But it is critical that utilities prioritize these types of evaluations. There are so many questions that need answers…

Are costs of chemicals increasing?
Are we responding to after hour service calls in a timely manner?
When does the laboratory new regulatory requirements take place?
Where will our equalization basin be constructed?
How do we ensure our technological infrastructure is safe from cyber-attacks?

Knowing how a utility is performing helps to determine its business focus and priorities. I am the Organizational Performance Manager at Union Sanitary District in Union City, California. At this wastewater treatment plant that transports and treats up to 28 million gallons a day, I am responsible for collaborating with all work groups to develop measures and targets that align with the responsibilities of our agency.

Two weeks after each fiscal quarter we summarize our performance measures on an Operational Excellence Balanced Scorecard. A scorecard is a specific framework and tool we use to report plant health and other measures to our employees, board members, and the public.

A key benefit of using a disciplined framework is that it gives organizations a way to “connect the dots” between the various components of strategic planning and management, meaning that there will be a visible connection between the projects and programs that people are working on, the measurements being used to track success (KPIs), the strategic objectives the organization is trying to accomplish, and the mission, vision, and strategy of the organization.

The framework is organized into four perspectives: customer, financial, internal process, and employee growth and development. At Union Sanitary District, teams and workgroups have individual scorecards that have performance measures aligned with these perspectives, but not all of their measures cascade up to our operational excellence scorecard.

I have heard throughout my career, that “if it moves, it can be measured.” While this is typically true, it is first important to identify how this data will be used. Performance measures are set to develop a consistent behavior, identify performance or efficiency gaps, and to make decisions. Use caution, as too many measures are difficult. It is a best practice to review measures at an appropriate frequency in effort to adjust, remove, and or add new relevant measures that continue to align with the organizational need.

While it can take some time and effort to setup regular performance evaluation at a utility, I can attest from firsthand experience that the investment is worthwhile and improves utility management.