05-06-1986 HUCM1
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Special Meeting
May 6, 1986
All Commissioners were present; also present were Mgr. Alexander,
Counsel Peterson, Jane Hodgins, staff writer for the Hutchinson
Leader and Ruth Hakel.
President Daggett called the meeting to order at 6:30 p.m.
Shirley Kitzmann of the Hay Management reported on phase I,
which included:
Interviewing all Commissioners
Reviewing existing job descriptions
Reviewing organization charts
Reviewing payroll records
President Daggett thanked Shirley Kitzmann for the presentation.
A special meeting to discuss data processing equipment will be
scheduled for May 14 or May 21.
There being no further business, the meeting was adjourned at
7:30 p.m.
ATTEST
L=
E. Daggett, Pry 3, ent
Thomas B. Lyke, Secre
/y
H" Management
Consultants
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Minneapolis
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1 his report is confidcnnal anal
Intended solely for those desig-
nated by the client to whom it is
Al addressed.
HU`l'CHINSON UTILITIES
011 (;ANI ZATION REVIEW
KEY ISSUES
AND
PROJECT WORK PLAN
Prepared By:
Shirley D. Kitzmann
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1 his report is confidcnnal anal
Intended solely for those desig-
nated by the client to whom it is
Al addressed.
HU`l'CHINSON UTILITIES
011 (;ANI ZATION REVIEW
KEY ISSUES
AND
PROJECT WORK PLAN
Prepared By:
Shirley D. Kitzmann
HAYANAGEMENT
MCONSULTANTS
AGENDA
I. INTRODUCTION ................................... 1
II. IDENTIFICATION OF KEY ISSUES ...................
III. WORK PJ,Z'sN IFOF P]-l'MAlNDFR OF PROJECT .............
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HAYCONSULTAMANAGEMENT NTS
I. INTRODUCTION
flay retained to:
0 Revi(?,,,, organization structure
• Review deployment of human resources
® Review uti!4-,,:ation Of human resources
To ensure that the ifutchinson Utilities organization is operating
effectively and efficiently.
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HAYMANAGFMfNI
CONSUL T AN I,
Phase I of Pro�ect
Steps taken
• lllt--ei viewed all Commissioners
Revie,.aed (,xist-iny job descriptions
o Reviewed orqaniz.,-.itiori charts
• Reviewed payroll records
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HAYCMANAGMFNT-
ONSULTAN1S
What is an effective and efficient organization?
Organizational Clarity
- clear court ;es of action conveyed by well- defined,
effoctive.ly communicated goals and plans
Decision - Making
systeinati.c formulciti_on, implementation and review of
L informati_or;- k>ascd decisions
Communication
effective conununication throughout the organization in
an environment that fosters cooperative, productive
interactions as well as clearly defined accountabil-
ities of the Commission and the General Manager
Administrative Style
' mm encouragement and support for individual initiative and
openness
Performance Orientati011
extent of emphasis placed upon individual accountabil-
ity for clearly defined results and high levels of
performance
Organization .:,tructure
clear lines of authority and a structure that supports
achievement of organizational goals
Staffing
adequate quality and quantity of employees to carry -out
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organizational goals
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Primary Accountabilities of the C;OITuilission and General Manager
o EstalAish policic�
• Set goals
• Review results
• Carry out daily
operations within
policies
• Provide day -to -day
direction
• Evaluate daily oper-
ations
Utilities Commission
Represent citizens and
charged with ensuring
quality utilities ser-
vice to Hutchinson.
General Manager
A professional utilities
manager knowledgeable
about all aspects of
utilities operation.
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HAYCONSULT AEN T;
1 I 11)I:I�']'])'7CTITIC)N OF KEY ISSUES
Organizational t :
Seems to 1.)t, a:; evidenced by the very successful
operatin ,
Dec is ion -Mak i_ncl
Utilities cio n, -t hl-ve a systematic decision- making process
as evidenced by thc, number o` exception issues reviewed by
the Commission, regarding structure and staffing
decisions. Policies nc"eded to clarify decision- making.
