“Think Strategically, Speak Strategically”

One cooperative’s journey with Strategy Execution

Doug Wilson

Chief Information Officer

Session Agenda

• Introductions • History and Background • PRECorp’s Strategy Execution Approach • Key Success Factors • Lessons Learned • Questions

History and Background • Powder River Energy Corporation (PRECorp)

• 145 employees serving 12,777 members / 27,700 meters • 11,300+ miles of line across 16,000+ square mile service

territory of five counties in northeastern Wyoming as well as a small area of southern Montana

• PRECorp distributes approximately 2.75 billion kilowatt hours of power on an annual basis

• 9% Residential & Irrigation • 22% Coal Bed Methane • 45% Coal Mines • 24% to other commercial & industrial members

History and Background • PRECorp’s Strategy Execution efforts have been evolving

• Traditionally lead and developed at the CEO level • Standard approaches related to Mission, Vision, SWOT Analysis, etc. • Recently more involvement and leadership by entire executive team • Breakthrough results began once achieved involvement and

engagement at all levels of the organization including both middle management and front line employees as well as support and direction from the PRECorp Board

• Have enlisted external assistance where needed and appropriate to further develop and enhance the organization culture

• Leadership Development • Performance Management • Employee Opinion Surveys • Strategy Execution Methodology

• Technology has played a key foundational and supporting role throughout the process

Strategy Execution Approach – “Summary” • PRECorp’s Recent Strategy Execution Efforts

• Re-visioning • Strategy Scenario Development • Values Focus Groups • Strategy Map Development • Strategic Initiative Definition, Prioritization & Tracking • Balanced Scorecard Dashboard • Employee Engagement

• Performance Goals, Personal Scorecards, Cases For Excellence • Proactive and Regular Communications

• Members and Employees

Strategy Execution Approach – “Re-visioning” • The “Re-Visioning” process leveraged what had

already been done • A review, validation and update of the original organization

vision, mission and company values • A review, validation and update of previously identified

Strengths, Weaknesses, Opportunities & Threats (SWOT) • The entire Executive Staff team was involved in this

review and discussion on the approach to move forward from this starting point

• An exercise was performed to categorize Opportunities, Threats and other Social, Technological, Economic, Environmental and Political factors by degree of likelihood and impact to the organization if they did occur

Strategy Execution Approach – “Strategy Scenario Development” • Four scenarios were defined from the initial exercise

• High Certainty & High Impact • High Certainty & Low Impact • Low Certainty & High Impact • Low Certainty & Low Impact

• PRECorp utilized a cross-functional team approach to develop and describe each potential scenario

• Member Service, System Operations, Engineering • I/T, Accounting & Finance, HR, Communications

• Each team came back to present the results to the entire group, the Executive Staff team and the PRECorp Board

• Utilized presentations, videos and live skits to communicate and better visualize their vision of the PRECorp future

HC/HI

LC/HI LC/LI

HC/LI +

Impact

Cert

aint

y

- - +

The year is 2020…Much has happened in the past eight years…

The most critical decisions that led to PRECorp’s optimal position today:

#1. Shifting the way the organization approached providing energy to the membership

#2. Increasing PRECorp’s presence and service in community and civic groups

#3. Embracing the fast pace of technology and leveraging it to increase PRECorp’s services

#4. Reasserting that the employees are the greatest asset of a company

EMPLOYEE SCENARIO VIDEOS…

Strategy Execution Approach – “Values Focus Groups” • Again utilized a cross-functional team approach to

develop and describe PRECorp Values from multiple perspectives

• Employees, Members and Other External Stakeholders/Partners

• Integrity, Innovation, Accountability, Commitment to Community and Safety

• Each team came back to present the results to the entire group, the Executive Staff team and the PRECorp Board

• Utilized presentations, videos and live skits to communicate and better define the meaning of the PRECorp values

VALUES ARE LIKE MAGNETS…

When they are aligned, they pull people together…

VALUES ARE LIKE MAGNETS…

When they are not aligned, it creates conflict, disagreement and division…

Commitment To Community “Be involved & support the communities that we serve”

Integrity “Adhere

to moral & ethical

principles”

EMPLOYEE VALUE TESTIMONIALS…

Strategy Execution Approach – “Strategy Map Development” • PRECorp’s Strategy Map

• Leveraged prior strategic planning work • Influenced by outcome of strategy scenarios efforts • Built on the foundation of values & principles • Serves as basis for decisions, initiatives and pursuit of new

opportunities • Departmental goals and individual employee performance

goals developed to align with the strategy map

PRECorp Strategy Map Development

PRECorp Interactive Strategy Map

Strategy Execution Approach – “Strategic Initiative Definition, Prioritization & Tracking”

• PRECorp’s Strategic Initiatives • Specific, intentional efforts to advance the strategy and

achieve the vision • Objectives and outcomes need to be clear • Defined milestones and target dates are important • Fewer is better…Keep focused on the priorities • Assign ownership and identify stakeholder for each

initiative • Overall program management is necessary to ensure

progress is being tracked, monitored and reported • Ensure the budget process supports strategic efforts

