate to further develop and enhance the organization culture Leadership Development Performance Management Employee Opinion Surveys Strategy Execution Methodology Technology has played a key foundational and supporting role throughout the process
5 Strategy Execution Approach Summary PRECorp s Recent Strategy Execution Efforts Re-visioning Strategy Scenario Development Values Focus Groups Strategy Map Development Strategic Initiative Definition, Prioritization & Tracking Balanced Scorecard Dashboard Employee Engagement Performance Goals, Personal Scorecards, Cases For Excellence Proactive and Regular Communications Members and Employees
6 Strategy Execution Approach Re-visioning The Re-Visioning process leveraged what had already been done A review, validation and update of the original organization vision, mission and company values A review, validation and update of previously identified Strengths, Weaknesses, Opportunities & Threats (SWOT) The entire Executive Staff team was involved in this review and discussion on the approach to move forward from this starting point An exercise was performed to categorize Opportunities, Threats and other Social, Technological, Economic, Environmental and Political factors by degree of likelihood and impact to the organization if they did occur
7 Strategy Execution Approach Strategy Scenario Development Four scenarios were defined from the initial exercise High Certainty & High Impact High Certainty & Low Impact Low Certainty & High Impact Low Certainty & Low Impact HC/HI LC/HI PRECorp utilized a cross-functional team approach to develop and describe each potential scenario Member Service, System Operations, Engineering I/T, Accounting & Finance, HR, Communications Each team came back to present the results to the entire group, the Executive Staff team and the PRECorp Board Utilized presentations, videos and live skits to communicate and better visualize their vision of the PRECorp future + Certainty - HC/LI LC/LI - + Impact
8 The year is 2020 Much has happened in the past eight years The most critical decisions that led to PRECorp s optimal position today: #1. Shifting the way the organization approached providing energy to the membership #2. Increasing PRECorp s presence and service in community and civic groups #3. Embracing the fast pace of technology and leveraging it to increase PRECorp s services #4. Reasserting that the employees are the greatest asset of a company
9 EMPLOYEE SCENARIO VIDEOS
10 Strategy Execution Approach Values Focus Groups Again utilized a cross-functional team approach to develop and describe PRECorp Values from multiple perspectives Employees, Members and Other External Stakeholders/Partners Integrity, Innovation, Accountability, Commitment to Community and Safety Each team came back to present the results to the entire group, the Executive Staff team and the PRECorp Board Utilized presentations, videos and live skits to communicate and better define the meaning of the PRECorp values
11 VALUES ARE LIKE MAGNETS When they are aligned, they pull people together
12 VALUES ARE LIKE MAGNETS When they are not aligned, it creates conflict, disagreement and division
13 EMPLOYEE VALUE TESTIMONIALS Integrity Adhere to moral & ethical principles Commitment To Community Be involved & support the communities that we serve
14 Strategy Execution Approach Strategy Map Development PRECorp s Strategy Map Leveraged prior strategic planning work Influenced by outcome of strategy scenarios efforts Built on the foundation of values & principles Serves as basis for decisions, initiatives and pursuit of new opportunities Departmental goals and individual employee performance goals developed to align with the strategy map
15 PRECorp Strategy Map Development
16 PRECorp Interactive Strategy Map
17 Strategy Execution Approach Strategic Initiative Definition, Prioritization & Tracking PRECorp s Strategic Initiatives Specific, intentional efforts to advance the strategy and achieve the vision Objectives and outcomes need to be clear Defined milestones and target dates are important Fewer is better Keep focused on the priorities Assign ownership and identify stakeholder for each initiative Overall program management is necessary to ensure progress is being tracked, monitored and reported Ensure the budget process supports strategic efforts
18 PRECorp Pre-Initiative Form
19 Strategic Initiative Prioritization Process
20 Strategic Initiative Prioritization Process
21 PRECorp Strategic Initiative Listing
22 PRECorp Strategic Initiative Narrative
23 PRECorp Strategy Initiative Tracking
24 Strategy Execution Approach Balanced Scorecard Dashboard PRECorp s Balanced Scorecard If it s worth doing It s worth measuring! The Balanced Scorecard is what tells us if we are truly making progress on our strategic efforts and achieving our objectives The PRECorp Balanced Scorecard is built to align with the Strategy Map with key metrics in the Member, Financial, Process and People/Team Culture Perspectives Additional metrics also track Strategic Initiative efforts Includes both base targets as well as stretch metric targets Indicators of overall BSC Health for each metric The Balanced Scorecard also serves as the basis of Employee Engagement efforts with both overall company and individual cash payout opportunities
