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12/4/2015 MIDLAND FOOD PROCESSING CO. MANAGEMENT AND FINANCIAL SOLUTIONS PROPOSAL Abiola Akin-ajayi Jacinto (Jay) Cabello Eder Ramirez Sanakaranarayanan A Ravichandran Stephanie Warren

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Page 1: Water Management - EPA Guidelines Project

12/4/2015

M I D L A N D F O O D P R O C E S S I N G C O .

M A N A G E M E N T A N D F I N A N C I A L S O L U T I O N S P R O P O S A L

Abiola Akin-ajayiJacinto (Jay) CabelloEder RamirezSanakaranarayanan A RavichandranStephanie Warren

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CONTENTS

Executive Summary.........................................................................................................................3Introduction.......................................................................................................................................1

Systemic solutions.............................................................................................................................3

Organizational solutions..................................................................................................................10

regulatory solutions.........................................................................................................................23

Final Thoughts.................................................................................................................................30

References......................................................................................................................................32

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EXECUTIVE SUMMARY

For decades, the Midland Food Processing Co. has been at the heart of this City’s economy.

However, over the last few years, the company has been faced with declining quality of service

stemming from a lack of forward-thinking from management. This has resulted in violation of

EPA guidelines in the realm of wastewater discharge norms. The plant faces imminent threat of

closure due to noncompliance issues with regards to EPA norms on waste water discharges. As a

result, the company has been faced with the challenge of reinventing itself while still retaining the

experience and know-how that only our operators can provide.

The recommendations within this proposal are aimed at providing immediate, intermediate and

lasting solutions to the current challenges faced by this organization. This will be carried out

through a comprehensive analysis of the company’s culture, operating procedures, technical

competence, regulatory compliance, and internal and external communication plans.

The recommendations found within this proposal are designed to work in concert, as some of the

proposed solutions can be used to create additional alternatives similar to those detailed in this

report.

The first alternative targets the internal systematic problem within the company. These problems

stem from a stagnant operations methodology that is outdated and inefficient, a poor capture of

institutional knowledge as well as broken lines of communication at all levels. Therefore the

solutions found within this alternative are aimed at improving the conditions necessary for efficient

internal organization. These include a clear definition of roles and responsibilities for all

personnel, a complete overhaul of communication plans spanning the formal and informal

spectrum as well as a robust training program that promotes collaboration between staff, rewards

best practices, and solidifies new in-house procedures and practices.

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The second solution targets the internal relationships, roles of the staff, management practices,

and the company philosophy. The strained relationships between different levels of hierarchy

and different divisions exist as a result of a lack of cohesion and the understanding of common

goals. Meanwhile, roles have evolved to become disorganized and unclear due to a lack of

direction and authority from management. The proposed solution will be to create and nurture

a culture that relies on communication and appreciation of each employee. Additionally,

clearly defining the roles of each employee will begin with the re-organization of management

responsibilities. As a result of all the changes, it will also be necessary to implement a new

company philosophy tasked with not only motivating the employees, but also defining the

purpose of the company and each employee.

The third solution focuses in the internal dynamics of the organization an external focus must be

brought about to better understand problems and to come up with robust solutions. Aligning the

results of a process designed with an external focus with the core values of the organization is a

challenge that the management has to overcome. .Further ways and means to solve the waste

water treatment issue at the technical level must be identified and implemented. The financial

plan and capital improvements required to solve the problem, resource contributions from

various stakeholders and the timescale of implementing improvements are of paramount

importance. The evaluation of technical solutions should incorporate elements of technical

feasibility, financial cost and the organizational culture.

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INTRODUCTION

The Midland Food Processing Co. has found systemic deficiencies due to years of

stagnant management strategies. Deficiencies have been categorized as regulatory, systemic

and organizational. Each category contains specific challenges that need to be addressed and

are described below.

Regulatory

Currently the Plant is discharging 5 million gallons per day (MGD) of wastewater to the

company’s internal wastewater treatment facility. The Facility diverts 20% of its waste to the

City’s 20MGD WWTP located 2 miles downstream. The food processing facility discharge

creates peak flow at the industrial wastewater facility twice per day; these actions ultimately lead

to non-compliance due to quarterly exceedances of permit standards. This issue will be

addressed within Alternative 3.

Systemic

Data shows that there are several problems hindering the optimization of the Plant at both the

managerial and operational levels. These problems are not mutually exclusive but rather

connected in both directions. Currently, huge gaps in communication exist between

management and frontline operations. At the management level there is minimal awareness of

lower-level challenges and daily tasks. These include but are not limited to understanding of

operations, deficiencies in current operations, outdated documentation procedures, and the

lack of active involvement. At the frontline operations level there is minimal knowledge of

organizational goals, compliance strategy, tactical objectives and ways to understand the

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individual operational contribution towards the desired end state. This issue will be explored

further in Alternatives 1 & 2.

Organizational

The eminent lack of communication at all levels within the company has compounded the

effects of the deficiencies described above. This lack of both formal and informal

communication has also contributed to another prevalent issue: the poor capture of institutional

knowledge that includes good practices and operator’s collective intuitive skills that can be

quantified and recorded. This will also be addressed in Alternatives 1 & 2.

