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HPOAPWA 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, PE Assistant Director/County Engineer County of Orange Harry 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. 2 Agenda Definitions and concepts Two Organizations approach to HPO: Mature A water district Developing – Orange County Public works 3
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9982 Applying High Performance Organization Concepts to ...

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Page 1: 9982 Applying High Performance Organization Concepts to ...

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.

2

Agenda

Definitions and concepts

Two Organizations approach to HPO:

Mature ‐ A water district

Developing – Orange  County Public works

3

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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

4

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

6

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K. Bazmi, Orange County and H.  Lorick, LAC, Inc. 3

Key questions that you must ask

7

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.

8

The process

9

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5 Key HPO Factors for Competitive Performance

• Continuous Improvement

• Openness and action orientation

• Management quality

• Workforce quality

• Long term orientation

10

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. 

11

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. 

12

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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. 

13

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. 

14

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.

15

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Computers

Processes

Management

Infrastructure

Resources

Approach

One Approach  Does Not Fit All! 

16

A complete service SoCal Water Agency

17

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)

2

3

4

1

5

18

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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

20

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

21

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K. Bazmi, Orange County and H.  Lorick, LAC, Inc. 8

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

22

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

23

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

24

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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.

25

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.

27

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7. Strategic Goals with Objectives

28

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

29

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

30

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Work Flow

Employees and business teams optimize work flows

31

32

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

33

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Compare Relevant Criteria to “best in class”

Production Response

GapUsed comparisons to both internal and external BM to identify opportunities!

34

•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

36

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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

37

• 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

38

Now  let’s hear from Khalid Bazmi

39

And OCPW’s approach to achieving aHPO.

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K. Bazmi, Orange County and H.  Lorick, LAC, Inc. 14

OC Public Works

41

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

42

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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

44

Mission

45

Employees are trained in understanding this along with ethics

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K. Bazmi, Orange County and H.  Lorick, LAC, Inc. 16

Yet major changes have been made

• New Leadership

• New Organizational structure

• Allows for increased communication with customers and employees

• Update of technology ( In process)

46

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

48

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OCPW – Post Reorganization (2014)

10 Administrative Manager III Positions

49

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

50

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

52

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.

53

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

54

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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 

55

Business Tools and Systems 

Were in place but have been: 

• Enhanced;

• Simplified; and

• Education and training in progress.

56

Plan

Organize

Schedule

Control

57

Develop Plans, Priority and LOS for Assets

Organize/Assign Annual Goals

Monitor the Results vs. Expectation and Adjust

57

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.)

59

Annual Goals

60

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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

62

63

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

64

Applications and Interfaces

65

Interfaces and reports available here.

65

Visually evaluate Include other location 

specific factors Allow non technical input Automate the process

66

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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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HPO‐ APWA 2015 8/31/2015

K. Bazmi, Orange County and H.  Lorick, LAC, Inc. 24

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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