25 2014 Balanced Scorecard Company Intranet Launch Page
26 2014 Balanced Scorecard Main Summary Dashboard
27 2014 Balanced Scorecard Member Perspective Dashboard
28 2014 Balanced Scorecard Financial Perspective Dashboard
29 2014 Balanced Scorecard Process Perspective Dashboard
30 2014 Balanced Scorecard People & Team Perspective Dashboard
31 2014 Balanced Scorecard Health Dashboard
32 2014 Balanced Scorecard Health Dashboard
33 2014 Balanced Scorecard Stretch Metrics Dashboard
34 2014 Balanced Scorecard Stretch Metrics Dashboard
35 Strategy Execution Approach Employee Engagement PRECorp s Employee Engagement Efforts The PRECorp Balanced Scorecard has a financial payout aspect that benefits all eligible employees (50%) Employees can also submit annual Personal Scorecards to demonstrate their involvement and support of strategic aspects as well as company values (50%) The PRECorp TeamShare program also has different types of Cases For Excellence (CFE s) which are opportunities for employees to submit and be recognized for cost savings ideas, reporting hazards, preventing outages, proactive supervisor communication and other examples of excellence Annual performance goals are aligned with Strategy Map and Strategic Initiative efforts High performing employees also receive additional payout
36 2014 PRECorp Balanced Scorecard Payout Dashboard
37 2014 PRECorp Personal Scorecard Case For Excellence (CFE)
38 2014 TeamShare Program Additional CFE Opportunities
39 PRECorp Annual Performance Goal Example PERFORMANCE GOAL Strategy Map Alignment Department Alignment KRA# Rating Level 1 Rating Level 2 Rating Level 3 Rating Level 4 Rating Level 5 Manage the NISC Integration Strategy Strategic Initiative by providing & coordinating I/T activities/deliverables for the department initiatives of Meter Data Management, Document Vault, Mobile WorkForce & SmartTrack. P11 (Strategic Initiative #P11-15) Coordinate efforts with other departments to implement and rollout solutions as part of the ongoing NISC Integration Strategy #2 - KRA: Manage, lead and participate in projects, committees, etc. to improve processes and implement new technologies Deliverables completed are frequently late or of poor quality potentially jeopardizing the ability for the objectives to be completed by the expected deadlines. Only a few deliverables completed are late or of less than expected quality and are just enough to complete the objectives within a reasonable period. Deliverables completed are completed in a timely and quality manner that enables objectives to be completed within reasonable variances of project schedule and budget. Deliverables completed are routinely completed in a timely and high quality manner with positive feedback from other stakeholders. All project deliverables are able to be completed on schedule and under budget. Deliverables are completed with very positive feedback from the Executive Staff and other team members regarding the results of the projects. These deliverables are timely, of high quality and completed in a manner that enables each objective to be completed well ahead of schedule and significantly under budget.
40 Strategy Execution Approach Proactive & Regular Communications Communicate, Communicate, Communicate! Members External Website Monthly Newsletter Annual Meeting Community Town Hall & Outreach Efforts CEO Telephone Town Hall Employees Company Intranet NewsFlash All-Team Meeting Department, Team and Individual One-on-one Meetings CEO Telephone Town Hall Employee Opinion Survey Monitors Employee Engagement
41 PRECorp Strategy Map Content on External Website
42 CEO Corner Intranet Page For Employees
43 CEO Telephone Town Hall Meetings
44 Employee Opinion Survey Indicators
45 Key Success Factors Remember it s a journey that takes time! Strive for continuous improvement Take on the difficult challenges & strongholds Measure your progress Balanced Scorecard Leverage technology Manage by information & pursue efficiencies Communicate your strategy to ensure alignment Members & Employees
46 A Success Story Residential & Commercial New Service
47 Lessons Learned Your strategy execution efforts will evolve along the way Leverage what you have already done It s okay to incorporate elements of prior strategic planning efforts Get help where needed and appropriate Don t try to recreate the wheel Employee engagement & involvement in critical Involve employees early and at all levels of the organization Stay focused Clearly define the top priorities and ensure alignment of resources Continue to refine the process as you proceed on the journey Use the feedback and results to identify areas needing adjustment
48 Questions? Follow-up Contact Information: Doug Wilson, CIO, Powder River Energy Corporation Phone: Thank you! Good luck on your own Strategy Execution journey!
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