Organizational Development for Knowledge Management at Water ...

Project Study # 25
LWC Process & Operational Improvements
Project Description: In January 2005, the Organizational Effectiveness Business System rolled
out new procedures for submitting Process and Operational Improvements. Under the new
procedures, LWC employees who submit documented improvements must identify: (1) past
practice, (2) difficulty with the past practice, (3) description of the new practice, and (4)
description of the outcome or results of the new practice. Operational Improvements have an
additional requirement of a graph showing performance improvement over a period of time or
against a goal or target. Managers review the improvements before they are submitted to OE
where they are also reviewed before being counted in the yearly total. Process and
Operational Improvements can be submitted by individuals or teams.
Challenge: Originally, LWC only collected Operational Improvements, which placed the
focus exclusively on “big-ticket” items that resulted in significant dollar savings to the company.
However, we wanted employees to focus on continuous improvement in all areas (big and
small) that may result in reducing unnecessary steps within a task, improving customer
satisfaction, or reducing the amount of time it takes to complete a process. Therefore, the
addition of Process Improvements was introduced to employees.
Size of Utility: 450 employees
Critical Success Factors: In 2005, LWC employees submitted a total of 103 Process
Improvements and 15 Operational Improvements. In 2006, that number grew to 158 Process
Improvements and 28 Operational Improvements. In 2007, 163 Process Improvements and 23
Operational Improvements were submitted. We are currently running ahead of last year’s YTD
total and anticipate breaking the record again in 2008.
Cost: No costs noted. However, there have been significant dollar savings as a result of this
practice (see attached summary of 2007 success)
Benefits: See attached summary of 2007 success.
Attachments provided: (6) 2005 Operational & Process Improvements Summary; 2006
Operational & Process Improvements Summary Listing; 2007 Operational & Process
Improvements Summary Listing; LWC Process Improvement Form; LWC Operational
Improvement Form; Newsleaks Article on 2007 Process & Operational Improvements.
Compiled May 2008
_______________________
POC:
Carl Blanton
Louisville Water Company
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