Bonneville Power Administration Laboratory Business Plan Progress to Date and Planned Activities. May 22, 2009
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1 Bonneville Power Administration Laboratory Business Plan Progress to Date and Planned Activities May 22, 2009
2 BPA Laboratory Business Plan Development Project Project Description: The Office of Technology Innovation (TI) is funding and managing a project to develop a business plan for the BPA Laboratories. This project is sponsored by the Transmission Business Line Vice President of Engineering and Technical Services, Larry Bekkedahl. The BPA project team members are listed below along with the names of the Energetics Inc. consulting team hired to assist BPA in developing the business plan. The Energetics team will be working closely with the BPA project team, BPA senior management, BPA Laboratory staff and the internal and external customers of the Laboratories to develop the business plan. Project Vision: The BPA Laboratory will: A) Provide services that are important to ensuring regional system reliability; B) Provide a conduit for the development and demonstration of new technologies needed to modernize the electrical energy infrastructure; C) Engage BPA expertise in power system planning, design, construction and operation to accelerate the adoption of new and sustainable technology; D) Foster collaborative partnerships supporting regional and national priorities in energy security, supply sufficiency, operational reliability, greenhouse gas reduction, economic stimulation and create a dynamic work environment that attracts and trains the next generation of power engineers and energy professionals; E) Support the operational testing needs of the BPA Transmission Business Line, research agenda of the Office of Technology Innovation and the grid modernization initiatives of the Department of Energy; and, F) Maximize BPA ratepayer and societal net benefits derived from laboratory operations. Project Team Members: B PA Team: E nergetics Team: Larry Bekkedahl TBL Project Sponsor, VP Engineering and Technical Services Ndeye Fall Energetics Incorporated, Lead Analyst Jeff Hildreth TBL Laboratory Technical Services Richard Scheer Energetics Incorporated, Strategic Advisor Gordon Matthews TBL Analysis and Compliance Rick Hartlein Director, NEETRAC Laboratories Ernie Estes Attorney/Advisor Frank Lambert Associate Director, NEETRAC Laboratories Marty Gault Contracting Officer Jack Shaver Technical Coordinator, CEATI Inc. Terry Doern TI Support Contractor Brian Marchionini Energetics Incorporated, Project Manager Kathy Tyre Washington D.C. Office Liaison to DOE Lori Bonn TI Administrative Support Dennis Phillips TI Project Manager & COTR NEETRAC: National Electric Energy Testing Research & Applications Center, CEATI: Center of Electric Advancement through Technology Innovation *SWOT: Strengths, Weaknesses (internal), Opportunities and Threats (external)
3 Project Methodology Phase 1: Situation Analysis Phase 2: SWOT Analysis Phase 3: Business Plan Development Est. completion date: 6/5/09 Est. completion date: 7/17/09 Est. completion date: 8/31/09
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5 The Critical Success Factors for this Project Include: Ensuring that all recommendations that result from this project are explicitly tied to the four pillars in BPAs strategy map and support management s vision and value proposition for the BPA Laboratories; Developing a plan that best positions the BPA laboratories to support regional system reliability and to contribute to the safety of BPA personnel; Ensuring BPA labs are not perceived as competing with domestic private industry and improve customer service Establishing a framework for measuring and documenting the value-added benefits provided by the laboratories; Establishing a framework to prioritize, schedule, track and manage laboratory projects; Identifying the internal and external customers of the Laboratories, their needs and the potential volume of business they may bring to the labs; Identifying programs, processes and practices by which BPA can exploit the collaborative relationships and potential business opportunities that exist between BPA laboratories, the national laboratories, universities, industry, industry consortia, BPA utility customers and the Department of Energy; Establishing a marketing outreach and customer feedback action plan for the Laboratories that will support regional system reliability, attract projects that take advantage of BPA s unique capabilities,; Identifying programs, processes and practices that will enable the labs to attract and train the next generation of power engineers; Identifying programs, processes and practices that will ensure the Labs are more fully integrated with key BPA internal skill groups in transmission and generation operations planning, design, maintenance, energy efficiency, etc; Identifying business programs, processes and practices to improve laboratory accounting and financial systems and overall efficiency of the laboratories; Identifying business programs, processes and practices that will enable the Laboratories to measure and document business opportunities missed due to resource constraints (e.g., measuring the degree to which the Laboratories failed to respond to customer requests or customers chose not to use the Laboratories due to excessive response times that were real or perceived); Identifying business programs, processes and practices that will ensure the maintenance role of the laboratories is maintained or enhanced; 14 Identifying human, capital and expense resources required to achieve project recommendations and vision;
