4.1 ERMUSR 12-11-2018 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Troy Adams, P.E.—General Manager MEETING DATE: AGENDA ITEM NUMBER: December 11, 2018 4.1 SUBJECT: Performance Metrics and Incentive Compensation Policy ACTION REQUESTED: Approve the Performance Metrics and Incentive Policy Score Card for 2019. BACKGROUND: The Commission adopted the Performance Metrics and Incentive Compensation Policy in December 2012 and then revised it in 2016. This is a company performance based program designed to incentivize employee commitment towards the company's success. Divided into categories representing core values of the company and again into sub-categories that are quantifiable,the Utilities Performance Metrics-based Incentive Compensation (UPMIC) system is designed to track goals that require companywide support of the employees to continually achieve. When the employees work together as a team to achieve these goals,the company recognizes a corresponding increase in value to our customers. DISCUSSION: Per policy,the metrics for measurement of the designated year need to be determined before the start of the designated year. This allows for changes to be made and communicated timely before performance measurement begins. The policy is attached for reference. Customer Satisfaction Survey During 2018 staff had been working on options for improving the customer satisfaction survey component of the UPMIC score card. Although only the historic customer satisfaction survey system was used for performance measurement for the 2018 UPMIC score card, an alternative customer satisfaction survey system was tested concurrently. The new system asked single questions six times a year as opposed to the historic survey style which was more questions at one time. Also, the new survey was conducted electronically. The historic survey was conducted in the traditional hard copy paper method but was also available electronically to provide additional opportunity for customers to provide feedback. The new survey also had new questions which were developed to tie directly back to the mission and company values adopted by the commission. The logic for the new questions was to gather feedback that would help align performance with the direction and values established by the commission. It was thought that response percentage should increase with the new survey style because of the single question format. The response percentage results were dismal for both styles. The respondent percentage for the historic survey style was typically 300 responses out of 10,000 Page 1 of 2 47