Managing change while improving asset management performance Wayne Francisco

NC AWWA – WEA 2015 Learning objectives Understanding performance as the core to asset management success Understanding a basic approach to managing the change necessary to achieve your asset management goals

NC AWWA – WEA 2015 Overarching concept: improving performance General quality management concept Where are you starting from and where do you want to be? There will be interim targets along the way Ref.: Effective Utility Management – A Primer for Water and Wastewater Utilities

NC AWWA – WEA 2015 Review performance results Verify Assessment Review Attribute Summaries Return to Setup Delete Performance Measures View Summary Results EUMCurrentTargetWeight Att 1: Product quality19366% Att 2: Customer satisfaction27526% Att 3: Employee and leadership development 26 10% Att 4: Financial viability375614% Att 6: Infrastructure stability304515% Att 7: Operational resiliency32552% Att 8: Community sustainability % Att 9: Water resource advocacy % Att 10: Stakeholder understanding and support % Total weighted utility score 2739

NC AWWA – WEA 2015 Three key benefits from measuring performance You’re able to routinely use key performance indicators or measures in your reporting: –Strategic: organizational/customer levels of service. –Tactical: business unit performance (e.g., % of new assets recorded in the GIS, % of capital program delivered) or system/facility performance (e.g., no. of sewer overflows, % of time met discharge permit) –Operational: (e.g., % delivery of planned maintenance) You’re able to validate the investment and expenditure decisions you have made. You’re able to identify those assets that are performing as expected and concentrate your efforts on the exceptions.

NC AWWA – WEA 2015 Performance measures Select Attributes Select Practice Areas Select Performance Measures Create Custom Assessment Assess each Performance Measure

NC AWWA – WEA 2015 Using historical data to improve asset performance Management strategies for asset classes should be based upon historical performance data For example: 1.You initially exercise a random sample of your water system shut-off valves. 2.You track that work in your work management system. 3.Based upon how the valve exercising goes you revise your ‘random’ approach and develop a more targeted valve exercise program.

NC AWWA – WEA 2015 How management strategies for our assets work Compare the performance of an asset to the management strategy for that asset to determine whether or not the asset is performing as expected. For example, if your management strategy was to inspect and remove tree roots from a stretch of sewer every six months but you regularly find you have backups in the system caused by the tree roots, then something’s not working. Perhaps your management strategy was wrong, perhaps in some areas of your collection system you need to do root removal more frequently. Check how other assets of that type are performing and see if you have the same pattern there. Perhaps the asset has a problem. Determine what type of failure occurred and what the root cause (pardon the pun) of failure was.

NC AWWA – WEA 2015 Applying this analysis to all of your assets Awareness Calling this analysis for the water valves a pilot or trial project and having other operations/maintenance staff participating provides you with an opportunity to raise awareness of the need to change Desire Improving the performance in shutting off valves will hopefully create some desire to repeat the process for other asset types It may be that a series of valve shut off failures has already created a desire for change and your operations/maintenance staff are already waiting for processes to be changed

NC AWWA – WEA 2015 Perhaps there’s already a desire to change Communicating how this relates to this… helps staff work towards common goals Engaging staff in understanding that the need for change has been identified and that funds are being made available to enable change is reassuring and shows that someone’s listening

NC AWWA – WEA 2015 ADKAR™ Awareness that change is needed – i.e., current performance is not good enough – e.g., too many unplanned asset failures (can’t shut off a water valve) Desire to participate and support the change (not just a desire to change) – i.e., you want staff keen to help make the change Knowledge on how to change so that you understand what needs to be done Ability to implement required skills and behavior so that it can be done Reinforcement embedding change within the individual so that it becomes routine

NC AWWA – WEA 2015 Bringing new knowledge into your organization Drawing upon external knowledge New knowledge embedded internally

NC AWWA – WEA 2015 Getting ready for changing the way you do things Step 1: Creating the Climate for Change A “change readiness assessment” can help you to understand: If you need to make any organizational changes Whether staff need to acquire new competencies Whether any business processes need to be improved Whether you need to capture and analyze new or different data Reference the “Keys to Management Success” in the Effective Utility Management framework for five areas within which you can evaluate your readiness to change (Leadership, Strategic Business Planning, Organizational Arrangements, Measurement, Continuous Improvement) – Creating a climate for change Engaging and enabling the whole organization Implementing and sustaining the change

NC AWWA – WEA 2015 Changing takes effort and time Status quo resistance Letting go Neutral zone New beginning Stabilization of internalization of new beginning Refusal to “own” contributions to outcomes Paralysis, denial, idealization Ready for change Old meanings lose meaning Self focused unfreezing Anxiety, depression, intermittent purpose and paralysis Individual transition cycle Moving Refreezing

NC AWWA – WEA 2015 Key points from today Performance management improvements require attention to continuous improvement Improving your asset management practices requires the application of change management techniques and a relentless focus on developing sustained performance improvements

NC AWWA – WEA 2015 Thank you! Questions?

NC AWWA – WEA