ORGANIZATIONAL TRANSFORMATION. Change to Face Current Challenges
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1 ORGANIZATIONAL TRANSFORMATION Change to Face Current Challenges
2 AGENDA Introductions About Leidos About REU Past and Current Challenges Defining Strategic Destination Developing the Roadmap Implementing the Plan Continuous Process
3 ABOUT LEIDOS SAIC founded SAIC acquires R.W. Beck Group, Inc. SAIC acquires Patrick Energy Services SAIC acquires Benham Investment Holdings, LLC SAIC Energy, Environment & Infrastructure, LLC established SAIC separates into two independent companies, launching Leidos
4 ABOUT REU Municipally electric owned utility About 44,000 customers Approximately 185 employees 800,000 MWh of electricity provided annually Peak load of over 250 MW
5 PAST AND CURRENT CHALLENGES
6 REU s PAST CHALLENGES 1980s today Growth in electric load Major contract shift from federal power source Risk of deregulation Outstanding debt
7 TODAY S CHALLENGES New and disruptive technologies Environmental regulations Market dynamics New customer expectations CONSTRAINTS Aging infrastructure Restricted budgets Retiring workforce
8 HOW TO FACE CHALLENGES & ADAPT Continuous Process Leadership Communication Organizational Transformation Strategic Plan & Annual Plans Cultural Flexibility Implementation
9 City Council REU
10 LEADERSHIP VALUES ASSESSMENT
11 REU s LEADERSHIP - Before
12 REU s LEADERSHIP - Today Electric Utility Director Office Services Supervisor Communications & Economic Development Manager Electric Utility Principle Consultant Assistant Director Power Supply Assistant Director Transmission & Distribution Assistant Director Customer Services Assistant Director Financial & Business Services
13 Leadership Core Planning Team (CPT) Issue teams STRATEGIC PLANNING PROCESS
14 CPT MOVES YOUR UTILITY TO ACTION Define the future Develop the plan Create shared vision Communicate the plan Engage employees Align employees with goals Engage governance Lead process
15 DEFINING STRATEGIC DESTINATION
16 Defining vision and mission statements Identifying core values Creating a shared purpose endorsed by employees
17 VISION & MISSION Vision What would your utility like to be in its expected operating environment? Shapes the direction of your utility s efforts toward organizational change to achieve vision Premier community-owned utility Strategic Direction Mission Exceptional service, innovation, and responsiveness Customer satisfaction and community growth
18 REU s VISION & MISSION REU, as Redding s community-owned electric utility, creates value and delivers exceptional services through the strength of its employees. By 2020, REU will have established flexible, creative, innovative, and sustainable business practices while continuing to deliver valuable, safe, and reliable services for its customers.
19 DEVELOPING THE ROADMAP
20 STRATEGIC PROCESS PLANNING LONG TERM Strategy 1 Issue 1 Strategy 2 Strategy 3
21 REU s ISSUE & STRATEGIES EXAMPLE An effective organizational structure achieves our Mission & Vision We must have an effective & healthy organization Collaboration improves organizational health A core-values driven organization facilitates a healthy & effective work environment
22 ISSUE TEAMS KEEP PLAN IN MOTION Define strategies Develop action plan Identify resources Communicate the plan Engage employees Change agents Engage governance Lead implementation
23 STRATEGIC PROCESS PLANNING SHORT TERM Tactic 1 Strategy 1 Tactic 2 Issue 1 Tactic 3 Tactic 1 Strategy 2 Tactic 2 Tactic 3
24 REU S ISSUE STRATEGIES & TACTICS EXAMPLES An effective organizational structure achieves our Mission & Vision Conduct a functional review of current organization including work flow and process improvements We must have an effective & healthy organization Collaboration improves organizational health Create a cross-exposure program A core-values driven organization facilitates a healthy & effective work environment Develop a comprehensive utility-wide safety program
25 KEY PERFORMANCE INDICATORS KPI 1 KPI 2 KPI 3 Employee satisfaction levels are 90% based on annual survey Customer satisfaction surveys are conducted biennially & results indicate 90% satisfaction with REU 90% of REU employees participate in REU events
26 CORPORATE CULTURE
27 CORPORATE CULTURE Strong and Vibrant Culture Creates high levels of performance Creates internal cohesion Enhances capacity for collective action
28 LET S TALK VALUES AND CULTURE Our values define our culture Culture affects the ability to: Attract and retain talented people Build and sustain high performance Adapt to changes
29 CURRENT REU CORE VALUES Integrity Customer Focus Safety Communication Teamwork
30 IMPLEMENTING THE PLAN
31 BRANDING THE PLAN Design emblem Brochure Coasters Website
32 UNVEILING THE PLAN ALL-EMPLOYEE MEETINGS Celebratory Informative Ceremonial STAKEHOLDER MEETING
33 TACKLING THE ISSUES Meetings Timeline Dashboard
34 REU s CONTINUOUS IMPROVEMENT PROCESS Strategic destination New culture Development of business plans Celebrate successes Issues Team updates KPIs Annual updates
35 REU s RECENT ACHIEVEMENTS Safety Program New Communication Division Cross Exposure Cost of Service Organizational Restructuring Rate Design
36 CONTACT US PATRICIA CRUZ Senior Project Manager (512) Barry Tippin Electric Utility Director (530)
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