Lane-Scott Electric Recognized by NRECA
“There is nothing permanent except change.” ~Heraclitus 535-475 BC
Times change. Expectations change. Technology changes. Business practices must change as well.
Recently, Lane-Scott Electric Cooperative was featured in the National Rural Electric Cooperative (NRECA) national RE Magazine and was invited to speak about our innovation and evolution at two NRECA meetings. It is humbling to acknowledge that Lane-Scott Electric has a national story to tell.
The Story
When I arrived at Lane-Scott in 2019, the cooperative had survived multiple manager turnovers. Departments had become siloed in operation with a noticeable disconnect in team mentality. Safety was a priority, but not a lifestyle. More focus was needed towards technology. Debt was high, equity was low. Member communication consisted mainly of bills and disconnect notices.
The bright spots were, our rates were low and we had a core of really good people.
To address the challenges the board of trustees conducted a difficult strategic planning session. The session produced 5 general strategic goals:
- Improve the SAFETY PROGRAM.
- Create a long-term comprehensive TECHNOLOGY PLAN.
- Develop a FINANCIAL PLAN.
- Create a comprehensive MEMBERSHIP ENGAGEMENT PLAN.
- Implement a SUCCESSION PLAN for key employees.
We realized we needed a culture change. Our current path was unsustainable.
Creating a Sustainable Workforce
We recognized we had a four-generation workplace. Employee expectations had changed; and if we were to develop a sustainable workforce, we had to change too.
As a small cooperative, we needed to move away from a hierarchical structure to a nimble, matrix model with subject matter experts in each critical area. We needed a staff that would renew our commitment to our membership and to the cooperative model.
Our cooperative had done a good job keeping our lineman technically proficient but had largely ignored professional development and technical training in other areas. So, we initiated a comprehensive technical and professional training system. Our board led the way by updating their own policy on trustee duties and responsibilities, adding professional development for all trustees.
Commitment to Safety
We renewed our safety program, embracing the “Commitment to Zero” initiatives, engaging, and listening to employees. With a generation of retirements and new lineman entering the crew, open communication and a structured training program was a priority. We have reduced our recordable OSHA metrics to zero in five years.
Financially
We worked with our auditors, rate consultants, and financial partners to restructure and stabilize our rates, shifting cost recapture to monthly charges and initiating demand rates.
We restructured our financial priorities to build equity and cash to weather financial storms, and we found operational efficiencies that increased our equity as a % of assets by 5% in 5 years.
We also created a formulary capital credit rotation plan. By managing allocations and increasing retirements, we have moved from a 33-year cycle to a 22-year cycle.
Comprehensive Technology Plan
We leveraged trusted industry partners to bring their expertise to the table and help us evaluate our information technology and cybersecurity systems.
Employees attended advanced training in metering, mapping, and line technologies. By becoming more efficient and deploying appropriate technology we have reduced our controllable outages by almost 75%.
Membership Engagement Plan
Lastly, we created a membership engagement plan. We created crisis management and community safety education programs. We invested in our own high voltage safety demonstration equipment to increase education to kids, agricultural community, and first responders.
Our community involvement now includes community food drives, grants to community organizations, enhanced scholarship and youth programs, and much more. We’ve increased our presence to the membership through various communication channels including our own member portal and website, social media, e-mail and text messaging. Using these channels to keep our membership informed and spread the message of our cooperative and the cooperative model.
Making Sure We Stay On Track
Since that 2019 strategic planning session, we have repeated the process twice to ensure we stay on track and adaptive when necessary.
Our goal is to keep the electric cooperative spirit strong and sustainable, to remain stewards of an 80-year history of serving our members and their communities.