NWPPA Board of Trustees Strategic Planning Session · 11/12/2017 · NWPPA Board of Trustees...

NWPPA Board of Trustees Strategic Planning Session

July 11-12, 2017

Connect • Learn • Serve

NWPPA Strategic Plan Development

2 Strategic Planning Session

External Trends(July)

Member SWOT(July)

Survey Results (July)

NWPPA Strategic

Objectives(July)

Consistent with Statement of

Purpose

Consistent with Statement of

Purpose

Work Plan(September)

Day 1: July 11

Setting the Stage: Presentations and Member SWOT

Day 1 Agenda

Welcome- Anita and Steve

External Presentations

External Presentations Discussion

Member SWOT


Taylor Gunn, Lead Economist: Power, Energy and Water, CoBank

As an economist with CoBank’s Knowledge Exchange Division (KED), Taylor applies his understanding of economics, research and consulting to write papers, participate in presentations and collaborate with industry leaders to explore market dynamics and provide strategic analyses.


Taylor’s educational background includes an MS, Mineral and Energy Economics from Colorado School of Mines and a BS in Civil Engineering from Texas Tech University.

Chris Hickman, CEO and President, Innovari

Chris provides the utility-centric vision for the company’s unique value proposition and strategy. Chris has over two decades of utility industry experience ranging from power generation to regulation to end-use customerServices and technologies


His current role at Innovari furthers his efforts to improve the electric energy enterprise by leveraging new technologies and ideas. Chris’s previous positions include EVP, Utility Solutions at Ice Energy; President at SureGrid; SVP, Strategy and Regulatory Affairs at Cellnet Technology.

He has a BSEE and MSEE from New Mexico State University and an MBA from University of New Mexico.

Day 1 Presentations Discussion

Roundtable discussion

What struck you as particularly interesting or relevant about the speakers’ presentations?


“Economic Trends” Takeaways


Workforce age 25-54 declining (this is our future workforce pipeline)

3rd longest recovery but with relatively slow growth

Recovery is uneven across our region Stats raise questions:◦ Generational change?◦ Different products and services emerging?◦ Indicators might not reflect reality

“Economic Trends” Takeaways Cont’d


Workforce- where are they? Growth is occurring in urban centers but not in

rural America Millennials tend to be innovative- they may help

us see what customers want Industrial demand for power used to track

economy, but that is less so now Surveys have to be done differently◦ We may not be getting all the info we need◦ Need to supplement economic data with sociological data

“Economic Trends” Takeaways Cont’d


“Scattered” factor◦ Adding customers but we are seeing lower load◦ Workforce demographics◦ We may need to be more adaptable

“Utilities Enabling the Future Grid” Takeaways


Utilities are not all the same, although we have commonalities (need to leverage them)◦ Also have commonalities with other types of utilities (re: pole attachments, meters for water, electric and gas)

Customers are a common objective- we need to focus on the; set direction

We can network to find commonalities (resolutions, board resources)

Customer owned utilities are responsive to customers

“Utilities Enabling the Future Grid” Takeaways Cont’d


“Smart Cities” initiatives may be more appropriate for large, urban centers◦ Important to find the things rural utilities can offer◦ Be careful about assuming we know what customers want◦ Need to recognize interface with local government

Five generations in the workforce & amongst our customers◦ We also have different geographies and other demographics



Concern about future stranded “utility scale” assets

Look at DER less from a cost perspective and more from a risk/benefit perspective◦ Think about incremental system additions

We run the utility with a 6 year plan but need to have a 20 year vision

Challenge of so much data Customers perspective of cool technology: “I’ll

know it when I see it” and “When I see it, I’ll want it now”



Employees care about more than wages (time off, health insurance, serving the community)

Rate regulation – does this hamper us How can we stay informed of changes / How can

NWPPA help us? Capacity vs. Energy:◦ Optimizing capacity is an opportunity◦ Re-purposing, sharing – look at trends in other sectors

Energy efficiency Quality of life is increasingly valuable

Inte

rnal

Exte

rnal

“Strengths”Special capabilities, success factors, or market positioning that could be leveraged to achieve our strategic objectives

“Weaknesses”Internal issues or concerns that could impede our ability to implement our strategy or areas we want to address in our strategy

“Opportunities”External prospects to improve our market position, improve customer experience, and/or grow earnings

“Threats”Potential external hazards or barriers to our achieving our strategic objectives