This report will ultimately identify the deficiencies in each category at the internal, external

and technical capacity while providing a comprehensive evaluation of possible alternative

solutions. These solutions will include respective implementation timelines and benchmarks

for each of the solutions presented.

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SYSTEMIC SOLUTIONS

COMMUNICATION

Current Lines of Communication

Desired Lines of Communication

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Company communication, both written and verbal, plays a heavy role in the day-to-day

interaction of employees within an organization, but as of late has become dysfunctional and

ineffective, both internal to the company and with external stakeholders.

To improve communication within the organization, a variety of steps are proposed that will

involve every member of the organization and serve as opportunities for team bonding and for

generating organizational pride. Ultimately, organizations that operate and perform with sound

communication methods perform in a manner that promotes transparency and cohesion between

all of its members, and as such, should be a top priority to for management to address.

FORMAL COMMUNICATION PLAN

Department Meetings

Weekly department meetings between the employees of each department will become a

required and essential addition. It is suggested these meetings be held early in the week, and used

as an event where employees can deliver general information as well as discuss top-level

objectives. The meeting should take no longer than 30 minutes and should be a in a setting that

promotes questions and discussions on any pertinent topics. Meetings at the department level

will also serve as a way for the department to come together and bond.

Staff Meetings

Staff meetings between all departments and management should occur on a bi-weekly

basis. Meetings involving all of the departments will allow the necessary leaders to come

together and discuss any issues or areas where departments are relying on support from one

another. This meeting should be chaired and facilitated by one of the senior managers and should

include an agenda that is published at least two days prior to the meeting. Once set up, this

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meeting should serve as a way for the department heads to bond and form relationships that

extend beyond the meeting. In time, this will promote a more cohesive organization and begin to

remove the silos that each department operates in.

Facility Newsletter

Every quarter the organization will publish a company-wide newsletter highlighting any

recent accomplishments for the company as well as recognizing any outstanding personnel

achievements. This quarterly report will include an annual publication of the yearly goals of the

organization and departments, as well as provide an update at the end of the year on whether

goals were obtained. Publishing goals in this manner will help hold the each organization

accountable for the achievement of their goals. Also keep each facility updated with the vision

and mission of each facility, therefore making a strong communication network between the

utilities.

Process Documentation

To address the lack of formal documentation that currently exists in the operations

department, the manager will also be in charge of working with department employees to

develop a new system that will be put into effect immediately. This new documentation

procedure must be fashioned in a way that requires little extra training for the operators, but also

is thorough enough such that the data could be understood by those outside the department.

Ideally, documentation will be phased into solely electronic format, and supplemental training

for this will be provided for those who need it. Most importantly, it is critical for the manager to

oversee that this new form of documentation is put into place, and that operators do not

eventually revert back to old habits. Instead, management should encourage and promote

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operators who establish good practices in the workplace, not only for documentation purposes

but work duties as well.

INFORMAL COMMUNICATION PLAN

This plan will be aimed at the dissemination of information in an informal setting. Not to be

confused with gossip, the informal setting will enable fluid question and answer sessions to

clarify existing plans, objectives and initiatives. The flexibility to tailor this informal

communication plan will be delegated to all levels of management. A critical element of this plan

that will stressed, is that these informal meetings should not transition into just another pointless

meeting. Rather through fluid agenda and quick execution of the meeting not exceeding 15-

20min, the objective of this meeting should be met.

Another facet of the informal communication plan we recommend is the implementation of an

open door policy at all levels of management. This open door policy will meet at minimum a

policy letter outlying the purpose of the policy. This purpose should include but will not be

limited to engagement from management, management taking the time to walk through the

facility and allow all frontline personnel to approach management at any time especially if ethics

or safety is being compromised.

Staff Requirements and Expectations

MANAGERIAL RESPONSIBILITIES

The success of the company is reliant on the effective communication between management and

staff. The manager not only plays a critical role as the leader and figurehead of the company, but

is also responsible for understanding the needs and expectations of each employee- in other

words, good insight ensures staff and company goals remain in sync. The manager who is able to

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build a positive and engaged rapport with employees in turn creates a positive association of

him/herself with the company as a whole.

As the company moves through a shift in organization and culture, it’s up to management to be

transparent and maintain constant communication throughout the entire process. Managers need

to stay in constant contact with their direct reports to ensure operations are running smoothly. As

a result, one of the first things that must be implemented is a robust communication plan that

provides a framework between management and employers.

There are three main components to the manager-staff communication plan. The first involves

routine visits to the plant from higher levels management. Getting a sense of what operators do

on a day-to-day basis, as well as developing a positive relationship with the staff is incredibly

important with respect to team morale. Regular inspections also encourages operators to keep the

plant in good shape.

Daily reports from both operators and lab staff, provided in a clear and succinct manner, will

keep managers informed on the technical details. The reports should compare existing data to

weekly goals and target metrics that allows the manager to see whether operations are on track.

Finally, good management requires an open mind and a willingness to listen to his/her staff

without any threat of retribution. An open-door policy should be implemented, where staff is free

to report any workplace or personal concerns that may affect a person’s ability to perform his/her

duties.

FRONTLINE OPERATOR RESPONSIBILITIES

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The Plant operators form the backbone of the entire company. They keep the plant running and

are incredibly knowledgeable and experienced in their field. As a result, current operations staff

have become specialized to the point of demonstrating a reluctance to change. Operators work in

unpredictable and sometimes hazardous conditions, as well as irregular hours, and as a result

have adapted to a particular way of carrying out daily tasks that may compromise their safety, or

may not be sufficient to satisfy changing demands or regulations.

