2015 strategic plan [final] - cooperative · 2015 strategic plan [final] coos-curry electric...

We appreciate the opportunity to participate in developing strategic

initiatives to position our cooperative as an organization that is financially

sound, provides a safe, reliable supply of electricity as a core service,

enhances the lives and lifestyles of the members we serve and “lives” the

cooperative way. This represents our ideas for defining the future, including

who we are, what we will do and how we are going to do it.

-- CCEC Employees

2015 STRATEGIC PLAN [FINAL] COOS-CURRY ELECTRIC COOPERATIVE, INC.

1

2015 STRATEGIC PLAN

STRATEGIC PLANNING PROCESS

Our mission is to enhance the

lives and lifestyles of those we

serve.

Our vision is to be a trusted

energy partner that enhances

lives the cooperative way.

Our values guide all our

actions and include putting

others first; being empathetic,

accountable and trustworthy;

having personal integrity and

exceeding expectations in

everything we do.

During the month of April 2015, the employees of Coos-Curry Electric

Cooperative, Inc. met in eight small groups to discuss the cooperative’s

strategic direction. Most organizations conduct strategic planning initiatives

in the board room. This year, however, the CCEC board of directors

supported a process that would allow employees to develop a strategic plan

for the board’s consideration.

Touchstone Energy’s Balanced Scorecard approach was used in this year’s

process. After assessing the organization’s mission statement, vision and

values, employees focused on four major areas – External Relationships,

Organization and Culture, Programs and Processes and Financial Resources.

In a traditional SWOT analysis, employees discussed strengths, weaknesses,

opportunities and threats in each of the four areas. After each SWOT

analysis, employees identified strategic initiatives in each of the four areas

and then identified objectives, targets and specific strategies that could be

pursued to meet the objectives.

As expected, common themes emerged from the small group exercises.

Those common themes are captured in this report and are presented here

in draft form for consideration by the board of directors. Employees

understand that setting the strategic direction of an organization rests with

the board of directors. Employees took this strategic planning initiative very

seriously. Every employee provided input; and some conversations were not

only engaging, but quite spirited. In our view, employees very much

appreciated the opportunity to provide input on the strategic direction of an

organization about which they care deeply. Of all that came out of these

planning sessions, one theme continued to rise to the top – the fact that we

exist to serve the membership. Employees desire to not just serve, but

create meaningful partnerships that demonstrate the cooperative way. Our

cooperative philosophy is captured in our mission and vision statements

and the values and principles under which we operate.

Christine Stallard and Dolores McBride

Process Facilitators

2

External Relationship Strategic Initiatives

Objective Measure Target Strategy

Members and employees

understand and “live”

cooperative philosophy

ACSI score

> 84 and ≤ 90 Develop Marketing Plan

Evaluate Rate Philosophy and Structure

Actively participate in disaster, Red Cross and

other first-responder planning

Enhance relationship with key accounts

Identify ways for crews to help people in the

community and increase community involvement

cooperative-wide

Evaluate touch points to improve personal touch

Strong and meaningful

partnerships with local

communities

ACSI score > 84 and ≤ 90 Define and promote “value-added” services

Develop Community Involvement Plan

Actively participate in economic development

Help members gain access to grants and funds to

update their equipment (farmers)

Rate philosophy for

existing and new

members is consistent

with cooperative

philosophy

ACSI score > 84 and ≤ 90 Research overheads and appropriate aid-in-

construction

Explore incentives for new businesses

Investigate opportunities in COSA

Employees have a strong desire to “bring back the

cooperative way.” While they are already very involved in

their communities, they are committed to programs and

activities that demonstrate the cooperative philosophy and

the unique relationship we have with our members and

communities that in the process, create stronger bonds with

those we serve. These include community involvement

programs, economic development and investigating ways to

make our rate design more aligned with the cooperative

spirit.

3

Organization & Culture Strategic Initiatives

Objective

Measure

Target

Strategy

Safety First Philosophy BSC Zero Accidents Conduct Safety Training

Hold Tailgate Sessions

Live “Safety First” Philosophy

Explore appropriate recognition for meeting

targets

Educate internally and externally

Organizational culture

that draws, nurtures and

keeps appropriate level of

top talent

ACSI

Retention Record

Employee Survey

> 84 and ≤ 90 Maintain competitive compensation and benefit

package to recruit and retain top talent

Provide opportunities for training and growth

Posture CCEC as a “coveted” place to work

Develop comprehensive plan to address

retirements

Organizational culture

that fosters continual

knowledge sharing

ACSI > 84 and ≤ 90 Create a learning environment that effectively

communicates and shares information broadly

Capture work experiences and document

institutional knowledge for training

Employees unanimously agreed that a Safety First

philosophy was paramount – for employees as well as

members and the public in general. With approximately 30

percent of our organization’s work force eligible for

retirement in the next two to five years, employees also

considered what would be needed in order to ensure the

organization had an adequate work force to serve the

membership well into the future. And, employees were

interested in leaving, as their legacy, an organization and

culture that had the cooperative philosophy as a

foundation and was a place where “employees want to

come and want to stay.”

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"The secret of change is to focus all of your energy not on

fighting the old but on building the new."

–Socrates

5

Employees are proud of our safety and reliability records and

are committed to a Safety First philosophy while ensuring the

integrity of the cooperative’s electric system. Moving forward,

employees feel the plans we have in place for construction,

electric system maintenance and technology could be

expanded to include plans for conducting periodic inspections

of our system, managing PUC and NESC compliance,

determining appropriate levels of inventory and continuing the

conversion of overhead facilities to underground. In addition,

employees are committed to investigating ways to fully utilize

the technology currently in place.

6

Programs & Processes Strategic Initiatives


System average

interruption duration

index (SAIDI) is in first

quartile

Sum of duration

of all member

interruptions for

year divided by

total number of

members served

120 Minutes System integrity is ensured through plan to

inspect meter points

Build better relationship with suppliers to

ensure quality equipment

System average

interruption frequency

index (SAIFI) is in first

quartile

Total number of

member

interruptions

divided by total

number of

members served

1.3 Tree Trimming

Regular Maintenance

Fully utilize Work Management to include

inventory control and scheduling

Customer Average

Interruption Duration

Index

Sum of outage

minutes off

during the period

divided by

number of meters

with one or more

interruptions

84 Minutes Tree Trimming

Regular Maintenance

Investigate ways to fully utilize OMS and AMI

technology

Processes are Efficient

Incorporate

strategies into

Construction

Work Plan

Complete

Inventory Plan

Develop Inventory Plan to determine

appropriate level of material inventory and

stock accordingly

Long-Term Construction Work Plan includes

maintenance plan, conversion from OH to UG

and communication/education on safety, PUC

and NESC violations

Join with other utilities to bring

reasonableness to PUC enforcement

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Financial Resources Strategic Initiatives


Revenue is growing BSC

KRTA

Top Quartile BSC

and KRTA

Adopt policies that allow for higher margin

to better manage tough years

Evaluate rate design for stability and to

address new business ventures

Investigate 2.5 TIER

Explore non-electric methods of

generating revenue (GIS and billing)

Ability to effectively

influence policy

Ability to favorably

influence > 2

proposals

Continue involvement in organizations that

monitor and influence legislation,

regulation and BPA issues

Active partner in

economic development

to strengthen local

economy

Conduct Feasibility

Studies for ≥ 2

Strategies

Explore options with Tesla cars and battery

back-up

Review line extension policy

Pursue available grant money

Begin strategic discussions to develop

hydroelectric or other power resources

through partnerships (Tribes) to become

more independent from BPA

Partner with golf course developers to

bring jobs and boost local economy

Employees are committed to controlling costs and keeping rates low

for the membership; and they understand the importance of having

a financially-sound organization. The loss of revenue due to warmer

weather trends, society’s interest in renewable energy beyond hydro

and continued pressure on our wholesale power supply due to

increased regulation were seen as challenges that could be met

through partnerships and exploring the use of emerging technology.

8

“Great vision without great people is irrelevant.” - Jim Collins, Good to Great

A couple of months ago, Coos-Curry Electric Cooperative employees tackled some-thing that is typically done by the board of directors—strategic planning. It was the first time our employees had ever come together to discuss some of the challenges we face as an electric cooperative, the challenges our members and communities face given the economic times of the past few years and to explore ideas that would make our cooperative—and our communities—thrive in the future.

Employees are proud of this cooperative’s rich history. Ivan Laird and a handful of people in Coos County were determined to bring electricity to the rural communities we know today. In April, it was employees sitting in small groups bringing ideas for-ward that they believed would continue that legacy.

All 63 employees participated. Eight small groups were comprised of employees from different departments and different area offices. Each group assessed the organi-zation’s mission and vision statement and core values. Their attention then turned to four major areas—external relationships, organization and culture, programs and pro-cesses and financial resources. In a traditional exercise where they identified strengths, weaknesses, opportunities and threats in each area, employees then identified strate-gic initiatives, objectives, targets and specific strategies that could be pursued to turn weaknesses and threats into opportunities.

As expected, common themes emerged from the small group exercises. As these strategic initiatives are addressed during the next couple of years, I will update the membership. For now, let me begin with the foundation of how we define ourselves and the commitment we have renewed to the membership.

