Improving electrical distribution reliability and cost

Written by Jose Sanchez

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Results Operations and maintenance expenditures inrepparttar distribution area were reduced by 34% from 1992 through 1996 in terms of cost per kWh. Capital expenditures were reduced by 32% duringrepparttar 119463 same time frame. Overall reliability degraded slightly during this time frame. While reliability was slightly worse, overall customer satisfaction with reliability improved by 9%. This seems counterintuitive however,repparttar 119464 focus on eliminating extreme reliability problems actually shifted customer satisfaction. In terms of price per kWhrepparttar 119465 company improved from one ofrepparttar 119466 high price energy producers inrepparttar 119467 region to one ofrepparttar 119468 lowest.

Recommendations The approach this organization has taken to reduce operating expenses while improving reliability forrepparttar 119469 most significant customers, is a real success story. It is not unique however and with commitment onrepparttar 119470 part of any electric utility, is replicable. The following were some ofrepparttar 119471 recommendations to embark on this approach to improve reliability and competitive position: The initial step is to assessrepparttar 119472 organizations relative position with its natural competitors, and develop a sound strategic plan to improve operations and reliability while reducing costs. Determine customer requirements for all segments and understand their reliability expectations using QFD techniques. Develop strategies to address significant reliability problems and focus improvement onrepparttar 119473 most important customers. Benchmark with best in class companies to understandrepparttar 119474 basis for their performance and analyze their processes for improvement ideas Be prepared to changerepparttar 119475 management structure ofrepparttar 119476 business unit based onrepparttar 119477 most effective way to achieve customer satisfaction and low cost. This will involve downsizing or elimination unproductive work processes, flattening management layers, and realigning functions to get closer torepparttar 119478 customer and provide seamless service delivery. Manage customer relationships based on a sincere commitment to meet their requirements. Develop sound statistical measures of customer satisfaction and initiate actions to reduce and eliminate dissatisfaction.

Managing Partner, Management Resources Inc.

Guide for Visionary Leaders and Business Decision-makers.

Written by Bob Cannon

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With rampant specialization taking place in all areas of our lives,repparttar information that is available to us has increased by a factor of 10,000. If we are to dorepparttar 119462 best for our organizations, it is imperative that visionary leaders and business decision-makers expand their knowledge accordingly. They must increase data input capabilities and speed uprepparttar 119463 decision-making process to keep pace. The question is, “Can we change that quickly?” History suggests that we have remained genetically unchanged through thousands of years and it takes a minimum of a million years to affect and change us. We can’t wait that long to addressrepparttar 119464 gap betweenrepparttar 119465 exponential specialization and our human capabilities. If we agree that our future depends on our ability to learn faster than our competition and we recognize our own individual limitations, thenrepparttar 119466 only solution lies in increasingrepparttar 119467 human talent available to our organizations. I am not talking about a specialist who is internally focused and going to generate more information further complicating our already overly complicated lives, but rather a generalist who is externally focused and capable of leading teams of specialists at all levels inrepparttar 119468 organization. Someone with creative talent, a solid foundation in basics and a uniqueness of thought capable of taking a project from start to finish, thereby lesseningrepparttar 119469 load on yourepparttar 119470 visionary leader and business decision-maker. Large, prosperous organizations may be able to add this type of talent to their staff, but there are potential problems in this approach. First, it is costly. Second, these people need to be constantly challenged. Third and possibly most important is thatrepparttar 119471 longer they stay withrepparttar 119472 organizationrepparttar 119473 more they are likely to develop an internal perspective and thereby diminish their effectiveness torepparttar 119474 organization. Consequently,repparttar 119475 challenges for organizations large and small arerepparttar 119476 same. Where do we find this kind of talent? How do we utilize this talent and have them maintain an external perspective? After much introspection and thought, I have decidedrepparttar 119477 solution lies in hiring talent on a project-by-project basis. The specifications for this talent include real world experience leading projects from inception to successful completion. The talent must have a track record of working with and through people as well as exhibiting creativity andrepparttar 119478 potential for original thinking. Obviously this person needs to be a good communicator. If you have followed my logic this far, then what you need is a “Consultant.”

 Copyright Bob Cannon/The Cannon Advantage, 2005. All rights reserved.

Byline Bob Cannon helps visionary leaders make decisions that gain a competitive advantage. Check out other interesting articles available inrepparttar 119479 Taking Aim newsletter available at . Bob can be reached at (216) 408-9495 or mailto:

This article courtesy of You may freely reprint this article on your website or in your newsletter provided this courtesy notice andrepparttar 119480 author name and URL remain intact.

Robert E. Cannon helps visionary leaders and business decision-makers who want to enhance the competitive advantage of their organizations.

He is also the author of “Taking Aim”, the free monthly ezine written for leaders that takes aim at current issues, mixes in real-world experience and provides the focus needed to gain a competitive advantage.

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