HPO‐ APWA 2015 8/31/2015
K. Bazmi, Orange County and H. Lorick, LAC, Inc. 1
Applying High Performance Organization Concepts to Your Public Works
Department
September 1, 2015 3:45 PM
Khalid Bazmi, PEAssistant Director/County Engineer
County of OrangeHarry Lorick, Principal, PE, PWLF
Manhattan Beach, CA
“We Help Public Works Work!”
Learning
• Understand what is a High Performance Organization.
• Identify the difference between traditional and high performance organizations.
• Acquire background needed to consider implementing HPO in Public Works.
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Agenda
Definitions and concepts
Two Organizations approach to HPO:
Mature ‐ A water district
Developing – Orange County Public works
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K. Bazmi, Orange County and H. Lorick, LAC, Inc. 2
What is A High performance Organization
“A High Performance Organization is an organization that achieves financial and non‐financial results that are exceedingly better than those of its peer group over a period of time of five years or more, by focusing in a disciplined way on that what really matters to the organization.” Andrew, De Waal, 2012 www.hpocenter.com
• HPO is relative and must compare or benchmark
• Sustainable over long period of time
• Effort to continuously improve.
Elements
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What is differenceTraditional Organization High Performance Organization
Internally focused. Customer focused.
Top‐down control, bureaucratic structure. Autonomous, self‐regulating work units.
Planning and coordination done by management. Planning and coordination done by work teams.
Specialization and narrowly defined jobs. Jobs are broadly defined and employees possess
multiple skills.
Unclear processes and procedures. Documentation and clarity of core processes and
procedures.
Rigidity: there is one single best way to do a job. Flexibility: many ways to achieve same level of
performance.
Uniform and strictly enforced policies. Do things by
the book.
Minimum of rules. Values and common sense govern
behavior.
Department boundaries determined by function
(e.g. Engineering, Manufacturing, etc.).
Department boundaries determined to leverage
competitive advantage (task inter‐relationship,
customer, product or process focused).
Training focuses on technical skills. Training focuses on total employee development
(e.g. business understanding, teamwork, etc.).
Rewards based on individual performance. Rewards based on contributions to effectiveness
team.
Employee viewed as tools of management. Employees viewed as partners.
Alienated and unhappy employees accepted as
given of industrial life.
Quality of life of employees is imperative to
company. 5
Commitment of Senior Management and Supervisors
Staff Communication of Work Performance
Team Involvement/common direction with specific goals
Ability to Meet Challenges and Competition
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Key questions that you must ask
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What is high performance for us?How would we know if we were high performing?According to whom are we high performing?Why do we need to be high performing?Are we doing the right “what?”How good are we at it?How are we going to treat each other and our stakeholders?
John Pickering, John. (2012). The High‐Performance Organizations Diagnostic/Change Model.Retrieved from http://icma.org/en/BlogPost/897/The_HighPerformance_Organizations_DiagnosticChange_Model
AMA Study ( 1,369 in survey)
Largest gap between higher‐performing and lower‐performing:
• whether organization‐wide performance measures matched the organization’s strategy.
• whether organizations’ strategic plans were clear and well thought out.
Or in sum ‐ consistency and clarity.
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The process
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HPO‐ APWA 2015 8/31/2015
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5 Key HPO Factors for Competitive Performance
• Continuous Improvement
• Openness and action orientation
• Management quality
• Workforce quality
• Long term orientation
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Lets look at specifics for each
Continuous Improvement Organizations that
1. Have adopted a strategy that sets it clearly apart from other organizations.
2. Processes are continuously improved, simplified and aligned.
3. Everything that matters to performance is explicitly reported.
4. Both financial and non‐financial information is reported to organizational members.
5. Continuously innovates core competencies as well as products, processes and services.
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Openness and Action Orientation
6. Management frequently engages in a dialogue with employees.
7. Organizational members spend much time on communication, knowledge exchange and learning.
8. Organizational members are always involved in important processes.
9. Management allows making mistakes and welcomes change.
10.The organization is performance driven.
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Management Quality as Management
11. Trusted by organizational members. 12. Has integrity.13. Role model for organizational members. 14. Applies fast decision making and action taking. 15. Coaches members to achieve better results. 16. Focuses on achieving results. 17. Very effective. 18. Applies strong leadership. 19. Confident. 20. Decisive with regard to non‐performers.
