AWWA JAW57433

This article provides utility managers with guidance to be used in developing strategic planning processes that can be integrated in a utility's annual planning cycle. The processes discussed will also help define strategies that are useful in a rapidly changing and highly competitive market. Traditionally, water utilities have struggled to adapt to a competitive market, missing opportunities to expand their purview, opting instead to preserve the status quo. This article provides a step-by-step methodology for managers to use to develop a more active, entrepreneurial approach to utility management and evolve their planning processes to embrace a more market- and customer-focused approach to service delivery. The authors discuss how strategic planning can be readily integrated into annual planning processes and how a portfolio management approach provides for evaluation of strategic investments and risk management. They also point out the fact that strategic planning is an evolutionary process. Includes 2 references, figures.