The electric utility process whisperer?

In the movie, “The Horse Whisperer”, a talented trainer has a remarkable gift for understanding horses, nursing them back to health to run at peak performance. The trainer does this not with exotic tools or analysis, but with a feel for the situation and a “sense” of the inner workings of his subject. 

The “Business Process Whisperer”?

Every organization I’ve ever worked with, large or small, has a “Process Whisperer(s)” who are intimately familiar with key processes in the business, how those processes might be enhanced or nursed back to health to operate at peak performance. Often, these “whisperers” are the process owners of or work in proximity to an area. Through their on-the job knowledge, observation, and eye to customer service or effective output they have developed theories and opinions that would help optimize performance.

Policies and procedures are excellent tools that organizations should have to establish strong internal controls and promote uniformity in processes. However, policies and procedures can become stagnant documents, while processes are fluid and evolve with modifications to software, changing inputs by vendors or customers, or introduction of new apps or background knowledge.

Employees that perform their duties often have solid and robust ideas on how to streamline the process they own. Sometimes it is in the name of making a process “easier”, but if a process is “easier” and still has effective internal controls, press the “easy” button every time.

Tapping the whisperer knowledge base

We have seen organizations be effective in tapping in-house resources through some of these methods:

1.  Employee process improvement hotlines

2. Annual department focus groups on sharing best practices

3. Company contests with prizes for suggestions that produce greater efficiencies

4. Company initiatives that share cost savings with departments or organization-wide

5. Interviews of process owners as part of an internal audit project, documenting the key processes

If processes are changed, organizations can measure results through cost analysis from pre-change processes, customer satisfaction surveys, or reduced process errors. 

Implementing a whisperer program

There are many areas that are ideal for implementing a process whisperer improvement program in your utility. Some areas that can be successful include:

1. Customer service

2. Electric distribution line construction and work order accounting

3. Materials management

4. Accounts payable

5. Payroll preparation

6. Finance functions

7. Employee goal setting and evaluations

8. Enterprise risk management

9. Information technology controls

10. Purchasing

Of course the list is much longer but these are a good start. 

How would this work for your utility?

If you don't have a process whisperer program in place, pick one of the areas above, implement the process, and evaluate the results. If it works to your satisfaction, it may be worthwhile to expand this approach.

About Russ Hissom - Article Author

Russ Hissom, CPA is a principal of Utility Accounting & Rates Specialists a firm that provides power and utilities rate, expert witness, and consulting services, and online/on-demand courses on accounting, rates, FERC/RUS construction accounting, financial analysis, and business process improvement services. Russ was a partner in a national accounting and consulting firm for 20 years. He works with electric investor-owned and public power utilities, electric cooperatives, broadband providers, and gas, water, and wastewater utilities. His goal is to share industry best practices to help your business perform effectively and efficiently and meet the challenges of the changing power and utilities industry.  

Find out more about Utility Accounting & Rates Specialists here, or you can reach Russ at russ.hissom@utilityeducation.com.

The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by Utility Accounting & Rates Specialists. You should seek formal advice on this topic from your accounting or legal advisor.