First, our mission is to enhance the lives and lifestyles of those we serve. Our vision is to be a trusted energy partner that enhances lives the cooperative way. Our values under which we operate and guide all of our actions include putting others first, being empathetic, accountable and trustworthy, having personal integrity and exceeding expectations in everything we do.

When staff presented the idea of a new approach to strategic planning that involved all employees, the board agreed. Although employees were a bit apprehensive, they rose to the task. They formulated great ideas for making this cooperative an organiza-tion that will add value to our members’ lives for decades to come. As they told the board of directors in their report, “This represents our ideas for defining the future, including who we are, what we will do and how we are going to do it.”

The board of directors adopted their recommendations with few changes. I am extremely proud of this process because I believe it has strengthened the relationships among employees, and between the board of directors and employees. The strategic initiatives we will be addressing will position this cooperative to meet our challenges head on. I have no doubt that, together, we will make this cooperative an organization of which members will also be proud.—Roger Meader, General Manager/CEO

OR-13

Special MessageTo those we are committed to—and serve electrically—every day.

Board of Directors PresidentCheryl McMahan, Southern At-Large

Vice PresidentJohn G. Herzog, Brookings/Harbor

Secretary/ TreasurerGeorgia A. Cockerham, Brookings/Harbor

Edward Dowdy, Northern At-Large Jim Kolen, Gold Beach Peter C. Radabaugh, BandonDaryl C. Robison, Port Orford/Langlois

Attorney—Tyler Pepple

StaffGeneral Manager/CEORoger Meader

Corporate Services/CFOFrank Corrales

Operations ManagerC. Dale Wilson

Marketing and Member Services ManagerChristine L. Stallard

Local numbersCoquille ........................... (541) 396-3118Port Orford ..................... (541) 332-3931Gold Beach ..................... (541) 247-6638Brookings ....................... (541) 469-2103

Area office hours 7 a.m. to 5:30 p.m. Monday through Thursday. Closed Friday.

After-Hours Outage Number (866) 352-9044

Call Before You Dig811

www.ccec.coop

32 AU G U S T 2015 www.ccec.coop

DWNNGVKP1Pqxgodgt"4237 yyy0pyrrc0qti 15

POLICY MAKING & MANAGEMENTby Christine Stallard and Dolores McBride

Co-op sees benefits in having all employees participate in strategic planning

ith the Mission Impossibletheme in the background, thefirst group of Coos-Curry

Electric Cooperative, Inc. (CCEC)employees ventured into the coopera-tive’s board room to tackle a new assign-ment: strategic planning. Over the nextfour weeks, all 64 employees, in smallgroups, walked into the same room,tasked with the same purpose. And, justlike Tom Cruise, they all accepted the“mission.” Pharrell Williams’ Happyvideo made breaks fun; smiley stressballs helped participants squeeze out cre-ativity; and brown bag lunches provideda means for employees to get to knoweach other a little better. The strategicplanning process was a new approach,but groundwork and preparation hadoccurred months earlier.

As with most organizations, strate-gic planning is a function of governingboards and senior-level staff; in yearspast that was the way strategic planningwas done at CCEC. This year GeneralManager/CEO Roger Meader proposeda fresh approach, asking the board of directors for approvalin an effort that would involve every employee.

“While the board of directors was very supportive, Idon’t think any of us expected the outcome to be as excep-tional as it was,” Meader said.

The cooperative chose to use two employees to serve asdevelopers and facilitators versus going outside the com-pany and outsourcing the process. The foundation for thestrategic planning initiative was Touchstone Energy’sStrategy Execution System and Balanced Scorecardapproach, tailored by the facilitators to meet the specificneeds of CCEC.

The eight small groups were comprised of employeesfrom different departments and different area offices.Knowing they were apprehensive — after all this was verydifferent than setting a pole, reading a meter, or taking apayment — the facilitators set minds at ease by remindingemployees that their job that day was no different thanwhat had happened 75 years ago when Ivan Laird, thefounder of CCEC, and a handful of other Coos County resi-dents mapped out the future of the cooperative that existstoday. They were told that they “are tasked with planningfor the next 75 years, starting with the next three or four,”and it would “not be a mission impossible.”

Each group assessed the organization’s mission and visionstatements and core values. Four major areas (external rela-tionships; organization and culture; programs and processes;and financial resources) were examined in a traditionalstrength, weaknesses, opportunities, and threats exercise.Strategic initiatives, objectives, targets, and specific strategiesthat could turn weaknesses and threats into opportunitieswere developed. Common themes emerged.

Once the eight day-long sessions were over, the employ-ees’ planning was done. Now, it was up to the facilitators tocompile the information that had been captured on flip chartsand taped to the walls during each session. The mountain ofpaperwork became a 40-page document that captured thework of each group, identified common themes and combinedthem into three or four strategic initiatives for each of the fourmajor areas. The strategic planning process results were pre-sented for employee comment, in electronic or printed format,and in an all-employee meeting. Options for the final mission,vision, and value statements were put to a vote. It was nowtime to present the results to the board of directors.

The 10-page report to the board was filled with strategicinitiatives employees believed would position the cooperativefor the future. It was also filled with the pictures of dedicated

W

Coos-Curry’s Employee Group 2 develops strategic initiatives for the external relationships focusarea. (L-R) Facilitators Dolores McBride and Christine Stallard are reviewing the top three initia-

tives with the group. Photo provided by CCEC.

Continued on page 16

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willamette.edu/go/utility-management | 503.370.6791

Your ambitions are limitless—and your potential for growth should be too.

employees and their families, the people who make an organi-zation exceptional.

Employees summed it up on the front page of the boardreport: “We appreciate the opportunity to participate indeveloping strategic initiatives to position our cooperativeas an organization that is financially sound; provides a safe,reliable supply of electricity as a core service; enhances thelives and lifestyles of the members we serve; and ‘lives’ thecooperative way. This represents our ideas for defining thefuture, including who we are, what we will do, and how weare going to do it.”

The organization’s vision is to be a trusted energy part-ner that enhances lives the cooperative way. The mission isto enhance the lives and lifestyles of those we serve. Thevalues under which the organization will operate and whatwill guide actions include putting others first; being empa-thetic, accountable, and trustworthy; having personalintegrity; and always exceeding expectations.

“Our board of directors graciously allowed employeeinput on the cooperative’s strategic direction; and althoughemployees were a bit apprehensive, they rose to the task,formulating great ideas to position the cooperative for meet-ing challenges head on and to add value to our members’lives for decades to come,” Meader said.

The board of directors adopted the strategic plan withvery few changes.

“I am extremely proud of this process because I believeit has strengthened the relationships among employees andalso between the board of directors and employees,”Meader added. “I have no doubt that, together, we willmake this cooperative an organization of which employeesand our members will be proud.”

Once the strategic plan was adopted, employees rolledup their sleeves once again to implement the initiatives theyhad developed. Meader reports progress to the board everymonth; large posters with the plan’s “roadmap” to successand quarterly Balanced Scorecard statistics are shared withemployees. The organization is well on its way to enhancingthe lives and lifestyles of its members — in the cooperativeway — for the next 75 years. NWPPA

Christine Stallard is the Marketing and Member Services man-ager and Dolores McBride is the Human Resources administra-tor at Coos-Curry Electric Cooperative in Port Orford, Ore.They can be contacted at [email protected] [email protected].

POLICY MAKING & MANAGEMENT

2015 Employee Strategic Planning

Coos-Curry Electric Cooperative, Inc.

"The secret of change is to focus all of your energy not on fighting the old but on building the new."

–Socrates This represents our ideas for defining the future, including who

we are, what we will do and how we are going to do it.

– CCEC Employees

.

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Table of Contents Mission Statement ................................................................................................................................................................. 2

Vision Statement .................................................................................................................................................................... 3

Values ..................................................................................................................................................................................... 4

SWOT Analysis – External Environment ................................................................................................................................ 5

Strategic Initiatives – External Environment ......................................................................................................................... 9

SWOT Analysis – Organization & Culture ............................................................................................................................ 13

Strategic Initiatives – Organization & Culture ..................................................................................................................... 17

SWOT Analysis – Programs & Process ................................................................................................................................. 22

Strategic Initiatives – Programs & Process .......................................................................................................................... 26

SWOT Analysis – Financial Resources .................................................................................................................................. 33

Strategic Initiatives– Financial Resources ........................................................................................................................... 36

Employee Strategy Groups ................................................................................................................................................... 40

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Mission Statement

Now: Provide safe,

reliable electric service at

reasonable rates

Proposed: With a focus on the needs of our

members, we provide safe,

reliable electricity

- or –

Putting

members first, we provide safe,

reliable electricity

Group 1

Community - Members

Group 2

Group 3

Committed to providing safe, reliable electric service Best we can do we put our community first, Personable,

Lowest possible costs, “I have corn you can afford” is not what we want to be, Lots of discussion about eliminating “rates,” Put them first,

Provide safe electric service while putting you first, We should care more about them than us.

Group 4

Committed, Dedicated, Safe – that’s our total mission, Reliable, service means we’re all about service not $.

