Improving Your Strategic Focus & Performance

Dan Ryan, EVP Management Systems and Health & Safety

Strategic Performance Management & Measurement Summit

March 27, 2010

Atlanta, GA

Veolia Water is the

leading provider of

comprehensive water

and wastewater

services for over 300

municipal and

industrial clients

through-out North

America.

Approximately 2,700 Employees

In 32 States and 3 Provinces

Veolia Water Uses Balanced Scorecard to Drive North American Strategy

• Veolia Water introduces new CEO in

2008 – Laurent Auguste.

• Auguste had experience with the

balanced scorecard in his previous

roles with Veolia Water in the Asia-

Pacific region .

• Auguste seeks winning strategy based

on strategic alignment throughout the

organization.

• Veolia Water selects the Balanced

Scorecard Institute to define a

strategic planning and management

system based on balanced scorecard

methodology.

Veolia Water Uses Balanced Scorecard to Drive North American Strategy

CEO creates new department – Management Systems

The role of “Management Systems”

Develop and implement systems and procedures for enabling continuous

improvement towards maintaining high standards of quality, reliability, safety and

compliance across the country.

Many similarities with BSC

Train Management Teams on BSC Methodology and Value

Develop Mission Statement

Develop Vision Statement

Conduct Strengths, Weaknesses, Opportunities, and Threats

(SWOT) Analysis

Identify Strategic Objectives

Identified Key Performance Indicators (KPI’s)

Set KPI Targets and Red Flags

Identify Initiatives

Cascade Process to Functional Departments

Engagement of consultant reduced likelihood of false start.

Worked with our Consultant to…

Key components of our strategy

Mission

Vision

Values

Mid-term Objectives

Strategy Map

Key Performance Indicators

Initiatives

Recognized benchmark Leader

Reliable solutions to water challenges –

Profitable Growth, Recognition, Employer of choice

Behaviors driving SVR (Service, Value, Responsibility)

Added value for customer, employees and shareholders

Tracking our progress

Actions making it happen

How we get there

• Boost organizational performance.

• Breakdown communication barriers

between business units and

departments.

• Increase focus on strategy and

results.

• Budget and prioritize time and

resources more effectively

• Help the company better understand

and react to customer needs.

The Veolia Water Balanced Scorecard was designed to:

Alignment

8

Financial

Customer

Business

Process

Learning

& Growth

Veolia Water North America Corporate Strategy Map

Sustainable, Profitable High Growth Innovative Solutions & Partnerships Operational & Technical Excellence

Increase Business Development

Leverage Technical,

Operational & Business Expertise

Increase Profitability

Increase Penetration of New & Current Markets

Achieve A High Rate of

Sustainable Growth

Attract, Develop &

Retain Skilled & Ambitious Staff

Improve Understanding of Stakeholders & Market Trends

Cultivate a Performance

Based Organization

Improve Internal

Processes Throughout the

Organization

Increase Customer &

Community Trust & Strengthen

Brand

Improve The Performance of Our New and

Current Business

BSC Web-Based Software- Quick Score™

Mandatory Training for Project

Manager and above.

The following slides are example initiatives that were…

1) Funded as justified by the BSC process

2) Selected to support Strategic Objectives and their KPIs

Initiative / Strategy Map Linkage

12

Talent Acquisition and Recruitment

Hired Bob Caldrone; Director, Talent Acquisition

13

Compensation Framework

- Levels

- Titles

- Salary Ranges

- Incentive Targets

Initiative / Strategy Map Linkage

14

Performance Management

Initiative / Strategy Map Linkage

15

Competency Management

Developed Database

Reviewed job descriptions for key

jobs in operations

Completed “mapping” of

competency requirements for key

jobs in operations

Identified gaps and opportunities

Developed competency-based

training programs

Initiative / Strategy Map Linkage

16

Re-design of Annual Incentive Plan (AIP)

Initiative / Strategy Map Linkage

17

The Balanced Scorecard

Aggregate Score will also

impact the level of funding

of the incentive pool.