Examples art-, hiring policies, pay increase policies, per-
formance appriii!Icil , etc-
Communication
Lack of accountabilities of the Commission
and the General Manager as evidenced by Commission involve-
ment in day- to -diay operating decisions.
Verbal communication of policies and goals is not effective.
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HAY COANAGMENT
NSUE ANTS
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Assignment of Accountabilities
(Examples)
Accountability
General
Commission
Manager
Hiring Policies
Develop /Formulate
X
Approve
X
implement
X
Review
X
Expense Policies
Develop /Formulate
X
Approve
X
Implement
X
Review
X
Develop Overall Organization Goals
Develop /Formulate
X
Approve
X
Implement
X
Review
X
Develop Performance Measures
Develop /Formulate
X
Approve
X
Implement
X
Review
X
Organization Strategy
Develop /Formulate
X
Approve
X
Implement
X
Review
X
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HAYMANAGEMENT
CONSULTANTS
ti Performance Orzt'n t,I t on
Appears to he lack pei. formance orientation.
Lack of clearly uei:ined accountabilities for each position.
No formal performance, appraisal system.
Annual performance goals and measures not set.
Consequently, it is difficult to define "good employee perform-
ance" at the Hutchinson Utilities.
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`0 MANAGEMENT
HAY CONSULTANTS
1
Organization >tru� turd
In -depth aii�ilysis t -iot vet conducted, but a preliminary
review rais(c ,� the following questions.
Given the pending retirement (2 -3 years) of the General
Manager, is it appropriate to provide for a "General Manager
in Training" position?
Are their overlapping accountabilities among the Superin-
tendent, Gas and Electric; Superintendent, Collection and
Metering; ajid' Superintendent, Service and Engineering?
Are there any positions without a full -time work load?
Are duties well- ci!;sicjned in the power plant?
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HAYMANA
CONSUL TAN GLMIN TI `;
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Staffing
Four staffing issil,--s have bf2en identified
• Staffing_St rat-(�y - Among the Electric and Gas Crews,
the has maintained a year-round staff geared
to P(2.1k suium,-,i: work demands. Is this a strategy that
Should continue or are, their alternatives that are more
cost effuctive?
• Enlploye( Skills There, is concern that specific skills
arc not reps -,sented among Utilities' employees, in
particular pi.ofessional engineering. Should a profes-
sional engineer be on staff?
• Filling Job openij-,(IF
Is the best qualified person
being hi red for job openings?
• Utilization of the Work Force - Is the work force being
used as (-,ff(--,�c-t—i-v ly-as—possible?
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■ ■AY CONSU TAN T;
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1 .i 1 , PLAN FOR REl`I,r1INDEIl Or PP,OJECT
Probe deeper. into th issues to develop solid recommendations.
Project Teem
Hay Consultant_
Utilit.ies' Coord;;;allor
Interviews
General Manag<r
Superinten(lent, Ga , and Electric
Superintendent, �'��l.lection and Metering
Superintendent , ",t�rvic e and I:rigineering
Purchasing Mjmac,cr
Of f ice Manag��l_
Production Superintendent
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AMANAGEMENI
HAY CONSULTANTS
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Interview
topics:
•
The Manager's interpretation of the role of the
unit
for which he /she is responsible
•
A descript:i.on of the key accountabilities which
the
unit i_:, expected to achieve
•
The services which the unit provides to other functions
within the Utilities
•
The services which the unit receives from other
func-
tions
•
A bri,�i timo analysis of the work demands of
+'
suboz-di_natto ;, outlining activities carried out
and
their pri.orl ties
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HAYCMANAGMENT
ONSUE ANTS
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Remaining
Project Steps
Step
Action
Appoint Hutchinson Utilities' coordinator
2,
if,-1y coiisultant meets with coordinator to define
ro1c, and accountabilities
3.
Communication sent to those individuals to be
=a
j.nterviewed
4.
:schedule established
i
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1;lt:.eTV.lc".JS conducted
6.
Con > uLl -int and coordinator meet to review inter -
V.1ew `inclin,js
7.
Consultant develops recommendations
8.
Corriission review of recommendations
9.
plan developed for implementing recommenda-
t. onr;
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