Dedicated service to our members (expand on electricity) Here for our members

Group 5

Good the way it is. By people who care. Cooperative rates. Essential to meet community needs

Provide safe, reliable electric rates and cooperative value

Group 6

Charter is more than electricity, Safe, “Like it as it is”

Group 7

Responsible manner that benefits members, Efficient lifestyle, Educating membership as to value, Reliable services.

Group 8

Enhancing our members lifestyles through providing safe, reliable….., Enhancing our members lives

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Vision Statement

Now: Exceed

Expectations

Proposed: Enhance lives and lifestyles

- or –

Add value to

lives and lifestyles

Group 1

Growing Community, EmPOWERing Lifestyles, Promoting Economic Health, Promoting Economic Lifestyles

Group 2

Pride, Keep lights on, Care

Group 3

We power – your life – member lives Empowering lives

Connecting our community We put our community first

Group 4

Create lifestyles for those in rural areas. Help people in rural areas to succeed

Always exploring best practices. Empowering ways of life Powered by excellence

Group 5

Make a positive difference. Committed to your electric needs. Owned by those we serve. Committed to excellent service. Powering your

World. Exceed Expectations

Group 6

Always here, Keep your lights on, Part of the Community

Group 7

Cooperative Principals, Community first, Partnership to Community, Providing warmth and comfort beyond electricity, Powering our

Community into the Future

Group 8

Empowering lifestyles, Enhancing members’ lifestyles, We put our members first.

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Values

Proposed Values: Exceed

Expectations Empathy/Others

First Integrity

Accountable Trustworthy

Group 1

Personal Integrity, Honesty, Innovative, Respectful, Consistent, Committed, Team Player, Accountable, Good communicators

Group 2

Trust, Golden Rule, Hardworking, Reliable

Group 3

Members first, Helpful, Equality, Straight-up, Truthful, Efficient, Follow-thru, Dependable, Empathy, Compassionate, Trust

Group 4

Pride, Honesty, Trust, Understanding others, Dependability, Patience, Responsibility

Group 5

Respect, Consistency, Integrity, Exceed Expectations, Seek New Solutions, Personal Integrity, Helpful, Polite, Respectful,

Innovative, Understanding, Consistent, Fair, Agreeable, Golden Rule

Group 6

Consistency, Honesty, Personable, Helpful, Flexible Friendly

Group 7

Act with Integrity, Fair, No hidden agenda, Put others first, reliable, selfless consideration, Put other needs before yourself, consider

affordability/How cost effects members, dependability

Group 8

Exceed expectations, Accountable, Team player, Respect, Integrity

5 | P a g e

SWOT Analysis – External Environment

Group 1 - External Environment

Strengths Payment options

Trusted in the community

Communication options

Training – local talent

Weaknesses Lack of consistency

Member perception that we are “rich”. Lack of understanding

Perception that lack of donations fund means we are not visible

Our area to recruit & retain, county finances, medical facilities, amenities in general

Rate pressure effecting members

Champagne diet and beer budget

Better job at internal control

Opportunities Competitive wage

Job Shadow and Career Day

Communicate

Schools – Industry awareness

Scholarship

Communicate our community involvement

Threats Thought that solar is the answer

General discontent w/society, economy in general erodes member satisfaction

Erosion of understanding of cooperative model

Quality of life because of unemployment

Disconnect law


Strengths High member satisfaction

Knowledgeable employees

Part of the community

Top notch lineman

Safe practices

Weaknesses Member expectations changing

Lack of understanding of our business

Geography – spread out

Crew size with regard to maintaining reliability

Revenue challenges

Cost of living expenses

6 | P a g e

Opportunities Educate our membership

Educate our youth – job shadow, industry careers, internship

Disaster Planning

Threats Uncontrollable weather, economic trends, member

attitudes

New gas company in Coos Bay


Strengths Relationship with members

Monopoly – Captive Audience

Keep lights on

Viewed as being professional

Weaknesses Viewed as a monopoly

Overheads are high, affects perception of co-op

Understanding of line extension costs and ownership of equipment

Loss of major industrial load (possibly self-generation)

Opportunities Assist with economic development

Review costs (overhead)

Evaluate rate philosophy for fairness in the context of co-op principles

New interest in moving to Curry and Coos Counties

Threats Overhead costs drive off potential consumers. Not a

community based philosophy which would have a shared expense

Erosion of co-op principle

Distributed generation (Tesla and renewables) compared to traditional utility and co-op model.

Perhaps not keeping up with rebuilds other utilities are (PUC compliance)

Changing demographics from farming and logging to other

People that don’t want change may impede economic development

Technological advances outpacing utility structure


Strengths

Service

Lights on

Plant infrastructure

Good people

Weaknesses

Lack of planning and communicating decisions

Entitlements

Erosion of co-op philosophy

Philosophy change inside the organization will affect our external

Lack of understanding of how co-ops work

7 | P a g e

Lack of understanding what expectations are beyond electric service

Opportunities

Growth in Coos and Curry counties

Educating members

Get the cooperative feeling back

Threats


Strengths Cooperative business model

Employees involved, committed and always step up to challenges

Willing to provide input and be included in decision-making

Economical rates

Provide personal touch in a variety of ways

Weaknesses Process needed for member input

Communicate involvement could be better

Lack of understanding of rates and need for adjustments

Erosion of understanding of co-op principles – branding - new member packets

New member promotional marketing – not consistent

Perception of CRC and Arista

Rural community and ability/resilience to bounce back

Need to respect and remind about our legacy

Perception that rate increase is not weather related. Lack of trust

Opportunities Diversify wholesale power source

Diversify business

Maintain our personal touch given change in demographics

Strengthen brand

Offer other products

Partner on Disaster Planning

Educate members on partnerships such as CRC

Have employees be a resource to others interested in developing co-ops (food, etc.), USDA (for growers to gain access to funding, etc.)

Threats More reactive than proactive in dealing with

externalities. Resistant to change can’t change fast enough

EPA

8 | P a g e


Strengths ACSI good

Partnership with PNGC

Legal Growth Opportunity

Weaknesses Co-op is not co-op we used to be

Single reliance on BPA for wholesale power

Shrinking, not growing

Economy general attitude and losing pool of resources

Perception of us as community partner because we don’t help set poles or partner on community projects (we are not seen as reasonable)

Opportunities Diversify resources (partner with industrial

customer)

Develop rate structure for marijuana

Explore technology on 320 for commercial/prepay

Promote agri-businesses

Threats Industrial load reduction (South Coast) or conservation

Federal laws/BPA/Conflicting laws regarding marijuana


Strengths Good member relationship

Reliable restoration

Weaknesses Erosion of partnering w/members like we used to;

cones, helping the community

Consumers choosing City of Bandon & PacifiCorp instead of us (Langlois, Bandon, etc.)

Cost of installation high

Erosion of co-op way

Marketing to new consumers

Lack of involvement

High Employment

Opportunities Improve member relationship

Switch discounts

Market CCEC in other areas

Determine appropriate balance between installation & revenue (defer cost)

Prove we’re different

Acknowledge employee involvement in marketing

Place average outage times & other performance on bills

Threats Number of fixed income members in community

Number of snowbirds with partial year revenue

Regulation (county level) on business

9 | P a g e

Marketing packet – include cooperative principles


Strengths Good member relations

Good legislative relations

Residential customers/retiree – not subject to employment

Weaknesses 88% of membership residential

Defined and constrained territory

Quit donation

Limited revenue stream

Opportunities Grant writers

Key accounts relationships (build)

Partner with the Tribe

Jordon Core Project – may increase number of new residential members

Need to “brag” about what employees do in the community

Threats Divided membership with new marijuana law

Philosophical change at South Coast

Closure of South Coast Lumber

Local leaders desire to get involved in electrical business

Technology – Tesla – pressure on price

Strategic Initiatives – External Environment

Group 1 - External Relationship Objectives

Objective (future state) Measure Target Strategy

Members and employees understand cooperative difference

ACSI Score > 84

Aggressively communicate principles and value of co-op membership (internal and external) Provide internships, job shadowing

Aggressively communicate operations initiatives and rates

Active participation in economic development

100% of serious start-ups

Explore opportunities for board and employee involvement Reevaluate rationale for $250 work order deposit

Member perception is we consistently act according to core values

ACSI Score > 84

Educate internally to educate externally Manage internal costs to change perception about cost of electricity

Members and employees understand cooperative

ACSI Score > 84 Aggressively communicate principles and value of co-op membership (internal and external)

10 | P a g e

difference Provide internships, job shadowing

Aggressively communicate operations initiatives and rates



Clear understanding of cooperative business model

ACSI score ≥ 84 Develop Marketing Plan that includes education about cooperative model

Community participation is excellent Crew size and training is appropriate given geography

ACSI score Total Volunteer

Hours/employee

ACSI score

≥ 84

≥ 84

Build and maintain a “visual presence” Establish company-wide calendar of events Generate engagement opportunities Train to utilize technology effectively Determine appropriate crew size and availability for reliability



Rate philosophy for existing and new members is consistent with cooperative philosophy

ACSI score Raise by 2.5 each year to > 90 at end of 5 years

Research overheads and appropriate aid-in-construction Explore incentives for new businesses Investigate opportunities in COSA

Bring back cooperative philosophy


Build personal relationships with members and co-workers Find ways for crews to help people in the community and increase involvement Evaluate touch points to improve personal touch Increase involvement in community activities


Objective

(future state) Measure Target Strategy

Reinvigorate and “live” co-op philosophy to build relationships

ACSI Determine communication tools to bolster culture of service excellence

Change image of CCEC employees

11 | P a g e

Foster philosophy like “Witness movie and that treat others as neighbors, not customers

Member satisfaction is excellent

ACSI score Explain and educate co-op principles Understand changing demographics and investigate ways to balance needs.

