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Best CIS Implementation
CS Week Avista Utilities “Project Compass”April 27, 2016
Vicki Weber, Pat Dever
Avista – 126+ years of dependable service
•We are an energy company involvedin the production, transmission and distribution of energy
•Avista Utilities is our operating division, headquartered in Spokane, WA
•30,000 square miles of service territory, 3 states (WA, ID, OR)
•650,000 electric and natural gas customers
•Nearly 1500 employees
•Active Community Partner
GenerationTransmission Distribution
Mobile Dispatch
…
Work and Asset
Management
Rates and Billing
The Impact of Project Compass Is Far Reaching
Gas Compliance
and Services
EmployeesCustomers
Shareholders
Customer Preferences/Campaigns
Customer Self Service Web/IVR
Outage Management
Meter Data Management
Financials/Supply Chain
Enterprise Business
Intelligence
• Replacement of current systems:• Customer Information & Billing ‐> Oracle Customer Care and Billing
• Updated Monthly Customer Energy Bill
• Enterprise Asset Management System ‐> IBM Maximo
What is Project
Compass?
• Systems and technology 20 + years old
• Current system – “yarn ball” of technology integrations
• Maturing and changing workforce • Evolving industry/technology products and services (e.g. Smart Grid)
Why is Avista replacing these
systems?
What is “Project Compass”
Resources/Project Team
Organizational Change Management
Dedicated Project Space
Executive Steering Committee
Program Manager
Key Partnerships
Researched Industry Best Practices
Preparation – Establish a Strong Foundation
Go Live Manager
YEAR 1 YEAR 2 YEAR 3 YEAR 4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Design/Select System Integration
QA / Stabilize
Phase 1 Design & Select software• 3,000 functional & technical requirements • 200 business processes
10 months
Phase 2 Install• System integration & configuration• Change Management and training
24 – 36 months
Phase 3 Stabilize • Quality Assurance, test, assess & launch
6 – 12 months
Initial Planning ‐ A Phased Approach
Design & Build Configure/Test/Deploy/Support Production
Support
2011-2013 2014 2015
Project Compass Implementation Timeline
February 2015 Go‐Live
Customer Information System –Oracle Customer Care and Billing
Enterprise Asset Management – IBM Maximo(Generation, Transmission, Distribution and Gas)
CC&B Go Live
Customer Service System – Benefits Customers and Avista
Life‐cycle account management
Standard forms and reporting
Ease of rate design
Multiple properties on single account
CCB Integration Map
11
Project Dashboard – Manage Progress
Activity Status Trend
Planning
Detailed Design
System Configuration
Testing
Budget
Scope
Resources
Timeline
Meeting Plan
Needs Focus
Blocking
Current Status
Employee Recognition
13
Organizational Readiness – Managing the Change
“Productivity Dip”
Leadership
Communication
Work Design
KnowledgeManagement
Workforce Alignment
OperationalEffectiveness
How I Feel What I Do
Participation
Training
CHANGE MANAGEMENT
ORGANIZATIONAL READINESS
2007 The Brookside Group, LLC
Pre‐change Transition Steady State
Change Management Value
Time
Performan
ceGo-Live
Organizational Readiness – Managing the Change
“Productivity Dip”
Video: How to read your new Avista bill
www.avistautilities.com/newsystem
Customer Direct Mail – January 2015Key messages: Account Number Change New bill Website availability during cutover FAQs In specially‐marked envelope
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•Requirements•QA and Test Methodology
•Data Conversion•Audits (Internal and
External)
•Requirements•QA and Test Methodology
•Data Conversion•Audits (Internal and
External)
•Dress Rehearsals•Planning
•Roles•Communication
•Support
•Dress Rehearsals•Planning
•Roles•Communication
•Support
•Leadership•Staffing
•Resource Planning•Roles and Resp.
•Balance •Celebration
•Food!
•Leadership•Staffing
•Resource Planning•Roles and Resp.
•Balance •Celebration
•Food!
