Measurement, Analysis, Knowledge Management

Leveraging Technology Gwen Perez, Controller

Gary Soward, CIO

Freese and Nichols, Inc. • Multi-service engineering,

architecture and environmental science firm

• 117-year history means experience, strength and stability

• 12 offices, all in Texas • More than 450 experienced

professionals, technical experts and support personnel

Freese and Nichols, Inc.

Complex Design Delivers Sustainable Solutions Elm Fork Athletic Complex MARKETS: Municipal SERVICES: Storm Water, Engineering, Environmental Science, Site Development, Master Planning, Water/Wastewater Planning

Data for Planning and Monitoring Performance

Key Focus Indicators

Strategic Actions

+ Balanced Scorecard

=

KFI CSI: AD/CMO/GM/PM % One-Page Rpts: GM/PM

Strategic Action: Improve Client

Communications

KFI Client Satisfaction

Index (CSI)

• Data selection driven by • Key Focus Indicators • Industry standard metrics • Outcomes of strategic actions

• Consistent across all business units • Provides line-of-sight alignment • Provides basis for accountability

Data for Planning and Monitoring Performance

Client Satisfaction Index (CSI) = 4.7

Division Manager Goal: CSI = 4.7

Group Manager Goal: CSI = 4.7

Project Manager Goal: CSI = 4.7

Key Focus Indicators

% One-Page Reports = 85%

Division Manager Goal: One-Page Report = 85%

Group Manager Goal: One-Page Report = 85%

Project Manager Goal: One-Page Report = 85%

Strategic Action Outcomes

+ Line-of-Sight Alignment

Company Scorecard

Division Metrics

Group Metrics

Employee Metrics

Data for Planning and Monitoring Performance

Key Focus Areas Strategic Objectives Key Focus Indicators 1. Growth with Financial Stability

Sustain Growth and Profit for Long Term Success

Net Bookings

Company Profit

Utilization

Labor Multiplier

Negative Variance as a % of Net Revenue

2. Commitment to Clients

Improve the Way We Serve Our Clients

Client Satisfaction Survey Overall Rating

3. Commitment to Technical Excellence

Develop Technical Expertise to Address Client’s Needs

TEP Satisfaction Survey Overall Rating

4. Commitment to Employees

Be the Employer of Choice Employee Opinion Survey Overall Rating

Data Analysis to Support Planning and Decision Making

Net Revenue and Profit for Top Producers

Low

2

009

Net

Rev

$ M

illio

ns

Hi

gh

Low 2009 Net Profit High

TRANSMISSION TRANSPORTATION

W/WW TREATMENT

UTILITIES

WR PLANNING W/WW MASTER PLANNING

PROG MGNT WR DAMS

ACHITECTURAL STORMWATER

2006 2007 2008 2009 2010 Est

$Mil

Net

Rev

enue

Delivering Services Across the Client's Value Chain

Utilities Planning Utilities DesignTrans Planning Trans Design

Good

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Less than 5 Yrs 5 - 10 Yrs

What Is Most Important to Employees

Company Stability Advancement Opps CompensationCompany Culture Professional Dev Challenging Work

75%

80%

85%

90%

95%

100%

2006 2007 2008 2009 2010 YTD

Employee Retention

FNI Involuntary Turnover FNI Voluntary TurnoverFNI Retention FNI Target RetentionPSMJ Top Mid Size Ret. PSMJ Top Overall Ret.

Goal %

Utilization

PED % Utilization

PED Billable Hours

YTD % Utilization

YTD Billable Hours Goal

YTD Billable Hours

YTD Billable

Gap

Overall 58.2 55.3 10,314 56.3 43,907 41,682 2,225 Division

Central 73.2 69.6 1,421 70.4 5,734 5,740 -5 Corporate 4 3.2 115 2.8 410 401 9 North Texas InfrastructureFacilitie 71.7 64.9 3,306 70.1 15,392 14,124 1,269 North Texas WaterEnvironmental 73.8 75.5 5,103 74.3 19,863 20,047 -183 Region Adm 19.5 7.9 58 8.4 507 236 271 Southeast 60.7 45.6 313 42.5 2,000 1,136 864

Data to Manage Operations: Management Portals

Weekly Utilization Trend

Utilization %

Data to Manage Operations: Employee Portals

My Utilization %

My Utilization Trend

Data to Manage Operations: Manager eResource

Resource Schedule & Capacity

Resource Type Resource Name Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11

Sch Hrs Sch Hrs Sch Hrs Sch Hrs Sch Hrs Sch Hrs Sch Hrs Employee Anne M. Carrel 202 210 202 202 170 162 162 Employee Charles Allen Kucherka 217 277 275 271 237 233 147 Employee David T. Bennett 145 323 321 325 285 277 277 Employee Davin D. Hatley 166 270 330 320 254 322 232 Employee Gary Ray Smith 126 134 140 148 136 184 179 Employee Lizanne Marie Douglas 268 356 328 258 240 238 233 Employee Michael G Morrison 248 175 143 174 174 157 129 Employee Michael Stafford Gunning 273 286 206 186 278 262 270 Employee Mukesh Ramvir Pratap 94 122 190 278 220 217 129 Employee Rebecca Elizabeth Glaser 347 351 197 157 175 195 235 Employee Scott Henry Hekman 186 314 326 246 246 286 196 Employee Tarlton Wade Smith, II 255 186 151.4 187 184 181 158