Community participation is excellent

ACSI score Define value-added services/activities Find opportunities for employees to be “the face” and develop coordinated plan.


Objective (future state)

Measure Target Strategy

Strong understanding of and belief in cooperative principles

ACSI Expand on personal touch Turn “customers” into “members”

Understand demographics and plan for change accordingly

Promote business model as a strength

Improve perception of who we are and what our products are (CRC, etc.)

Meaningful partnerships with communities

ACSI score Actively participate in economic development activities Help members gain access to grants and funds to update their equipment (farmers) Actively participate in disaster planning, Red Cross and other first responders Be a resource to members to help them succeed


Objective


Economic Development is promoted for a strong economy and relationships

Number of jobs increasing

Gain greater understanding of mandates/barriers to growth and develop coordinated plan to influence change Be involved in economic development forums Develop and nurture knowledgeable Employee Ambassadors

Growth potential partnerships with communities are strong

Explore funding and grant opportunities to help communities succeed (RUS or RedLeg)

12 | P a g e

Wholesale power supply is stable and diversified to strengthen local community relationships

ACSI Score ≥ 80 Explore partnerships and financial opportunities Explore co-generation with industrial members Explore non-electric sources that create partnerships with members to strengthen relationships and member loyalty


Objective


Reinvigorate Cooperative Way

ACSI score

Employee Feedback

New Growth

Positive Trend on ACSI Score

Develop Marketing Plan

Demonstrate commitment to service excellence

ACSI score Positive Trend on ACSI Score

Develop Marketing Plan that includes compassion for elderly members

Be the Utility of Choice Growth Market the CCEC Difference through personal examples/testimonials, chamber of commerce, realtors and through partnerships with manufacturing (lighting/GE)


Objective


Member Satisfaction is excellent

ACSI Score

Community participation is excellent

ACSI score

Rural economy is strong due to partnerships on economic development

Growth

Combined - External Relationship Objectives

Objective


Members and employees ACSI score

≥ 84 and ≤ 90 Develop Marketing Plan

13 | P a g e

understand and “live” cooperative philosophy

Evaluate Rate Philosophy and Structure Actively participate in disaster planning, Red Cross and other first responders Enhance relationship with key accounts through aggressive program

Strong and meaningful partnerships with local communities

ACSI score ≥ 84 and ≤ 90 Define “value-added” services Develop Community Involvement Plan Actively participate in economic development activities Help members gain access to grants and funds to update their equipment (farmers)

Rate philosophy for existing and new members is consistent with cooperative philosophy


Research overheads and appropriate aid-in-construction Explore incentives for new businesses Investigate opportunities in COSA

Bring back cooperative philosophy


Build personal relationships with members and co-workers Find ways for crews to help people in the community and increase involvement Evaluate touch points to improve personal touch Increase involvement in community activities

SWOT Analysis – Organization & Culture

Group 1 – Organization & Culture

Strengths Open door policy

Safety – tailgating, safety awards and records

Random drug testing (safe)

Employee (talented)

Employee care and compassion

Weaknesses Aging workforce. Loss of talent

Erosion of benefits near term – could turn into threat in the long-term success

Communication across departments

Leadership not well-defined

Lack of accountability

Technology not always efficient

Opportunities Employees expand their knowledge and are

adaptable

Threats

14 | P a g e

Group 2 - Organization & Culture

Strengths Focus on Safety

Knowledgeable /Intelligent employees

Humor in the workplace

Pride

Competitive wages and benefits

Weaknesses Communication between offices and departments.

Misunderstanding because of presentation/interpersonal skills

Tendency to question what others are doing making them defensive

Interpersonal skills training

Local environment makes it hard to recruit, cost of living amenities.

Opportunities Family environment – more Facebook postings

Threats Regulations causing limitations in maintaining

quality workforce, legacy knowledge

Reduction in benefits will negatively impact recruiting and retention


Strengths Employees (Talented and compassionate)

Safety – equipment and tools

Weaknesses Aging infrastructure not as reliable (could be cost

savings to copper)

OMS – dispatch not large enough to handle all 4 districts at once. (need to have more coordinators in large storms)

Ensuring adequate funding for community action and low-income

Opportunities Grow within (legacy knowledge)

Lineman training

Threats


Strengths Safety – no compromises, don’t lose focus

Reliability

Open door policy

Promote sharing of ideas

Adaptable

Weaknesses Communication (fickle)

Retirements

People leave w/institutional knowledge and w/o training new employees

15 | P a g e

Opportunities Recruiting (competitive) (Growth potential)

Documenting institutional knowledge

Cross training

Job shadow - intern

Threats Loss of revenue - County revenue situation

preventing new business

Local land use initiatives


Strengths Safety Record

Benefits and Compensation

Strong commitment to cooperative values

Outside and inside unity with employees

Weaknesses Communication

Geography – 4 offices challenge with consistency

Ability to cross departmental lines to improve communication

Employees not as visible in community

Loss of legacy knowledge

Opportunities Develop interest in careers at the cooperative

through programs such as job shadowing, internships

Foster a proactive, forward-thinking environment to be able to anticipate and adjust to changes

Threats Loss of 30% of workforce due to retirement and

competition for replacements

Rural community – ability to recruit and retain

Cascadia Subduction Zone event


Strengths Safety

Talented employees

Weaknesses Focus on unrealistic expectations that affect org.

and do not necessary save dollars.

Resistance to embrace new ideas that may change the way we’ve done them in the past.

Opportunities Communicate within and across departments

Understand other departments and learn

Educate youth about CCEC and industry - interns

Threats Lack of talent and folks entering workforce.

16 | P a g e


Strengths Safety

Hardest workers

Good equipment & tools

People care (mgmt.)

Passionate leadership

Weaknesses RS and 401k philosophy changes

Opportunity for growth

Training

Unaware of what other employees do

Inconsistency (work orders)

Organization that doesn’t cultivate open, honest communication

Do more with less is a short term focus.

Short hand in some areas: crew and warehouseman – affects our dependability

Ineffective communications about decisions

Opportunities Opportunity for employee growth: general

foreman – IBEW contract

Lineman training

Threats


Strengths Safety

Utilize technology efficiently

Knowledgeable workforce

Competitive wages

Weaknesses Benefit erosion – effects recruitment

Technology improvement (staking process)

Legacy knowledge

Policies that prevent open communication (chain of command)

Opportunities Continue Communications Improvement

Empower employees

Threats Skilled labor give retirements in electric industry

Retention due to reduction in benefits

17 | P a g e

Strategic Initiatives – Organization & Culture

Group 1 - Organization & Culture Objectives

Objective


Safety BSC Zero Accident Conduct Safety Training

Think “Safety First”

Continue to cultivate a safe work environment

Service Excellence Philosophy defines culture

BSC Employee Survey

Define desired leadership

Create an environment of open communication across departments

Benefits package is appropriate to maintain stable workforce

Cost/effort to recruit Turn-over rate

Commitment to being co-op competitive

Provide on-going individual investment planning for employees (PIRC)


Objective


Safety BSC Zero Accident Conduct Safety Training

Think “Safety First”

Continue to cultivate a safe work environment

Create an on-going legacy of knowledge

Educated, top-talent employees

100% Capture work experiences and use to train others Create a learning environment where information is shared broadly (apprentice and journeymen blend/share experience with new training

18 | P a g e

Competitive benefits package

Recruiting and retention ratio

Commitment to being co-op competitive

Provide on-going individual investment planning for employees (PIRC)



Have a Safety First Philosophy

Zero Accidents Zero Conduct Safety Training Hold Tailgate Sessions Seek First Place Awards Explain rationale for changes (incentives) Effectively educate and communicate safety awareness

Conduct assessment and develop long-term plan to manage retirements

Plan to recruit and grow from within organization and from local communities Evaluate jobs to determine need and talent required before filling positions

Create a culture that includes open, effective communications

Employee Survey Create opportunities for employees to learn and understand each other’s job Explore ways to better utilize and understand roles in work management/work order process


Objective


Safety Zero Accidents Zero Conduct Safety Training

Hold Tailgate Sessions Educate public

Zero tolerance

Document institutional knowledge

Employee Transition is

Seamless

Foster culture where knowledge is shared through open dialog

Use technology to document what we have and how to use

Promote learning workforce

19 | P a g e

Culture where employees want to come and want to stay

ACSI Score Provide opportunities for growth (upward and lateral) Recruit highly trained (technical and leaders) employees Promote learning organization