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Workforce Quality
21.Management always holds organizational members responsible for their results.
22.Management inspires organizational members to accomplish extraordinary results.
23.Organizational members are trained to be resilient and flexible.
24.The organization has a diverse and complementary workforce.
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Long term orientation
25. The organization maintains good and long‐term relationships with all stakeholders.
26. The organization is aimed at servicing the customers as best as possible.
27. The organization grows through partnerships with suppliers and/or customers.
28. Management has been with the company for a long time.
29. The organization is a secure workplace for organizational members.
30. New management is promoted from within the organization.
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Computers
Processes
Management
Infrastructure
Resources
Approach
One Approach Does Not Fit All!
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A complete service SoCal Water Agency
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District Facts• 110,000 customers in an 18‐square‐mile
area. • Annual water sold 18,700 acre feet
• Service area includes the City of Costa Mesa, parts of Newport Beach, and some unincorporated sections of Orange County, including the John Wayne Airport.
• Mesa is governed by a 5 member Board of Directors.
• Assets 23,786 Water Meters 350 Miles of distribution lines Two (2) Reservoirs Eight (8) Well Sites active One Mesa Water Reliability Facility
(MWRF)
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3
4
1
5
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General Manager
Business Administrator
Customer Services
Department
Communications Department
Financial Services Department
Water Operations Department
FY 15 Budget – 53.75 FTEs
EngineeringDepartment
Administrative Services
Department
District has many years of Success
100% Water availability Low customer cost water
without any other hidden charges
Low water loss High system integrity Accepted public support
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Mesa Water Reliability Facility (MWRF)
1. High‐quality soft water;2. 50 percent more water than the previous technology while using less energy;3. Groundwater clean‐up by keeping colored water from migrating into the clear
water zone; and,4. 100% local water reliability.
Use of Orange County’s groundwater basin supply of amber‐colored water from ancient redwood forests.
Facility uses nanofiltration membrane technology, and in service in 2012.
Projected to provide ¼ of water supply in 2014
100 % local water availability now in So California
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Cost and Rates• Rate survey and expenditures by external
auditor in 2011, Mesa had good benchmarks
• Appear to be a competitive service provider
Study indicates an efficient agency
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External evaluation
Reported low water loss:
Low water loss of 4.1% Leaks on lines, hydrants and valves – 86 Leaks on meters of 544 or 2.3%Reported very competitive values
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0
5
10
15
20
25
30
35
40
45
50
AWWA Median AWWA 25th Percentile
Leaks/Breaks per 100 Water Line Miles
Water Distribution System Integrity
Better than 90% of other agencies
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2012 Customer Survey
Probolsky with Laer Pearce & Associates surveyed 509 customers and found with 95% confidence ( +/‐ 4.3%)
• 85.3 % Did not contact District in 6 months• 88.6% Approved of job by the District• 84.7% Believe water quality to be most important and are
satisfied (90.2%)• 58.3% Pay for water just about right• 74.3% Indicated read Water District News• 56.7% Aware of landscape workshop• 31.6% Visited web site• 97.6 % Indicate they practice water conservation
Survey in 2012 and again in 2016 indicates general positive public acceptance of District’s effort.
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How did this happen!
• District Manager and Board Focus
• Leadership direction and culture
• Work flows documented and defined
• System and business process in place
• Accountability linked to every employee
• Acknowledgement of success26
Education /Certifications
Educated and trained professional and technical Employees.
Extensive recruitment effort with good pay and benefits.
Often get 50‐100 plus applicants for a position. Hire the best.
