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Interliance & LCRA Present:
How Serious is the
IT Brain Drain?
4 Hutton Center • Suite 1050 • Santa Ana • California • 92707• 714.540.8889 phone • 714.540.6113 fax • www.Interliance-knowledge.com
Discussion Points
o What is the real state of the industry in regards to the aging workforce and what does it mean?
o How is LCRA addressing the issue?
o What approach can you take?
o Q & A
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The Graying Workforce o According to the Bureau of Labor Statistics, the median age for workers in the utilities sector is 3.3 years higher than the national average.
o During the past nine years the median age of utility industry employees has risen from 41.1 years to 43.7 years.
o For utilities as a whole, 148,000 employees currently fall in the 55 – 64 age group, another 26,000 are over the age of 65.
Source: *UTC Research, Aging Workforce Report 2004
Knowledge Transfer & Skills Lost, Top Concerns
Inadequate Leader Bench Strength 12%
Loss of Critical Knowledge
37%
Inability to Find Replacements with Utility
Specific Skills 29%
No Anticipated Challenges 3%
Other 2%
Insufficient Funds to Address the Issue
6% Increased Retiree Healthcare Costs
11%
Loss of Critical Knowledge
Inability to Find Replacements with Utility Specific Skills Inadequate Leader Bench Strength
Increased Retiree Healthcare Costs
Insufficient Funds to Address the Issue
No Anticipated Challenges
Other
According to the American Public Power Association’s (APPA) survey, loss of critical knowledge is the leading challenge
Source: APPA Survey, Aging Workforce
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Critical Issues Some Things to Consider…
o Do we know specifically where knowledge gaps will exist when employees retire?
o How are we trapping the knowledge of the organization’s most skilled and experienced employees as they approach retirement?
o How are we measuring the capability of our Workforce? What are our organizational accountabilities?
o How are we ensuring that training is providing the exact skills needed to impact business performance?
o Do we have the right mix of Internal vs. contracted work? o Are our internal processes capable of building or reinforcing our
current system?
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o On average utility operations or maintenance employees report less than 50% full certainty for all skills within their job position.
o Organizations need to focus on critical areas and areas of Partial or Conditional certainty where most problems in performance exist — as well as the most opportunities for loss exposure, and regulatory issues.
Partial Certainty
25%
Conditional Certainty
22%
No Certainty 13%
Full Certainty
43%
Typical results of the workforce certainty analysis
Existing Issues of Workforce Capability
The inefficiencies resulting from partially skilled employees affect the bottom line, even before any attrition impact
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Methods for Improving Operational Effectiveness
o Operational problems do not always respond skill development or new systems
o Determining the cause is required before deciding on a solution
o From historical data the range of circumstances that inhibit operational capability are: – 35% Standards and Procedures
– 15% Process Improvement
– 40% Skill Development
– 10% Other inhibitors
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LCRA’s Fayette Power Project: Taking Action Today to Maintain Knowledge for Tomorrow’s Workforce
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LCRA Experience
o The facts: 49% of our employees are Baby Boomers moving briskly toward retirement
o Learning the impact on operations if and when people leave
o Discovering solutions are out there
o Our plan in action today
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LCRA’s Demographics In Operations o Demographics: 22% of the employees are over age 50, 23% of the
employees plan to retire within 5 years o Discovery: Skill loss can double the attrition impact. Typically,
employees with the most experience have double the skill sets of newly hired workers
Skills at Risk Tasks Performed without Trained Employees
46%
53%
63%
15% 21%
26% 32%
34% 28%
16%
12%
7% 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Current 1 Year 2 Years 3 Years 4 Years 5 Years
Skills At Risk Retirements
Years to Retirement
11 years or more 49%
3 to 5 years 18%
6 to 10 years 21%
Less than 1 year 5%
[Not Answered] 7%
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Attrition Does Not Affect All Systems Equally
0 1 2 3 4 5 6 7 8 9 10 11 12
Plant Cooling Water System Boiler Fuel Feed System
Boiler Water Steam System Main Turbine Oil System
Electrical System Extraction Steam Hi/Lo Pressure Feedwater Heater
Hydrogen Seal Oil System Condensate System
Main Turbine Steam System Boiler Water Chemical Feed and Water Sample
FGD Control System Power Distribution System (138kV and 14kv)
Power Distribution System (345kV) Feedwater System
Main Turbine Control System Makeup RO and demineralizer
Generator and Generator Excitation system UPS and DC Electrical System
Combustion Air and Flue Gas System Condensate Polishing System
Control System Combustion Control System
Number of Responses
11 years or more 6 to 10 years 3 to 5 years Less than 1 year
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Training Needs Identified Recommendation: Standardization, Training, Review of Metrics, Targets
Complexity Frequency Importance Problems Certainty Standards
� High � High � High � High � Low � Medium
Control System
0% 20% 40% 60% 80% 100%
Process Complexity
Performance Frequency
Importance to Business
Problem Frequency
Process Certainty
Written Standards
Control System 0% 20% 40% 60% 80% 100%
1. Monitor sys tem
2. Verify the system is operational
3. Recover the system from a malfunction
4. Recognize and respond to a malfunction
5. Recognize and respond to data point errors
6. Operate and record data points
Full Certainty Partial Certainty Conditional Certainty No Certainty Not Applicable
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Process Improvements Identified Recommendation: Process Improvement, Standardization, Metrics and Targets, Training
� Low � High � High � Low � High � Low
Standards Certainty Problems Importance Frequency Complexity
Sootblowing System
0% 20% 40% 60% 80% 100%
Process Complexity
Performance Frequency
Importance to Business
Problem Frequency
Process Certainty
Written Standards
Sootblowing System 0% 20% 40% 60% 80% 100%
1. Manipulate and align the system
2. Place the system in service
3. Remove the system from service
4. Monitor, inspect, service, rotate system
5. Operate system manually and automatically
6. Operate the system
7. Recognize and respond to all alarms
8. Remove a system component from service
9. Return a system component to service
10. Direct and operate the system
Full Certainty Partial Certainty Conditional Certainty No Certainty Not Applicable
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Results For LCRA o SWIFT provided:
– Better understanding of current situation
– Detailed prioritize actions to improve present and future operational capability
o LCRA acted by: – Hiring 16 new operators – Validating the SWIFT recommendations for skill development,
standardization and process improvement
– Implementing prioritized skill development and process improvements actions
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Approaches to an Aging Workforce
Workforce Strategies
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Strategy Development o Understand objectives and goals of the Organization.
o Identify key performance metrics.
o Truly assess and understand workforce capability.
o Integrate workforce capability with business needs.
o Create an integrated prioritization.
o Develop a comprehensive project roadmap.
o Execute an internal & external communication strategy.
o Secure executive sponsorship.
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Are you Prepared for Tomorrow’s Workforce?
Please feel free to ask your questions of either Brad Kamph, EVP, Interliance or
Jennifer Thompson, Planning & Operations Supervisor, LCRA Fayette Power Project
If you are ready to start migrating your knowledge into performance contact us at:
Phone: (714) 5408889
Email: info@interlianceknowledge.com
URL: www.interlianceknowledge.com Interliance Corporate Headquarters 4 Hutton Centre Dr., Suite 1050 Santa Ana, CA 92707 USA
Thank You!
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