1. NiSource AGA Resource Management Workshop
Obtaining Executive Support for Resource Management
Washington, D.C.
September 22, 2015
Ken Lockhart
Director, Operations Planning

2. Resource Management
Managing……. understanding the variables that impact our operations and influencing those variables to achieve a desired outcome.
Requires
Knowing where you want to be
Knowing where you are currently at
Charting a course to get there
Communicating the course
Executing

3. Key Stakeholders to Involve
Field Operations Leadership
Financial Planning
Regulatory Leaders
State Business Leaders
Corporate Executives
Everyone will need to man their oar

4. Key Stakeholder Engagement
Field Operations
Develop Work Plans at a grass roots level
Focused on Execution and Continuous Improvement
Establish Performance Targets/Goals
Financial Planning
Understand operations challenges and risks
Be engaged in the development of the Work Plan
strategies
Regulatory Leaders
Be engaged in the development of the Work Plan strategies
Develop regulatory strategies

5. Field Operations - Operationalize
Build a grass roots budget from a workplan
Review for risks, assumptions, and achievability
Adjust
Review
P&L Options
Done “Approved”
Request New Goal
“Approved”
High
High
High On On
Okay
Low
Low
Plan based on history, trends, known events – build initial work plan with input from Field Ops
Planners & budgeting work to allocate $s
Planning solicit input from : Regulatory, Compliance, etc.
Planning / budget review
Align budget $’s with plan $’s
Solicit input / develop strategies, recommendations
Present to VP of Gas Operations
P&L Options should include State Regulatory and Finance Team and Regulatory Strategy and Support
Adjust – based on input from VP Gas Operations
Review by Planning Leaders, Field Operations and Budgeting

6. Shared Services Operations - Operationalize
Build a grass roots budget
Review and Communicate for Company increases > 3%
Coverage by Regulatory Programs, Revenue, Offsetting Expense
Adjust
P&L Options
(delay timing)
Review- Cancel or Adjust Goal
“Approved”
Done “Approved”
Create Visibility and Assure Coverage of Year over Year Increases
Hurt
Hurt
Check for No
Okay
Yes
Budgeting with input from stakeholders on $’s and monthly spreads
Obey Commandments
Assess Achievability
Functional Reviews on by Company Basis with Budget Sponsor
Communication to State Finance and Regulatory Team
Assess Achievability
Must Understand Increased Costs and Timing

7. Tool - Waterfall Chart
Year over Year 2015 to Grass Roots 2016

8. Functional Business Executive
Understand challenges and risks
Lead the effort by business segment
Engage in problem solving with all key stakeholders
Present Resource and Financial request to the Executive Council
Follow up with all key stakeholders

9. Corporate Executives Understand the challenges for execution
Explore all key business strategies
Review Profit and Loss scenarios
Approve or provide guidance to Operations and Financial Planning

10. Questions