Strategic Planning and Governance Flashcards

Which governance framework element ensures utility board members understand their fiduciary responsibilities?

Answer: Board orientation and education programs

Board orientation and education programs are the primary mechanism for ensuring board members understand their fiduciary duties to the utility and its customers.

A utility's SWOT analysis reveals that aging infrastructure is a significant weakness. Which strategic response best addresses this finding?

Answer: Develop a long-term asset management plan with capital reinvestment schedules

An asset management plan with capital reinvestment schedules directly addresses infrastructure weakness by providing a structured approach to renewal and replacement.

In strategic planning, what does a 'theory of change' document primarily describe?

Answer: How planned interventions will lead to desired long-term outcomes

A theory of change describes the causal logic connecting planned activities and outputs to the intended long-term outcomes the utility seeks to achieve.

Which of the following best describes 'strategic alignment' in a utility context?

Answer: Ensuring all departmental goals and initiatives support the overarching utility mission and strategic objectives

Strategic alignment means every department's goals, budgets, and projects are directly linked to and supportive of the utility's overall strategic plan.

A utility board is considering a major service expansion. What governance step should precede the final vote?

Answer: Independent feasibility study and public comment period

An independent feasibility study and public comment period provide the board with objective analysis and stakeholder input before committing to major capital decisions.

Which performance measurement approach links financial metrics, customer metrics, internal processes, and learning to strategic objectives?

Answer: Balanced Scorecard

The Balanced Scorecard integrates financial, customer, internal process, and learning/growth perspectives to give a comprehensive view of organizational performance relative to strategy.

What is the primary purpose of a utility's strategic risk register?

Answer: To document identified risks, their likelihood, impact, and assigned mitigation owners

A strategic risk register systematically documents risks with their probability and impact ratings and assigns accountability for mitigation actions to specific owners.