Objective


Safety First Zero Accidents Zero Conduct Safety Training

Hold Tailgate Sessions Educate the members through Safety City, High-Voltage Trailer and other visual displays

Foster a proactive, forward-thinking organizational culture

ACSI Improve communication and understanding throughout the organization

Utilize technology i.e. video conferencing for consistency

Develop a culture that makes us a “coveted” place to work to recruit and retain employees

Organization is part of the community

ACSI Score

Employee Turn-Over

Provide internal and external education on cooperative values Develop plan for community involvement that encourages and increases employee visibility


Objective



Hold Tailgate Sessions

Organization has adequate staffing for high level of service

ACSI Assess appropriate level of employees given retirement projections and growth/revenue constraints Consider early retirement options to encourage

20 | P a g e

commitment and enhance planning

Organizational culture where employees want to come and stay

Employee Turn-over

Offer competitive benefits and promote rural lifestyle Position organization as a progressive, innovative organization Promote “family” atmosphere


Objective


Have a Safety First Philosophy

Zero Accidents Zero Conduct Safety Training

Hold Tailgate Sessions Look out for everyone

Explore appropriate mechanism for rewarding safety record


The best in employee satisfaction for retention

Employee Turnover Employee Survey

Develop and maintain an appropriate benefits package

Provide opportunities for training and growth Improve communications Provide opportunities for learning what others do

Adequate, long-term staffing needs are planned for and met

Employee Turnover Develop and maintain an appropriate benefits package for recruiting and retention for our area

Recruit locally


Objective



Hold Tailgate Sessions Educate the members through Safety City, High-Voltage Trailer and other visual displays

21 | P a g e

Foster a proactive, forward-thinking organizational culture

ACSI Improve communication and understanding throughout the organization

Utilize technology i.e. video conferencing for consistency

Develop a culture that makes us a “coveted” place to work to recruit and retain employees

Organization is part of the community

ACSI Score

Employee Turn-Over

Provide internal and external education on cooperative values Develop plan for community involvement that encourages and increases employee visibility

Combined Organization & Culture Objectives

Objective


Safety First Philosophy BSC Zero Conduct Safety Training

Hold Tailgate Sessions Live “Safety First” Philosophy Explore appropriate recognition for meeting targets


Organizational culture that draws, nurtures and keeps appropriate level of top talent

ACSI Retention Record Employee Survey

≥ 84 and ≤ 90 Maintain competitive compensation and benefit package to recruit and retail top talent Provide opportunities for training and growth Posture CCEC as a “coveted” place to work Develop comprehensive plan to address retirements

Organizational culture that fosters continual knowledge sharing

ACSI ≥ 84 and ≤ 90 Create a learning environment that shares information broadly Capture work experiences and document institutional knowledge for training Improve communications

22 | P a g e

SWOT Analysis – Programs & Process

Group 1 – Programs & Process

Strengths Anticipating Inventory and equipment needs

Proactive in building and maintaining a stable, reliable and standardized infrastructure.

Tree Trimming

Weaknesses AMI meters short supply, demand up.

Policies are not always in forefront/considered not intentional just not thought about and too much interpretation

Need to do cost-benefit on new technologies

Need internal control process to help streamline processes

Work management

Opportunities Threats


Strengths Cooperative network

Reliable infrastructure and knowledgeable workforce

Tree trimming and underground

Weaknesses May not fully understand technology capabilities

and applications (OMS)

Unknown if we are adequately stocked with inventory. Need to set appropriate levels.

Opportunities Assess process efficiency – asset tracker

Always improving

Awareness of jobs/projects provides flexibility

Threats Disaster strikes

23 | P a g e


Strengths Equipment

Inventory levels

ROW – Tree Trimming

Weaknesses Crew size for lineman not strategically located to

serve all areas equally

We don’t plan for retirements as aggressively as we should. Better planning needed.

Fear of losing job hampers looking at efficiencies.

Need company cross training plan that is not disruptive.

Inside culture different than outside

Communication/education between departments

Explain rationale not always clear for actions

Opportunities Evaluate copper to standardize and save money

Evaluate dispatch in large storms

Threats


Strengths Equipment reliable

Adequate planning of inventory

Underground replacement and conversion

Weaknesses Accuracy of data in systems (retiring staking sheets

50% complete)

Tendency to move too quickly end up on “bleeding edge”

Employees do not always understand what others do

Need culture where recommendations and processes are followed/supported (training)

Opportunities Fully-utilize current technologies

Evaluate new technologies

Bring employees together from different departments

Threats Inventory bottlenecks (disaster or normal business

i.e. meters).

Not fully leveraging tools /technology

Lack of forum for feedback when things are not working well.

24 | P a g e


Strengths Pre-pay metering

Legalization of Marijuana

Weaknesses Rate structure not set-up for stability

Impact of pre-metering (radio, storms etc. back up needed

Opportunities Hydroponic sales

Research diversion- propane, water heater, charging stations wholesale power

Research grant money

Diversify revenue

Explore billing and GIS system sharing with other utilities

Promote pre-pay

Promote economic development

Using infrastructure for bandwidth

Explore distributed generation

Threats Economy and weather affecting member use of

electricity

EPA

Federal regulations regarding grow operation

South Coast Lumber (loss)


Strengths Forecast planning

Reliable and adequate maintenance system

Tree trimming

Responsive

Cooperative mutual aid

Weaknesses Competition for supplies (320 meters)

T1 line from NBK to BK – aging equipment, safety and reliability

System audit – new system needed to check service points no that AMI system installed (intern – summer)

Could better job staff planning efforts

Opportunities Trouble section of lines

Leveraging technologies (training)

Threats Lack of talent and folks entering workforce

25 | P a g e


Strengths Technology Advancement

Adaptable to technology

Weaknesses Fairview substation (repairs needed)

North Brookings substation – obsolete equipment

Communications into substations (one route – radio) need satellite for disaster or for back-up to Pre-pay and MDM programs

Compliance issues (fixes) costly

Cost of maintenance on secondary OH

Inconsistent standards

Employees unaware of planning documents

Inventory levels – need addressing

Need eyes on the system

Opportunities Secondary underground – save on future cost –

cost benefit analysis

Standards

Do better job investigating & purchasing quality supplies. Develop stronger relationships with suppliers

Threats NESC rules changing & costly

Costly OSHA requirements (co-op involvement) NESC

Need better utilization of technology (OM)

Technology lacking what we expected/told/need


Strengths 1/3 of plant is underground

Good ROW

Reliability

Weaknesses Personal relationship with contractors lies with

upcoming retirees

Reduced tree trimming budget effects long-term reliability

Geography and exposure to elements

Inventory levels (adequate)

Inability to fund adequate workforce for regular maintenance and outages

Opportunities OH to Underground set a goal

(Construction Plan)

Implement an Inventory Replacement process (kVa transformer, lead time)

Threats 9.0 Disasters

System vandalism

Sunk cost if traditional utility model changes

PUC regulations (enforcement)

26 | P a g e

Strategic Initiatives – Programs & Process

Group 1 – Programs & Process Objectives

Objective


System average interruption duration index (SAIDI) is in first quartile

System average interruption frequency index (SAIFI) is in first quartile

Customer Average Interruption Duration Index

Sum of duration of all member interruptions for year divided by total number of members served Total number of member interruptions divided by total number of members served Sum of outage minutes off during the period divided by number of meters with one or more interruptions

120 Minutes

1.3

84 Minutes

Tree Trimming

Underground where possible

Perform Regular Maintenance

Evaluate internal processes to identify potential efficiencies

Evaluate Work Management to ensure benefits are realized Ensure utilization of most cost-effective technology Educate employees on importance of policies and adhering to them

27 | P a g e


Objective





Sum of duration of all member interruptions for year divided by total number of members served Total number of member interruptions divided by total number of members served Sum of outage minutes off during the period divided by number of meters with one or more interruptions

120 Minutes

1.3

84 Minutes

Tree Trimming

Underground where possible

Perform Regular Maintenance

Evaluate internal processes to identify potential efficiencies

OMS (Integration between crews and OMS capabilities) Discuss reasonableness of completing all “blanks” in Asset Tracking

Develop process to inspect meters routinely (integrate with pole inspections)




Sum of duration of all member interruptions for year divided by total number of members served

120 Minutes Utilize Outage Management to reduce response and restoral time

System average interruption frequency

Total number of member

1.3 Tree Trimming Regular Maintenance

28 | P a g e

index (SAIFI) is in first quartile

interruptions divided by total number of members served

Evaluate copper in plant and determine appropriate plan for replacement Determine areas appropriate to direct bury wire


Sum of outage minutes off during the period divided by number of meters with one or more interruptions

84 Minutes Tree Trimming Regular Maintenance


Objective






Total number of member interruptions divided by total number of members served

1.3 Tree Trimming

Regular Maintenance

Maintain adequate inventory

Underground where appropriate




Regular Maintenance

Continue long and short-range planning

Processes are efficient Investigate costs, benefits and tradeoffs using BSC before making major decisions

Ensure data is accurate

Create forums for addressing process improvement Provide adequate training

Provide opportunities where employees learn from each other

29 | P a g e


Objective





Provide adequate training



1.3 Tree Trimming

Regular Maintenance




Regular Maintenance

Processes are efficient Internal Control Audit

Ensure major activities are well-planned and communicated (internal and external) before executing