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7. Strategic Goals with Objectives
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Mesa Water has Strategic Goals
Mission and Vision
Goals are being linked
Activity GuidelinePerformance
plan
System Dbase
Mission and vision
6 Strategic Goals (SG)
Link together by activity by SG
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Performance Measures by
SG
Pareto AnalysisBy SG
Compile by departmentPM goals
AWWA BM
System Dbase
Compare
Specific Job Goals
Budget goals
“Significant Few” Activities Have on Maintenance Workload
Percent of Maintenance Budget
Percent of Maintenance Activities
100
80
60
40
20
010 20 30 40 50 60
Trivial ManySignificant Few
Focused on main work effort
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Work Flow
Employees and business teams optimize work flows
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PLANNING ORGANIZING DIRECTING CONTROLLING
ResourceData
ActivityGuidelines
AnnualWork
Programand
Budget
Inventory &ConditionAssessment Level of
Effort
WorkActivities
ResourceRequirements
WorkloadDistribution
WorkRequests
WorkScheduling
andAssignments
WorkBacklog
WorkReporting
PerformanceandCostReports
FieldPerformance
Evaluationand
ManagementAction
UpdatePlanningValues
WorkCalendar
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Compare Relevant Criteria to “best in class”
Production Response
GapUsed comparisons to both internal and external BM to identify opportunities!
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•Computerized Maintenance Management System (CMMS)
•Geographical Information System (GIS)
• Linked systems
• SCADA35
• Develop full understanding of the existing situation
• Compare to others internally and externally
• Make findings and recommendations
• Obtain “buy‐in” from parties
• Decide which recommendation to act on
• Establish an implementation plan
• Take action, then guide and train
• Adjust using real data and fine tune the solution
• Establish a continuous improvement process
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• Knowing the work and related process
• Being proactive
• Work scheduling using automation
• Training and accountability
• Continuous evaluation using systems
• Employee involvement
• Doing the “right work” and not doing that which adds no value
• Use contract support as necessary such as fleet maintenance
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• Strong and positive Project Manager• Establishment of a monitoring process for Management
• Use of employee teams • Documented accountability systems in place• Linkage of actions to mission and goals• Documentation of results on systematic basis• Senior management involved and aware • Consequences of work productivity results
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Now let’s hear from Khalid Bazmi
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And OCPW’s approach to achieving aHPO.
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OC Public Works
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Orange County
• Population 3.1 million• 790 Square miles• 320 road miles• 310 flood channel miles• CMMS since 1982
Budget - FY 2015-16:Total All Funds - $498,481,819
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FY 2015-16 budgeted dollar breakdown
Taxes 18%
Licenses, Permits & Franchises
2%
Fines, Forfeitures & Penalties0%
Revenue from Use of Money & Property
1%
Intergovernmental Revenues22%
Charges for Services22%
Miscellaneous*8%
Other Financing Sources**6%
General Fund4%
Fund Balance17%
* Bankruptcy settlement revenue, property tax & utility reimbursement, etc. **Transfers in and asset sales 43
We do know where we are!
• The mission• Leadership with direction and culture• Resources ( Labor, equipment, materials, contract, yards and shops, financial, etc. ) are available and utilized
• Automated and business systems in place• Assets owned are identified with condition
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Mission
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Employees are trained in understanding this along with ethics
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Yet major changes have been made
• New Leadership
• New Organizational structure
• Allows for increased communication with customers and employees
• Update of technology ( In process)
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Key actions done to improve
• Simplification of organization – Less layers
– Flatter structure
– Reduced redundancy
• Training
• Communication
• Quality of life – working hours
• System enhancement47
OCPW – Pre Reorganization (2013)
19 Administrative Manager III Positions
OC Public Works Director
Executive ManagerOC Engineering
Executive Manager/County Engineer
OC Watersheds
Assistant County Engineer
OC SurveyProject
Management
OC Flood
OC Road
OC Construction
OC Operations & Maintenance
Engineering
OC Facilities & Asset Management
OC PlanningAdministrative
ServicesOC Agricultural Commission
Information TechnologyServices
Auditor‐Controller/AccountingServices
Procurement & Special Services
HumanResourceServices
OC Fleet Services
OC Facilities Operations
Maintenance & Engineering
Planned Community Development
Services
ExecutiveSecretary I
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OCPW – Post Reorganization (2014)
10 Administrative Manager III Positions
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OCPW –Reorganization Results
• Improved Employee Morale
• Increased Spans of Control
• Eliminated One‐to‐One Reporting Relationships / Redundant Linear Reporting
• Streamlined Communication to Management
• Created Career Ladders for Succession Planning
• Produced Countywide Savings of $1.6 M with Department Savings of $7 M
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Legend
Have
Adding
Working towardHigh Performance Organization
Customer focused.