•OCM focus•Stakeholder/EmployeeEngagement•Training•Communications (Internal and External)
•OCM focus•Stakeholder/EmployeeEngagement•Training•Communications (Internal and External)
•Regular Reviews•Change Requests
•Contingency
•Regular Reviews•Change Requests
•Contingency
People Management
Cost /Budget
Quality
Org.Readiness
Go Live
Lessons Learned•Structure
•Methodology•Risk management
•Scope Management•Timeline
•Structure•Methodology
•Risk management•Scope Management
•Timeline
Project Management
19
Lessons Learned – Go Live
•Hire Go Live Manager one year prior to Go Live•Dress Rehearsals (3)•Planning is essential, task and resource
•Over 1800 tasks documented and posted for cutover weekend•Resources – plan 24x7, communicate/schedule
•Define roles in advance of cutover so focus is on execution, and not who is supposed to do what•Timely, crisp communication to project team and stakeholders is crucial •Ability to provide support as post Go Live issues arise will define success in stakeholders' eyes•Strong communicated contingency plan ‐ celebration /signs/success
•Hire Go Live Manager one year prior to Go Live•Dress Rehearsals (3)•Planning is essential, task and resource
•Over 1800 tasks documented and posted for cutover weekend•Resources – plan 24x7, communicate/schedule
•Define roles in advance of cutover so focus is on execution, and not who is supposed to do what•Timely, crisp communication to project team and stakeholders is crucial •Ability to provide support as post Go Live issues arise will define success in stakeholders' eyes•Strong communicated contingency plan ‐ celebration /signs/success
Go Live
20
So What Made the Difference?
•Resource commitment by Customer Service:•Over 50 contact center employees worked on project over 1 year period prior to Go Live•Contact Center hired temporary employees to backfill for seasoned regular employees
•Focused business process improvement teams on bill, collection and customer communications
•Parallel Billing Comparison Tool – addressed all variances•Communications/Change Management:
•Socialized Compass with every employee in the company:
•Always in front of employees (internal webpage, employee meetings, monthly postcards, Board of Directors)
•Bi weekly meetings with CS Mgrs. and Director•Video with new bill•Direct mail with specially marked envelope
•Resource commitment by Customer Service:•Over 50 contact center employees worked on project over 1 year period prior to Go Live•Contact Center hired temporary employees to backfill for seasoned regular employees
•Focused business process improvement teams on bill, collection and customer communications
•Parallel Billing Comparison Tool – addressed all variances•Communications/Change Management:
•Socialized Compass with every employee in the company:
•Always in front of employees (internal webpage, employee meetings, monthly postcards, Board of Directors)
•Bi weekly meetings with CS Mgrs. and Director•Video with new bill•Direct mail with specially marked envelope
Key Differentiator
s
Go Live Results
21
Metric Goal Actual(Average) Notes
GradeofService 80%* 83.8% Hi:97Lo:53(Day1)
AverageHandleTime 361 256 Hi:490Lo:256
VoiceoftheCustomer 90% 95% YTD:97%
CommissionComplaints 0 0 0relatedtoCC&B
* Typical run rate goal. See adjusted GOS goals and actual performance below for Go Live week 1:
Internal Communications – Monthly Postcard
22
• How to manage your newly launched system• Organizational chart of CCB support teams• Establish CCB Governance Team
– Network, Challenge, Decide and Agree– Escalation Process– Break and Fix items– New Processes– Improved Processes– New Integrated Systems to CCB– Upgrades to Systems– Test, QA, Release
23
What Happens After Go Live: Initiate System Governance
Essential Structure for Success Post Go Live
24
Strategic LevelOfficer Governance Steering CommitteeOfficer Direction
Enterprise LevelET Governance Committee
(Capital Budget Committee)
Business LevelManager/ Director Business Owner
Operational LevelManagers/IndividualsThird Party Providers
Energy Delivery Technology Governance Post Go Live
Break/Fix Improved Process Requests
Business StrategyBudget, Enterprise Change,
Our FocusElevated Prioritization across enterprise based on impacts, budget, material change to
systems approve or escalate
Business requests, Customization, Emergency,
Prioritization, approve or escalate
Break/Fix – Improved process requests, Project
Impacts
Avista CCB Implementation
“The success of Project Compass is that we never lost site that this was a business transformation project, and it was about the people as well as thetechnology.”
“You will probably do a project of this magnitude once in your lifetime…commit to doing it right!”
“Manage your scope and don’t take shortcuts to save time or budget.They will catch up to you in the end.”