18

Re-design of Annual Incentive Plan (AIP) – cont.

2011 Balanced Scorecard Target 6.67

2011 CAFOP / Revenue Target 10.12%

Initiative / Strategy Map Linkage

19

Commission Plan Re-design

Funding of Commission Pool

Determination of Size of Commission Pool

Clarity and Definition Related to Administration of Commission Program

Linkage of Developer’s Commission Plan to Annual Incentive Program (AIP)

Allow for Some Level of Subjectivity/Flexibility

Communication of Commission Plan

Initiative / Strategy Map Linkage

20

Created Shared Service Center

Initiative / Strategy Map Linkage

21

Payroll Consolidation

Addressed Numerous Payroll Issues:

- Payroll Processing and Practices

- Federal Employer Identification Number (FEIN)

Initiative / Strategy Map Linkage

22

Time Labor Management

Converted from paper time-

keeping to a computerized time

labor management system.

Initiative / Strategy Map Linkage

23

Reorganization

To better manage existing

business and to proactively

organize for expected growth:

Reorganized “Municipal”

regions from 4 to 3.

Formed an “Industrial”

Business Group

Initiative / Strategy Map Linkage

24

Project Polaris

Initiative / Strategy Map Linkage

25

Under Ground Asset Management (UGAM)

Initiative / Strategy Map Linkage

26

Meters – Product Offering

=

Initiative / Strategy Map Linkage

27

Water Footprint

Carbon Footprint

Initiative / Strategy Map Linkage

28

Benchmarking

VWNA / McKinsey Joint Venture

- Pilot project at VW Indianapolis

- Pilot project at VW Milwaukee

Initiative / Strategy Map Linkage

29

CRM Sales Tool

Customer Relationship Management (CRM) is a widely-implemented

strategy for managing a company’s interactions with customers, clients

and sales prospects. It involves using technology to organize, automate,

and synchronize business processes—principally sales activities, but also

those for marketing, customer service, and technical support. The overall

goals are to find, attract, and win new clients, nurture and retain those the

company already has, entice former clients back into the fold, and reduce

the costs of marketing and client service. Customer relationship

management describes a company-wide business strategy including

customer-interface departments as well as other departments.

Initiative / Strategy Map Linkage

30

Contract Management Database

e3 is a web-based software program

used to manage company, client,

regulatory, and contractual

obligations and deliverables (tasks)

and to manage audit/inspection

findings (issues) from identification

through resolution (closure). It is a

repository for facility’s regulatory

operating permits and service

agreements (contracts).

VWNA has purchased an

unlimited user’s license

agreement with e3

Solutions Inc.

An on-going initiative

involves review of all

contracts for risk

assessment and overall

improvement opportunities

Initiative / Strategy Map Linkage

31

Developed Client Satisfaction and

Trust Survey

Survey Excerpt…

Initiative / Strategy Map Linkage

32

Cost of Goods Sold (COGS)

This initiative provides a systematic

approach to treatment plant

optimization. Subject matter

experts work with plant personnel

to review expenses such as power

chemical, labor, residuals

management, etc. to maximize

plant efficiency, control costs, and

seek sustainable solutions.

Initiative / Strategy Map Linkage

Veolia Water receives the Balanced Scorecard Institute’s “Award for Excellence” based on the following criteria:

Executive Leadership

Strategy Mapping

Breakthrough Results

Alignment

Data-Driven Decision Making

Strategic Resource Allocation

Reporting and Communication

Sustainability

February 26, 2012

“People cannot perform better than the organization supporting them”

Thank You

Strategic Performance & Change Management Conference

•Actuate - The BIRT Company™

•Spider Strategies, Inc. •Association for Strategic Planning •Process Excellence Network •Strategy Management Group

If you would like to receive the free IQPC brochure

directly email taryn.soltysiak@iqpc.com

November 13-15, 2012 in New Orleans, LA

View the Strategic

Performance & Change

Management program here:

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