AGENDA ITEM FORM · SUBJECT: 2012 Balanced Business Approach Goals SUMMARY: Since January of 2003,...

Agenda Item No. _______________

DES MOINES WATER WORKS Meeting Date: February 28, 2012

Board of Water Works Trustees Chairperson’s Signature Yes No

AGENDA ITEM FORM

SUBJECT: 2012 Balanced Business Approach Goals

SUMMARY:

Since January of 2003, DMWW has used a strategic management system called Balanced Business Approach (BBA).

This operational tool provides a comprehensive measure of how the organization is progressing towards achieving its

strategic goals. We have traditionally established BBA goals for the organization from five different perspectives:

1. customer (the voice of the customer),

2. process improvement (the voice of continual process improvement),

3. research and development (the voice of the future),

4. employee learning and growth (the voice of the employee),

5. finance (the voice of the business).

This year we have decided to eliminate the research and development goal. Each year it has been more challenging to

establish a meaningful goal for which we have budget money to accomplish. Plus, we have concluded that research and

development ideas most often lead to process improvements.

Each year specific utility-wide measures are developed in each of the areas. Development begins with a review of the

strategic plan. Every measure is linked to the strategic plan, and accomplishment of these goals will lead to successful

implementation of the strategic plan over the three to five year time period it addresses.

In January, the director team met several times to develop targeted BBA goals and metrics appropriate for 2012. The

details regarding our 2012 BBA initiatives are included in Attachment 1. Each initiative is linked to a key result area

(KRA) and action plan identified in the DMWW strategic plan, which is included as Attachment 2. Attachment 3 is the

2012 BBA Scorecard. The 15 measures attempt to provide an overall balance in the operation of the business. In support

of these company-wide goals, departments and other cross-functional teams are developing their own goals. Then in turn,

individuals will develop priority projects and tasks to support the departmental/team goals. This cascading process

assures that everyone is focusing on the truly important outcomes required to help DMWW meet its long term strategies.

FISCAL IMPACT:

The BBA process provides an objective look at the metrics which monitor the success of the organization toward strategic

objectives. Not only does BBA help assure the financial success of DMWW through accountability and cost-savings

operational efficiencies, it will help assure a viable, healthy organization well into the future.

RECOMMENDED ACTION:

Approve the 2012 Balanced Business Approach Goals.

BOARD REQUIRED ACTION:

Motion to approve the 2012 Balanced Business Approach Goals.

______________________/______ (date)

_______________________/______

__________________________/______ Randall R. Beavers, P.E. (date)

CEO and General Manager Attachments: Memo, 2012 BBA Initiatives, DMWW Strategic Plan , 2012 Des Moines Water Works BBA Scorecard.

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Board of Water Works Trustees

2201 George Flagg Parkway | Des Moines, Iowa 50321-1190 | (515) 283-8700 | www.dmww.com

MEMORANDUM

DATE: February 3, 2012

TO: The Board of Water Works Trustees

FROM: Randy Beavers, CEO and General Manager

Jason Bumgardner, Director of IT

SUBJECT: 2012 Balanced Business Approach Goals

Since January of 2003, DMWW has used a strategic management system called Balanced

Business Approach (BBA). This operational tool provides a comprehensive measure of

how the organization is progressing towards achieving its strategic goals. We have

traditionally established BBA goals for the organization from five different perspectives:

1. Customer (the voice of the customer),

2. Process Improvement (the voice of continual process improvement),

3. Research and Development (the voice of the future),

4. Employee Learning and Growth (the voice of the employee),

5. Finance (the voice of the business).

The research and development goal has been more challenging each year to establish a

meaningful goal for which we have budget money to accomplish. Plus, we have

concluded that research and development ideas most often lead to process improvements

so we decided for 2012 to drop it as a separate measure.

Each year specific utility-wide measures are developed in each of these perspective areas.

Development begins with a review of the strategic plan. Every measure is linked to the

strategic plan, and accomplishment of these goals will lead to successful implementation

of the strategic plan over the three-to-five-year time period it addresses.

Each year, stretch goals with target outcomes are developed. The measures provide an

overall balance in the operation of the business. Because we establish goals in all four

business perspectives, it assures that one area is not enhanced to the detriment of another.

