25 years |strategies for complex organizations

API 1173: Starting at the BeginningAGA PSMS Workshop

March 1-2, 2016Dallas, TX

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25 years | strategies for complex organizations

Davies Consulting

Business Strategy• Strategy Development and Execution (Corporate, Business Unit, Operational)• Business Process Design/Improvement/Standardization• Strategic Capabilities Roadmap• Contracting Assessment and Strategy; Program Management Support

Regulatory Support• Rate Case Strategy & Development Support• Cost Recovery Analysis/Business Case Development• Expert Testimony; Testimony Writing• Witness Preparation

Risk & Asset Management• Infrastructure Investment Analysis & Optimization; Portfolio Analysis Process & Methodology• AM Strategy & Life Cycle Analysis; Vegetation Management Review & Implementation• Portfolio Analysis Process & Methodology• Maturity Assessment; Reliability Performance Review

Emergency Management• Emergency Management Program Review; Emergency Response Process Improvement• Exercise Creation and Support (Tabletop & Functional)• Emergency & Crisis Communications Planning• Post-Incident After Action Reviews/Evaluation/Benchmarking

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25 years | strategies for complex organizations

The Risk Bowtie: API 1173 addresses both sides

API 1173

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25 years | strategies for complex organizations

Combined Strengths Lead to Success

Third Party Assessor Objective Industry Knowledge Risk Management & Asset

Management Expertise Focused; Can ask the Difficult

Questions No “Skin in the Game”

Utility Company Knowledge Utility Expertise Familiar with Culture Know Key Personnel “Skin in the Game”

A collaborative approach is best.

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25 years | strategies for complex organizations

Knowledge of client – previous risk-related work On leading edge of utility evolution – groundbreaking regulatory work Holistic approach (Risk Bowtie)

API 1173 Assessment to Implementation

Determine Requirements of

API 1173

Determine Utility’s Current State

Perform Gap Analysis

Roadmap and Implementation

Plan

1 2 3 4

Met

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logy

Out

com

e(s)

API 1173 Assessment Questionnaire, Checklist, and Evaluation Framework

Review Utility’s Safety Management System

Interviews Review documentation Review processes

Use information from checklist + Davies Consulting expertise (for context) to determine Key Gaps

Develop detailed plan for API 1173 Implementation

Identification of requirements and potential areas of focus

Understanding of Current State

Identification of Key Gaps

Actionable implementation roadmap

Prioritize by importance and by ease of implementation

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25 years | strategies for complex organizations

API 1173 Interview Questionnaire (sample)

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25 years | strategies for complex organizations

API 1173 Assessment Checklist (sample)

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25 years | strategies for complex organizations

API 1173 Compliance Roadmap (sample)

Timeline

Foundational Initiatives

Developmental Opportunities

Continuous Improvement

Deployment 1Deployment 2

Deployment 1Deployment 2

Deployment 1Deployment 2

Actio

ns

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25 years | strategies for complex organizations

Lessons Learned Collaborative Effort – utility lead + third party 20-30 two-hour interviews

• Identifying interviewees; scheduling in-person • Additional one-hour deep dives into emergency management team, contractors

group, training• Documentation is vital – need note taker• Tailored interviews and checklist by subject matter expertise

Provide questions beforehand; shorthand checklist in questionnaire• Supplement with documents (ERP, etc.)

Cultural factors

• Not an audit• Tool for improvement

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25 years | strategies for complex organizations

Regulatory Strategy

API 1173 Integrates Utility Systems

API1173

Integrated Management System

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25 years | strategies for complex organizations

6935 Wisconsin Avenue, Suite 600Chevy Chase, MD 20815

Tel. 301-652-4535

www.daviescon.com

API 1173: Starting at the BeginningDavies ConsultingThe Risk Bowtie: API 1173 addresses both sides�Combined Strengths Lead to SuccessAPI 1173 Assessment to ImplementationAPI 1173 Interview Questionnaire (sample)API 1173 Assessment Checklist (sample)API 1173 Compliance Roadmap (sample)Lessons LearnedAPI 1173 Integrates Utility SystemsSlide Number 11