6 Project Timeline Project Team Formed Charter Written Weekly Meetings Begin Trip to DC to Brief DOE on Lab Capabilities & Project Statement of Work (SOW) Written RFP Issued to Develop Laboratory Business Plan Energetics Incorporated Wins Contract Work Starts April 1, 2009 Situation Analysis Workshops May 5 & Phase 1: Situation Analysis Report Due June 5 SWOT Workshops for BPA (Internal) Lab Staff & Customers June 16 & 17, Interviews with University Reps & Former Lab Employees June 16,17,18 Round Table Discussion for External Utility Customers July 8, SWOT Workshop for Managers July 9, Interview University Reps & Former Lab July 7,8,9 Managers and CI/I Council Round Table discussion to Review, Discuss and Modify Draft Business Plan August 12, Interview University Reps & Former Lab August 11,12,13 Phase 3: Final Laboratory Business Plan Due August 31 Final Laboratory Business Plan Presented to TC/I Council September 29 Final Laboratory Business Plan Presented to BOB (No Date Set) Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct
7 Situation Analysis Workshops (Completed) Purpose of Workshops: To conduct a systematic process for analyzing the internal environment of the BPA Laboratories, including the technical, financial, political, social and programmatic aspects that influence Laboratory operations. This workshop is being performed for the purposes of determining a future course of action for improving the Laboratory s program management, performance and sustainability. The information and insights gleaned from this workshop will be value added input to the Laboratory Business Plan Development Project. Workshop #1: Lab Staff Tuesday, May 5 Name Org Code Michael Anderson Pete Anderson Ron Denis Roland Dizon TFVJ Darryl Fujita Salvador Hernandez Mick Johnson Andrea Mueller Daniel Mullen Kellie Robinson W. Christopher Robinson Brian Tuttle Charles Williams Workshop #2: Internal BPA Customers, Tuesday, May 5 Name Gerald Lee Mike Hulse Pat Timm Christine Goldsworthy Sam Perkins Frank Weintraub Jennifer Havel Allen Van Leuven Curtis Akesson George Green Mike Riley Dan Goldsworthy Jack Callahan Len Custer Jim Burns Larry Stanks Org Code TESM TESM TESM TESM TESD TELC TELC TELC TESM TELD TELD TECS KLJD TELC TOT TFHG Workshop #3: Internal BPA Customers, Wednesday, May 6 Name Jennifer Bailey Don Swanson Ken Brown Anders Johnson Karl Mitsch Steve Yang Ken Slye Cheri Benson Christopher Jenks Org Code TELM TELM TELM TPP TEP TECM TFHG DKE NSLU
8 Strengths, Weakness, Opportunities & Threats (SWOT) Workshops Purpose of Workshops: These workshops employ a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in planning a business venture. Strengths: attributes of the organization which are helpful in achieving its mission objective. Weaknesses: attributes of the organization which are harmful to achieving the objective. Opportunities: internal and external conditions which are helpful in achieving the objective. Threats: internal and external conditions which could do damage to the performance of the business venture. A SWOT analysis involves specifying the objective of the business venture and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. If SWOT analysis does not start with defining a desired end state or objective, it runs the risk of being useless. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. The decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. These workshops are being performed for the purposes of determining a future course of action for improving the Laboratory s program management, performance and sustainability. During these workshops there will be several interviews conducted with universities to identify collaborative research opportunities as well as explore the potential for engineering coop programs. The information and insights gleaned from this workshop will be value added input to the Laboratory Business Plan Development Project. These workshops will be facilitated by Energetics Incorporated. Lab Staff and Internal BPA Customer SWOT Workshops 1 & 2: Lab staff and internal BPA customers will attend one of two SWOT workshops at the Ross Complex in Ampere Building, Conference Room C on June 16 from 1:00-3:00 pm or on June 17 from 9:00-11:00 am. Senior Management SWOT Workshop 3: BPA managers will attend a SWOT workshop at the BPA Headquarters building in Room 122 on July 9 from 1:00-3:00 pm. Note: Participants of this meeting will also be invited to a follow-up round table discussion on the August 12 in which management will have an opportunity to review the draft business plan which is due on August 31. (see attached Map of Ross Complex)
