2015 iwa conference cincinnati performance management & benchmarking rick bickerstaff edge...
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2015 IWA ConferenceCincinnati
Performance Management &Benchmarking
Rick Bickerstaff
www.Competitive Edge Performance.net
What gets measured gets managed, and what gets managed gets done.
Measurement
“”
I. IntroductionII. StrategyIII. FrameworkIV. ResultsV. ComparisonsVI.AnalysisVII.DecisionsVIII.S.Y.S.T.E.M.
Agenda
2
CharlestonWater System
Whywe 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
• Measurement results should:o Tell you what to improveo Help you prioritize what to focus ono Become a major input into your
organization’s goals and/or strategic plan
o Promote accountabilityo Facilitate continuous improvemento Satisfy stakeholder expectations
Whywe measure
• Measure:o What is most important to your
customers, stakeholders, and you.o What is critical to quality (CTQ)o Inputs, Process, Outputs (SIPOC)
Whatwe measure
• Measure:o Process efficiencyo Process effectivenesso Process adaptability
The MUSTS:I. Expectations must come from senior
leadershipII. Leadership must constantly direct focus
towards performance measurementIII. Leadership must constantly ask for resultsIV. Leadership must think critically
Leadershipmust drive it
Strategy
Framework
ResultsCompar
isons
Analysis
Decisions
Systematic processes
Strategy
Framework
ResultsCompar
isons
Analysis
Decisions
Strategy
Strategy Drives Measurement
2000Timeline
2002 2007
2013
20142011
S.C. Governor’s Quality Award
Baldrige Criteria for Performance
Excellence
(50% is based on
measurement)
2017
National Malcolm
Baldrige Quality Award
ON-Track By
ITWORX
Timeline
• 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
Strategic Area
Strategic Goal
Charleston Water System’sStrategy
Strategy
Framework
ResultsCompar
isons
Analysis
Decisions
Develop the Framework
Definitions
PIs / KPIs
Leading
Lagging
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
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
18% 18% 19% 19% 26%Weight
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 Leve
l
Roll U
p
30%
30%
40%PI Leve
l
Charleston Water System Measurement Hierarchy
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
Strategy
Framework
ResultsCompar
isons
Analysis
Decisions
Capture theResults
Monitoring Plan
Collection Plan
Repository
Customer Requirements
Capture theResults
Results
Strategy
Framework
Results
Comparisons
Analysis
Decisions
Compare your results
Benchmarking
Requirements
Customer Requirements
Capture theResults
Benchmarking
http://watereum.org/resources/resource-toolbox/
Effective Utility Management Charleston Water System’s Contributions
CWS participated in the development of the EUM Benchmarking Tool
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 (2015-2016)
Compare your results
Local (State)Regional
Florida Benchmarking Consortium North Carolina Local Government Performance Measurement
Project
BenchmarkingSources
National AWWA Benchmarking Program (QualServe, 2002) Baldrige Award Winners
BenchmarkingSources
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)
BenchmarkingSources
Strategy
Framework
ResultsCompar
isons
Analysis
Decisions
Analyzedata
Correlate
Root-cause
Validate
ValidationStatistical analysisCharts:
Histogram Pareto charts Pie charts Run charts Control charts Box plots
Correlation analysis (scatter diagrams)Root-cause analysis (RCA)Sigma performance
Analyze data
Strategy
Framework
Results
Comparisons
Analysis
Decisions
Decision making
Targets
Goals
Projections
Strategies
Data should tell us:What to work onWhen to work on itWhy to work on it (validated)How to work on it
Decisionmaking
Strategy
Framework
Results
Comparisons
Analysis
Decisions
Decision making
Adjust
Innovate
Improve
SystematicProcesses
S Y S T E M2
Managingthe Process
SystematicProcesses
S Y S T E M
Schedule
Yardstick
Standard
Team
Execute/Evaluate
Maintain
2
SystematicProcesses
S Y S T E M
Schedule
Yardstick
Standard
Team
Execute/Evaluate
Maintain
2
Schedule
Yardstick
Standard
Team
Execute/Evaluate
Maintain
SystematicProcesses
S Y S T E M2
SystematicProcesses
S Y S T E M
Schedule
Yardstick
Standard
Team
Execute/Evaluate
Maintain
2
Adjust
SystematicProcesses
S Y S T E M
Schedule
Yardstick
Standard
Team
Execute/Evaluate
Maintain
2
Improve
Written:AgendasMeeting minutesReports
Visual:DisplaysTVsDashboardsBulletin boardsMobile devices
DataSharing
• Laser focus Discipline Starts at the top
• Resources Teams / Teamwork Software
• Continuous Evaluation Analysis Communication
• Use of results Decision making Continuous improvement
In ConclusionMeasurement Requires
www.CompetitiveEdgePerformance.net
Contact Information:
Rick [email protected]
843.297.2596
Thank you for your time and attention!