Keynote Address "Becoming A Customer Centric Utility" at the March 2010 American Water Works Association Customer Service Information Management Technology Conference in Portland Oregon

1. Becoming a Customer Centric Utility Elizabeth S. Kelly PEDirector of Project Management & Engineering Division AWWA CS/IMTech March 2010

2. Seattle

4. Funded Entirely by the Rates Paid for our Services

5. Four Utilities

7. Asset Management Offers a New Paradigm for Customer Centric Decision Making

8. Managing assets has always been part of running a utilityOur organizations have well developed tools for this work.

9. But, typically management of utility assets has employed tactical rather than strategic approaches.

11. Deliberate decisions

12. Transparency

13. Life Cycle

15. Risk Management

16. Life Cycle

17. Triple Bottom Line

18. Data and Data Systems

19. Strategic Asset Management Plans

20. Business Cases

21. Decision Making Venues

22. Performance Measurement

24. Critically Important to each of the following elements

26. Manage based on risk cost and cost to mitigate

29. Maintenance and Operation Costs

30. Other asset costs such as electricity

31. Future renewal costs

33. ASSET MANAGEMENT Minimising Whole of Life Costs at an Agreed Service Standard Poor Management Capital Retirement Costs Operations & Maintenance Life of Assets

35. Environmental

36. FinancialLearn About Risk Focus On Life Cycle Costs Use Triple Bottom Line

37. Triple Bottom Line Costing: An Example

38. Triple Bottom Line Costing: An Example

40. Size, material, age

44. Allow us to better understand the assets and risks associated with them in order to develop renewal plans and maintenance strategiesLearn About Risk Focus On Life Cycle Costs Use Triple Bottom Line Manage Data And Data Systems Plan for Assets Strategic Asset Management Plans

46. Major decisions are made based on asset management and customer centric principles

47. In a transparent mannerUse Triple Bottom Line Manage Data And Data Systems Create SAMPs Decision Making Venues

49. Measure resultsFocus On Life Cycle Costs Use Triple Bottom Line Manage Data And Data Systems Create SAMPs Decision Making Venues Measure Results

52. Requires making deliberate decisions regarding allocation of resources.

53. We intend for these decisions to be made in a transparent manner,

55. Challenges with a Customer Centric Approach Who are they? What do they want?

59. Set Service Levels and make investments needed to meet them – now and into the future.

61. Drinking Water Line of Business Service Levels

62. Wastewater Line of Business Service Levels

64. Focus Groups

66. Mainline sewer backups

68. Program Equity

69. Policy Decisions

70. Resource Allocation Decisions

72. “Are we providing value for this expenditure?”

73. “Is the outcome something our customers would value?”

75. Assessing Customer Willingness to Pay

76. Triple Bottom Line Analysis

78. Identification of Social Impacts

80. Use Culturally Appropriate Outreach

82. Service Equity

83. Full Cost Pricing

84. Intergenerational Equity

90. And Offers a New Paradigm for Customer Centric Decision Making

91. Elbow Your Way Into the Dialogue