Leveraging Business Strategy for Leadership Transition in Minneapolis

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1 ACE14 June 11, 2014 Leveraging Business Strategy for Leadership Transition in Minneapolis Glen Gerads Director City of Minneapolis Water Treatment & Distribution Services Terrance Brueck CEO/President EMA, Inc.

2 AGENDA Background on Leadership Transition Project Approach Journey Results and Lessons To-Date

3 SECTION 1 Background on Leadership Transition 3

4 INSERT A CITY OR UTILITY PHOTO IN THIS WHITE BAND AREA Water Treatment and Distribution Services Division (WTDSD) Serves the city of Minneapolis and seven suburban customers Serves over 500,000 people plus Minneapolis Intnl Airport Approximately 1,000 miles of pipe Water supply source is the Mississippi River Average water production of 57 MGD 4

5 Leadership Transition Challenges and Opportunities Decision to hire the next Water Director and provide a mentorship period Desire to set future direction and grow organizational and business capacities Need to improve collaboration and remove barriers to employee engagement Opportunity to build present and future leadership capacity

6 Potential Project Challenges Time Frame: Short window of opportunity before the Director retires (12-18 months) An unorthodox approach to accommodate accelerated timeframe Consultants: Three separate consultants working on projects that depended on each other s findings Collaboration among consultants essential to success Staff Buy-in at all Levels Change, change, change Required new way of looking at our organization Need to move forward bury the sins of the past 6

7 WTDSD Strategic Alignment Initiative Effort: Develop a new Strategic Business Plan based on WRF Publication 4232 and the Scan-Plan-Do framework Develop an Information Technology Strategic Action Plan Develop Internal Business Group move toward a matrix structured organization Broad Engagement for Strategic Business Plan: Vertical representation from all sections of WTDSD Stakeholders from across all divisions of Public Works Include wholesale customer representation 7

8 Strategic Business Planning Was Key For Effective Leadership Transition Understanding of organizational issues Team formation and engagement of leaders Business strategy development and execution 8

9 SECTION 2 Project Approach 9

10 A Model for Workforce Engagement DRIVERS Strategic Planning Operational Improvements New Leaders 1 Changes In Business 2 New Interactions OPPORTUNITIES New Ways to Involve New/Different People Engaged 3 Changes In Behaviors BUILD A NEW CULTURE 10

11 Why Is Workforce Engagement Important? One of Top 5 Water Industry Issues Each Year State of the Water Industry: AWWA Survey High Interest by AMWA Members Highly rated topic in survey for annual AMWA meeting 70% of American Workers Are Not Engaged or Actively Disengaged 2013 Gallup Research Report High Employee Engagement Correlates With High Organization Performance In: Customer Ratings Productivity Profitability Safety Incidents Turnovers Absenteeism Quality (Defects) (2012 Gallup Meta-Analysis Study) 11

12 How To Engage? COMING YOUR ORGANIZATION LEAVING Focus on your utility business Focus on employees you & they want to stay 12

13 Water Research Foundation Projects Provided Basis for Project Approach Forecasting the Future: Progress, Change, and Predictions for the Water Industry (WRF# 4232) Research used to determine what trends are significant or relevant Beginning of the strategic planning process Strategic Planning and Organizational Development For Water Utilities (WRF# 2849) Framework for development of strategic plan Processes to carry out the plan 13

14 Scan, Plan, Do Framework = Engagement Process for Strategic Planning Scan (review and analyze current situation) Plan (update/ develop new direction) Do (operational phase to implement and sustain process) 14

15 Scan and Plan Phases Leveraged Recently Defined Water Sector Trends and Strategies Forecasting the Future Defined Trends, Impacts, Strategies The identification of new and changing trends, and the identification of potential impacts and planning level strategies. Defined Conceptual Blueprint The identification of a conceptual blueprint of what the water sector may look like in 10 to 20 years and to project a vision of the desired future and potential strategies for achieving this vision. 15

16 Water Industry Trends and Minneapolis Specific Issues Were Prioritized 16

17 Working Groups Defined and Prioritized Trends and Issues Reviewed Trends Workshop Results/Data Prioritized and Discuss Trends and Issues Gained Consensus on the Big Rocks Identified Potential Strategy Groupings Formed Teams for Strategy Working Sessions 17

18 Strategic Planning Team Reached Consensus on 5 Primary Strategy Topics Strategy Topics Infrastructure Workforce Technology Customer Partnerships External sessions to Collect input WAB Others Strategic Planning Team (Management Team) External Input Working Groups Strategy Teams Internal sessions to Identify issues/trends, etc. Treatment Distribution Customer Service Others Strategy 1 Strategy 2 Strategy 3 A statement for each strategy was developed for each team to focus on in working sessions 18

19 Scan & Plan Phases Completed in 6 Months - Do Phase Continues Organization-wide over 50 staff involved 19

20 Strategy Teams Were Formed To Link Plans to Actions and Grow Organizational Capabilities Water Executive Team GROW FUTURE LEADERS Strategy Team Leader Executive Sponsor (Team Coach) GROW ORGANIZATION CAPABILITIES Team Members 7-10 Functional Area Representatives Subject Matter Experts Related Coordination Functions Other City Department Representatives (e.g., HR, Finance, PR) 20

21 Each Strategy Team Was Chartered To Define Their Roles and Tasks 21

22 Teams Identified Existing Projects and Defined New Initiatives With Measures (Example Strategy Worksheet ) 22

23 SECTION 3 Journey Results and Lessons To-Date 23

24 Strategic Business Plan Includes Updated Vision and Mission 24

25 Each Business Strategy Has Defined Goals and Objectives 25

26 Strategy Teams Are Providing Input To Yearly Tactical Plans (OpEx and CapEx) Identify existing projects or initiatives that support the strategy Proposing new initiatives Suggesting and prioritizing implementation actions (new and existing) that can help institutionalize the five business strategies Develop appropriate measures 26

27 Lessons To-Date Teams take time to become operational (e.g. forming, storming, norming, performing) New territory for everyone learning as we go will be a better process tomorrow than today Analysis and planning work is different than many O&M staff day jobs New leaders emerge if given new opportunities to contribute The culture is changing! 27

28 Strategic Planning Helped Minneapolis Water In Leadership Development/Transition Strategic Plan set a direction for the future The Do phase created new ways for employee interaction and engagement in the process on a sustained basis Identified areas to grow organizational capabilities Provided opportunities for leadership development vertically across the entire organization Provided opportunities to leverage the superstars and rising stars Means to help identify the future leaders 28

29 Questions To learn more, please contact Glen Gerads at or Terry Brueck at

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