In order to address these issues, operators need to work towards organizational changes that

promote improved communication between staff. A simple way to promote collaboration is

through morning meetings. These meetings will be led by head operators and will be used to

summarize daily goals and to address any issues that need attention. This will ideally clarify any

confusion concerning who is assigned to what, or what each person is responsible for on that

particular day. In addition to the morning meetings, there will be a weekly meeting that should

highlight the week’s successes and where improvements need to be made. Individuals who have

demonstrated above-and-beyond work ethics should be praised, as well as those who have shown

significant improvement during this transitional period. In between these meetings, heads of

operations are encouraged to take note of staff performance, and encourage an open-door policy

to hear any concerns from staff that may arise.

One of the most important valuable aspects of the working world is the chance for lifelong

learning and professional growth. Training seminars, conferences and professional certifications

are all invaluable to a successful operations department. Training seminars, whether done

internally or through an external organization, aim to refresh any practices that may have been

lost through habit, or to establish new ones. Seminars will cover, among others things, safety,

emergency situations, overviewing new documentation procedures, as well as inter-departmental

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seminars that will expose staff to work outside of their department. These training seminars will

be held on a monthly basis. However, posters and signs placed in high-traffic areas that

summarize key seminar points will be imperative for solidifying any new or long-forgotten

concepts.

TRAINING

Management’s commitment to training is key to a successful program. It’s important to

recognize training as a budget expense item, typically expected to require between 3-5% of the

gross budget for the system. Other changes, such as incorporation of new technology, or new

testing methodologies, will have a short-term impact on training costs. Although training is not

explicitly required, a collection system with untrained or poorly trained system personnel runs a

greater risk of experiencing noncompliance.

The following elements are essential for an effective training program:

• Fundamental mission, goals, and policies of the collection system are addressed

• Mandatory training requirements are identified for key employees

• On-the-job training progress and performance are measured

• The effectiveness of the training is assessed including periodic testing, drills, or

demonstrations

• All new employees must receive training

Some general types of training sessions for operators could include, but are not limited to:

• Routine maintenance (may be on-the-job training only)

• Safety training

• Record keeping

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• Electrical and instrumentation (may be a combination of formal and on the-job training)

• Public relations and customer service

• SSO/Emergency response

• Operations and maintenance

The training program should identify the types of training required and offered. Types of training

vary, but may include general environmental awareness, specific equipment, policies and

procedures, and conducting maintenance activities. If the operators are carrying out their own

training, the reviewer should evaluate one or more examples of training materials to answer the

following questions: are the materials appropriate to the training topic and the level of those

being trained; and are they likely to accomplish the intended goal?

ORGANIZATIONAL SOLUTIONS

DEFINING THE BUSINESS AND BUSINESS STRATEGY

First and foremost, clearly defining the business and business strategy will allow the

company to set priorities for both the plant and management team which will in turn help attract

and retain valuable personnel. The business strategy will be two-fold in order to address the

strategy of both the food processing plant and the waste treatment plant. The strategy of the food

processing plant will focus on enhancing quality and safety systems, abiding to the

environmental regulations, creating and promoting efficient processes, developing and

implementing effective management teams, promoting a synergy between the different divisions,

and effectively communicating with shareholders and employees alike. The strategy to achieve

the aforementioned goals will be to hire managers, contract with outside consultants, implement

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regular training, actively monitor and adjust the techniques, and implement an open

communication plan that flows equally from shareholders to employees.

DEFINE GOALS

Implementation of a new company philosophy that aligns with the changes to the

management and operating processes will require that new goals be developed and clearly

defined. The goals have been designed to address both the existing conditions and the proposed

changes with the intent to mend the two together moving forward. The goals of the food

processing plant will be to enhance quality and safety systems, abide by the environmental

regulations, create and promote efficient processes, develop and implement effective

management teams, promote a synergy between the divisions, and incorporate a communication

plan that includes the shareholders and the employees alike. Implementing the goals during the

transition period will ensure that the joint direction is clear to both the management and the staff.

The greatest risk in adapting the new goals will be the possibility of resistance from the staff who

perceive the changes and the goals with a negative connotation. Any confusion can be thwarted

by reiterating the concept of open communication and maintaining an iterative approach to the

implementation of the changes.

ETHICAL STANDARDS

The adoption of higher ethical standards within the company philosophy is intended to

provide three primary benefits to the plant overall. First, higher ethical standards will generate a

greater drive and effectiveness as a result of the staff knowing that they can do the right thing

decisively and with confidence. Any doubt is about which action to take will be eliminated and

an ethical standard will be further reinforced. Second, as the plant adapts to the higher ethical

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standard, higher-caliber employees will be attracted and retained. Thus, not only will the

management and operations aspects benefit, but the plant as a whole will gain a basic

competitive advantage. Third, higher ethical standards will benefit the relations with clients,

governing bodies, and with the general public. By continuously performing to a level of higher

ethics and leaving no doubt that they are counted on to do the right thing, the plant will develop a

favorable image. Ultimately, higher ethical standards will ensure that the activities and decisions

of each employee are governed by their principles and values – which in turn will translate to

higher ethical standards of the plant as a whole.

