Avista Utilities “Project Compass”

Utility Payment Conference September 2016

Peggy Blowers, Michael Mudge

Introductions

Peggy Blowers

Manager, Organizational Change Management.

Michael Mudge

Manager, Application Delivery of new software systems.

Avista – 125+ years of dependable service

•We are an energy company involved in 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) •600,000 electric and natural gas customers •Nearly 1400 employees •Active Community Partner

February 1, 2015

Project Compass

Avista Project Compass Honored

Expanding Excellence Award, Level 1

CS Week 2016

Best CIS Implementation for utilities with gross

revenues in excess of $500 million

April 2016

• 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

• “Yarn ball” of technology integrations

• Maturing and changing workforce

• Expensive to maintain vs. off the shelf solution

• Evolving industry/technology products and services (e.g. Smart Grid)

Why is Avista replacing

these systems?

What is “Project Compass”

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 (Transmission, Distribution, Gas)

September 2013 Go-Live

Enterprise Asset Management – IBM Maximo

(Generation, Substation Support )

Generation Transmission Distribution

Mobile Dispatch

…

Work and Asset

Management

Rates and Billing

Enterprise Wide Impact

Gas Compliance and Services

Employees

Customers

Shareholders

Customer Preferences/Campaigns

Customer Self Service

Web/IVR

Outage Management

Meter Data Management

Financials/ Supply Chain

Enterprise Business

Intelligence

Expected Benefits from Maximo and CC&B

Improved Work Visibility across the Enterprise

Configurability of System

Enhanced Planning and Scheduling

Integration of Work and Asset Management

Ease of Rate Design

Life-cycle account management

Multiple properties on single account

Standard forms and reporting

Maximo CC&B

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

Design/Select Implementation

Stabilize

Phase 1 Design & Select software, vendors (System Integrators) • > 3,000 functional & technical requirements • > 400 business processes

Phase 2 Implementation • Build/System Integration & Configuration • Testing, Parallel Billing • Change Management and Training

Phase 3 Stabilize • Post Production Support • Credit and Collections, Maintenance, Governance

Initial Planning - A Phased Approach

Over 100 Integrations!

CC&B Integrations Maximo

Integrations

Maximo integrations (Finance): -Oracle Project Accounting

-Power Plant

-Oracle Purchasing and Inventory

-Transportation Sub-ledger

-UltiPro

CC&B integrations

(Finance): - Oracle GL

- Project Accounting

- RED (Revenue Entry)

- AP

− 6 payment sources

Parallel Billing

Compare new and current

billing statement :

Usage/reads

Dollars

Multiplier read sources

Compared bill extract files

created by test environment

of new bill to production

environment of existing

bills.

Turned out to be a “mini-

audit” on production –

process improvement

opportunities!

Started 4 months before

Go-Live

Credit and Collections

• Delayed full credit and

collection process execution

until post go live

• Added additional back office

staff

• Focused training

FEB 2015 MAR 2015 MAY 2015 JUN 2015 AUG 2015

CC&B Began Collection Began Full C&C

Go Live Sending Notices Call-Outs Disconnects Processes

Pre-change Transition Steady State

Change Management Value

Time

Pe

rfo

rman

ce

Go-Live

Organizational Readiness – Managing the Change

“Productivity Dip”

Identify/

Contact

Stakeholders

Surveys/Assessments

Training Strategy and Execution

Communication Strategy and Plans (Internal and External)

Organizational Readiness Plans and Metrics

Stakeholder Assessments

2

4

Low High Scale of Impact

Vo

lum

e

Low

H

igh

Priority 1

Priority 3

11

12

13

2

7

3

15

6

8

10

4

1

9

5

Priority 2

16 17

14

# Description Priority

1 New Bill High

2 Account Number High

3 Master Billing High

4 Landlords High

5 Co-Tenant High

6 Third Party Authorizations Med

7 Project Share Med

8 CLB Med

9 WEB Low

10

IVR Low

11

Post Dated Payments Med

12

Credit and Collections Low

13

•Bankruptcy Low

14

•Prior Obligation Low

15

•Life Support Low

16

•Collection Agency Low

17

•Reinstatement Write-offs Low

18

• Customer “Touch point” activity

• Identified Customer and Employee Impacts

• Established foundation for Communication

Strategy

Change Impact vs. Priority – Customers/Employees

Customer Direct Mail – January 2015

Key messages:

Account Number Change

New bill

Website availability during cutover

FAQs

In specially-marked envelope

Bill Insert – February 2015

Key Messages:

Account number change

New bill

We’re here to help

How to read your bill

Promotes video

Specially-marked

bill envelopes in

February and

March

Example – Change Impact CC&B: Accounting Accounting

Pros

o Transition to closing revenue Days 1 thru 21 with February close

o Daily files to GL, Project Accounting and RED

o Less unbilled revenue

Cons

o New schedule will extend closing of revenue in short months when

Days 20/21 land in next month

Neutral

o Write offs will not be converted at go live

Organizational Readiness – CC&B Training

• Metrics:

– Attendance: 100% Customer Service

90+% Non Customer Service

• End Users:

– Customer Service end users: 160+

– Non customer Service 220+

• Total Training Hours:

– > 21,000 (Customer Service)

– > 2000 (Non-Customer Service)

– 11 Weeks to complete

Customer Service Training:

• Web based Training:

– 3 introductory Courses (1 hr. ea.)

• Instructor-Led Training:

– CSR: 3 weeks/105 hours

– Specialty Groups: (additional hours)

• Billing: 10 hours

• CS Support: 5-15 hours

• Contact Center Managers: 1 hour

• Team Leaders: 8 hours

• CARES: 5 hours

• Commission: 1 hour

• Self-Directed Training: 17 hours

• Review Training: 20 hours

• New Process Step by Steps: 450

Finance Training

Finance Employee Training Hours: (depending on role) Range in Hours •CC&B: 2-175 * Finance training - 8-12 •Maximo: 2-72

* Finance training - 8-12

•Blended Training: Web courses, Classroom, Practice, Support Tools

Internal Communications – Monthly Postcard

Employee Recognition

Go Live Results

Metric Goal Actual (Average) Notes

Grade of Service 80%* 83.8% Hi: 97 Lo: 53 (Day 1)

Average Handle Time 361 256 Hi: 490 Lo: 256

Voice of the Customer 90% 95% YTD: 97%

Commission Complaints 0 0 0 related to CC&B

* Typical run rate goal. See adjusted GOS goals and actual performance below for Go Live week 1:

•Requirements •QA and Test Methodology

•Data Conversion •Audits (Internal and

External)

•Dress Rehearsals •Planning

•Roles •Communication

•Support

•Leadership •Staffing

•Resource Planning •Roles and Resp.

•Balance •Celebration

•Food!

•OCM focus •Stakeholder / Employee Engagement •Training •Communications (Internal and External)

•Regular Reviews •Change

Requests •Contingency

People

Management

Cost /Budget

Quality

Org.

Readiness

Go Live

Lessons Learned •Structure

•Methodology •Risk management

•Scope Management •Timeline

Project

Management

Lessons Learned – Cost/Budget

• Benchmark with experienced vendors and

others to help establish initial budget

• Regular reviews with Executives

• Dedicated accountant if possible; regular reviews of

expenses (they add up)

• Closely managed project change request process

(PCR’s)

• You will need contingency $$ - plan for it!

• Regular internal audits

Cost /

Budget

Projects

Cross-Training Employees for new Projects

New Project Software Released

Stabilize CCB/Maximo

New Teams

Governance

Delivery/Operational

Supporting the Future

Foundation

Work Process

Alignment

Support

Transition

Release

Integration