For example, it would not make sense to spend excessive dollars on a customer service

improvement goal in the Customer area to the detriment of a cost savings goal in the

Process Improvement area.

It is also important to emphasize that the goals are written as stretch goals to enable the

utility to continually grow and improve. Meeting 67% of utility-wide BBA goals is

considered effective performance. Meeting 75% of utility-wide BBA goals is considered

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highly effective performance, and meeting 83% or more of utility-wide BBA goals is

considered exceptional. Departmental goals, which link to the utility-wide BBA goals,

are also developed each year by assigned staff in each department. For 2011, we

completed 14 of 21 BBA goals which equaled 67% completion.

BBA goal progress is tracked and reported on a monthly basis throughout the year using

a color-coded scorecard. A scorecard is prepared which color-codes progress on each

goal: green (on target or better than target), yellow (worse than target- on “watch list”),

and red (worse than target – implement corrective action). This scorecard is reviewed

each month by the director team. During their meeting, they first look for any “code red”

goals and brainstorm the corrective actions which can be taken. Assignments are made

for follow-up. They then focus on the “yellows” and discuss options for moving the goal

along. Goals labeled “green” are on target for completion. The scorecard is then

provided in the Board packet, along with a detailed progress report, for each monthly

Board meeting.

2012 Focus

Beginning in January, the director team met to develop targeted BBA metrics for 2012.

Randy conveyed the Board’s feeling that a 2013 budget will be delivered which does not

reflect an increase in the operating cost of the utility. This is a very aggressive target or

goal given the approach the director team has taken the last 15 or so years to seek and

implement efficiencies and cost savings whenever possible yet maintain a quality

organization focused on providing high quality water and customer service.

The details regarding our 2012 BBA initiatives are attached showing the scorecard and

the detailed progress report. Each initiative is linked to a key result area (KRA) and

action plan identified in DMWW’s Strategic Plan. The 15 proposed measures for 2012

provide an overall balance in the operation of the business. In the Finance perspective,

we are targeting to add one new total service customer under contract and adopt a service

line maintenance program which help provide growth in spreading overhead costs to an

expanding customer base and also have the potential to increase revenue. We also have

the goal of a net zero increase in the 2013 proposed operating budget over 2012.

In the Customer perspective, we are continuing marketing and outreach initiatives aimed

at informing customers about 2011 service enhancement features as well as targeting

elements of DMWW operations we will identify during the year. This includes

promotion of the Park Vision Plan to key stakeholders. Marketing our ASR technology

to the suburban water utilities can impact future peak loading on our treatment and

delivery infrastructure which we feel is important to promote at this time.

The Process Improvement perspectives focus on continued emphasis of the Enterprise

Asset Management (EAM) project. We want to assure an increase in the lime residuals

sold by Kelderman which will lead to a shrinking of the large stockpile at their Granger

Avenue location adjacent to where the City’s southeast connector road will be located.

We have the continued emphasis as well on initiatives to enhance and protect source

water quality and on our water production projects which can address treatment costs

and/or water quality improvements.

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In the Employee Learning and Growth area, we need to continue to focus on our

succession planning efforts and address workforce diversity by increasing the number of

diverse hires over the previous year. We also will continue our well workforce emphasis

in both safety and health.

In support of these company-wide goals, departments and other cross-functional teams

are developing their own goals. Then in turn, individuals will develop priority projects

and tasks to support the departmental/team goals. This cascading process assures that

everyone is focusing on the truly important outcomes required to help DMWW meet its

long-term strategies.

What does this mean to the Board?

BBA goal progress will be tracked and reported on a monthly basis throughout the year.

This BBA feedback provides an objective look at the metrics which monitor the success

of the organization toward strategic objectives. BBA holds the leadership staff of

DMWW accountable for producing measurable results. Goal accomplishment will be a

consideration in determining year-end compensation adjustments for the management

staff. Accomplishment of BBA goals will help assure a viable, healthy organization well

into the future.

RB

Attachments

1

Attachment 1

2012 BBA Initiatives

Finance:

1. Ensure strong financial health through proper capital reinvestment, strategic rate

structure and customer growth.

Metric 1 (KRA 4-2)

Add one new Total Service contract.