Member SWOT Sets the Stage for NWPPA Strategy


Activity: Member SWOT


Roundtable Activity: Develop a Member SWOT

Day 2: July 12

NWPPA Strategy: Survey Results, Refining the Member

SWOT and Strategic Objectives


Day 2 Agenda

Set the Stage◦ Review survey results ◦ Update Member SWOT

Develop Strategic Objectives consistent with the Statement of Purpose

Prioritize Strategic Objectives

Discuss Next Steps


NWPPA’s purpose statement is still very relevant All of NWPPA’s services are ranked very important◦ Legislative has grown in importance since 2014

Highest member priorities are:◦ Rising rates◦ IT technology and cyber security◦ Emerging technologies◦ Rate design◦ Leadership◦ Workforce development ◦ Impacts of DER◦ BPA issues


Survey Results – Summary

NWPPA’s purpose statement is still relevant to our membership? 93% – Very 7% – Somewhat 0% – Not Very

This compares to 2014 survey results which were: 84% – Very 16% – Somewhat 0% – Not Very


Survey Results – Purpose Statement

Bulletin & e-Bulletin◦ 2017: 79% very familiar◦ 2014: 86% very familiar

Training & Education Catalogue and Course Offerings◦ 2017: 64% very familiar◦ 2014: 79% very familiar

Legislative Activities & Rally◦ 2017: 71% very familiar◦ 2014: 57% very familiar

Regulatory Activities◦ 2017: 37%◦ 2014: 43% very important

How familiar are you with the following services NWPPA offers its members?

Familiarity with services has declined since 2014 with the exception of Legislative activities.

Survey Results – Familiarity with NWPPA Services

Strategic Planning Session21

Bulletin & e-Bulletin◦ 2017: 64% very

important◦ 2014: 84% very important

Training & Education Catalogue and Course Offerings◦ 2017: 100% very


Legislative Activities & Rally◦ 2017: 89% very


Regulatory Activities◦ 2017: 82% very


How important are the following services that NWPPA offers its members?

All services received very high ratings in 2017

Survey Results – Importance of NWPPA Services


2014

IT 88% Leadership 52% Operations 36% Customer Service 20% Engineering 20% Other 16% Accountg/Finance 8%

Emerging Technologies and Rates join IT as top areas of change

Survey Results – Areas Experiencing Greatest Amount of Change

Strategic Planning Session

2017

Emerging Tech (new)89% Rates (new) 86% IT 78% Leadership 50% Customer Ops 43% Operations 14% Engineering 7% Other 7% Accountg/Finance 4%

23

Survey Results

Other 2014:Networking (5) Industry (2) Support (1) Collaborative (1) Bulletin (1)


0 10 20

Collective Voice on Issues

Info About Regional Issues

Regulatory

Legislative

Training and Education

No. Responses

What does NWPPA provide that is of most strategic value to our utility?

20172014

Survey Results

Other 2014: People Power (1)


0 2 4 6 8 10

RFP Postings

Meetings are inconvenient

Public information

Issues too specific to PNW states

Industry wage information

Legislative (not relevant to us)

Need to work other assoc.

Bulletin (monthly, weekly)

Meals at meetings

Training

Regulatory (not relevant to us)

No. Responses

What does NWPPA provide that is of least strategic value to our utility?

20172014

Survey Results

Other 2014: Legislative (3) Growth (3)Resources (1) Reliability (1) and Fish (1)


0 2 4 6 8 10 12 14

Declining demandCyber security

Loss of fossil fuelFish & Wildlife reg

Carbon issuesSystem planning

TransmisisonTechnology

Aging InfrastructureCustomer expectations

Compliance/Regul uncertaintyDER

Rate StructuresBPA's future

Rate pressuresWorkforce

No. Responses

What are the most important issues facing your utility or public power over the next 2-3 years?

20172014

Survey Results - Other Comments


NWPPA must be a voice on behalf of local utilities on a regional stage

NWPPA’s mission is to help utilities prepare for the future

There is a lot of uncertainty relating to BPA’s future as a PMA, the Columbia River Treaty, and Focus 2028

NWPPA - credible reputation and value proposition lending strength as a Western Voice and provider of services for members.

APPA - NRECA National

NWPPA -Regional

PPC - BPA NRU PNGC PGP – Power Mgmt

LocalUtility

State Associations

NWPPA Complements, Not Competes

Survey Discussion

Roundtable Discussion

What are the implications for NWPPA members?

What are the implications for NWPPA? How can NWPPA best serve members’ needs?