COMPANY DECISION-MAKING

The company philosophy will also implement a standard practice for decision making.

The standard will require that decisions should be fact-based, objectively considered, and

omniscient of decision making biases. First, the fact-founded approach should begin at the top

and should be continuously nurtured by the higher level staff. Requiring that higher level staff

lead by example will create a custom that can be successfully passed down to lower level

employees. Second, all of the options should be identified and considered. Collection and

consideration of all of the options will require that all of the facts and options are presented and

therefore all can be consistently evaluated. Third, several layers of authority should review the

facts prior to finalizing the decision. Involving multiple layers of authority will not only

encourage different opinions from being presented, but it will also ensure that a fear of

displeasing any portion of the management will not create a bias.

Practicing the decision making process will allow employees to keep their minds open,

remain cognizant of common decision making biases, and will develop a factual atmosphere that

stimulates better thinking which results in better decision making.

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PERFORMANCE MEASURES

The company philosophy will also include measures that ensure that personnel are

evaluated based on their performance as opposed to personality, education, or personal traits and

skills. What a person has accomplished in the past is the most reliable indicator of what he or she

is likely to do in the future and therefore it will be taken into consideration during the hiring

process. The performance evaluation will be one of the more critical components to the company

philosophy as it provides recognition to each employee.

Metrics will vary for each employee based on their respective positions. Managers will be

evaluated on their ability to demonstrate leadership skills, make effective decisions, and

accomplish the goals of the plant. Meanwhile, their alignment with the plants goals, ability to

communicate, ability to make decisions, ability to diagnose problems and provide solutions, and

training achievements will be the primary performance measures that the staff will evaluated on.

In the end, the employee’s performance will provide the most reliable guide for approval or

disproval for decisions on compensation and advancement.

OWNERSHIP & URGENCY

The last component of the new company philosophy is the implementation of sense of

ownership and urgency within each of the employees. The sense of ownership will require that

employees adopt a mentality where they make decisions and perform their tasks as if they were

they themselves are owners of the plant. To accomplish this, managers should provide clear

direction as to how each individual’s role directly affects the performance of the plant as a whole

and enforce responsibility accordingly. In doing so, each employee will generate a greater

interest in their respective roles, they will be proactive in identifying problems, and they will be

provided with a greater perspective when making decisions. Accomplishing this will be done by

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offering performance based bonuses, as well as a share of company profits. Additionally,

recognition for actions in-line with a sense of ownership and urgency should be publicly

recognized whenever a demonstration is noted.

COMPANY MISSION AND VISION STATEMENT

Implementation of new company philosophy in conjunction with the managerial and

operation changes comprises a critical role in the overall improvement of the plant. However, the

complete overhaul will also require the creation of new vision and mission statements. The

vision statement will help communicate the plants goals which will inspire both the management

and employees alike. Similarly, the mission statement will convey the sense of why the business

exists to both the staff and the community. The vision statement will capture the goals and the

core values of the company.

Vision Statement

To develop the self-determination of our employees in order to develop a socially

responsible plant that contributes to a higher standard of living for themselves

and their families.

The mission statement will profess the goals to its customers and the community.

Mission Statement

To satisfy our customers by providing quality food products while protecting

public health through responsible environmental practices.

INTERNAL SOLUTION FACET

One of the most prevalent phenomenon that has ailed business performance is known as the Nut

Island Effect, first described by PF Levy in the Harvard Business Review in 2001. More

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specifically, wastewater treatment operators has grown isolated from the rest of the company

staff to an extreme degree. Starting from the bottom, the staff has become accustomed to using

their own method to perform daily suspended solid measurement and does not seem concerned

that this is not in unison with the method employed by the onsite laboratory. Secondly, the staff

work as a group and refuse external help. Thirdly, the operation staff`s relationship with the City

is cordial but superficial. The superficial nature of this relationship goes to show that there are

issues in plain sight but seem to be hidden from everyone. This issues must be confronted and

addressed before they become unmanageable.

RELATIONSHIP, ROLES, MENTORING AND MANAGEMENT

The solutions discussed here address relationships, roles, mentoring within the organization,

management of the WWTF, the onsite laboratory and the current culture within the organization

1. Roles

The onsite laboratory staff reporting to a different manager seem to be creating a disconnect in

the wastewater treatment operation and standard monitoring at the facility. This is because the

operation staff do not see the need to answer to any authority outside of their operations. This is

why the onsite laboratory uses an approved method to record SS measurement while the

operation staff use a different method. To address this problem, roles and responsibility of

personnel must be clearly defined. The human resource team will conduct a desk audit of all

positions. Upon completion of desk audit, personnel will be assigned to positions according to

their expertise and skill levels. Vacant positions will be advertised and filled as appropriate. The

benefit of this process is that operations staff will stay on their operations while the laboratory

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staff will maintain all laboratory records so that errors and deviation from standards will be

addressed in a timely manner should they happen in the future.

2. Mentoring

Employees with identified desirable skills will be advised and encouraged to mentor junior level

employees. It is important to note that some behaviors and attitudes within the organization are

not desirable and must not be encouraged. Mentors must be trained and advised to pass on skills

that are needed to improve operations while focusing on the mission and vision of the

organization. Mentoring in the organization is very important so as to ensure knowledge

retention. Employees nearing the end of their career should be paired with junior level

employees for skill and knowledge transfer. It is assumed that the organization will do its best in

hiring employees with the right attitude and teach the necessary skills as deemed fit.

