Water Management - EPA Guidelines Project

12/4/2015
MIDLAND FOOD P ROCESSI NG CO.
MANAGEMEN T AND FINANCIAL SOLUTIO N S
P ROP OSAL
Abiola Akin-ajayi
Jacinto (Jay) Cabello
Eder Ramirez
Sanakaranarayanan A Ravichandran
Stephanie Warren

CONTENTS
Executive Summary.........................................................................................................................3
Introduction.......................................................................................................................................1
Systemic solutions ............................................................................................................................3
Organizational solutions .................................................................................................................10
regulatory solutions.........................................................................................................................23
Final Thoughts ................................................................................................................................30
References......................................................................................................................................32

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.

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.

Management and Finance Proposal CVEN 5584 Team 3
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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
individual operational contribution towards the desired end state. This issue will be explored
further in Alternatives 1 & 2.

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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 meeting should

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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
operators who establish good practices in the workplace, not only for documentation purposes
but work duties as well.

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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
build a positive and engaged rapport with employees in turn creates a positive association of
him/herself with the company as a whole.

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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
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

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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
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

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

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• 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
regular training, actively monitor and adjust the techniques, and implement an open
communication plan that flows equally from shareholders to employees.

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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
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,

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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.
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

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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
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.

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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.
MissionStatement
To satisfy our customers by providing quality food products while protecting public
health through responsible environmental practices.
INTERNALSOLUTION 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
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

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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
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

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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
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

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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.
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

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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
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

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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.
FinancialImplications for Systemic and OrganizationalSolutions
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
 Contracting of independent consultants

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

Page 25 of 37
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
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

Page 26 of 37
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 tackling the waste water
treatment issues .They can aid in identifying low hanging fruits that can mitigate the situation to a

Page 27 of 37
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
proposes to solve the problem by itself that would mean that the entire capital investment would

Page 28 of 37
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.
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

Page 31 of 37
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.pdf
2. 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, 1973
5. CVEN 5584 Class Slides

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