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Management of Change in Water Companies

Management of Change in Water Companies

Joaquim Pocas Martins

(2014)

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Book Details

Abstract

Management of Change in Water Companies tells real stories of real water companies that went through processes of change and achieved their best results ever in just a few years. It reflects the personal experience of the author from leading processes of change in five different water supply/sewage companies, between 10 and 120 years old and serving from 200,000 to 4,000,000 people. This practical and effective book shows: how to change, modernize and make profitable old-fashioned organizations, how to reduce water loss and promote efficiency in water companies, how to use the savings to rehabilitate and expand infrastructure without increasing tariffs, how to deal with overstaffing, how to plan, finance, build and maintain infrastructure, how to introduce innovation, how to motivate people, how to deal with clients, regulators, unions, shareholders, politicians and the press how to achieve sustainability.   
The case studies provide for instance, how to halve water losses in less than a year mostly with management measurements and very little investment, how to bring water losses from over 50% to below 20% in six years, how to use the savings from water loss reduction to build a new wastewater system without increasing tariffs, how to connect 100,000 existing buildings to a new sewage system in 4 years and how to get millions of people walking along the banks of rehabilitated urban creeks, rivers and beaches.   
The book presents case studies, management theory, comparative analysis of situations reported in the literature and the personal experience of an author who has lead a number of successful processes of change in different water companies. Management of Change in Water Companies is essential reading for water utility managers, national and local governments responsible for water policy as well as those concerned with the management of change and risk management. It is also useful to readers interested in the areas of pollution control, energy savings and water losses, and stream / beach / river restoration.   
Author: Joaquim Pocas Martins is Professor at the Faculty of Engineering of the University of Porto, Portugal, and provides excellent courses on the management of change in water companies world-wide.

