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4.2 EMRUSR 07-09-2024��i Elk River , Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Mark Hanson - General Manager MEETING DATE: AGENDA ITEM NUMBER: July 9, 2024 4.2 SUBJECT: Annual Strategic Plan Review ACTION REQUESTED: Consensus on high level strategic themes and dashboard initiatives BACKGROUND: In August 2017, the Commission adopted a comprehensive manual of governance policies based on the Carver Model of governance. Per the Governance Policy G4.c Strategic and Business Planning, and consistent with Policy G.2c Agenda Planning, the Commission and management shall review an annual update of the strategic plan in July and review and adopt the financial plan for the succeeding five-year period in December. Per policy, the strategic plan shall provide "strategic direction for a period of not less than five (5) future fiscal years in terms of high-level elements such as vision, core purpose, core values, mission, key result areas, and broadly stated strategic objectives that are intended to achieve the organizational outcomes contained in the Commission's Authority and Purpose Policies." Included in the Commission's Authority and Purpose Policies are the bylaws, organizational core purpose, mission, vision, values, fundamentals, and planning themes. These policies are summarized on the attached document. All policies, decisions, initiatives, and tasks by ERMU on behalf of our consumer owners should be in direct line with the commission's authority and purpose. All planning is conducted through a process which categorizes initiatives under commission -adopted planning themes aligned with our mission, vision, values, and fundamentals. This process is intentionally transparent to our consumer owners and clearly defines how ERMU is expected to operate. DISCUSSION: The purpose of a Strategic Plan is to establish long-term direction and goals for an organization and develop a plan to get there. The leadership team underwent a lengthy process to review the existing authority and purpose polices and identify new initiatives for consideration in the annual business plan/budgeting process. The team started with a discussion of high-level planning questions such as "What should our strategic plan look like?" and "Do our Mission, Vision and Values resonate with you?" We then reviewed the current initiatives in the plan. We asked the question: "Are they truly strategic Page 1 of 2 level initiatives?" If no longer considered strategic, the initiative was removed from the dashboard. The attached dashboard includes the 2024 initiatives in progress that have already been run through the budgeting process. In past years, the dashboard has been larger, encompassing more work than was achievable. Last year, special attention was given to reducing the number of items with the goal of completing all initiatives listed. While we did not complete all the initiatives, we succeeded in closing 10 of them (notes for each initiative closure are provided on the attached dashboard). Of the remaining 10 initiatives, one (GIS mapping) was removed because it was far enough along to be reclassified as operational. We expect to complete four others by the end of 2024: • Theme 1, Initiative 2: Evaluate Role of Committees • Theme 2, Initiative 1: Update Management Policy Manual • Theme 2, Initiative 2: Wall Art for Field Services Building • Theme 3, Initiative 1: Review/Update Authority and Purpose Policies While progress in the remaining five initiatives will continue in 2024, these initiatives are expected to carry over into 2025 and possibly beyond. These five initiatives are: • Theme 1, Initiative 1: Disaster Recovery Plan • Theme 3, Initiative 2: Volt/VAR Control • Theme 4, Initiative 1: Completion of AMI • Theme 5, Initiative 1: Planning for Future Wells, Treatment and Storage • Theme 6, Initiative 1: Renew Rate/Cost of Service Study; Develop Load Management Lastly, the dashboard may change as the management team continues to evaluate our Authority and Purpose Policies, specifically our Mission, Vision and Values. Any recommended changes to either the strategic planning process and/or our Mission, Vision and Values statements will be discussed at a future commission meeting. Staff is looking for the Commission to discuss high-level strategic themes and is looking for the Commission to have consensus on these themes leading into the budgeting process. Additionally, staff is looking for commission discussion on the initiatives and how these priorities align with the Commission's intended strategic direction for the organization. ATTACHMENTS: ERMU Mission, Vision, Values, Fundamentals, and Themes • ERMU Dashboard 2024-2026 Page 2 of 2