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

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

3. I.Introduction II.Strategy III.Framework IV.Results V.Comparisons VI.Analysis VII.Decisions VIII.S.Y.S.T.E.M. Agenda 2

4. Charleston Water System

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

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

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

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

9. Strategy Framework Results Comparisons Analysis Decisions Systematic processes

10. Strategy Framework Results Comparisons Analysis Decisions Strategy

11. Strategy Drives Measurement 2000 Timeline 2002 2007

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

13. Strategic Area #3 - MeasurementStrategic 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 Strategic Area Strategic Goal Tactical Actions Charleston Water System’s Strategy

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

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

16. 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

17. 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 Roll Up PI Level Charleston Water System Measurement Hierarchy

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

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

20. Customer Requirements Capture the Results

21. www.ITWorx.com Repository (Home)

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

23. Customer Requirements Capture the Results Benchmarking

24. http://watereum.org/resources/resource-toolbox/ Effective Utility Management Charleston Water System’s Contributions

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

26.  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 (2015-2016) Compare your results

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

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

29.  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) Benchmarking Sources

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

31.  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 Analyze data

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

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

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

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

36. Systematic Processes S Y S T E M 2

37. Systematic Processes S Y S T E M 2

38. Systematic Processes S Y S T E M 2

39. Systematic Processes S Y S T E M 2 Adjust

40. Systematic Processes S Y S T E M 2 Improve

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

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

43. www.CompetitiveEdgePerformance.net Contact Information: Rick Bickerstaff Rick@CompetitiveEdgePerformance.net 843.297.2596 Thank you for your time and attention!