1. 2015 IWA Conference Cincinnati
Edge Performance.net
Performance Management &
Benchmarking
2015 IWA Conference
Cincinnati
Rick Bickerstaff

2. Measurement “
What gets measured gets managed, and what gets managed gets done. ”

3. Agenda Introduction Strategy Framework Results Comparisons Analysis
Decisions
S.Y.S.T.E.M. 2

4. Charleston
Water System

5. Why we measure Where have we been? Where are we?
Results
Trends
Where are we?
Comparisons
Benchmarks
Best Practices
Where do we want to go?
Performance Projections
Customer Requirements
Targets

6. Why we measure Measurement results should: Tell you what to improve
Help you prioritize what to focus on
Become a major input into your organization’s goals and/or strategic plan
Promote accountability
Facilitate continuous improvement
Satisfy stakeholder expectations

7. What Measure: Measure: we measure
What is most important to your customers, stakeholders, and you.
What is critical to quality (CTQ)
Inputs, Process, Outputs (SIPOC)
Measure:
Process efficiency
Process effectiveness
Process adaptability

8. Leadership must drive it The MUSTS:
Expectations must come from senior leadership
Leadership must constantly direct focus towards performance measurement
Leadership must constantly ask for results
Leadership must think critically

9. Systematic processes Strategy Framework Results Comparisons Analysis
Decisions

10. Strategy
Strategy
Framework
Results
Comparisons
Analysis
Decisions

11. Strategy Drives
Measurement
2000
2002
2007
Timeline

12. 2011 2014 2013 2017 ON-Track By National ITWORX
Malcolm Baldrige Quality Award
2011
S.C. Governor’s Quality Award
Baldrige Criteria for Performance Excellence
(50% is based on measurement)
2014
Timeline
2013
2017

13. Strategy Strategic Area #3 - Measurement Charleston Water System’s
Strategic Goal
Tactical Actions
Strategic Area #3 - Measurement
Reliable & sustainable measurement, benchmarking and data analysis system
To drive data based decision making.
Reliable & comparable benchmarking sources
Guidance for target setting
Systematic review & reporting process

14. Framework Develop the PIs / KPIs Definitions Leading Lagging Strategy
Results
Comparisons
Analysis
Decisions
Definitions
PIs / KPIs
Leading
Lagging

15. = Measurement Hierarchy Charleston Water System
CWS Measurement Hierarchy
Leadership Results
Financial & Market Results
Customer Focused Results
Workforce Focused Results
Product & Process Results
Charleston Water System
Measurement Hierarchy =
Baldrige Criteria for Performance Excellence

16. Measurement Hierarchy
Charleston Water System
Measurement Hierarchy
CWS Strategy
Leadership Team
Leadership Results
Measurement Team
Financial & Market Results
Customer Focus Team
Customer Focused Results
Workforce Focus Team
Workforce Focused Results
Operations Focus Team
Product & Process Results
Strategic Teams
KPIs
Weight
18%
18%
19%
19%
26%

17. Measurement Hierarchy
Charleston Water System
Measurement Hierarchy
CWS Measurement Hierarchy
Leadership Results
Financial & Market Results
Debt Ratio
Return on Assets
Growth Rate
Customer Focused Results
Workforce Focused Results
Workforce Climate
Workforce Capacity
Workforce Development
Product & Process Results
KPI Level
30%
Roll Up
PI Level
40%
30%

18. Indicators Leading & Lagging Things you can influence Lagging Leading
CWS Measurement Hierarchy
OSHA Accident Rate
Workforce Capacity
Training Hours/Employee
Leadership Academy Graduates
Workforce Engagement
Things you can influence
Lagging
Leading
Things you can control

19. Results Capture the Collection Plan Repository Monitoring Plan
Strategy
Framework
Results
Comparisons
Analysis
Decisions
Monitoring Plan
Collection Plan
Repository

20. Capture the
Results
Results
Customer Requirements

21. Repository
(Home)

22. Compare your results Requirements Benchmarking Strategy Framework
Comparisons
Analysis
Decisions
Benchmarking
Requirements

23. Capture the
Results
Benchmarking
Customer Requirements

24. Effective Utility Management
Charleston Water System’s Contributions

25. Compare
your results
CWS participated in the development of the EUM Benchmarking Tool

26. Compare
your results
Gap analyses were conducted using the tool on parts of the EUM.
Plans exist to:
Complete gap analyses
Use gap analyses to identify tactical benchmarking actions ( )

27. Sources Benchmarking Local (State) Regional
Florida Benchmarking Consortium
North Carolina Local Government Performance Measurement Project

28. Sources Benchmarking National
AWWA Benchmarking Program (QualServe, 2002)
Baldrige Award Winners

29. Sources Benchmarking International European Benchmarking Consortium
International Benchmarking Network for Water &Sanitation Utilities (IBNET)
National Water & Wastewater Benchmarking Initiative (Canada)
Pacific Water & Wastes Association
National Performance Report (Australia)

30. Analyze data Validate Correlate Root-cause Strategy Framework Results
Comparisons
Analysis
Decisions
Correlate
Root-cause
Validate

31. Analyze data Validation Statistical analysis Charts:
Histogram
Pareto charts
Pie charts
Run charts
Control charts
Box plots
Correlation analysis (scatter diagrams)
Root-cause analysis (RCA)
Sigma performance

32. Decision making Projections Targets Goals Strategies Strategy
Framework
Results
Comparisons
Analysis
Decisions

33. Decision Data should tell us: What to work on When to work on it
making
Data should tell us:
What to work on
When to work on it
Why to work on it (validated)
How to work on it

34. Decision making Adjust Improve Innovate Strategy Framework Results
Comparisons
Analysis
Decisions
Adjust
Innovate
Improve

35. Systematic
Processes
Managing the Process 2
S Y S T E M

36. S Y S T E M Systematic Processes 2 Schedule Yardstick Standard Team
Evaluate
Execute/
Maintain 2
S Y S T E M

37. S Y S T E M Systematic Processes 2 Schedule Yardstick Standard Team
Evaluate
Execute/
Maintain 2
S Y S T E M

38. S Y S T E M Systematic Processes 2 Schedule Yardstick Standard Team
Evaluate
Execute/
Maintain 2
S Y S T E M

39. S Y S T E M Systematic Processes 2 Schedule Adjust Yardstick Standard
Team
Evaluate
Execute/
Maintain
Adjust 2
S Y S T E M

40. S Y S T E M Systematic Processes 2 Schedule Improve Yardstick Standard
Team
Evaluate
Execute/
Maintain
Improve 2
S Y S T E M

41. Sharing Data Written: Visual: Agendas Meeting minutes Reports Displays
TVs
Dashboards
Bulletin boards
Mobile devices

42. In Conclusion Measurement Requires Laser focus Resources Continuous
Discipline
Starts at the top
Resources
Teams / Teamwork
Software
Continuous
Evaluation
Analysis
Communication
Use of results
Decision making
Continuous improvement

43. Thank you for your time and attention!
Thank you for your time and attention!
Contact Information:
Rick Bickerstaff