9 External Customer Round Table Discussion Purpose of Round Table Discussion: The purpose of the workshop is to explore new ways in which BPA, its customers, other regional utilities, COE, WAPA, Bureau of Reclamation, etc can work together to build a collaborative business model for the BPA Laboratories that will provide the following benefits to BPA, the region and the nation: 1. Support regional and national priorities in energy security, supply sufficiency, operational reliability, greenhouse gas reduction and economic stimulation. 2. Provide cost effective services that facilitate the development and demonstration of new technologies needed to modernize the region s electrical energy infrastructure; 3. Engage the region s collective expertise in power system planning, design, construction and operation to accelerate the adoption of new and sustainable technology; 4. Create a dynamic work environment that attracts and trains the next generation of power engineers and energy professionals; 5. Support the operational testing needs of the BPA Transmission Business Line (TBL), the research agenda of the Office of Technology Confirmation/Innovation and the grid modernization initiatives of the Department of Energy. 6. Maximize BPA ratepayer and societal net benefits derived from laboratory operations. The workshop agenda includes a tour of laboratory facilities, a briefing on the technical capabilities of the Labs, and a facilitated brainstorming session. It is important to note that BPA intends to reposition its laboratory facilities and operations to fill a gap -- a scarcely populated business niche in the research-to-development-to-demonstration (RD&D) process that is critical to our industry s moving technology rapidly into commercial service. BPA is not proposing to compete in a private-sector laboratories market to make money. Rather, BPA is proposing to take full advantage of the services its facilities and their operations can provide -- in the interest of making the Laboratory as efficient and cost-effective and fully-utilized as possible. This round table discussion will be held at the Ross Complex in the DOB Auditorium on July 8 from 9:00-12:00 pm and will be facilitated by Energetics Incorporated (See attached map of Ross Complex)
10 Individual Interviews with Representatives from Regional Universities, National Laboratories (PNNL) and Former BPA Employees Purpose of individual Interviews with universities and national Labs: The purpose of these interviews is to explore new ways in which BPA, northwest universities and national labs can build a collaborative business model to: Create a dynamic work environment that attracts and trains the next generation of power engineers and energy professionals; Support regional and national priorities in energy security, supply sufficiency, operational reliability, greenhouse gas reduction and economic stimulation; Conduct research that facilitates the development and demonstration of new technologies needed to modernize the region s electrical energy infrastructure; Engage academic and national lab expertise in power system planning, design, construction and operation to accelerate the adoption of new and sustainable technology; Support the operational testing needs of the BPA Transmission Business Line (TBL), the research agenda of the Office of Technology Confirmation/Innovation and the grid modernization initiatives of the Department of Energy; Maximize BPA ratepayer and societal net benefits derived from laboratory operations. These interviews will include a tour of laboratory facilities and a briefing on the technical capabilities of the Labs. (See attached map of Ross Complex)
11 TC/I Sponsored Round Table Discussion for BPA Management to Review Draft Business Plan Purpose of Round Table Discussion: The purpose of this round table discussion is to brief management on the results of the situation analysis and SWOT workshops, external customer round table discussion and individual Interviews with universities, national labs and former employees and to receive feedback from the Technology Confirmation/Innovation (TC/I) Council and other BPA managers on the preliminary recommendations outlined in the draft business plan. Management s feedback will be incorporated into the final report which is due August 31, This round table session will held at BPA Headquarters building in Room 670 on August 12 from 2:00-3:30 pm and will be facilitated by Energetics Inc. Copies of the draft business plan will be sent to attendees one-week prior to this meeting. Note: The participants of this meeting will also be invited to attend the July 9 BPA Senior Manager s SWOT workshop
12 I-5 North (From Portland) Ampere Bldg. Conference Room C, Located in North-west corner of bldg., 2 nd floor Hwy 99 DOB Dittmer Control Center From I-5 Take Hazel Dell Exit to Hwy 99, turn right at first light (next to BPA Ross Complex sign)
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