Archive for the ‘Change Management’ Category

Success Factors for Implementing Change Management

Posted by Utilimetrics on December 21, 2011

Utilities considering smart grid technology recognize that implementation depends on the successful integration of new technologies with legacy system infrastructure. But it also depends on human dynamics, which are essential to effective change management.

This article highlights the Autovation Change Management Education Session from Wednesday, Sept 28.

Speakers:        
Shawn McDonough, Rappahannock Electric Cooperative
Tom Kerestes, West Monroe Partners
Kathy Cowan Sahadath, Hydro One Networks, Inc.
Deb Bradbury, Enspiria Solutions 

Implementing a Program Management Office for What’s Beyond the Smart Grid

Rappahannock Electric Cooperative (REC) is the ninth largest cooperative in the U.S., serving 22 Virginia counties. West Monroe Partners is a full-service business and technology consulting firm working in strategy and execution. West Monroe Partners provided project management solutions to REC as it implemented smart grid technology. The utility and consulting company partnered to oversee strategic development with projects, but executives recognized more was needed including:

  • Coordination and management of projects
  • Formalized project management and prioritization process for all major projects to properly manage resources and investments
  • Business process improvement for business transformation activities resulting from REC’s smart grid implementation

Utilities typically implement Program Management Offices (PMO) focused on IT activities. Under the Smart Grid Investment Grant (SGIG) funding, REC created a PMO to:

  • Monitor progress of multiple projects
  • Enable cross-functional team collaboration
  • Centralize specific financial and operational reporting requirements

By designing the PMO for use beyond the initial three-five year Department of Energy (DOE) SGIG funding period, REC planned to maximize capital investment. Kerestes described the best practices of a PMO:

  • Time management
  • Resource management
  • Risk and issue management
  • Scope and change management
  • Communication management
  • Quality management
  • Integration management
  • Cost management

Some problems may arise with change management, business process redesign and quality assurance. The top obstacle to successful change management is employee resistance. But the “number one success factor to implementing change management is strong sponsorship with an organization,” said Kerestes.

Some of the questions you should ask:

  • What are the requirement specifications for this project and does everyone know what they are?
  • What should a quality assurance plan look like for this project?
  • How do we know that we’ve managed this project to ensure a quality product is delivered?

All suggestions come into the PMO for review and analysis based upon strategically established filters. Projects are then grouped into categories based on whether or not they move forward, and how the PMO will treat them.

Change Management Enables Smart Grid Innovation

Hydro One, a utility that delivers electricity to 1.3 million customers across Ontario, is utilizing change management strategies to foster an environment of innovation. Hydro One’s Advanced Distribution Project (ADS) is one of several initiatives to sustain and modernize Ontario’s electricity grid. It is driven partially by the Ontario Green Energy Act, which mandates the connection of more renewable energy sources.

Hydro One’s ADS project is a multi-year initiative to analyze, identify and deploy applications, equipment and new processes to better serve their customers with the following business objectives:

  • Optimize connection of Distributed Generators
  • Improve distribution reliability and operations
  • Optimize outage restoration
  • Optimize network asset planning

Working with IBM Canada, GE Canada, Telvent Canada and Enspiria Solutions Advisors, Hydro One prepared a project schedule and identified the implementation challenges:

  • Utilizing new tools, technology and business process to make better business decisions
  • Staging a complex implementation
  • Managing an aggressive schedule
  • Securing resources needed for multi-disciplines
  • Managing impact to lines of business
  • Communicating effectively
  • Coordinating 10 project work streams working in parallel
  • Realizing business transformation

To tackle these challenges, a thorough change management strategy was established to provide a shared vision of the future. Through community and training activities, ADS awareness established a network of change leadership, delivering the “right messages to the right people at the right time.”

The team is working toward success by maintaining active and visible executive sponsorship, facilitating frequent and open communications, monitoring performance and leveraging best practices and lessons learned.

Attention utility professionals: please share your change management experiences (challenges and successes) with your peers. There are several ways you can do this:

We look forward to hearing from you!

Posted in Autovation, Change Management, Project Management | Leave a Comment »

Opening General Session Sets a Fantastic Tone for Autovation 2011

Posted by Utilimetrics on October 11, 2011

Change and innovation were at the forefront of several informative presentations at the Autovation Opening General Session Sept. 26 in Washington, DC.

AMI Deployment and Smart Metering Initiatives

Today, 26 states have some type of government regulations requiring implementation of smart meters. These projects demand significant cost and resources, and as William M. Gausman, senior vice president, strategic initiatives at Pepco Holdings, Inc. explained, are much more than meter-to-meter deployment projects.