Survey Implications Discussion

Is Board representative of full membership and has a survey been sent to all members?◦ A: Board is good representation of membership because of

its large size- it represents all members in terms of geography and utility type. Survey was sent only to the board for purposes of this workshop

Rate concerns more prominent in 2017◦ Additional discussion: regional rates are low; history of

why most utilities recover only part of their fixed costs in fixed charges; there is some ‘catch-up’ in rate design; need to explain to customers;


Survey Implications Discussion Cont’d

Why do some Board members (~10%) believe training is not of strategic value?◦ Discussion: For some members, it is difficult to get to

the training classes because of where they are located; some utilities’ workforce may not need training or members may be getting it from elsewhere; interest in more web-based training

Survey doesn’t fully reflect the combined effect these issues have on utilities (‘industry disruption’)◦ Loss of load◦ Workforce challenges◦ Technology moving so quickly


Survey Implications Discussion Cont’d

Why isn’t cyber security a greater issue for members?◦ Discussion: Perhaps there is ‘survey fatigue’ as this was

one of the last items in the survey or members are complacent or this risk, or tired of it? The board discussed the continued daily threats and expressed interest in what are best practices for smaller utilities regional rates are low; history of why most utilities recover only part of their fixed costs in fixed charges; there is some ‘catch-up’ in rate design; need to explain to customers;


Inte

rnal

Strengths- Customer Trust; 1:1 Connection. However

- Lot of differences in our customers- Distrust of city government

- Brand loyalty w/ long-term customers. However:- Younger generation less loyal- Need to look at other great service providers- Loyalty is circular - Responsiveness is key- Multiple touchpoints

- Monopoly position (be careful of erosion from solar, batteries)

- Technical competency – we understand energy (is NWPPA focus appropriate here?)

- Electric service is the “lifeblood of Modern Man”- High reliability- Local control; community involvement; grass roots;

ear of legislators- Can implement more quickly than IOUs - Non-profit, no PSC oversight, less compliance than

IOUs;

Refine Member SWOT - Strengths


Inte

rnal

Weaknesses- Some customers don’t fully appreciate what we

provide; we could lose trust if we fail to provide service well

- Emerging competing products/services- Utilities are not nimble/ we need to be more agile- Risk averse (worried about taking risks)- Still reactive- Don’t understand what customers want- Long-term focus with long-term investments (not used

to “speed to market”)- Conservatism (both a strength and a weakness)- Change is driven by customers & technology- Tension of stable electrons vs. being nimble- Governance – losing policy makers, getting new ones,

terms limits, apathy about serving- We don’t know what we don’t know- We tend to generalize in our industry- Focus too much on cost, not value, of service

Refine Member SWOT - Weaknesses


Exte

rnal

Opportunities- Attracting new workers- Technology – be seen as leaders; educate what we do- Culture change- More diversity in workforce (age, gender, race)

- Challenge: people want to work with people like them; change mindset

- Improve data analytics / find value stream potential / Utilities have the data

- Leverage grass roots/ ear of legislators- Market the utility as an opportunity to serve (appeal to

younger workforce)- Be more strategic- Board Service:

- Market board service- Focus on training for new board members- Increase diversity on the board

- Communications/ Messaging- Through devices customers use- The way we educate is important

Refine Member SWOT - Opportunities


Exte

rnal

Opportunities- Be the “hub” or single party to connect all the dots- Reliability of the system- how we help customers see

the value- Trusted energy advisor- Demonstrate the value proposition /distinguish

ourselves from other electric providers- Competitors market better than we do and

portray utilities in a negative light- Show value of the brand- Touchpoints with customers

NWPPA can help in these areas:– Common themes, messages, education, reaching

customers, understanding what they want– Sharing innovative practices– Toolbox for engagement, helping build connections

with customers– Bring great service providers’ practices to members

Refine Member SWOT – Opportunities Cont’d


Exte

rnal

Threats- Political backdrop; impact of elections- Regulatory uncertainty /regulation targeted at utilities

- Challenging to make investments- Rapid technology change- Bigger, competitive world

- “Coop family” and city partnerships are threatened by competition

- Competition is sexy/cool- Getting rate structures in the right form- Who do we serve? Leaders’ attitudes at utilities- Complex business- we can’t do it all ourselves- Cyber and physical security risks

- Can we turn cyber security into an opportunity?- Society’s indifference to us (don’t understand

magnitude of what we do)- Strong political activism- Increasing challenges with permitting

Refine Member SWOT - Threats


Statement of Purpose

Who We Are - NWPPA is an international association representing and serving consumer-owned, locally controlled utilities in the Western U.S. and Canada.

What We Do - NWPPA exists to enhance the success of its members through education, training, public information, governmental relations and value-added services.

Where We Want To Go - The Association shall be a leader in promoting the value and benefits of consumer-owned, locally controlled utilities.

What's Important To Us - NWPPA values local control, member needs, integrity, quality of products and services, effective representation and accountability.



