Improving Your Strategic Focus & Performance by Dan Ryan

1. Strategic Performance Management & Measurement Summit
Improving Your Strategic Focus & Performance
March 27, 2010
Atlanta, GA
Dan Ryan, EVP Management Systems and Health & Safety

2. Veolia Water is the
leading provider of
comprehensive water
and wastewater
services for over 300
municipal and
industrial clients
through-out North
America.
Approximately 2,700 Employees
In 32 States and 3 Provinces

3. Veolia Water Uses Balanced Scorecard to Drive North American Strategy
• Veolia Water introduces new CEO in
2008 – Laurent Auguste.
• Auguste had experience with the
balanced scorecard in his previous
roles with Veolia Water in the Asia-
Pacific region .
• Auguste seeks winning strategy based
on strategic alignment throughout the
organization.
• Veolia Water selects the Balanced
Scorecard Institute to define a
strategic planning and management
system based on balanced scorecard
methodology.

4. Veolia Water Uses Balanced Scorecard to Drive North American Strategy
CEO creates new department – Management Systems
The role of “Management Systems”
Develop and implement systems and procedures for enabling continuous
improvement towards maintaining high standards of quality, reliability, safety and
compliance across the country.
Many similarities with BSC

5. Worked with our Consultant to…
 Train Management Teams on BSC Methodology and Value
 Develop Mission Statement
 Develop Vision Statement
 Conduct Strengths, Weaknesses, Opportunities, and Threats
(SWOT) Analysis
 Identify Strategic Objectives
 Identified Key Performance Indicators (KPI’s)
 Set KPI Targets and Red Flags
 Identify Initiatives
 Cascade Process to Functional Departments
Engagement of consultant reduced likelihood of false start.

6. Key components of our strategy
Reliable solutions to water challenges –
Mission Added value for customer, employees and shareholders
Vision Recognized benchmark Leader
Values Behaviors driving SVR (Service, Value, Responsibility)
Profitable Growth, Recognition,
Mid-term Objectives Employer of choice
Strategy Map How we get there
Key Performance Indicators Tracking our progress
Initiatives Actions making it happen

7. The Veolia Water Balanced Scorecard was designed to:
• Boost organizational performance.
• Breakdown communication barriers
between business units and
departments.
• Increase focus on strategy and
results.
• Budget and prioritize time and
resources more effectively
• Help the company better understand
and react to customer needs.
Alignment

8. Veolia Water North America
Corporate Strategy Map
Sustainable, Profitable High Growth Innovative Solutions & Partnerships Operational & Technical Excellence
Achieve
A High Rate of Increase
Sustainable Profitability
Financial Growth
Increase
Increase Customer &
Customer Penetration of New Community Trust
& Current Markets & Strengthen
Brand
Leverage Improve
Improve
Business Increase Business Technical, The Performance
Internal
Development Operational & of Our New and Processes
Process Throughout the
Business Current Business
Expertise Organization
Attract, Improve Cultivate a
Learning Develop & Understanding Performance
& Growth Retain Skilled & of Stakeholders Based
Ambitious Staff & Market Trends Organization
8

9. BSC Web-Based Software- Quick Score™

10. Mandatory Training for Project
Manager and above.

11. The following slides are example initiatives that were…
1) Funded as justified by the BSC process
2) Selected to support Strategic Objectives and their KPIs

12. Initiative / Strategy Map Linkage
Talent Acquisition and Recruitment
Hired Bob Caldrone; Director, Talent Acquisition
12

13. Initiative / Strategy Map Linkage
Compensation Framework
- Levels
- Titles
- Salary Ranges
- Incentive Targets
13

14. Initiative / Strategy Map Linkage
Performance Management
14

15. Initiative / Strategy Map Linkage
Competency Management
Developed Database
Reviewed job descriptions for key
jobs in operations
Completed “mapping” of
competency requirements for key
jobs in operations
Identified gaps and opportunities
Developed competency-based
training programs
15