3. Management

The second solution has to do with the management of the onsite laboratory. It is understood

that the manager of such a laboratory operation must be knowledgeable in the area of laboratory

activities and its impact on water quality and overall operations. This is why it is important to

retain this manager. Currently, the wastewater treatment staff report directly to the food

processing facility manager. This reporting format is not in the best interest of the organization

because the Food Processing Manager may be overseeing an operation that is too large.

Secondly, decision making may pose a problem because the manager may not be objective when

making certain decisions.

A new manager should be hired to oversee the wastewater treatment operations. This manager

must work hand in hand with the onsite laboratory manager. Both managers will then report to

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the Food processing manager who reports directly to the top level manager. This will ensure that

all records are coordinated by a single unit within the organization and when issues arise that

need immediate attention, they are not filtered by the disconnected chain of command. It is

important that the new Wastewater Treatment Operation manager and the Laboratory Services

manager work independently.

Along with this arrangement, the company must employ the service of an independent

laboratory. The independent laboratory will conduct occasional testing on plant effluent to

ensure compliance and also serve as a form of independent verifier of all measurement

conducted by the onsite laboratory.

CULTURE

The organization must start teaching a culture that celebrates a common mission. The current

culture in the organization is such that the operation staff view the laboratory staff as outsiders

that are there to monitor their operations rather than insiders that are there to ensure that they are

running a smooth operation devoid of regulatory woes. The culture within the organization must

change to one where every staff member sees the other as a partner rather than a competitor. The

solution to this is to conduct biannual mandatory training geared towards uniting a diversified

team to inform the entire staff of the need to work together, celebrate diversity and understand

that there is a common mission, as described in the Training section above. At these trainings

the mission of the organization to ensure that discharged wastewater meet regulatory standard

must be stressed. These trainings will be conducted by qualified training personnel external to

the organization and with a good understanding of the plant operations, its vision and its mission.

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RELATIONSHIP WITH THE CITY

Wastewater operations currently provides monthly report to the City and give City employees

access for periodic inspection and monitoring of the 20% waste stream before it leaves the

facility. The facility also transfers 20% of its waste to be processed by the City’s 20 MGD

WWTP, indicating a strong dependence on City operations. From a non-technical standpoint,

Midland Food Processing CO. is the greatest employer of Midland’s residents, as well as it

largest source of revenue. As a result, positive and productive ties with the City is imperative for

continued and successful operations within the company. This section will address proposed

improvements to City-Company relations.

ON-SITE CITY INSPECTION STAFF

The company will request on-site personnel from the City at the internal wastewater treatment

facility. This will be a short-term but ongoing solution until the facility is able to meet and

maintain an acceptable permit standard. The purpose of having onsite personnel from the City is

to ensure that procedures are not altered to create a façade of a smooth running operation. The

role of a City Inspection and Monitoring staff will be similar to that of a Construction Inspection

staff on a major construction jobsite. The inspection/monitoring staff monitors day to day

operations, create daily report, identify deviation from standard and immediately notify the

appropriate staff.

This is different from the periodic scheduled inspection, monitoring and reporting in that the

procedure is ongoing and the wastewater treatment facility is open to continuous inspection by

the City. Also, the Facility is made aware of any issues relating to non-compliance of operations

deficiency as soon as such occur rather than wait for a month or until a violation is issues before

taking appropriate actions

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MONTHLY MEETINGS

The facility will continue to provide monthly report to the City and give the City access for

periodic monitoring and inspection. However, a monthly coordination meeting must be held

between the City and the wastewater facility. First, this will foster the relationship between the

two organizations. Secondly, the meeting will create the avenue and the atmosphere for

reviewing the Facility`s report and identifying areas that need improvement. It is expected that

at this meeting, action items will be identified and deadlines will be assigned to these action

items. The meeting will be organized by the Wastewater Treatment Facility and held

interchangeably at the City Office and the facility office. The purpose of having the meeting

both locations is to create a sense of partnership and stronger bond and relationship between the

two organizations.

Financial Implications for Systemic and Organizational Solutions

Implementation of the organizational and management changes will without a doubt include

financial implications. As a recap, changes that will require capital in addition to the standard

operational costs are comprised by the following strategies:

Production of a quarterly newsletter

Creation and implementation of training programs

Training seminars

Organization and implementation of documentation procedures

Staff bonuses and incentive programs

Hiring of key staff members

Contracting of an independent testing lab

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Contracting of independent consultants

The current financial state of the organization will not allow for an elaborate overhaul of the

entire wastewater treatment operations. However, reasonable approximations can be made in

order to establish a budget moving forward. Overhead expenses, such as the production of a

newsletter and additional training, will require approximately $50,000 per annum. Staff bonuses

and incentives will be a function of salaries. Reasonable bonuses will range between two and

five percent in order to offer fair compensation for efforts above and beyond those established

within the performance metrics.