Who we Are

What We Do

Where We Want

to Go

What’s Important

To Us

Focus on what NWPPA would look like in 3-4 years and how NWPPA would demonstrate success in each element

Activity: Draft Strategic Objectives For Four Parts of the Statement of Purpose

Step 1: Two subgroups to discuss “Who We Are” and “What We Do”

Step 2: Two subgroups to discuss “Where We Want To Go” and “What’s Important To Us”

Consider Scope, Target and Success Factors For Strategic Objectives


Sco

peSco

pe

Consistent with the Purpose

What we will deliver

Member value proposition

Consistent with the Purpose

What we will deliver

Member value proposition

Targ

et

Targ

et

Members’ Staff & Policy Makers

Elected officials

Other Associations

Members’ Staff & Policy Makers

Elected officials

Other Associations

Suc

cess

Fac

tors

Suc

cess

Fac

tors NWPPA can

execute well

Members see value

Distinguishes NWPPA as an association

NWPPA can execute well

Members see value

Distinguishes NWPPA as an association

Board’s GuidanceBoard’s Guidance NWPPA’s DeliveryNWPPA’s Delivery

Report-Outs

For each Strategic Priority, each team will report back to the large group on the Strategic Objectives identified.

Please consider what issue, challenge, or opportunity the Strategic Objectives address


Compare Strategic Objectives to Survey Responses


Has your perspective changed from when you initially took the survey?

Do the Strategic Objectives address the most important issues facing members?

Have we addressed major topics in the survey results?


Press the “Channel” button (bottom left)◦ Red/green blinking light◦ “41” is the channel

Select in order of preference, starting with highest priority

If you get a symbol, that means your vote didn’t take; press again or let facilitator know

We can re-poll any/all slides

Prioritization Through Polling

Prioritize “Who We Are” Strategic Objectives (1st one is Most Important)A. Enhance the message of

value of customer owned power

B. Resource for/of energy experts

C. Information clearing house (trends, technology, innovation)

D. Regional voice on issuesE. Cultivate relationships with

more utilitiesF. Work with national

associationsG. Partner /teamwork with

members, stakeholders, elected officials

H. Demonstrate utilities’ benefits in communities

Enha

nce t

he m

essag

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.

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urce f

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es

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ate re

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Work

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nal a

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.

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Demo

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lities’

be...

134

9888

94

109

68

82

117


Prioritize “What We Do” Strategic ObjectivesA. Facilitate touchpoints &

education w/customersB. Help members prepare

for the future C. Facilitate exchange of

ideas /best practices D. Regulatory and

legislative (info, advocacy)

E. Advance cyber security F. Provide tools for

engagement /PRG. Help utilities play

offenseH. Help utilities partner

well Facil

itate

touc

hpoin

ts &

...

Help

memb

ers pr

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Facil

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ange

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...

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egisl

ative

...

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enga

...

Help

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es pla

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es pa

rtner

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108

128 128

51

76

9587

117


Prioritize “Where We Want To Go” Strategic Objectives

A. Strategic member networking /peer to peer sharing

B. Build on “Public Power Matters” C. More proactive re: technologyD. Benchmarking & Perf

Management infoE. Build on success of training

programs / workforce development

F. Trusted industry where people want to work & volunteer

G. Continued legislative programH. Learn how to be good at

customer service & communicI. Crisis management training

Strate

gic m

embe

r netw

o...

Build

on “P

ublic

Powe

r ...

Mor

e pro

activ

e re:

tech

...

Benc

hmark

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Build

on su

cces

s of t

raini

..

Trus

ted in

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y whe

re ...

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inued

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lative

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Learn

how

to be

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at...

Crisi

s man

agem

ent t

rainin

g

124131

93

76

99

127

95

148

84


Prioritize “What’s Important to Us” Strategic Objectives

A. Be premier training organization

B. Adapt training for member needs

C. Continue partnering with others /leverage their work

D. Alignment with other Continue with unified voice

E. 2-way communicationF. NetworkingG. Constructive feedback and

candid discussionH. Share lessons learned

more formallyBe

prem

ier tr

aining

orga

...

Adap

t train

ing fo

r mem

b..

Conti

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artne

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it...

Align

ment

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.

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orking

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Share

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arned

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148

10496 106

57

101

7484


Next Steps – NWPPA Staff


Present to the NWPPA Board in September

Develop work plan, by considering critical path items and inter-relationships

Determine needs to achieve Strategic Objectives (resources, time, budget)

Understand Board’s priorities amongst the Strategic Objectives

NWPPA Board of Trustees Strategic Planning Session · 11/12/2017 · NWPPA Board of Trustees...

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Transcript of NWPPA Board of Trustees Strategic Planning Session · 11/12/2017 · NWPPA Board of Trustees...