Develop comprehensive plan and maintenance schedule to ensure access to plant






120 Minutes Assess AMI repeaters Provide On-Call Education Build better awareness of functionality/capability of OMS

30 | P a g e



1.3 Tree Trimming

Regular Maintenance




Regular Maintenance

Programs and processes are efficient

Develop plan to periodically inspect integrity of electric system Update construction work plan using cross-department team that includes all stakeholders (include T1-line N.BK. to BK substations) Improve communications






120 Minutes System integrity is ensured through plan to inspect meter points Build better relationship with suppliers to ensure quality equipment



1.3 Tree Trimming

Regular Maintenance

Determine areas appropriate to direct bury wire

Long-Term Construction Work Plan includes maintenance plan and communication/education on safety, PUC and NESC violations




Regular Maintenance

31 | P a g e

Technology Fully Utilized Investigate ways to fully utilize OMS and AMI flags to determine load

Work Management to include inventory control and work flow

Group 8 – Programs & Process Objective








1.3 Tree Trimming

Regular Maintenance

Determine areas appropriate to direct bury wire

Long-Term Construction Work Plan includes maintenance plan and communication/education on safety, PUC and NESC violations




Regular Maintenance

Processes are efficient Create adequate Inventory Plan Improve reliability through plan to convert OH to UG Join with other utilities to bring reasonableness to PUC enforcement Prepare for retirements by building new long-term relationships with suppliers and contractors

32 | P a g e

Combined – Programs & Process Objectives








1.3 Tree Trimming

Regular Maintenance




Regular Maintenance

Technology Fully Utilized Processes are Efficient

Investigate ways to fully utilize OMS and AMI Work Management to include inventory control and scheduling Develop Inventory Plan to determine appropriate level of material inventory and stock accordingly Long-Term Construction Work Plan includes maintenance plan, conversion from OH to UG and communication/education on safety, PUC and NESC violations Join with other utilities to bring reasonableness to PUC enforcement

33 | P a g e

SWOT Analysis – Financial Resources

Group 1 – Financial Resources

Strengths Relationship with members

Weaknesses Relying on kWh for rate increases instead of

collecting more in MMC for stability

Reliance on Community Action to assist low-income members

Opportunities Explore tidal and wave energy

Threats Rates going up


Strengths Weaknesses Programs in place that we’re not fully utilizing,

SCADA, Comsquare and Retriever

Opportunities Continue to maintain controllable costs

Evaluate conservation program

Explore water diversion project through partnership (Tribe)


Better evaluate new technologies, major purchase/projects and coordinate/collaborate with end users

Examine rate structures for idle services based on geographic and reasonable test

Threats Continuing warmer weather trend affecting

revenue

Disaster or large storms


Strengths Making bank covenants

We have borrowing ability

Investment in employees ensures financial strength

Weaknesses

34 | P a g e

Opportunities Distribution generation

Continue to evaluate controllable costs

Land use law being changed in Eastern OR 160 acres

Threats Counties could charge us for ROW state

Rising rates affects membership causes member satisfaction to go down

Weather pattern stays the same

New laws and regulations


Strengths Captive Audience/Members

Financially sound

Supportive membership

Weaknesses Only one revenue stream

Traditional utility model changing and rate structures make us vulnerable to outside influences

Struggling economy

Government, state, county unfriendly to new business

Opportunities Increase revenue and control cost

Communicate and educate members

Restructure collection of revenue (rate structures)

Threats Wholesale power regulation

Rate structures not set up for greatest stability.


Strengths Pre-Pay program

Legalization of marijuana

Weaknesses Perception that rate increase is not weather

related could mean lack of trust

Rate structure not set up for stability

Ability of technology to keep up with Pre-Pay (radio/storms). Back up needed.

Opportunities Research Grants available for funding

Diversify Revenue Stream (propane, water heaters, charging stations, generation)

Explore merits in offering to provide services for billing and GIS to other utilities

Promote Pre-Pay


Use infrastructure for bandwidth

Threats Economics affecting member use of electricity

EPA

Federal regulations and state laws regarding marijuana at odds

Loss of industry (South Coast)

35 | P a g e


Strengths State allocations- service territory

Weaknesses Lack of options to members to pay for

upgrades/PUC

Cost benefit analysis lacking in some solutions

Opportunities Secondary underground – explore Bandon,

reduce LT costs

Diversify revenue resources – partner to offer service using our GIS and Billing system

Threats Continued weather trends bill/legislation:

disconnect, renewable, net metering (utility costs)

EPA, NEPA


Strengths Monopoly

Meeting financial covenants

Pre-pay

IT financial conservatism practice

IBEW contract provides stability

Weaknesses Budgeting too conservatively

Current AMI may not be able to handle TOU

Opportunities Demand rates

Review cost structure

Cost of new service more attractive for growth

Diversify revenue stream

Explore co-generation

Solar installation

Community disaster planning

Review landlord accounts – too costly

Local generators as back-up

Threats Weather

BPA – Federal /State law

Natural disasters/servere weather-cost to repair


Strengths Ability to borrow

Finances are stable (good)

2028 BPA Contract

Weaknesses BPA contract 2028 – means we pay more than

market

Maintained too low target tier

Expensive maintenance geography and climate

Politics and member perception of rates increasing given rural and low income economy

36 | P a g e

Opportunities PPC, PNGC and NWPPA

Line extension policy (explore)

Economical Development

Tesla Dealership (explore)

Continue to promote “value” through TE

Threats Wind intergration

Not meeting bank tests

New regulations or legislative mandates

Columbia river treaty (ESA or EPA)

Snake River dam removal

Attach on Col Gen. station (10% of BPA output)

EIM (CA) taking over scheduling

Strategic Initiatives– Financial Resources

Group 1– Financial Resources Objectives

Objective


Economic development through partnerships increases revenue

Stable Revenue Begin strategic discussions to develop hydroelectric or other power resources through partnerships (Tribes) to become more independent from BPA

Partner with golf course developers to bring jobs and boost local economy

Rates are set to maximize stability

Review rate structures and reevaluate appropriate amounts for MMC and kWh charge


Objective


Economic development through partnerships increases revenue

Begin strategic discussions to develop hydroelectric or other power resources through partnerships (Tribes) to become more independent from BPA


Continue to control costs ≤ CPI Standardize tools and equipment IT Committee Plan and Budget to standardize technology costs

37 | P a g e



Effectively communicate rate adjustments

ACSI score Communicate in multiple ways

Cooperative is financially strong

KRTA Equity Levels

Continue to monitor finances closely and adjust accordingly Continue review and adoption of long-range plans

Operational expenses are controlled

Develop forum for evaluating controllable costs Develop an organizational budget from the bottoms-up that is tied to strategic initiatives


Objective


Strong member relations to weather bad times

ACSI score Community involvement Effective communication

Strong local economy Partner with communities on economic development Change land-use to foster more business-friendly environment

Rate structures appropriate for changing business model

Investigate non-traditional rate design and industry trends Develop rate structures that plan for lean years, changing demographics and provides stability


Objective


Diversify and explore new revenue streams

annual % increase Pursue available grant money

Sell billing and GIS services to other utilities

Explore opportunities: using infrastructure for bandwidth, propane for a variety of appliances, satellite, electric cars and grow lights

38 | P a g e

Utilize new technology to save money and improve member satisfaction

annual % decrease > 1 Investigate hybrid AMI system

Diversity wholesale power for stability

< 0

< 0

Explore opportunities with hydro diversion within service territory


Objective


Revenue is growing Evaluate cooperative fee structure for all services

Involved in economic development to strengthen local economy

Be involved in economic development forums and promote CCEC’s service territory

Revenue stream is diversified

Explore non-electric methods of generating revenue (offering billing and GIS services to other utilities)


Objective


Internal Costs Controlled IT Expenditures Address Landlord Agreements

Positive revenue stream Member Equity and budget carry-over

Explore instantaneous kW charge

Determine appropriate level of MMC and kWh charge

Cost of new services encourages growth

Assess line construction costs and compare with City of Bandon and Pacific Power to encourage new services


Explore alternative business including wave, propane, selling back-up generators, Co-Gen (Jordan Cove), solar with back-up

Group 8 - Financial Resources Objectives

Objective


39 | P a g e

Revenue is growing Change TIER to 2.5 Adopt policies with more margin to better navigate through tough years Explore options with Tesla cars and battery back-up Explore home battery back-up systems

Ability to effectively influence policy

Continue involvement in organizations that monitor and influence legislation, regulation and BPA issues

Active partner in economic development to strengthen local economy

Review line extension policy

Combined - Financial Resources Objectives

Objective


Revenue is growing Change TIER to 2.5 Adopt policies with more margin to better navigate through tough years

Ability to effectively influence policy

Continue involvement in organizations that monitor and influence legislation, regulation and BPA issues

Active partner in economic development to strengthen local economy

Explore options with Tesla cars and battery back-up Review line extension policy Pursue available grant money Begin strategic discussions to develop hydroelectric or other power resources through partnerships (Tribes) to become more independent from BPA