Examples of Team/Departmental Projects:

Work with the Marketing Team to highlight specific operational benefits for

each targeted entity.

Initial total service targets are Norwalk, Polk County RWD #1 (Saylorville),

and Warren Water District.

Metric 2 (KRA 2-4)

Adopt service line maintenance program to start January 2013.


Develop a service line maintenance program RFP.

Coordinate with the City of Des Moines for possible sewer line coverage.

Negotiate program details with a selected service provider.

Develop an implementation plan for the program.

Develop a marketing plan for promoting the plan to customers.

Metric 3 (KRA 1-1,1-3,6-2 )

2013 Budget – net zero increase in operating budget over 2012


Effectively manage departmental expenditures on a monthly basis.

Continue to identify process improvements and efficiencies across the utility.

Testing of modified Linwood Lime at the McMullen Plant (after 6 months of

satisfactory operations at Fleur Drive).

Fleur Drive Lime Fluidization effort (if needed).

Investigate feasibility (via live test or laboratory experimentation) of polymer

addition at lime slaking equipment.

Investigate feasibility of anti-scalant alternatives at SWTP.

Formal chemical specification review and bid tab review by Laboratory and

other personnel.

Research and summarize electrical cost data for Des Moines River Pumping

Station and present to Operations Group.

Provide modified logic to PCPS and SWTP high service pumps that limits

variable frequency drive modulation.

Re-educate employees on the inefficiency of excessive engine idling.

2

Customer:

1. Lead regional initiatives related to service area growth, shared services, water

resource management, and conservation. Also, anticipate customer expectations and

increase awareness of the value of water.

Metric 4 (KRA 2-1,5-5,6-3)

Maintain the peak to average ratio of treatment plant demand below 2.0.


Manage treatment plants and feeder main systems to maximize ASR injection

at greater than 375 million gallons for the 2012 production cycle.

Maximize ASR recovery operations during peak months. Modify operating

permits if necessary. Manage all chemical deliveries, chemical feed systems,

monitoring instrumentation to ensure less than 5% downtime during 90 day

recovery window at each site.

Deploy (or be prepared to deploy) public communications to promote wise

water use when daily customer demand reaches critically high levels.

Metric 5 (KRA 2-1, 2-2)

Implement four new marketing/outreach initiatives with three out of four

campaigns meeting their stated performance objectives.


Q1 – DMWW Supports Project H2O (increase social media engagement and

funding for Project H2O)

Q2 – DMWW Promotes Stewardship (tie in with Earth Day, source water

issues, watersheds, wise use of water, etc.)

Q3 – DMWW Serves the Community (awareness of the value of tap water to

customers and the community, promote water stations and DMWW at

community events, etc.)

Q4 – DMWW Protects the Public (tie in with Fire Safety month, awareness of

the importance of fire protection and the role DMWW plays)

Metric 6 (KRA 5-4)

Engage the public in validating the 2012 park vision plan utilizing at least three

forums/strategies.


Develop a public engagement strategy working with the design team.

Create a Citizens Advisory Committee for the project.

Hold an “in the park” public forum.

Develop a survey to solicit input from park users.

Working with surrounding neighborhood associations, coordinate information-

sharing and input meetings.

Metric 7 (KRA 6-3)

Market Aquifer Storage & Recovery (ASR) technology to three or more suburban

utilities.


3

Develop a standard annual report for each ASR site with sections on Water

Quality, Chemical Costs, Electrical Costs, etc.

Process Improvement:

1. Implement long-term capital improvement and asset management programs.

Metric 8 (KRA 1-4)

Complete Enterprise Asset Management Phase 2 on budget in 2012.


Water Production implementation

Purchasing/Procurement implementation

PeopleSoft integration

SCADA integration

2. Protect and improve our water resources by supporting and engaging our watershed

partners.

Metric 9 (KRA 2-3, 5-1, 5-2)

Complete two initiatives that will enhance or protect water quality in DMWW’s

source water.


Apply to IDNR for an approximate $200k grant to implement the 28E

Authority.

Assemble a Water Works team to participate in a river or park cleanup event.

Work with urban and agricultural watershed partners to improve water

resource management.

Assist in the development of the Raccoon River Watershed Authority

(RRWA).

Explore with ISA and ACWA potential project partnerships.