Table of Contents

Section Title Page Action Price
Cover\r Cover
Contents vii
About the Author xiii
Foreword xv
Preface xvii
Acknowledgements xix
Chapter 1:\rIntroduction 1
Chapter 2:\rChange Management, Sustainability and Non-Revenue Water 5
2.1 INTRODUCTION 5
2.2 CHANGE MANAGEMENT IN WATER UTILITIES\r 6
2.2.1 The Chain of Change 6
2.2.1.1 Political support 7
2.2.1.2 Leadership 7
2.2.1.3 People 8
2.2.1.4 Money 8
2.2.1.5 Time 9
2.2.1.6 Context 9
2.2.2 Change management theory and international experiences 10
2.2.2.1 Change management theory 10
2.2.2.2 International change management experiences 12
2.2.2.3 The first 100 days of the change management process 12
2.2.3 Stages of development of water companies 12
2.2.3.1 A rating scale with four levels 12
2.2.3.2 Measures for efficacy, efficiency and excellence 15
2.3 ECONOMIC SUSTAINABILITY OF WATER UTILITIES\r 17
2.3.1 The TTT sustainability model 17
2.3.2 Macro and micro sustainability 18
2.3.3 Financing of water services (always insufficient) 19
2.4 SEARCHING FOR SUSTAINABILITY: THE PORTUGUESE DUAL SYSTEM 21
2.5 NRW AS PART OF THE SUSTAINABILITY SOLUTION\r 26
2.5.1 The IWA Water Balance 26
2.5.2 Reducing Non-Revenue Water 28
2.6 REFERENCES 30
Chapter 3:\rThe Efficiency Challenge 33
3.1 INTRODUCTION 33
3.2 SETTING EFFICIENCY TARGETS 34
3.3 KNOWING AND REDUCING NRW\r 37
3.3.1 So much knowledge, so much technology, so much water loss 37
3.3.2 The IWA Water Balance in the NRW reduction processes 39
3.3.3 Knowing and reducing real losses 39
3.3.3.1 Division of the network into DMAs 42
3.3.3.2 Night flow analysis 45
3.3.3.3 Pressure management 45
3.3.3.4 Rehabilitation policies 46
3.3.4 Knowing and reducing apparent losses 47
3.3.4.1 Meter inaccuracy 47
3.3.4.2 Human errors in meter reading 48
3.3.4.3 Data handling and accounting errors 49
3.3.4.4 Unauthorized consumption 49
3.3.5 Knowing about and reducing unbilled authorized consumption 49
3.4 DEVELOPING A STRATEGY TO REDUCE NRW 50
3.5 PERFORMANCE INDICATORS OF NRW 53
3.6 TECHNOLOGIES USED IN WATER LOSS CONTROL 54
3.7 TOP AND MIDDLE MANAGEMENT TRAINING 56
3.8 THE WATLOSS/TOPMAN OPTIMIZATION MODEL\r 57
3.8.1 Introduction 57
3.8.2 Basic Data 59
3.8.3 Measures 62
3.8.3.1 Basic measures 63
3.8.3.2 Priority measures 63
3.8.3.3 Measures with specified cost/benefit relations 64
3.8.4 Results 64
3.9 REFERENCES 70
Chapter 4:\rRestructuring Water Utilities 73
4.1 INTRODUCTION 73
4.2 SPECIAL RESTRUCTURING ISSUES\r 74
4.2.1 The great complexity of the water utilities sector 74
4.2.2 Privatization 77
4.2.3 The decision of the Mayor about his/her water utility 79
4.2.4 Economies of scale and political options 80
4.2.5 The water systems of the future 80
4.2.6 Integrated management of the urban water cycle 81
4.3 SPECIAL RESTRUCTURING RECOMMENDATIONS\r 82
4.3.1 Modernizing old organizations 82
4.3.2 Making water utilities profitable 85
4.3.3 Dealing with overstaffing 86
4.3.4 Design and supervision of new works 87
4.3.5 Increasing reliability of water supply systems 88
4.3.6 Introducing innovation in water utilities 92
4.3.7 Stakeholder relationship 93
4.3.7.1 Customers 93
4.3.7.2 Owners/shareholders 94
4.3.7.3 Employees and unions 95
4.3.7.4 Suppliers 96
4.3.7.5 The regulator 96
4.3.7.6 The media 98
4.3.7.7 ENGOs 98
4.4 A SIMPLIFIED RESTRUCTURING MODEL 99
4.5 CONCLUSION 102
4.6 REFERENCES 104
Chapter 5:\rCase studies 107
Chapter 5.1:\rCase study 1 - Águas do Porto (2006-2013) 109
5.1.1 INTRODUCTION 109
5.1.2 COMPANY BACKGROUND AND PROFILE 110
5.1.3 BASIS OF THE CHANGE MANAGEMENT PROCESS 113
5.1.3.1 The Restructuring Commission 113
5.1.3.2 The Strategic Projects 114
5.1.3.3 The first 100 days 115
5.1.4 THE NEW ORGANIZATIONAL MODEL 115
5.1.5 CENTRAL CONTROL ROOM 116
5.1.6 MONITORING AND TELEMETRY 117
5.1.7 THE ANOMALIES AND CUSTOMERS’ COMPLAINTS CHART 118
5.1.8 THE REVENUE ANOMALIES OFFICE 119
5.1.9 NRW REDUCTION PROCESS 121
5.1.10 REPLACING PUMPING STATIONS WITH GRAVITY FEEDS 123
5.1.11 THE PROJECT MANAGEMENT OFFICE 126
5.1.12 INTEGRATED MANAGEMENT OF WASTEWATER AND STORMWATER SYSTEMS 129
5.1.13 REHABILITATION OF URBAN STREAMS 130
5.1.14 BLUE FLAG BEACHES 132
5.1.15 REFERENCES 135
Chapter 5.2:\rCase study 2 - Águas de Gaia (1998-2004) 137
5.2.1 INTRODUCTION 137
5.2.2 MODERNIZING MUNICIPAL SERVICES 138
5.2.3 NON-REVENUE WATER REDUCTION 140
5.2.4 MONITORING THE WATER SUPPLY SYSTEM 142
5.2.5 BUILDING A NEW WASTEWATER SYSTEM 142
5.2.6 HIGH INVESTMENT EFFORT 146
5.2.7 CLEANING, OPENING AND REHABILITATING THE URBAN STREAMS 146
5.2.8 BLUE FLAG BEACHES 150
5.2.9 ENVIRONMENTAL EDUCATION 152
5.2.10 REFERENCES 153
Chapter 5.3:\rCase study 3 - Copasa (2003-2013) 155
5.3.1 INTRODUCTION 155
5.3.2 FIFTY YEARS OF HISTORY 157
5.3.3 COMPANY PROFILE 158
5.3.4 SHOCK MANAGEMENT IN 160
5.3.4.1 Shock Management (2003-2006) 161
5.3.4.2 The State for Results (2007-2010) 161
5.3.4.3 Management for Citizenship (2011-2014) 162
5.3.4.4 Shock management in Copasa 162
5.3.5 MANAGING FOR EXCELLENCE 164
5.3.6 FINANCIAL PERFORMANCE: FROM DEFICIT TO PROFIT 164
5.3.7 TECHNICAL AND OPERATIONAL PERFORMANCE 166
5.3.7.1 Non Revenue Water 166
5.3.7.2 Energy efficiency 168
5.3.7.3 Water measurement indexes 170
5.3.7.4 Index of non-payment 171
5.3.8 COPANOR 171
5.3.9 SOCIAL RESPONSIBILITY 172
5.3.9.1 Social tariff 172
5.3.9.2 Progressive Discount Program 173
5.3.9.3 “Vale Água” Program 173
5.3.9.4 Subsidy to Philanthropic Entities 174
5.3.10 CREDITS AND ACKNOWLEDGEMENTS 174
5.3.11 REFERENCES 174
Chapter 5.4: Case study 4 -\rPNQS towards excellence 175
5.4.1 INTRODUCTION 175
5.4.2 ORIGIN AND CONCEPTION OF PNQS 176
5.4.3 POLITICAL SKILL 178
5.4.4 DESIGN, STRUCTURING AND EVOLUTION OF PNQS 179
5.4.5 CONCLUSIONS 183
5.4.6 REFERENCES 183
Supplementary Information:\rIndicators used in PNQS (fully described in the PNQS Regulation) 185
Chapter 5.5: Case study 5 - Águas de Portugal (2004-2005)\r 191
5.5.1 INTRODUCTION 191
5.5.2 COMPANY PROFILE AND BACKGROUND 192
5.5.3 THE CHALLENGES 192
5.5.4 THE RESULTS 193
5.5.5 CONCLUSION 193
5.5.6 REFERENCE 194
Index 195