PRECorp Pre-Initiative Form

Strategic Initiative Prioritization Process

Strategic Initiative Prioritization Process

PRECorp Strategic Initiative Listing

PRECorp Strategic Initiative Narrative

PRECorp Strategy Initiative Tracking

Strategy Execution Approach – “Balanced Scorecard Dashboard” • PRECorp’s Balanced Scorecard

• “If it’s worth doing…It’s worth measuring!” • The Balanced Scorecard is what tells us if we are truly making

progress on our strategic efforts and achieving our objectives • The PRECorp Balanced Scorecard is built to align with the

Strategy Map with key metrics in the Member, Financial, Process and People/Team Culture Perspectives

• Additional metrics also track Strategic Initiative efforts • Includes both base targets as well as stretch metric targets • Indicators of overall “BSC Health” for each metric • The Balanced Scorecard also serves as the basis of Employee

Engagement efforts with both overall company and individual cash payout opportunities

2014 Balanced Scorecard – Company Intranet Launch Page

2014 Balanced Scorecard – Main Summary Dashboard

2014 Balanced Scorecard – Member Perspective Dashboard

2014 Balanced Scorecard – Financial Perspective Dashboard

2014 Balanced Scorecard – Process Perspective Dashboard

2014 Balanced Scorecard – People & Team Perspective Dashboard

2014 Balanced Scorecard Health Dashboard

2014 Balanced Scorecard Health Dashboard

2014 Balanced Scorecard Stretch Metrics Dashboard

2014 Balanced Scorecard Stretch Metrics Dashboard

Strategy Execution Approach – “Employee Engagement” • PRECorp’s Employee Engagement Efforts

• The PRECorp Balanced Scorecard has a financial payout aspect that benefits all eligible employees (50%)

• Employees can also submit annual Personal Scorecards to demonstrate their involvement and support of strategic aspects as well as company values (50%)

• The PRECorp TeamShare program also has different types of “Cases For Excellence” (CFE’s) which are opportunities for employees to submit and be recognized for cost savings ideas, reporting hazards, preventing outages, proactive supervisor communication and other examples of excellence

• Annual performance goals are aligned with Strategy Map and Strategic Initiative efforts

• High performing employees also receive additional payout

2014 PRECorp Balanced Scorecard – Payout Dashboard

2014 PRECorp Personal Scorecard – Case For Excellence (CFE)

2014 TeamShare Program – Additional CFE Opportunities

PRECorp Annual Performance Goal Example

PERFORMANCE GOAL

Manage the NISC Integration Strategy Strategic Initiative by providing & coordinating I/T activities/deliverables for the department initiatives of Meter Data Management, Document Vault, Mobile WorkForce & SmartTrack.

Strategy Map Alignment P11 (Strategic Initiative #P11-15)

Department Alignment Coordinate efforts with other departments to implement and rollout solutions as part of the ongoing NISC Integration Strategy

KRA# #2 - KRA: Manage, lead and participate in projects, committees, etc. to improve processes and implement new technologies

Rating Level 1 Deliverables completed are frequently late or of poor quality potentially jeopardizing the ability for the objectives to be completed by the expected deadlines.

Rating Level 2

Only a few deliverables completed are late or of less than expected quality and are just enough to complete the objectives within a reasonable period.

Rating Level 3

Deliverables completed are completed in a timely and quality manner that enables objectives to be completed within reasonable variances of project schedule and budget.

Rating Level 4

Deliverables completed are routinely completed in a timely and high quality manner with positive feedback from other stakeholders. All project deliverables are able to be completed on schedule and under budget.

Rating Level 5

Deliverables are completed with very positive feedback from the Executive Staff and other team members regarding the results of the projects. These deliverables are timely, of high quality and completed in a manner that enables each objective to be completed well ahead of schedule and significantly under budget.

Strategy Execution Approach – “Proactive & Regular Communications” • Communicate, Communicate, Communicate!

• Members • External Website • Monthly Newsletter • Annual Meeting • Community Town Hall & Outreach Efforts • CEO Telephone Town Hall

• Employees • Company Intranet • NewsFlash • All-Team Meeting • Department, Team and Individual One-on-one Meetings • CEO Telephone Town Hall • Employee Opinion Survey Monitors Employee Engagement

PRECorp Strategy Map Content on External Website

CEO Corner Intranet Page For Employees

CEO Telephone Town Hall Meetings

Employee Opinion Survey Indicators

Key Success Factors

• Remember it’s a journey that takes time! • Strive for continuous improvement

• Take on the difficult challenges & strongholds • Measure your progress

• Balanced Scorecard • Leverage technology

• Manage by information & pursue efficiencies • Communicate your strategy to ensure alignment

• Members & Employees

A Success Story – Residential & Commercial New Service 2014 2009

Lessons Learned

• Your strategy execution efforts will evolve along the way • Leverage what you have already done

• It’s okay to incorporate elements of prior strategic planning efforts • Get help where needed and appropriate

• Don’t try to recreate the wheel • Employee engagement & involvement in critical

• Involve employees early and at all levels of the organization • Stay focused

• Clearly define the top priorities and ensure alignment of resources • Continue to refine the process as you proceed on the journey

• Use the feedback and results to identify areas needing adjustment

Questions? Follow-up Contact Information:

Doug Wilson, CIO, Powder River Energy Corporation Email: dougw@precorp.coop

Phone: 307-283-4940

Thank you! Good luck on your own Strategy Execution journey!