Peer Scanning, Informative Interviews, and Design Thinking — Tactical Approaches for Leveraging Innovation

Transforming a utility's culture to embrace innovation requires redefining behavioral norms and recruiting stakeholders into the innovation environment. Often, utilities struggle with establishing innovation cultures due to ineffective change behavior techniques as well as complex and inflexible supply chain relationships. Peer scanning, informative interviews, and design thinking are all effective tools that can assist utilities with breaking down these barriers. Our team used these tactical approaches to serve as the catalyst for understating how to leverage innovation for the Birmingham Water Works Board (BWWB). BWWB sought out ways to use innovation for financial impact. It began by conducting a survey to determine ways that peer utilities have reduced operating expenses, reduced/delayed capital expenditures, generated revenue, experience economic development, or 'delivered value' to the customer. 17 utilities were surveyed to understand how they utilize innovation to improve their financial bottom line. Through exploring ways to reduce operating expenses, generate revenue, and optimize capital expenditures, utilities are using innovation to overcome financial hurdles. Insights emerged, detailing that utilities have felt real financial benefits from implementing innovative ideas, technologies, and business processes. 100% of the utilities experienced reduced operating expenses. While 47% experienced reduced capital expenses, only 29% of the utilities experienced increased revenue. Most utilities reported benefits were long lasting and were not one-time. 12 of the surveyed utilities participated in informational interviews to gather further details on their approaches. From conducting interviews, BWWB gained insight on items for possible implementation. Over 20 suggestions were mentioned; it included ideas such as regionalizing services to leveraging assets to partnering with vendors to develop technology. Overall, the initiatives mentioned were aligned with alternative revenue, economic development, cost savings, and management of customer expectations. To determine the feasibility of implementing some of the innovation approaches discovered, BWWB vetted the unique ideas. Since BWWB had already implemented several strategies similar to peer utility initiatives, those opportunities were not considered further. BWWB ultimately selected to vet 4 opportunities through the design thinking process. Tim Brown, the president of the design house IDEO, defines design thinking is defined as 'a human centered and collaborative approach to problem solving, using a design mindset to solve complex problems.' By bringing together diverse stakeholders and perspectives to engage on strategic opportunities, design thinking places the human at the front and center of a problem. Our process followed 3 themes: -Learn: Examine opportunities through the lens of all stakeholders involved and consider the jobs done by key players. -Inspire: Explore innovation approaches that have been successful in other utilities. -Create: Generate ideas that addressed opportunities identified in the Learn session and then developed an actionable roadmap to bring the ideas to fruition. Our team will present BWWB's case study approach to building its innovation culture as well as detail lessons learned along the way. BWWB recognizes that a culture of innovation is born when everyone can play. By using tactical approaches, BWWB focused on fostering new behavioral norms and engage key stakeholders in the organization as building blocks for developing its culture of innovation.