Modifications to the organization chart will go a long way to ensure compliance to operation

standard. One of this is the need for a Senior Staff member to manage the water treatment

operation. This person must have managed a wastewater treatment plant of equal or larger

capacity. The minimum years of experience required to manage an operation of such complexity

is fifteen years with a B.S degree in Environmental Sciences/Engineering. The manager must

also hold a wastewater treatment plant operator license valid in the state of Colorado. This

position falls in the $115,000 to $145,000 salary range per annum. The median salary for this

position is $130,000.00 per annum.

The desk audit and role reassignment anticipated will also leave two positions open within the

wastewater operation team. These positions are the Operations Unit Coordinator and the

Maintenance Unit coordinator. Both positions are necessary to ensure that all operation staff are

managed by a junior level manager with expertise beyond checklist preparation. The Operations

Unit Coordinator will see that daily reports are prepared and maintenance operations are reported

in time to the Maintenance Unit Coordinator for immediate action. Both position fall in the

$90,000 to $120,000 salary range per annum. The median salary is $105,000 per annum.

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The onsite City inspection staff will also be at the expense of the organization. The service will

cost $4,500 monthly. No overtime is anticipated.

The cost of the independent lab testing is estimated to be about $3,000 monthly.

The City and the Food processing plant will share the cost incurred for the monthly meetings.

This should cost the plant no more than $500 monthly in entertainment/light refreshment cost.

The total yearly cost for this solution is $382,000.00.

IMPLEMENTATION PLAN FOR SYSTEMIC AND ORGANIZATIONAL SOLUTIONS

The managerial and operator communication plans should be put into effect as soon as possible.

Training programs will compliment and strengthen new expectations from operators, and

improved documentation will be phased into practice as staff becomes increasingly more

familiar. 

Management will be responsible for promoting and encouraging the internal communication

plan, as well as becoming more involved in daily operations. 

While new expectations within the proposed communication plan will be implemented as a first

priority, they should be carried out with a long-term focus- that is, changes made with respect to

the company's formal and informal communication are expected to be applicable in decades to

come. 

The Human Resource department must move swiftly with a desk audit of all positions in

the plant. It is expected that this audit will be completed within three months. Advertisement for

the new positions will commence in month four. Positions will be advertised for thirty calendar

days and a selection made by the end of month six.

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Following the filling of the new positions, the Onsite City Inspector will be brought on board.

This should happen during month seven. At the same time, the Plant must start using the service

of the independent laboratory. Also, the monthly coordination meeting will commence the same

month. This plan will ensure that the new managers take their positions and start implementing

changes before bringing in external hands.

The new company philosophy, mission statement, and vision statement will be adopted

immediately in order to further bolster the sense of direction with the impending changes. The

company philosophy will be introduced in conjunction with the other alternatives, but gradually

implemented over a one year period in order to allow for a smooth but thorough transition.

Management will be responsible for introducing the company philosophy and incorporating it

into the changes as they are implemented. It will be essential that management lead by example

by continuously implementing the components of the company philosophy, demonstrating the

importance of each, and guiding employees through the transition. Lower level staff will obtain

training specific to the company philosophy within their operational training. Lastly, staff

evaluations include a component that addresses corporate philosophy.

As for the mission and vision statement, higher level executives will lead both the development

and implementation. Introduction of the mission and vision statements will take place

immediately and its adoption will come more naturally as it will follow the implementation of

the company philosophy.

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REGULATORY SOLUTIONS

Besides working on improving the strength of the organizational framework and

resolving various conflicts and communication voids in the management of the plant the

technical and financial aspects also have to be discussed. To solve the problem in the technical

domain, various types of possible solutions to the problem have to be identified and analyzed.

These a solution s should then be analyzed and compared to find the best or best solution or set

of solutions. This process of evaluation should also include the financial impact of implementing

the proposed solutions. The much needed external focus on the working and the problems faced

by the plant should also be given priority. Then the role of the external consultant in the

organization must be defined. The inputs from the external consultant can help avoid decision

traps and increase the vigor of the analytical processes that go into problem solving. Then finally

from the above factors discussed a suitable solution can be arrived at. Assistance from external

consultants can be sought to identify and evaluate possible solutions.

TECHNICAL SOLUTIONS

Since the problem is related to the plant discharging waste water more than its permitted quota,

possible solutions should explore avenues for re-routing waste water flows away from the in-

plant waste water treatment plant to the waste water plant operated by the city. This re-routing

can take place in form of diverting excess flows during peak waste water generation periods to

the city’s treatment plant, increasing the current quota of 20% diversion to the city’s waste water

treatment plant to a higher share or set divert the entire waste water discharge to the city’s

treatment facilities.

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1. Diverting peak waste water flows to city treatment plant

During the course of the operation of the plant there are bound to be timelines where the waste

water discharge would reach peak values. Such peak flow timelines can be assessed and the

flows that are in excess of the average flows can be diverted to the city’s waste water treatment

plant. This would enable better adherence to permitted standards and can greatly help to reduce

periodic occurrences of permit violation that has happened in the past. This would be truly

advantageous and a win-win situation if the peak flow timelines of the city’s waste water

discharge and the plant’s waste water discharge are not the same. In case the peak flow timelines

clash the possibilities of adjusting the plant operations to obtain favorable peak flow time scales

should be explored.

2. Increasing the current quota of waste water treated by the city’s facilities

Currently 20% of the waste water discharge from the plant is being treated by the city’s facilities.