“This is a comprehensive initiative,” said Gausman.  Pepco is implementing new technologies, including a 300,000 meter deployment in Delaware. He specified that looking at the deployment holistically from the very beginning, to how data is managed, to educating the customers, is the key to successful deployment.

Pepco received $170 million in federal funding to invest in the smart metering project, and $4 million from a smart grid workforce training provider to assist in re-training meter readers. Smart planning is “under the umbrella of change management,” said Gausman. “We have to change the way we operate internally, from the skills and technicians…. Which impacts our whole design…. To be able to accommodate the data that’s coming back from all of these devices.”

AMI deployments lead to significant change, and companies must be willing to accept this challenge. “What we’re faced with,” said Gausman, “is being able to take the new technology and past technologies and integrate the system… that is really based on designs that are 80 to 90 years old.”

The challenge is making these systems operate in a way that works, and as Gausman described, this is not a program where “you wake up one day and decide that you’re implementing smart meters,” he said.

Gausman said it took a couple of years to develop the concept, then achieve approval. “It is a long path, and without the proper planning, you cannot have a successful program,” he concluded

Measuring and Managing Energy Spending

Paul Feldman, past chairman of the Midwest ISO, displayed data readings from a 24-hour period to present how energy demand varies from hour-to-hour, and how retail price for energy doesn’t properly mirror the real price.

By using a movie generated by the grid operator of the Midwest ISO, Feldman took attendees on a tour of how prices swing during one day, fluctuating from a price point of $0 or less MW/h to over $200 per MW/h. 

“The constant price motivates how you actually use electricity across the day,” says Feldman.  “What the movie shows is the actual price is moving around more than any other commodity on earth, and certainly shows that retail price bares no practical relationship to the real price.”

As the movie played, in just a few hours the prices shifted dramatically from one region to the next.

Exciting Innovation at DC Water

George Hawkins, DC Water general manager is involved with many ambitious projects designed to enhance and improve the water utility.

A repeated theme during Hawkins’ presentation was his passion for conservation.  He concluded his presentation by stating, “It is my strong conviction that you all are at the forefront of protecting human civilization.”

The Opening General Session was also an opportunity for Utilimetrics to recognize industry and association leaders and supporters.

Autovation Sponsors and Exhibitors

Dozens of exhibitors packed the expo and provided information, product and service demonstrations and advice to attendees. Click here for a list of all exhibitors and links to their websites.

Autovation sponsors helped support Autovation and its activities. We are very grateful to our sponsors:

Diamond Sponsor: Itron

Gold Sponsors: Neptune, Sensus and SilverSpring Networks,

Silver Sponsors: Aclara, at&t, Elster and Trilliant

Bronze Sponsors: On-Ramp Wireless, Siemens and Sprint

Autovation Host Utilities
Autovation 2011 host utilities Pepco Holdings, Inc. and DC Water were thanked for their hospitality and assistance in planning Autovation. 

Utilimetrics Awards
Utilimetrics presented four awards during the Opening General Session:

Utilimetrics Excellence in Project Management Award

Presented to Hydro One and accepted by Rick Stevens, Hydro One vice president of asset management.

Utilimetrics Consumer Outreach Award

Presented to San Diego Gas & Electric (SDG&E) and accepted by Farrell Cox, SDG&E smart meter deployment manager.

Ed Malemezian Utility Professional Best Practices Award

Presented to Charles Kiely, assistant general manager of consumer services, DC Water.

Robert J. Green Distinguished Service Award

Presented to Steve Hadden, SAIC.

After the Opening General Session, hundreds of attendees made their way to education sessions, networking receptions and the expo where they had numerous opportunities to learn, share, explore, experience and celebrate this great industry.

Thanks to everyone who participated in Autovation 2011. Autovation 2012 is Sept. 30-Oct. 3 in Long Beach, Calif. Make plans now.

 

Posted in Autovation, Change Management, customer engagement, Deployment, Grants, Smart Grid, Smart Meters, Water utilities | Leave a Comment »

Three Critical Factors for Successful AMI Deployment

Posted by Utilimetrics on September 19, 2011

By Jeff Trampleasure, vice president of operations, Metadigm Services

 Today, 25 states have smart metering legislation or policies, and utility companies across the U.S. are updating their infrastructure to adhere by the mandates already in place, or inevitably on the way. There are roughly 150 million electric meters in the U.S. and the total installed base of AMR units in the U.S. is estimated between 75M-80M units, or more than 50 percent of all approximate 150M electric meters. However, only a small fraction are replaced with smart meters.

The investments utilities are making in smart grid services are substantial –$50B in the U.S. alone according to authors Marcy Lowe, Hua Fan and Gery Gereffi’s 2011 report, U.S. Smart Grid.