16. Initiative / Strategy Map Linkage
Re-design of Annual Incentive Plan (AIP)
16

17. The Balanced Scorecard
Aggregate Score will also
impact the level of funding
of the incentive pool.
17

18. Initiative / Strategy Map Linkage
Re-design of Annual Incentive Plan (AIP) – cont.
2011 Balanced Scorecard Target 6.67
2011 CAFOP / Revenue Target 10.12%
18

19. Initiative / Strategy Map Linkage
Commission Plan Re-design
Funding of Commission Pool
Determination of Size of Commission Pool
Clarity and Definition Related to Administration of Commission Program
Linkage of Developer’s Commission Plan to Annual Incentive Program (AIP)
Allow for Some Level of Subjectivity/Flexibility
Communication of Commission Plan
19

20. Initiative / Strategy Map Linkage
Created Shared Service Center
20

21. Initiative / Strategy Map Linkage
Payroll Consolidation
Addressed Numerous Payroll Issues:
- Payroll Processing and Practices
- Federal Employer Identification Number (FEIN)
21

22. Initiative / Strategy Map Linkage
Time Labor Management
Converted from paper time-
keeping to a computerized time
labor management system.
22

23. Initiative / Strategy Map Linkage
Reorganization
To better manage existing
business and to proactively
organize for expected growth:
Reorganized “Municipal”
regions from 4 to 3.
Formed an “Industrial”
Business Group
23

24. Initiative / Strategy Map Linkage
Project Polaris
24

25. Initiative / Strategy Map Linkage
Under Ground Asset Management (UGAM)
25

26. Initiative / Strategy Map Linkage
Meters – Product Offering
=
26

27. Initiative / Strategy Map Linkage
Water Footprint
Carbon Footprint
27

28. Initiative / Strategy Map Linkage
Benchmarking
VWNA / McKinsey Joint Venture
- Pilot project at VW Indianapolis
- Pilot project at VW Milwaukee
28

29. Initiative / Strategy Map Linkage
CRM Sales Tool
Customer Relationship Management (CRM) is a widely-implemented
strategy for managing a company’s interactions with customers, clients
and sales prospects. It involves using technology to organize, automate,
and synchronize business processes—principally sales activities, but also
those for marketing, customer service, and technical support. The overall
goals are to find, attract, and win new clients, nurture and retain those the
company already has, entice former clients back into the fold, and reduce
the costs of marketing and client service. Customer relationship
management describes a company-wide business strategy including
customer-interface departments as well as other departments.
29

30. Initiative / Strategy Map Linkage
Contract Management Database
e3 is a web-based software program
used to manage company, client,
regulatory, and contractual
obligations and deliverables (tasks)
and to manage audit/inspection
findings (issues) from identification
through resolution (closure). It is a
repository for facility’s regulatory VWNA has purchased an
operating permits and service unlimited user’s license
agreements (contracts). agreement with e3
Solutions Inc.
An on-going initiative
involves review of all
contracts for risk
assessment and overall
improvement opportunities
30

31. Initiative / Strategy Map Linkage
Developed Client Satisfaction and
Trust Survey
Survey Excerpt…
31

32. Initiative / Strategy Map Linkage
Cost of Goods Sold (COGS)
This initiative provides a systematic
approach to treatment plant
optimization. Subject matter
experts work with plant personnel
to review expenses such as power
chemical, labor, residuals
management, etc. to maximize
plant efficiency, control costs, and
seek sustainable solutions.
32

33. Veolia Water receives the
Balanced Scorecard Institute’s
“Award for Excellence” based
on the following criteria:
Executive Leadership
Strategy Mapping
Breakthrough Results
Alignment
Data-Driven Decision Making
Strategic Resource Allocation
Reporting and Communication
Sustainability
February 26, 2012

34. “People cannot perform better than the organization supporting them”
Thank You

35. Strategic Performance & Change Management Conference
November 13-15, 2012 in New Orleans, LA
View the Strategic
Performance & Change
Management program here:
http://tinyurl.com/8wxywgc
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