The possibility of increasing this share should be explored. If the city’s treatment plant holds

excess capacity for treatment, the plant and the city should explore the possibly of using the

excess capacity of the city’s facility to treat excess waste water flows. In the case of absence of

significant excess capacity to treat increased flows from the plant, the city and the management

of the plant should explore avenues for funding capacity addition to the city’s facilities to treat

increased waste water flows from the plant. As a short term plan the plant must consider

approaching the city to allocate their excess capacity to handle waste water flows from the plant.

3. Complete diversion of all waste water to city’s treatment facilities

The plant with the consent of the city may choose to wind up its entire waste water treatment

system and divert the entire waste water flows to the city’s treatment facilities. This would be the

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easiest and the swiftest solution provided the city has adequate excess capacity to treat all of the

plant’s discharge. If the city were to lack such excess capacity the capacity can be increased via

capital investments. The investment on new facilities can then be recuperated via revenues

obtained in the form of payments for service from the plant. The city can explore many financing

opportunities like bond markets, joint venture between the city and the plant, rate revisions etc.

This situation would then enable the plant to concentrate on its core business activities and not be

distracted by tangential priorities like waste water treatment.

4. Engaging external contractors and consultants to handle waste water operations

There exists the possibility of the plant’s management relinquishing operational responsibility

for waste water treatment. The plant management can engage external consultants or contractors

to take care of the waste water treatment processes. It can be in the form of BOO –Build Own

and Operate wherein a third party builds owns and operates the treatment facilities and charges

the plant for the running of facilities. The plant can also devise a way to build and own the

treatment facilities and then contract a third party to run the day–to-day operations. The

advantage of taking this route is that the management of the plant can then concentrate all its

efforts or running its core business and not be bothered by peripheral considerations like waste

water treatment. The management might also be able to overcome the ill effects of knowledge

deficit in its organization by bringing in skilled and experienced third party contractors. The

plant can also conserve resources that would be consumed in hiring, training and compensating

staff for the running of the waste water treatment plant. The downside to this plan would be that

this could result in layoffs that impact members of the local community and may also trigger

conflicts with labor unions.

5. Hybrid Solution

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The solutions described above could be implemented singly or can be implemented as a hybrid.

The plant could contract the city a greater share of the waste water flows, a peak flow

arrangement can also be made with the city and the waste water operations of the city could then

be handed to an external contractor. This would result in a situation where the plant can

concentrate its efforts on its core business activity. This would also result in a situation where the

city and plant could better cooperate to achieve required standards in waste water treatment.

Role of External Consultant

Besides internal organizational problems and communication failures, the wastewater treatment

plant has been too internally focused and lacks an external perspective. This stems from the

reluctance of the waste water treatment staff to proactively engage with their city council

colleagues and external experts. Considering the present predicament of the company it is

evident that the treatment plant staff are not technically well versed and the head of the plant is

also deficient in his/her understanding of the working of the plant. Though training and capacity

building can overcome this issue they cannot provide a short term solution. Thus it is imperative

to engage an external consultant to review the entire waste water treatment plant facility; both

organizationally and technically.

Bringing in an external consultant can provide much needed external focus into the organization.

Consultants can also bring technical expertise to the table and would be able to make up for the

knowledge deficit that plagues the facility. In the short-term the findings of an external

consultant can enable the management of the facility to understand the exact nature of the

problem. They can bring in critical technologies that can increase overall efficiency and bring

down costs .External consultants can bring in legal and domain experts that can enable in better

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tackling the waste water treatment issues .They can aid in identifying low hanging fruits that can

mitigate the situation to a great extent. While consultant can bring a whole range of positives to

the organization they can also affect the organizational dynamic adversely.

The staff of the treatment plant who are averse to external consultants may feel that their position

in the organization is being threatened and consequently would try to oppose the plan. Such

dissatisfaction can potentially worsen the situation. In this scenario the management has the

delicate task of managing the wellbeing of the company and also perceptions of the workforce.

The management must present the role of the consultant as a trouble shooter who brings in much

needed external focus and not as an entity who tries to find fault with the staff or supplant them.

The consultants must try to engage with employees of the company positively and proactively,

they must endeavor to enmesh themselves in the culture of the company and bond themselves

organizationally to the company. Their role must be that of a facilitator to achieve organizational

and technical excellence. They must not attempt to exploit organizational fissures that are

already present in the organization to push through agendas that they perceive to be the solution.

There is always an element of risk associated with hiring consultants; they may try to provide

solutions that meet technical and managerial parameters but then do not go down well with the

culture of the organization. Thus the opinions expressed by consultants should be vetted and then

be implemented in a manner consistent with the overall objectives of the organization.

Financial and Capital investment Plan for Regulatory Solutions

The current situation dictates that capital improvements have to be made to improve the waste

water treatment infrastructure to meet the EPA guidelines. As per the scenarios discussed

previously the capital investment can be made by either the plant, the city or both. If the plant

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proposes to solve the problem by itself that would mean that the entire capital investment would

be coming from the company that runs the plant. If the plant were to contract the city to treat the

entire waste water discharge then the city would have to fund the capital improvements through

its own funds. Another option could be that the plant and the city jointly fund the capital

improvements required. This could be in a possibility if the plant were to augment the capacity

of its treatment facilities to treat more waste water that is being currently treated and the city also

increases the capacity of its facilities to increase treatment capacity.