As utilities upgrade the technology, they seek out masters in advanced metering infrastructure (AMI) deployment. Quite a few firms specialize in meter installation. Some install the meters and move on to other projects while others remain involved after installation to ensure the systems work accurately, safely and successfully—and that’s a big issue. 

Working with the right smart asset solutions company makes the critical difference in post-installation, continuing support for your customers, and cost-efficiency.  In choosing asset management partners for smart grid upgrade projects, keep in mind that each time you change companies—for example, installers vs. maintenance—you can open the door to data errors, billing errors and transactional costs.

For example, just last month Alabama Power, a Southern Company subsidiary, updated 1.4 million meters over a three-year period throughout the state. Southern Company started deploying meters in 2008 and completed deployment in 2010. The utility planned on a 36-month project, but completed it in 33 months, three months ahead of schedule. That’s a story most utilities would like to repeat. In order to achieve successful full deployment, there are three critical factors to keep in mind as you plan AMI deployment and post-AMI operations. 

Critical Factor #1—Tell end users what to expect up front

Communication may not be visible in the “utility belt,” but all utilities agree it is of the utmost importance in customer satisfaction. Smart meter installation is a hot-button issue across the U.S., and utility companies are conscious of the responsibility to ensure customers understand why their bill might seem to be adjusted after the deployment.

A glance at headlines in local papers proves that people can be confused that digital meters are causing their bills to increase because they read the electricity usage incorrectly. Often, what’s really causing the rise is the fact that mechanical meters are so incorrect and newer technologies are far more accurate in measuring consumption. Unfortunately, many utilities have also discovered that wiring technicalities and switching a smart meter from one address to another without proper procedures can also create a billing nightmare. Expelling rumors about what happens with smart meter technology upfront is a good practice before the installation begins.

“People want to blame the utility company,” says Angela Taylor with Metadigm Services. “But what we’ve seen in our work with Cobb EMC, Georgia Power, and others is that a proactive customer communications campaign can help the end user see the benefits from better monitoring.”

But the communication efforts shouldn’t stop with pre-installation outreach. End users have questions or concerns during and after the installation process, too.

“Making yourself available before, during and after the deployment makes a big difference in customer service,” says Steve Hallock, senior vice president of product innovation at Metadigm.  He suggests live person assistance to the utility company’s customers during business hours, and 24/7 assistance via web.

Critical Factor #2—Be rigorous about post-AMI expertise

Installation is more than just a meter-for-meter exchange-it involves pre-planning to post-AMI deployment.  For most utilities, a meter upgrade project is a completely new undertaking.  Look for service companies to support you with a lot of experience not just in installation, but in post-deployment. Going from a labor-intensive manual meter reading system to a high-tech two-way communicating system involves more than just a shift in technology for utilities—it’s a culture shift as well.

Utilities are challenged with how to respond to meters that now convey a stream of information.  How to respond to all this data is beyond the role of data analysts and IT operators. The right firm with a focus on proactive asset management can help make the transition from traditional metering to the new paradigm a smooth transition.   Post-AMI deployment represents a critical phase that involves careful consideration of many variables including compliance to safety, reaction to meter alarms and verification of accuracy to name a few.

Critical Factor #3—Plan for data collection and management

When an installation company is not involved following deployment, the utility often has to figure out how to respond to the stream of data from every meter. Ted Masters, VP of sales for Metadigm suggests selecting a company that is willing to work with you as a long-term partner rather than one that finishes your project and moves on to the next one.

As utilities are aware, preventative strategies must be in place to address safety during a storm, vegetation and other intrusive factors. Utility companies are flooded with customer demands when disaster strikes. And beyond blackouts and severe storms, day-to-day meter readings take manpower and expertise.  The new technologies provide real-time interval data that needs to be monitored and managed properly.

“Now that we have deployed smart meters, we’re better able to take care of our customers and manage our power grid, and that’s what it’s all about,” said Reginald Murchison, Manager-Metering Services at Alabama Power.

Posted in Change Management, customer engagement, Deployment, Project Management, Smart Grid, Smart Meters | Leave a Comment »

Change Management Enables Smart Grid Innovation

Posted by Utilimetrics on August 25, 2011

The way we produce, distribute, and consume electricity is changing and a paradigm shift has begun. Nowhere is this statement truer than in the Province of Ontario, Canada.  These changes are part of a global trend that Ontario is leading—and propelled by. The province is among several jurisdictions around the world that have recognized the need to modernize their electricity systems to fully capture the economic and environmental benefits of this transition.  These are exciting times.  Ontario’s electricity system is truly in transition.  The pace of change is unprecedented in many ways.

