EEI AGA Workshop October 2006

1
Hidden Costs Find Them Before They Find You

• EEI / AGA Workshop - October 2006

Aquila Inc. NYSE ILA www.aquila.com
Jim Alberts, Vice President Central
Services [phone] jim.alberts_at_aquila.com
2
Beware of Averages

• Averages used in negotiations, contracts and
  settlements can have a negative outcome
• To improve your process, you must know how it is
  performing, and what it can do
• In order to do that, you must know how real costs
  apply to the real process

3
The Cost of Testing

• Underinvestment and lack of discipline with
  testing can have an impact..

• Unintended consequences
• Prevention versus remediation
• Test systems ? production systems
• Follow the process all the way through

4
Turnover Reduction

• The consequence of high turnover is more
  turnover

• Critical to understand SIPOC
• Low price ? Low cost
• Avoid suboptimization
• Define the important requirements

5
Centralization Models

• The good and the bad

• It is a journey, not a destination
• Focus on customers and employees
• Evaluate cost, quality and service variables
• Find ways to surface resistance
• SLAs and control plans are essential

6
Final Comments

• It is all about process management
• Understand your total costs
• Never underestimate resistance