Explore non-electric methods of generating revenue (offering billing and GIS services to other utilities)

40 | P a g e

Employee Strategy Groups

Group 1 Marvin Jones

Chuck Maurer

Marty Curtis

Leah Rhodes

Michelle Smith

Pam Potter

Group 2

Jeremy Alexander

Jesse Hall

Nate Duey

Cindy Peare

Jeff Wilson

Tad Bell

Kat Meader

Rose Gabrielson

Group 3

Don Jensen

Scott Adams

Janna Fraser

Kelly Beem

Joseph Spada

Dan Somers

Kyle Duey

Ben Winters

Louise Jefferies

Group 4

Ben Adams

Racheal Fandel

Randy McDonald

Shane Johnson

Jacob Knudsen

Randy Foster

Zane Adams

Renae Sudweeks

Betsy Smith

Group 5

Tom Gastonguay

Joan Simons

Glenda Park

Gary Veach

Dan Steineke

Ken Smith

Walt Jurczenko

Andrew Koreiva

Matt Mjelde

Group 6

Burke Rose

Scott Elliot

Dean Wilson

Duffell Gray

Linda Spurgeon

Sharon Champlain

Bill Rowe

Ron Manley

Brandon McGinnis

Group 7

Tim Hawkins

Jason Sherman

Dena Manley

Dan Springer

Mitch McDonald

Shannon Keys

Steve Deraita

Chris Jones

Group 8 Roger Meader

Dale Wilson

Frank Corrales

Christine Stallard

Strategic Management (Plan for Future Success)

• Not “how” but “what” •  Examine mission,

vision & priorities •  Assess impact of

trends in external environment

•  Evaluate organization capabilities

•  Establish objectives with strategies and targets

Operations Management

(Manage day-to-day Activities)

•  The “how” • Direct & control

processes • Manage & direct

resources •  Identify, define &

resolve problems • Manage stakeholder

relationships • Respond to regulatory

requirements

Affirmphilosophy

Evaluateexternal

environment

Evaluateinternal

environment

Selectobjectives

(futurestate)

Createstrategiesto

meetobjectives

Communicate&implementstrategies

Monitor&evaluate

performance

Strategic Planning Process Today

•  Usedtotrackperformance&compareperformancetoothersinindustry

•  TouchstoneEnergyBalancedPerformanceScorecard(14measuresin4categories)-Memberservice

-Safety

-Reliability

-Financial

Key Performance Indicators

Affirmphilosophy

Evaluateexternal

environment

Evaluateinternal

environment

Selectobjectives

(futurestate)

Createstrategiesto

meetobjectives


Monitor&evaluate

performance

StrategicPlanningProcess

Mission Providesafe,reliableelectricserviceatreasonablerates

Vision Exceedexpecta5ons

Values Respect,Consistency,Integrity,ExceedExpecta5ons,SeekNew

Solu5ons

Philosophy

Philosophy - Mission Statement

Amissionstatementis“whatyoudo.”

Aonesentencestatementdescribingthereasonanorganizationorprogramexistsandisusedtohelpguidedecisionsaboutpriorities,actionsandresponsibilities.

Philosophy - Mission Statement

Mission Providesafe,reliableelectric

serviceatreasonablerates

Empoweringlifestyles

Philosophy - Vision Statement

Avisionstatementisaonesentencestatementdescribingtheclearandinspirationallong-termdesiredchangeresultingfromanorganizationorprogram’swork.

Vision Exceedexpecta5ons

Philosophy - Vision Statement

Philosophy - Values PersonalIntegrityHonestyInnovativeRespectfulConsistent

•  Income&expenses• Economictrends• Regulations• Rates

FinancialResources

• Members• Communityleaders•  Industry&tradeorganizations• Legislators,stakeholders&regulators

ExternalRelationships

• Plant&equipment• Technology• Suppliers• Regulations

Processes&Programs

• OrganizationalMandates• Employeecapabilitiesandcompetencies• Organizationstructure• Organizationculture• CooperativePrinciples

Organization

ComponentsoftheInternalandExternalEnvironment

BSC Components

Statementoffinancialsuccess

Statementofexemplaryexternalrelationships

Statementofefficientandeffectiveprocessandprograms

Statementofhealthyorganizationandculture

BSC Components (examples)


•  Revenueisgrowing,ratesareatorbelowotherelectricuMliMesinSWOregon•  KRTAstaMsMcsarecomparabletoothercooperaMvesofsamesizeanddemographics•  ProductcostsareaslowaspossiblewithoutcompromisingintegrityoforganizaMonorserviceexcellence

StatementofexemplaryexternalrelaMonships•  TopquartileofmembersatisfactioncategoryonTouchstoneBSCscorecard•  CommunityandlegislativerelationshipsarestrongandCCECistrustedresource

StatementofefficientandeffecMveprocessandprograms•  TopquarMleofsafetycategoryonTouchstoneBSCscorecard•  TopquarMleofreliabilitycategoryonTouchstoneBSCscorecard

StatementofhealthyorganizaMonandculture•  ApreferredemployerandlearningorganizaMon •  TopquarMleonemployeesaMsfacMonscore

Affirmphilosophy

Evaluateexternal

environment

Evaluateinternal

environment

Selectobjectives

(futurestate)

Createstrategiesto

meetobjectives


Monitor&evaluate

performance


•  AssesssituaMon&predictthefuturefor4areasofthebalancedscorecard

•  IdenMfystrengths,weaknesses,opportuniMes,andthreatsforeacharea

•  BrainstormstrategiciniMaMves

•  Selecttop3iniMaMves

•  Foreachofthe4areas,developobjecMveswithmeasures,targets,andstrategies

EnvironmentalAnalysisandSituaMonAssessment

External Relationship Environment Members•  Demographicchanges?•  Changesinmemberpreferences?•  Specificdemandsfromagroupofmembers?•  HowdomembersaMsfacMonresultscomparetoindustrytrends?

Community•  Changesina[tudes?• Whatishappeningwiththelocaleconomy?•  Changesinleadership?• WhatshouldourinvolvementbeinthecommuniMesinwhichwelive?

Industry&TradeAssocia6ons•  UnexpectedcompeMMonorcooperaMon?•  ConsolidaMonsintheindustry?•  Newstrategiesintheindustry?•  AnyindustrybestpracMceswecanimplement?

Legislators•  Changesinlegislators?•  Legislatorsweneedtoinfluence?

Regulators•  ChangesinregulaMons?•  Regulatorsweneedtoinfluence?

External Relationship Objectives (examples)

Objec6ve(futurestate)


LegislatorsseekCCECopinionaboutenergyissues&supportCCECviews

RaMoofposiMvetonegaMvelocallegislaMvedecisions

>2 DevelopaplantobuildrelaMonshipswithlocallegislatorsandtheirstaffs

MembersaMsfacMonisexcellent

ACSIscore >3.5 1.DevelopacommunicaMonplantodevelopstrongertrustwithmembers2.Exploreproducts&servicesthatenhancememberconvenience

CommunityparMcipaMonisexcellent

Totalvolunteerhoursperemployeepermonth

>2 GenerateengagementopportuniMes

Strengths Weaknesses

Opportuni6es Threats

SWOT for External Relationships

StrategicIssues

Objectives,TargetsandStrategies

Statementofexemplaryexternalrelationships

!  TopquartileofmembersatisfactioncategoryonTouchstoneBSCscorecard!  CommunityandlegislativerelationshipsarestrongandCCECistrustedresource

Organization & Culture Environment OrganizationalMandates•Arethereemploymentlawsorothermandatesthatmustbeaddressed?•  Poolofsuccessioncandidatesisadequate?

EmployeeCapabili6esandCompetencies•  EmployeesareeffecMve&efficient?•  Employeeshavesufficienttraining?•  Poolofqualifiedworkersisadequate?• WorkiseffecMve&organized?•  AvailabilityandskillsofpotenMalworkers?

Organiza6onStructure•  StructureiseffecMve,efficient&flexible?•  CommunicaMonsareeffecMve&efficient?•  EffecMve,inspiringleadershipispresent?

Organiza6onCulture• Workenvironmentissafe?•  Howdoesoursafetycomparetoindustry?• WorkersareadaptableandmoMvated?•  RelaMonshipwithemployeesisgood?• Werecognizegoodwork?•  Ourpeopleliketheirwork?

Organization & Culture Objectives (examples)



Safety ZeroAccidents Zero ConductSafetyTrainingHoldTailgateSessions

EnhanceorganizaMonalculturetoimproveexternalrelaMonships

EmployeeSurvey CreateBaseline

DevelopandconductEmployeeSurvey

OrganizaMonisresponsivetomembers

ACSIScore DevelopandconductMonthlyMemberSaMsfacMon/Feedbacksurvey


Opportuni6es Threats

SWOT for Organization & Culture

StrategicIssues

ObjecMves,TargetsandStrategies

StatementofhealthyorganizaMonandculture

!  ApreferredemployerandlearningorganizaMon !  TopquarMleonemployeesaMsfacMonscore

Programs & Processes Environment Plant&Equipment•  Equipmentisreliable,safe&efficient?•  TechnologyisadequatelyuMlized?•  Inventoryisadequate?•  Reliabilityiscomparabletoothersinindustry?