Ontario-based Hydro One is involved in a number of initiatives designed to sustain and modernize Ontario’s electricity grid. These initiatives are bringing substantial changes to the way Hydro One operates the system, including new business processes, skill sets, and opportunities for staff. However, the concept of a “smart grid” is generally not well understood by consumers and utility employees have only recently been introduced to the strategic importance of smart grid development.  Hydro One’s Advanced Distribution System (otherwise known as Smart Grid) Project Team is implementing change management strategies and tactics to build awareness and engage employees so they can contribute to building the solution they will benefit from.           

Kathy Cowan Sahadath is program manager for Hydro One Networks and is a change management professional within the Hydro One Corporate Projects group. “I have the good fortune to be involved in a lot of our major business transformations,” she states. Over the last 10 years or so, she has been involved in an Operating Grid Control Centre amalgamation, major SAP implementations, Smart Meter implementation, and now Smart Grid (which Hydro One calls “Advanced Distribution System”). Cowan Sahadath helped create the change programs for the projects, as well as bring together the teams needed for the projects. 

For the Advanced Distribution System project, Cowan Sahadath recruited Deb Bradbury, a principal consultant with Enspiria Solutions a Black & Veatch Company to be a vendor partner. “We now have a full change team that is working through the different phases that we have designed for this project,” states Cowan Sahadath.

Hydro One started to think about its Smart Grid strategy back in 2008. It began by asking what a roadmap for smart grid would look like for the next five to 10 years. What evolved from this was a Steering Committee that led to the birth of a project team. 

“It has been exciting to see the process evolve over the last three years, as well as to see the enormous scope of what our industry is facing,” continues Cowan Sahadath. “Our Autovation presentation will provide more information on the details of the scope of our project.” Cowan Sahadath and Bradbury will speak Wednesday, Sept. 28 at 10 a.m. on the topic “Change Management Enables Smart Grid Innovation.”

From a change management or business transformation perspective, Cowan Sahadath believes that there is tremendous opportunity to rethink how Hydro One does business. “What the utility industry is facing is an opportunity for major changes in how we do business and how we interact with our customers in the future,” she adds. As a result, she believes, while the technology is very important, there is a huge human element the utility has incorporated into all of its plans and implementations going forward. “This is why I think change management and transformation is so important,” she states. “It is an opportunity for us to start to help influence a change in that mindset with the employees, as well as with our customers and stakeholders outside the company.”

“We will also present information on the unique challenges we are facing with this project,” states Bradbury. “It is very complex. We have a large project team with 10 different work streams, so there are challenges with coordinating and communicating the important decisions that impact the work in progress.” She adds: “We know the tools and data the new technology provides as well as new business processes will offer employees opportunities to make better business decisions and to work more efficiently and ultimately improve operations.”

Another challenge, according to Bradbury, is: How do you get employees to buy into all of this and be willing to change how they work? They want to know how much it will really help them.

As a result, one large part of the initiative involves business process reengineering – taking a fresh look at existing processes to determine how new tools and information will improve the quality and timeliness of business decisions. For example: How will Distribution Engineers do real-time studies? How will the Control Room and Provincial Lines deal with planned and un-planned outages? How will the Control Room deal with new alarms?  How will Distribution Controllers and Dispatchers be able to target where to send crews more accurately? “We are taking a fresh look at all of these things and determining what the future will look like,” adds Bradbury.        

So what is Hydro One doing to facilitate change management? A lot of things. “From a change management perspective, we have involved the key stakeholders right up front,” replies Bradbury. “Even in Phase 0, when we were just planning, we had representatives from lines of business at the table who we expected would be impacted.  Ultimately, they are the ones who have to do the work, so they have to be part of the decisions, and they have to believe in it.”          

Another key has been being sure the utility has very active and visible leadership throughout the process. This includes participating on the Ontario Smart Grid Forum and staying aligned with the Ministry of Energy.           

Communication is also important, according to Cowan Sahadath. “At every step of the process, we need to make sure that there is frequent and open communication,” she states. “It also needs to be two-way, so that there is good opportunity to listen to people and get feedback.”

Bradbury agrees with the importance of communication. “We have developed a very detailed communication strategy and plan for our different stakeholder groups,” she states. “We are currently executing an Awareness Campaign and using many communication vehicles which we will describe during our Autovation presentation.”

According to Cowan Sahadath, because smart grid development is still so new and untested, there are not a lot of “best practices” from which Hydro One can learn. “As a result, along the way, we, as an industry, need to leverage the knowledge and information from our own work as well as other utilities as quickly as possible,” she emphasizes. “In fact, the ideal is to share ‘lessons learned’ in almost a real-time environment.”           

And this, in actuality, is what Utilimetrics and Autovation are all about.

Posted in Autovation, Change Management, Deployment, Pre-Deployment, Project Management, Smart Grid, Smart Meters | Leave a Comment »

 
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