Via RRWA, respond to pending RFI from IIHR-Hydroscience &

Engineering and the Iowa Flood Center (IFC) at the University of Iowa and

define a role for DMWW and CIRDWC in funded projects.

Develop strategy to analyze samples from existing and new wells associated

with the south TCE plume.

Explore recognition program for agricultural conservation with AGREN.

Actively contribute to 2013 Farm Bill discussion.

Quarterly policy and data summary reports to be presented to the Board of

Water Works Trustees (March, June, Sept., and Dec.). Reports will focus on

water quality. improvements and operational challenges.

Procure outside funds >$2000.

Watershed research and projects

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3. Optimize treatment processes and business practices, and promote cooperative

regional projects.

Metric 10 (KRA 6-3)

Increase tons of lime residuals sold by Kelderman.


Establish monthly reporting from Kelderman beginning in the 2nd

Quarter.

Insure McMullen plant operations enhance the removal of residuals from the

west storage cell.

Metric 11 (KRA 1-3, 6-3)

Complete 75% of the targeted projects and initiatives aimed at reducing overall

treatment costs or providing water quality improvements.

Examples of Team/Departmental Projects: 1. Maffitt Raw Water: Crystal Lake Intake and Pumps

2. Maffitt Raw Water: Complete Aquifer Yield Study

3. SWTP Distribution Control Valve @ PCPS

4. East Basin Effluent Pumping Station

5. Filter Building Phase 2 Construction

6. Pre-Sedimentation Basin #2 Re-chaining

7. Filter Backwash Return to Presed Basins

8. East Feeder Booster Station

9. SWTP Automation

10. McMullen Automation

11. Fleur Drive Automation

12. SWTP HSP Pump Logic Modifications

13. Lime Bin Knife Gate and Bin Fluidization Project (not totally in the 2012 budget)

14. Pleasant Hill Booster Station Modifications

15. Modified Chemical Bidding Strategy (Review spec, Design new bid form, Interrogate

fuel strategy, Interrogate anti-scalant)

16. STUDY: Lime Recalcining

17. STUDY: Presed Sludge

18. STUDY: CO2 Fleur Drive

19. STUDY: Upflow Clarifier at Fleur Drive

20. STUDY: TB Flocculator Upgrade

21. STUDY: McMullen FB Valves and Polyphosphate Injection Modifications

22. STUDY: McMullen Well Rehabilitation

23. Lagoon System at Fleur: Remove old lime and rip-rap bank (stewardship)

24. Filter Building Gallery: Pneumatic actuators (stewardship)

25. Treatment Basin Floc Drive Chamber: Sump pump to sanitary sewer (stewardship)

Employee Learning & Growth:

1. Increase employee health and safety, and prepare for workforce succession.

Metric 12 (KRA 3-2)

Reduce the number of lost and restricted work days compared to DMWW's five-

year average.


5

Conduct a safety observation of each employee by their director/supervisor at

least once semi-annually.

Conduct departmental safety meetings and training at least twice monthly to

promote safe behavior at work and at home.

Provide recognition for safe behavior with spot awards.

Complete facility inspections of assigned areas according to pre-established

frequency.

Review items from the Central Safety Committee (CSC) meetings (including

the accident investigation reports) at departmental meetings monthly and

forward/post safety photo when sent by CSC member.

Metric 13 (KRA 3-1)

Reduce the number of employees with metabolic syndrome by 10% based on the

health screen results from 2012 compared to 2011.


Conduct, through the Health Improvement Planning (HIP) Team, utility-wide

activities to promote and support healthy lifestyles, including Naturally Slim.

Promote medical screens participation by 10%.

Present health topics monthly at dept. meetings to encourage employees to

embrace a healthy lifestyle.

Promote and support HIP team activities, including the Naturally Slim

program.

2. Position DMWW as a premier equal opportunity employer.

Metric 14 (KRA 3-4)

Increase the number of diversity hires over 2011 (includes regular, full-time and

part-time opportunities).


Assure applicant pool includes minority candidates.

Participate in at least one community diversity development activity by each

department.

Assure qualified candidate pool referred to the hiring supervisor includes at

least one minority candidate.

Focus on feeder pools including seasonal and internship positions.

