Measurement Tools for Successful Change Management

Sierra Pacific Resources (SPR) is the largest utility provider in the state of Nevada. Its two utilities, Nevada Power Company and Sierra Pacific Power Company, provide electric and gas service to more than one million customers covering over 50,000 square miles in Nevada and California. The two utility companies merged under SPR in 1999. Since the merger, Sierra Pacific Resources has been managing cultural and operational change to provide Nevadans with the best utility service available. 

Bringing the two operations under one parent is an ambitious project in change management. Both utilities have distinguished records of providing Nevada with utility service. Sierra Pacific Power has been operating for more than 140 years and currently employs over 1,200 employees. Nevada Power Company has been in business for almost 100 years and employs some 1,700 employees. Both have proud records of service.

Sierra Pacific Resources realized that one of the foundations for designing a strategy for change is to identify how employees view the company and the change process. Early in 2004, the company contracted with THE HILL GROUP to measure employee satisfaction and hear their opinions, facilitate the feedback of results to employees, and develop recommendations for improving employee commitment and engagement throughout the company. THE HILL GROUP conducted interviews with executives in the utility and convened employee focus groups to assess employee sentiment and areas in need of measurement or research. Based on these findings and on THE HILL GROUP's experience with measurement in other large utilities, THE HILL GROUP designed a customized survey instrument to measure eleven dimensions of employee satisfaction and engagement. 

THE HILL GROUP then administered the survey to the nearly 3,000 Sierra Pacific employees who had the option of completing the survey via the Internet or by paper-and-pencil. After three weeks of maintaining the survey system, THE HILL GROUP assimilated all of the data, analyzed the results, and prioritized improvement areas for the utility. Results were reported for the utility as a whole, but also parsed to the division and department levels, targeting specific areas of improvement within individual work units. The survey results identified some issues of opportunity among employees throughout both utility companies and within individual work units.

THE HILL GROUP then designed a facilitation model to communicate the results back to employees and dig deeper into the drivers behind the survey results. Based on these feedback sessions and a thorough analysis of the survey results, THE HILL GROUP drafted six strategy priorities for consideration by senior executives of the utility. As Sierra Pacific Resources continues to navigate its change management process, THE HILL GROUP will continue to make available all of its strategic planning and diagnostic assessment tools.  

Matt Stanczak specializes in decision analysis, business modeling, and operations research at THE HILL GROUP.  He can be reached at 412.722.1111 or via email at mstanczak@hillgroupinc.com.

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These materials have been prepared for educational and information purposes only. They are not consulting advice or opinions on any specific matters. Transmission of the information is not intended to create, and receipt does not constitute, a consultant-client relationship between The Hill Group, Inc. and any recipient of this material. Readers should not act upon this information without seeking professional advice.