Autonomous, self‐regulating work units.
Planning and coordination done by work teams.
Jobs are broadly defined and employees possess multiple skills.
Documentation and clarity of core processes and procedures.
Flexibility: many ways to achieve same level of performance.
Minimum of rules. Values and common sense govern behavior.
Department boundaries determined to leverage competitive advantage (task
inter‐relationship, customer, product or process focused).
Training focuses on total employee development (e.g. business understanding,
teamwork, etc.).
Rewards based on contributions to effectiveness team.
Employees viewed as partners.
Quality of life of employees is imperative to company. 51
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MarchJanuary FebruaryDecember
Self Insight/DiSC
1/2 day
Motivating and Inspiring Employees 2
days
Team Alignment
Leadership Workstyles Session: 1 day
Strategic Thinking, Speed of Trust
Communication Timeline
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Underway for OC Public Works?
• Vigilance in implementing the approved reorganization plan.
• Sustaining credibility and morale levels.
• Focusing on our Three Pillars: Improving customer service, morale and increasing efficiencies.
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Bringing “Forward Focus” to our team
Our future Initiatives:
• Collaborate with other departments/agencies to implement initiatives across organizations
• Create partnerships with staff to implement a ‘bottom‐up’ style of management
• Implement a work flow structure that supports mission and values
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Also
• Empower employees
• Focus on improving quality of life for employees in this new era of shrinking budgets
• Create a sense of cohesion and support
• Good communication and information sharing systems
• Respect for each other irrespective of ranks in the organization
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Business Tools and Systems
Were in place but have been:
• Enhanced;
• Simplified; and
• Education and training in progress.
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Plan
Organize
Schedule
Control
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Develop Plans, Priority and LOS for Assets
Organize/Assign Annual Goals
Monitor the Results vs. Expectation and Adjust
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We are now using systematic process(4‐Phase Approach)
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Planning1. Work activities
2. Guidelines
3. Labor and equipment rates
4. Annual plan
Organizing1. Determining Resources
available to meet workload
2. Projecting needs
3. Determining Work by month
“Unless commitment is made, there are only promises and hopes; but no plans”
Peter F. Drucker
Work Plan
of Needed
work
Annual Plan and Budget
Budget
Limitation
Budget
Limitation
Work units
Resources requirements
Labor, equipment, material
and contracts
Ability to estimate resources required to perform current and desired work
Condition Assessment
Frequency/level of service
(times drains cleaned , etc.)
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Annual Goals
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Scheduling, Controlling and Improving
1. Short tem scheduling
2. Work request and assignment
3. Work Tracking
4. Evaluate accomplishment and production
5. Response to customers
6. Adherence to plan
7. Evaluation capabilities
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Annual Accomplishment Summary
An operational shift from ‘reactive’ to ‘proactive’ and better use of public funds.
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Customer ServiceWork Requests/Mobile App
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Applications and Interfaces
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Interfaces and reports available here.
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Visually evaluate Include other location
specific factors Allow non technical input Automate the process
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• Work identification and using of routine procedures
• Work scheduling and grouping
• Assignment of appropriate labor and equipment
• Training and accountability
• Continuous evaluation using systems
• Doing the “right work” and not doing that which adds no value
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• Established expectations with feedback at all levels
• Training and use of current technology at all levels
• Business processes and technology to match needs
• Empowerment & involvement of employees at all levels
• Focuses maintenance on extending the useful life of assets
• Routine and preventative maintenance programs established
• Staff challenged to innovate and seek operational efficiencies
• Document success and give credit
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Lessons Learned To date
The HPO process
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For OC to become a HPO?
• Compile our effectiveness and efficiency performance measures related to OCPW’s mission and vision
• Select Benchmark agencies
• Identify gaps and try and improve
• Achieve this success over definitive period of time
• Work toward being and growing leaders in Public Works
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Comments or Questions
Khalid Bazmi, PEAssistant Director/County Engineer
County of Orange2301 N. Glassell St.Orange, CA 92867
Phone: (714) 245‐4575email: [email protected]
Harry Lorick, PE, PWLF, Principal LA Consulting, Inc.
1209 Manhattan Ave, Suite 310Manhattan Beach, CA 90266
Phone: (310) 374‐5777 email: [email protected]
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