Best CIS Implementation
Replacing your CIS(The Long and Winding Road)
Dave VogelLouisville Water
4/27/16
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Louisville Water Company Background
• LWC was incorporated in 1854
• We began providing regular waterservice to it’s 512 homes and businesses through 26 miles of main by 1860.
• Today, LWC has been in business for 161 years and serves over 300,000 customers (meters) and serves over 850,000 people.
30
LWC is Municipal Corporation
• Although LWC is a private company, the city of Louisville is the sole stockholder
• LWC operates as a Municipal Corporation
• The city receives free water and an annual dividend
• LWC improvements must be financed through its income; the city is not responsible for LWC debt
31
Facts About Customer Information Systems
• Replacing a Utility’s Customer Information System is:– The most complex– Highest risk, and– Most costly IT related endeavor a utility can embark on.
• The CIS touches – Almost all other systems within a company– A bunch of other systems outside of the company
• No one likes replacing these things… Except:– Consultants and Software companies
• 9 out of 10 Utility executives would rather have a needle stuck in their eye versus moving to a new CIS system
32
Drivers for change – why did we do it?
• Aging CIS System
• Existing System did not meet our current needs
• Limited ability for growth
• Previous CIS ran on an older technology platform– AS400 – created challenges for system support
– Interfaces didn’t communicate well with some other systems
• CC&B was selected – We were already on Oracle HR and financials
– It checked all of the boxes associate with our customer needs and strategic business goals.
33
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Project Scope – What did we do?
• Replaced ECIS with CC&B• Implemented Mobile Workforce Management • Implemented Oracle’s SOA application• Implemented a new Customer Self‐Service Portal• Implemented Field Work PIP – Mobile/CC&B interface• Replaced our existing phone system and IVR• Contracted with a new payment processing vendor• Outsourced our bill print and mail function• Implemented e‐billing• Touched every single one of our customers• Started thinking about new careers
35
LWC CC&B Implementation Test (True or False)
1. The Project Finished on time2. Intense meeting (late in the project) ended
with everyone hugging each other3. The Project Finished on scope4. Dave Shaved his head 5. The Project Finished on Budget6. The Executive Sponsors were caught wearing
funny hats7. There were absolutely no problems!
TRUE
TRUE
TRUETRUESort of
TRUE
FALSE
36
Project Schedule
Project Financials
37
Original Budget Final Cost
Software & Technical License $ 5,562,062 $5,565,225
Implementation Solution 10,500,000 11,564,435
Other (Implementation Team, Hardware, SOA, Capital Interest)
10,949,091 13,275,894
Contingency 1,945,482 0
Total Project $ 28,956,635 $30,405,554
38
Keys to Success
• Be afraid… Be VERY afraid• Get your executive team bought in and supportive• Must have an engaged Executive Sponsorship Group• Have a strong and candid relationship with your System
Implementer and other consultants• Celebrate success and communicate with the team• Maintain a positive attitude and sense of humor
– “All green all the time”– “Embrace the yellow” – “When you are riding through hell… Keep riding”
• Your management team must be engaged and bought in
39
Lessons Learned (pre go‐live)
• Share the story with the team and the operational areas
• The team transition from operations to project can be tough
• People issues can be larger than technical issues– Working relationships & Egos– Exempt vs. Non‐Exempt– Set expectations up‐front on the commitment that will be required
• You must be focused on testing and have enough resources• Executive sponsors need to be involved on a daily basis and
ready to make decisions• Budget enough contingency funding• Make sure you have enough “people” people on the project • Keep your leadership and Board informed along the way• “One throat to choke” ‐ Revisited
40
Lessons Learned (go‐live and after)
• Dress rehearsals are critical for a solid changeover• There will be issues… Don’t kid yourself
– Inform your leadership, employees, customers, and other stakeholders• Don’t change the look of your bill at all for go‐live• Run through everything that customers will see or experience (in
great detail) prior to go‐live• Ramp up your resources • Don’t consolidate customer accounts in mass • Keep your support team in place to quickly make fixes and
adjustments • Plan on a longer stabilization period• Don’t wait too long to turn collections on• Your external communications group is your best friend
– Monitor and respond to social media
41
Summary
• Have a good plan
• Budget enough money
• Communicate along the way
• Focus on the people (people orientation and attitudes are more important than technical skills)
• Have fun
Q & A
