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It may
be an old adage, but it is sound advice: plan the work, work
the plan.
Planning
helps us prepare for the future, anticipate challenges and
set goals to guide our efforts. This is true for businesses,
not-for-profit organizations and individuals. It is no less
true for rural and regional water systems. Planning is just
good practice. Water systems need to plan in order to
understand the issues facing their systems.
Planning
in this context can include several distinct activities:
strategic planning, short range development planning and
long range development planning.
Strategic planning for many systems includes upfront
research followed by a management retreat to hash out the
details. Many systems employ the services of a facilitator
or consultant to guide them through the process. This can
make the process move more quickly and smoothly than working
without a professional. Although there are lots of
variations, strategic planning typically begins with a SWOT
analysis of strengths, weaknesses, opportunities and threats
to the system. Strengths and weaknesses are internal.
Systems identify internal strengths and weaknesses to
understand what they are doing well and what might need
improvement moving forward. Opportunities and threats are
external. It is important to identify not only what may be
beneficial to the system, but what could harm it as well.
At the
most basic level, strategic planning results in a vision
statement, which lays out an ideal state the system is to
achieve. A mission statement provides high level details to
support the vision. A systems vision statement, for example,
might be to create and maintain the means to provide safe,
affordable drinking water to its customers. Its mission
statement might go on to state that the system will do
whatever is necessary to evaluate and maintain the system
cost-effectively to be in compliance with all appropriate
federal and state regulations.
The next
step in the process is to identify goals, objectives,
strategies and tactics needed to achieve the mission. This
is where the proverbial rubber meets the road. Based on the
vision and mission statements, plus the detailed SWOT
analysis, measurable goals and objectives are put in place,
strategized, and specific tactics or action steps planned to
achieve those goals and objectives. Ideally, responsible
parties are assigned to each tactic and firm deadlines are
established.
Development planning, whether long or short range, is
designed to identify needs and project resources into the
future. Long range planning typically looks at a 10-20 year
horizon, while short range planning is more immediate. The
first step in preparing a development plan of any kind is to
make predictions or assumptions on where and how much growth
will occur within the system. Once growth projections have
been established, then the three major components (supply,
storage, and distribution) of the systems infrastructure can
be assessed to determine any deficiencies caused by the
growth. For example, a system may have plans to construct
an 8-inch line in a certain area to serve a new
subdivision. However, due to projected growth areas around
this subdivision that were identified in the development
plan, the system decides to plan for and construct a 12-inch
line.
Thoughtful planning helps systems with financial planning,
capital improvement program development, and rate
adjustments. For example, some systems use their long range
plan to prepare for projected growth needs by utilizing rate
adjustments to set aside funds for future improvements.
Planning can also help a system structure its debt, deciding
whether convention structure with its consistent payments is
preferable to a balloon payment financing, where future
growth funds needed improvements.
Savvy
systems plan for the future. |