Project Project Name Project Manager Remaining Hours BEG09424 ONSWTP Process Monitoring/Improveme Tarlton Wade Smith, II 3.8 COR08271 O. N. Stevens Raw Wtr Influent Impr Tarlton Wade Smith, II 326.4 COR10165 Mary Rhodes Phase 2 Anne M. Carrel 47.3 GBA10355 I-35/Texas Highway 130 Water Transm Tarlton Wade Smith, II 978.8 SWB09391 Water Res Int Prj 1: Pipeline Seg 3 Charles Allen Kucherka 2 TR110152 Pump Stations 13/13A Improvements C Erin Colleen Flanagan 119 TR110442 On-Site Storage System Construction Gennady Boksiner 7 TRA07353 CPS - Pump Station 13/13B & Equaliz Tarlton Wade Smith, II 5 TRA08184 TRA CRWS On Site Storage System (OS Tarlton Wade Smith, II 30 TRA08301 CPS for Admin Bldg & Plant Disinfec Tarlton Wade Smith, II 50

Data to Manage Operations: Employee eResource

Project Project Name Project Manager Feb 11 Mar 11 Apr 11

1151POTNTL 1147 Potential Projects (pre-2011) Tarlton Wade Smith, II 0 8 8 COR08271 O. N. Stevens Raw Wtr Influent Impr Tarlton Wade Smith, II 4 4 10.4 COR10165 Mary Rhodes Phase 2 Anne M. Carrel 3 3 3 CORUVDF1 Whitecap UV Disinfection Improvem. Mukesh Ramvir Pratap 0 1 2 GBA10355 I-35/Texas Highway 130 Water Transm Tarlton Wade Smith, II 121 64 40 SWB11121 Reg Carrizo Proj: Water Integr Pipe David T. Bennett 4 8 8 TR110152 Pump Stations 13/13A Improvements C Erin Colleen Flanagan 3 6 8 TR110442 On-Site Storage System Construction Gennady Boksiner 4 4 0 TRA07353 CPS - Pump Station 13/13B & Equaliz Tarlton Wade Smith, II 1 4 0 TRA08184 TRA CRWS On Site Storage System (OS Tarlton Wade Smith, II 40 0 0 TRA08301 CPS for Admin Bldg & Plant Disinfec Tarlton Wade Smith, II 0 12 2 ** Total Scheduled 180 114 81.4

Scheduled work for next 3 months

Data Analysis to Improve Performance

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010

Average A/R Collection Days

Municipalities WD/RAEmerging Mkts FNIIndustry Top Mid Size Industry Top Overall

Good

Ratings By Role Project Communications Survey

N Q1 Q2 Q3 Q4 Q5

Adm Assistant 3 4.67 4.33 3.67 3.67 3.67

Architect 2 3.50 4.00 3.00 3.50 4.00

Construction Services 11 3.55 3.82 3.09 2.80 3.36

Contracts 1 4.00 4.00 3.00 3.00 2.00

Engineer 22 3.68 4.10 3.27 3.45 3.68

Environmental Scientist 11 3.45 3.45 2.91 2.55 3.09

Group Manager 3 3.67 5.00 3.00 3.00 3.33

Planner 3 4.00 3.33 3.00 2.67 3.67

Project Manager 13 3.77 3.62 2.69 3.23 3.38

Technician/Analyst 14 3.14 4.21 2.69 3.00 2.79

Data Analysis to Improve Performance

Leveraging Technology: Improvements

• Recent Improvements – eResource – 2nd generation financial portals

• Future Improvements – Company-wide audit of data definitions/analysis – Knowledge Database – Intranet Redesign

Leveraging Technology: New Intranet Under Construction

Leveraging Technology: Intranet Built Using

Microsoft SharePoint IBM Lombardi Business Process Management Suite

• Operational Processes • Data – Client, Project and People • Action Items • Help Catalog • Highly integrated communications • Collaboration • Content targeted to each individual

Leveraging Technology: Intranet Building Blocks

Data for How We Work: Intranet Fueled With Data From

• Sales and Marketing • Projects • Risk Management • Accounting • Human Resources

Client Data Proposals Revenue

Client Reps FNU Activities

Client Contacts Client Visit Notes

Marketing Activities

Staff Data Education

Licenses Experience

Technical Skills TEP Teams

Projects Utilization Rate

Project Data Multiplier

Revenue Client Sat

Project Plan Contracts

Project Manager Project Staff

Data for How We Work: Transformed into Information

• Expanded use of dashboards – Operations – Sales and Marketing – Project Management

• Incorporated news and communications

• Action items

Information on How We Work: Based on Context and Role

• Pages have a message for everyone – Transfer of institutional knowledge – Emphasize a current message

• Pages target specific audiences – Clients main page >> account directors and client representatives – Client detail pages >> client representatives and project managers – Projects main page >> division, department, and project managers – Project detail pages >> project managers and project teams

Information on How We Work: Use Graphics To Connect with Employees

Information on How We Work: Use Graphics To Connect with Employees

• Strategic placement of information and graphic call outs to – Convey information (strategic, institutional

knowledge, or highlight something timely) – Provide navigation

• Provide multiple paths to information • Take advantage of excellent search capabilities

Information on How We Work: Transformed into Knowledge • Establish a complete picture of our Clients

– Projects, Relationships, History, Current events, and Strategy

• Establish a complete picture of our Projects – Project team, Client satisfaction, One-page

reports, Pictures, Contracts • Knowledge database • 2nd generation TEP Websites • Production WIKI for CADD and GIS

Information on How We Work: Example

• Project Manager Browser

Information on How We Work: Example

• Drawn by the rotating emphasis graphics – Watch utilization – Open enrollment

ends in 3 days

Information on How We Work: Example

• Can check utilization

• Can check future assignments

Information on How We Work: Example

• Highlight of project news posted by a team member

• Click the link to go to the project page

Information on How We Work: Example

• Highlight of trend on financial summary

• Click link to PM Portal for detailed data to drill down

Thank You Questions