Exis6ngPrograms&Processes•  Programs&processareeffecMve&efficient?•  ProblemsarequicklyidenMfied&resolved(nobacklog)?

• WorkiseffecMvelyscheduled&organized?

Technology•  Technologicalbreakthroughs(schedulingtools,processautomaMon,producMon&deliveryofproducts/services)?

•  Anyprocesseswecanadopt(goodpracMces,benchmarking&peergroupprocesses)?

Suppliers•  ConsolidaMonofsuppliers?•  Newsuppliersorlossofsuppliers?•  Changeinavailabilityofvendorservices?•  Changeinqualityorpriceofequipmentorservices?

Regula6ons•  NewregulatoryrequirementsaffecMngourprocessesorequipment?

•  Newstricterenvironmentallaws?

Programs & Processes Objectives (examples)



SystemaverageinterrupMonduraMonindex(SAIDI)isinfirstquarMle

SumofduraMonofallmemberinterrupMonsforyeardividedbytotalnumberofmembersserved

120Minutes

UMlizeOutageManagementtoreduceresponseandrestoralMme

SystemaverageinterrupMonfrequencyindex(SAIFI)isinfirstquarMle

TotalnumberofmemberinterrupMonsdividedbytotalnumberofmembersserved

1.3 TreeTrimmingRegularMaintenance

CustomerAverageInterrupMonDuraMonIndex

SumofoutageminutesoffduringtheperioddividedbynumberofmeterswithoneormoreinterrupMons

84Minutes TreeTrimmingRegularMaintenance

Processesareefficient InternalControlAudit CompleteBaseline

EngageEmployeeCommiheesProvideEmployeeTraining


OpportuniMes Threats

SWOT for Programs & Processes

StrategicIssues

StatementofefficientandeffecMveprocessandprograms

!  TopquarMleofsafetycategoryonTouchstoneBSCscorecard!  TopquarMleofreliabilitycategoryonTouchstoneBSCscorecard

Financial Resource Environment IncomeandExpenses•  Islevelofcapitaladequate?Dowehaveadequateavailabilityoffundstobuildplant?

•  Isthecompanyfinanciallystrong?•  HowdoesourfinancialperformanceonTouchstoneEnergymetricscomparetopeers?

•  Aretherewayswecouldincreaseourrevenue?•  Howdowemanagerisingcosts,weatherpahernsandmemberexpectaMonswithregardtorates?

EconomicTrends•  EconomictrendsthatwillaffectourorganizaMon?

•  RevenuetrendsthataffectourorganizaMon?

Regula6ons•  Regulatorychangesthatwillaffectourfinancialperformance?

•  LegislaMvechangesthatwillaffectourfinancialbohom-line?

Financial Performance Objectives (examples)



Revenueisincreasing

annual%increase >1 InvesMgatewaystoassistinareaeconomicdevelopment

G&Aexpensesaredecreasing

annual%decrease >1

OperaMonalexpensesarecontrolled

annual%increase

annual%increaseincontrollablecostpernumberofemployees

<0

<0

Equityisincreasing equityasa%ofasset


OpportuniMes Threats

SWOT for Financial Resources

StrategicIssues


!  Revenueisgrowing,ratesareatorbelowotherelectricuMliMesinSWOregon!  KRTAstaMsMcsarecomparabletoothercooperaMvesofsamesizeanddemographics!  ProductcostsareaslowaspossiblewithoutcompromisingintegrityoforganizaMonorservice

excellence

Affirmphilosophy

Evaluateexternal

environment

Evaluateinternal

environment

Selectobjectives

(futurestate)

Createstrategiesto

meetobjectives


Monitor&evaluate

performance


Strategic Plan and Roadmap

• Assignstrategies(Metoindividualperformanceplansandrewards)

• DevelopacMonplanstooutlineprojects,programsandacMviMes

• ScheduleacMonswithduedatesandresponsibleindividuals

Implement Strategies

Affirmphilosophy

Evaluateexternal

environment

Evaluateinternal

environment

Selectobjectives

(futurestate)

Createstrategiesto

meetobjectives


Monitor&evaluate

performance


Monitor & Evaluate

Performance

•  WewanttoknowifwearecompleMngouracMonsandmovingtowardsourtargets

•  WemayneedtomodifystrategiesandsupporMngacMonplanstoreflectperformanceresults

•  Weshouldreportprogressperiodically•  Weshouldrewardsuccess

#57Spotlight on Excellence Entry FormNRECA Voting Member Classification * Distribution Cooperative: 1-20,000 meters

Category * 16. Best Event

Entry Title * CCEC Strategic Planning

I wish to receive Judges' comments onthis entry

Yes

Contact's Name * Christine Stallard

Cooperative * Coos-Curry Electric Cooperative, Inc.

Mailing Address P O Box 1268 43050 Highway 101 Port Orford, OR 97465 United States

Contact's Email * [email protected]

Contact's Phone Number * (541) 247-6638

Name of entrant as it should appear onthe award (if given)

Coos-Curry Electric Cooperative, Inc.

mailto:[email protected]

Is this the first time you've entered theSpotlight competition?

No

Entrant's Email [email protected]

Names of others (freelancers ororganizations) involved in the project, ifapplicable

Describe your/the co-op's role in theproject *

Dolores McBride, the cooperative's human resources administrator andChristine Stallard designed a strategic planning process that involvedall 64 employees and resulted in a strategic plan that was presented toand adopted by the board of directors.

Describe others’ role in the project(Reference outside sources of material,including templates; pre-existing Webtools and apps; information from outsidegroups, such as Straight Talk orTouchstone Energy; stock photos andmusic, etc.) *

The strategic planning initiative, while designed by the co-facilitators,was based on the Touchstone Energy Strategy Execution System withinput and guidance from CCEC's board president, who has extensiveknowledge of strategic planning.

Circulation or Number of People Reached *

Number of Attendees * 64

Project’s Budget * Zero

Target Audience(s) * Board of Directors and Membership

Project's Objective *

Restrictions/Limitations * Co-facilitators had no real restrictions or limitations other than toavoid expenses that were not in the budget and also avoid employeeovertime. With a very limited budget, co-facilitators purchased candyand "smiley" stress balls. Employees were asked to bring a brown baglunch.

Describe why you chose this type of socialmedia and how you used it *

Provide a brief summary that states the purpose of the event, how the program was implemented, and resultsand how they were measured *

With a loss of revenue over the past several years due to a sluggish economy and low load growth and energyindustry changes on the horizon, CCEC's general manager/CEO had an increasing desire to hit the challenges headon and position the cooperative for future success. Strategic planning had traditionally been done in the board room,but when presented with an idea to conduct "bottoms-up" planning that would include ideas from every employee,the board of directors unanimously agreed. Two employees designed the seven hour planning session using toolsdeveloped by Touchstone Energy (Strategy Execution and Balanced Scorecard) and Cheryl McMahan, CCEC's boardpresident. The 63 employees were broken into 8 cross-departmental groups. Each group participated in the sameexercises, which included a SWOT analysis, identifying strategic initiatives and redefining the mission, vision andvalue statements. All 8 sessions were held in April 2015 (we were exhausted!). The "Mission Impossible" themegreeted employees as they came in to the board room and Pharrell Williams keep the groups "Happy" during breaks.At the end of the day, the walls were covered with sheets of paper containing great ideas for helping the cooperativenavigate turbulent times and prepare for the next 75 years. Co-facilitators condensed the data into a 40-pagedocument that was reviewed by employees. Once employees had provided input and finalized the mission, vision and

mailto:[email protected]

values, a draft strategic plan was then presented to the board of directors. With very few changes, the board adoptedthe plan. Co-facilitators shared the final plan with all employees and the board of directors. Using the TouchstoneEnergy Strategy Execution model, co-facilitators developed road maps and other internal tools to assist withimplementation. Large road maps that clearly indicate the cooperative's mission, vision, values and strategicinitiatives are clearly displayed in lunchrooms and hallways of all four office buildings. Various committees have beenformed to tackle the strategic initiatives which include better utilization of technology (OMS and AMI), address newrevenue sources and improve commitment to community. Measurement is tied to the Touchstone Energy BalancedScorecard approach for areas such as ACSI score, reliability and safety indices and key financial ratios. Thecooperative's general manager/CEO reports progress to the board of directors at each monthly board meeting. Thestrategic plan is still being implemented and is expected to for the next two to three years. The event has beenshared with members in a Ruralite magazine article and with public power entities (NWPPA Bulletin magazine featurestory).

Provide a brief summary that states thepurpose, how the program wasimplemented, and results and how theywere measured using the RACEframework. Each component has its ownword limit noted below.

Research *

Action *

Communication *

Evaluation *

Upload Supporting Materials File #1 ccec_employee_strategic_plan_2015cls.ppt8.22 MB · PPT

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Supporting Materials Link

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Created6 Nov 2015

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Carol Crabtree · 16:33 on 19 Nov 2015REVIEWED 11/19-KAC

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2015 strategic plan [final] - cooperative · 2015 strategic plan [final] coos-curry electric...

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