Metric 15 (KRA 3-3)

Complete 100% of strategies for key targeted positions in the Succession Plan.


Complete departmental organization plans which will replace individual

vacancy justification. Plans will include target number of days for on-the-job-

training for each position prior to incumbent departure.

Prioritize departmental projects with focus on:

Preservation of institutional knowledge

Training and development

Retention

Recruiting and selection

Planning activities (i.e. development plans for skill gaps)

6

Execute the transition plan developed for WP’s Supervisor of Operations

position. Enhance weekly water quality meetings to include risk assessment

exercises and evaluations. Potentially widen the attendee list for this meeting

to include key maintenance personnel to prepare for upcoming treatment

challenges.

Complete marketing materials (brochure and video) for the Water Treatment

Plant Operator career field.

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Attachment 2 Des Moines Water Works Strategic Plan 2010-2014

Vision: Leading, advocating, and investing today to deliver water you can trust for life. Mission: DMWW is a regional utility that protects public health by delivering outstanding quality water in reliable quantities. Operating with fiscal discipline, DMWW offers dynamic and responsive services that provide high value to our customers. Core Values:

We meet our mission with:

Service ~ We are committed to exceeding customer expectations and anticipating future needs.

Responsibility ~ We take fiscal responsibility in our operations and care for utility assets, including utilizing our land resources, for the public good and enjoyment.

Stewardship ~ We are mindful of our collective responsibility to protect and improve our limited natural resources for the benefit and use of future generations.

Utilizing:

Innovation ~ We encourage employees to challenge traditional approaches, develop best in class practices, and seek opportunities to apply emerging technologies.

Productivity ~ We are inspired by the importance of the work we do and demonstrate our commitment through the results we achieve.

Expertise ~ We embrace employee life-long learning to maximize our knowledge, skills, and abilities insuring sound procedures and practices.

Partnership ~ We build cooperative relationships through effective joint ventures within industry, government and our community.

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Emphasizing:

Trust ~ We create open relationships and produce a strong, ethical organization through mutual respect, honesty, genuine communication and commitment to trust.

Diversity ~ We appreciate our diverse backgrounds and cultures and value each other’s contributions.

Safety ~ We are committed to protecting the health and safety of our employees, customers and communities where we operate.

Key Result Areas: #1 Infrastructure: DMWW will utilize planning, strategic management, and technology to optimize infrastructure investment.

Action Plan #1:

Create and implement a long-term capital improvement program (CIP) incorporating

recommendations from the long range plans, reflecting water industry issues and finished

water regulations.

Action Plan #2:

Identify the proper level of capital reinvestment for Des Moines Water Works, given the

types and conditions of assets. Identify the proper distribution of capital reinvestment

funds by category (treatment plants, distribution system, IT, buildings, facilities, parks,

security, etc.).

Action Plan #3:

Research existing and new technology options that could be implemented to improve

efficiencies and reliability of treatment and distribution systems.

Action Plan #4:

Establish Enterprise Asset Management (EAM) software and implement throughout the

utility and fully integrate the EAM into Supervisor Control and Data Acquisition (SCADA)

system, the Geographical Information System (GIS), the Customer Relations Management

(CRM) system, and the Enterprise Resource Planning (ERP) system.

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#2 Outreach and Marketing:

DMWW will commit to outreach and marketing efforts that speak to the values and interests of

our customers, partners, and community.

Action Plan #1: Develop a marketing plan to increase community awareness of the value of water and its role in the protection of public health. Action Plan #2: Create and implement an outreach program to identify and respond to the dynamic and diverse needs of current and potential customers. Action Plan #3: Engage Central Iowa Regional Drinking Water Commission and other partners in the development and implementation of a social marketing initiative for watershed improvement. Action Plan #4: Expand the benefits and features of targeted services and implement a plan to promote these services to our customers.

#3 Employee Focus: DMWW will be an employer of choice through its long-range commitment to employee health, safety, and professional development. DMWW will plan for future workforce needs through effective succession plans and skill development initiatives.

Action Plan #1: Reduce the health risks of employees by creating an environment where employees live healthy lifestyles. Action Plan #2: Strive for zero workplace injuries by actively involving employees in the collective responsibility for safety. Action Plan #3: Develop a highly skilled workforce prepared for succession of future retirees.