To decide on the options available the financial status of the parties involved i.e. the company

that owns the plant and the city should also be looked into. The business the company is into

involves stiff competition and small margins. Thus it can be hypothesized that it would be

difficult for the company to raise the capital from their reserves. Their ability to raise capital

through the bond market would prove to be difficult as investors would be hesitant to invest in a

plant that is facing the threat of being shut down by the EPA due to non-compliance of federal

regulations. The city would also be constricted in its ability to fund the entire capital required to

augment the treatment facilities as there would be reluctance from various constituents that do

not want their tax and rate monies to be spent on assisting a private company. In this scenario the

city would be put in a situation where it would have to increase the rates to levels that were not

anticipated previously and this would result in a great amount of resistance from various

stakeholders in the city. Further a sudden and unexpected big ticked capital investment would

unsettle long term financial plans of the city utilities in concern. There would also be a

possibility of the city’s utilities falling into a debt trap where they are unable to maintain healthy

debt service ratios. Sudden and unexpected expenditures can also impact the health of the city

utility’s operational and maintenance reserves adversely.

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Thus it would be more appropriate if the capital improvement was funded by the company and

the city. The company can invest capital to qualitatively improve their treatment processes by

means of updating technologies and processes used. At the same time the plant can contract the

city to treat more wastewater flows and the city can then improve their treatment facilities

through funds from their reserves or through a combination of bonds, increased rates and

reserves. While preparing an overall capital improvement plan the relationship between various

stakeholders has to be identified and appreciated. The fate of the plant depends on solving the

waste water treatment problem, the economy the city depends on the plant and many residents of

the city are employed by the plant. Thus there must be a co-operative approach to solve the

problem. The scenarios where the city or the company fund the entire capital improvement plan

seem to be the least viable option. This again points in the direction of the hybrid solution

discussed in section 1.5 that envisages the city and the company contributing funds for capital

improvement. The city can recuperate its investments via rates paid by the plant and through

nominal increase in base rates.

The decision making process in this case should take into account the financial viability,

technical viability, time scales and the organizational culture of the plant. Due attention should

be paid the organizational and managerial process that exist in the plant and how they can be

improved. Since the business the plan is engaged in is highly competitive and the margins are

low these realities must be considered while making the financial and capital improvement plan.

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FINAL THOUGHTS

This plan was developed with the intention that, through a combination of short and long term

changes in company organization and practices, the Midland Food Processing Plant will provide

a much-improved level of service and reduce regulatory noncompliance. A successful business

looks towards the future, and aims to adapt to potential changes, as well as modifying, extending

and developing the existing organization. However, in addition to asking “What will our business

be?” management should also be concerned with “What should our business be?” This is, in

what way can the company change and grow in order to fulfill the company’s mission and

purpose?

For decades, the company has lacked the required level of innovation, cooperation and fresh

perspective required for positive growth and development. As a result, a rift has formed between

upper management and operations- each group concerned with their own respective

responsibilities, with little overlap in between. The strategic planning provided in this report

aims to bridge this gap. A formal and informal communication plan will be used as a guide

towards promoting improved inter-departmental relations, in the form of routine staff meetings,

faculty newsletters, Plant visits from upper management, and managerial reports.

A complete overhaul of severely outdated documentation procedures indirectly serves to address

the non-compliance issue by increasing operator awareness of treatment performance. Training

seminars is another proposed addition to the operations department. Seminars will cover a wide

array of company-related topics, such as work safety, company values and culture, and

overviews of new procedures.

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One of the most effective ways of improving company’s performance is through providing clear

goals and a unified company vision, which gives staff at every level and department a purpose

and an improved staff perspective of the business. This will be accomplished by redefining the

company’s existing values and culture. A more robust business strategy, increased emphasis on

ethical standards and effective decision-making will, over the long-term, maximize company

potential for success.

Finally, improving and maintaining company relationships, whether internal or external, are

imperative to good business practices. Due to the fact that Midland Food Processing Co. forms

such a large part of the city’s economy and workforce, the need for constant communication and

transparency between the two parties is clear. Further, positive inter-departmental relations will

be promoted through the use of staff parties and company-wide meetings.

One of the most urgent needs of the plant is addressing the non-compliance issue with the EPA.

Technical alternatives are provided, each with their respective pros and cons, as well as short and

long term timespans. These alternatives aim to provide management with the tools and

information needed to move forward with ensuring waste is treated to the required degree as

soon as possible, while providing the capacity for the plant to adapt and grow to changing

company and city needs.

A financial and implementation plan is also included within this report. The two provides

estimated costs and timelines to be used as a guide when considering the strategic solutions.

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REFERENCES

1. http://www3.epa.gov/npdes/pubs/cmom_guide_for_collection_systems.pdf2. California State University (CSU) Sacramento.1996. Operation and Maintenance of Wastewater Collection Systems.

Volume I, Fifth Ed. Prepared for EPA, Office of Water Programs Operations. Sacramento, CA: California State University, Sacramento Foundation.

3. Levy, Paul F. (March 1, 2001). "The Nut Island Effect: When Good Teams Go Wrong". Harvard Business Review (Boston: Harvard Business School Publishing). Retrieved 2015-02-05

4. Drucker, Peter F., Management: Tasks, Responsibilities, Practices, 19735. CVEN 5584 Class Slides

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