1. Strategic Planning A Critical Leadership Tool Gerald Wexelbaum Strategy Support Associates 2741 N. W. 27 th Terrace Boca Raton, Florida 33434 geraldwex@ssamail.com

2. What are we Absolutely Sure About the Next 3, 5, 10, or 100 Years? ?

3. What are we Absolutely Sure About the Next 3, 5, 10, or 100 Years? CHANGE!!!

4. What Might Happen to My Utility?

5. ANYTHING!!!

6. Changes & Organizational Transition You have a choice! Success Time Sigmoid Curve: Requires simultaneous management of current short-term and future long-term strategies. Also, it requires management during transition. - Note the continuous change predicted in the future! Winner!  Victim 1900 2003 2010 Knowledge focus Process focus Strategic focus

7. Continuous change and the feeling of CHAOS: CHAOS The World: Winds of Continuous Change Will be the Rule! You and your utility have a choice!  Victim Try to fight the winds of change Winner! Use the winds of change

8. CHAOS The World: Winds of Continuous Change Will be the Rule! Antidote to the feeling of CHAOS:  Clarification (WHY, WHERE, WHAT, WHEN, Etc.)  Communication & Leadership  Teams & Accountability  Celebration of Success

9. PROGRESS. The Victims

10. Albert Einstein Continuing to do the same thing while expecting CHANGE Definition of Insanity:

11. Leadership is about Leading Change. Provide Strategic Focus and Direction  Vision  Values  Mission  Goals  Objectives  Strategies  Action Plans  Financial Implications

12. Key Issues The Utility Capital Markets Customer Needs Aging Infrastructure New Technology Cost/Rate Pressures Human Resources Economic Trends Political Considerations Laws and Regulations Economic Development Environmental Issues Customer Demand

13. The Business Challenge Recognize and Respond to Key Issues and Changes Establish Strategic Financial and Management Direction Develop Financial and Management Strategies Execute Strategies Improved Short and Long Term Performance Great Job #1 The Best Way To Go

14. Key to Success Financial Policies Overall Strategic Direction Operating Plans Consistency

15. Strategic Finance and Management Overview Clear Financial Policies Overall Utility Strategies Business Unit Strategies Implementation Improved Performance

16. Clear Financial Policies Asset Management Investment DebtRates and Fees Financial Planning High Level Policy for Each Area Detailed Policies to Drive Action Others Legal Requirements Regulations Capital Market Expectations Political Considerations Utility Mission Other Factors

17. Overall Enterprise Strategies Customer Needs Infra- structure Human Resources Operations Commun- ications Goals Objectives Strategies Implementation Plans Others Utility Mission Financial Policies

18. Framework for Strategic Alignment Business Unit Plans Financial Implications Financial Policies Mission Values Goals Objectives Strategies MissionGoals Objectives Strategies Financial Analysis Action Plans Financial Plans Utility Strategic Plan

19. Benefits Strategic Plan Committed Team Sound Financial Policies Improved Decision Making Enhanced Stakeholder Commun- ications Well Directed Strategies Predictable Financial Results and Rates Improved Long-Term Performance