Action Plan #4: Market DMWW as a premier employer, attractive and welcoming to a diverse demographic applicant base, and resulting in long-term retention of employees.

4

#4 Regionalization: DMWW will expand key partnerships with other entities for the purpose of developing long range plans, increasing economies of scale, and protecting water resources on a regional basis.

Action Plan #1:

Develop and implement a plan to address urban population growth into rural water service

territories.

Action Plan #2:

Develop and promote strategies to increase regional customer base.

Action Plan #3:

Promote joint participation in similar projects among regional water utilities to reduce

costs.

Action Plan #4:

Promote and expand key partnerships with regional customers to protect and improve the

quality of our water resources.

#5 Sustainability/Stewardship: DMWW will lead, demonstrate, and promote stewardship of our natural resources and pursue sustainability initiatives.

Action Plan #1: Initiate, lead, and participate in the sharing of ideas, information and concerns to improve and protect Iowa’s water resources. Action Plan #2: Develop alternative approaches to support the work of our watershed partners and market the results. Action Plan #3: Develop and implement a carbon emissions plan. Action Plan #4: Work with other regional public entities to pursue biogenic-related environmental services through the management of parks and river greenways for the improvement and protection of air and water quality.

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Action Plan #5: Lead the metro area in water conservation consensus-building, policy making, and education.

#6 Financial/Fiscally Sound: DMWW will manage our financial resources to support our operational and capital needs by implementing operational efficiencies and establishing stable and predictable levels of revenue.

Action Plan #1: Establish a rate structure that produces a stable revenue stream, promotes a reduction in peak to average water use ratios, and supports our infrastructure reinvestment program. Action Plan #2: Ensure a strong financial base which safeguards our bond rating. Action Plan #3: Be a recognized leader in the water utility industry for business policy, treatment processes, and operational efficiencies.

Des Moines Water Works 2012 BBA Scorecard

Objective/Measure

Current YTD

Results 2012 Target

Add one new Total Service contract. 1

Adopt a service line maintenance program to start January 2013. Adopted

2013 Budget - net zero increase in operating budget over 2012. Net 0% increase

Maintain the peak to average ratio of treatment plant demand below 2.0. < 2.0

Implement four new marketing/outreach initiatives with three out of four campaigns

meeting their stated performance objectives. 4 new initiatives

Engage the public in validating the 2012 park vision plan utilizing at least three

forums/strategies. 3 forums/strategies

Market Aquifer Storage & Recovery (ASR) technology to three or more suburban

utilities. 3 suburban utilities

Complete the Enterprise Asset Management Phase 2 on budget in 2012. Complete on budget

Increase the tons of lime residuals sold by Kelderman.

20% above 3 year average

sales

Complete two initiatives that will enhance or protect water quality in DMWW source

water. 2 initiatives

Complete 75% of the targeted projects and initiatives aimed at reducing overall

treatment costs or providing water quality improvements. 75% completion

Reduce the number of lost and restricted work days compared to DMWW's five-year

average.

257 lost/restricted

work days

Reduce the number of employees with metabolic syndrome by 10% based on the

health screen results from 2012 compared to 2011. 10% reduction

Increase the number of diversity hires over 2011 (includes regular, full-time and part-

time opportunities). 3 hires

Complete 100% of the strategies for key targeted positions in the Succession Plan. 100% completion

Color Legend

Green = On target or better than target

Yellow = Worse than target - on "Watch List"

Red = Worse than target - Implement Corrective Action

Process Improvement - Implement long-term capital improvement and asset management programs. Protect and improve our

water resources by supporting and engaging our watershed partners. Optimize treatment processes and business practices,

and promote cooperative regional projects.

Employee Learning & Growth - Increase employee health and safety, and prepare for workforce succession. Position DMWW

as a premier equal opportunity employer.

Finance - Ensure strong financial health through proper capital reinvestment, strategic rate structure, and customer growth.

Customer - Lead regional initiatives related to service area growth, shared services, water resource management, and

conservation. Also, anticipate customer expectations and increase awareness of the value of water.

Attachment 3

AGENDA ITEM FORM · SUBJECT: 2012 Balanced Business Approach Goals SUMMARY: Since January of 2003,...

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