ML20059L062

Provides Addl Info Re Util Corporate Plan,To Replace Plan Submitted w/931230 Ltr,Responding to NRC Det Rept for Quad- Cities Nuclear Power Station

ML20059L062
Person / Time
Site:	Quad Cities
Issue date:	01/24/1994
From:	Schrage J COMMONWEALTH EDISON CO.
To:	Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
References
NUDOCS 9402030105
Download: ML20059L062 (26)

Text

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Comm::nwrith Edison y g A*

1400 Opus Place y.Bj /

Downers Grove, Illinois 60515 January.24,1994 Mr. James M. Taylor Executive Director Operations U. S. Nuclear Regulatory Commission Washington, D.C. 20555

Subject:

Additional Information: CECO Response to the Diagnostic Evaluation Team Report for Quad Cities St, tion.

Reference:

J.J. O' Connor and M.J. Wallace to J.M. Taylor letter dated December 30,1993.

Dear Mr. Taylor:

In the referenced letter, Commonwealth Edison (CECO) provided a response to the NRC's Diagnostic Evaluation Team (DET) Report for the Quad Cities Nuclear Power Station.

As part of that response, CECO indicated that our fundamental strategy for accomplishing planned improvements at Quad Cities Station is to utilize the Corporate and Quad Cities Management Plans as the framework for the improvement efforts. These plans were included in the referenced letter as an attachment.

This letter provides additionalinformation pertaining to the Commonwealth Edison Corporate Plan. The enclosure to this letter provides this additional information as a complete replacement for the originally submitted Corporate Plan.

If there are any additional questions, please direct them to this office.

Very truly you,rs,

>f f A-fL

/Johri L.schrage Nucl'e'ar Licensing Administrator U10122 Enclosure I

cc:

Document Control Desk - NRC Docket Nos. 50-254 and 50-265 i

J. Martin, Regional Administrator - Region 111 i

T. Murley, Director - Office of Nuclear Reactor Regulation l

C. Patel, Project Manager - NRR T. Taylor, Senior Resident inspector - Quad Cities Office of Nuclear Facility Safety - IDNS j@i\\'

9402030105 940124 h

PDR ADDCK 05000254 f

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ENCLOSURE i

COMMONWEALTH EDISON CORPORATE PLAN

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Septemb'er 3,1993 i

i To:

R.' L. Bax D. L. Shamblin S. M. Berg R. D. Bishop.

K. L. Graesser E. D. Eenigenburg M. D. Lyster D. M. O'Connor W. P. Murphy K. L. Kohr.

R. Pleniewicz D. L. Farrar R. P Tuetken D. E. Elias 1

Subject:

1994 Vision, Values, and NOD Strategic Planning j

One'of the more important initiatives we have undertaken this year is the development of a Nuclear Division Strategic Plan. It is this plan that will position us to " win" in the future.

Winning for us will_only occur if we are successful in achieving our Picture of the Future, i.e.

WORLD CLASS, COMPETITIVE, and NUCLEAR GENERATING TEAM,. built on the foundation of TECHNICAL EXCELLENCE AND UNCOMPROMISING SAFETY. The visirn.

and values discussions, recently held, were a first step at establishing an. understanding of this picture.

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Recognizing that no business vision can be achieved by wishing it to happen,it is now our obligation to establish aggressive, understandable and prudent plans in your areas of..-

- responsibility. ' While the planning activity itself is.a vital underpinning to success, the; effective integration of every member of your team as both participants in, and owners of, these activities will be the true measure of your leadership and management skills.

To assist you in focusing your local planning effort, I am providing as an attachment'to this letter, my " Picture of the Future". Also included.is a copy of the "CNO Focus for '94",

which continues the 1993 NOD focus established on Safe Operations, Cost Reduction, and Personnel Development. These key targets represent the "First Practical Steps" we can and'must take toward_the future state defined by our vision.

1 Also provided as an attachment are the six strategic initiatives we developed together in our planning workshops. Whereas the CNO Focus Items establish the. tactical objectives, the six

.i strategies represent the focused paths we have agreed to take in the long term (the next 3 - 5 years) to assure _ continued progress toward our vision of being a WORLD ' CLASS,'

q COMPETITIVE, NUCLEAR GENERATING TEAM.

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The six strategies are not the only way to improve our performance. In fact, locally, you may each need to develop additional strategies to support your contribution to the Nuclear Operations Division success. However, these six strategies:

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Promoting Public Confidence 2)

Effective Issues Management 3)

Critical Process Improvement 4)

Cost Competitiveness 5)

Effective Work Force Management 6)

Personnel Development do represent the common areas we have agreed will be employed to incus our strategic _ planning _

activities.

Finally, a word on local business planning. Early on we agreed that we would not prescribe a rigorous, bureaucratic " identical" planning program to which each of you would have to conform. I do expect that each of you will develop a local business plan that builds on the materials provided in the attachments to this letter - and is focused on 'he goals and action plans you must establish with your team.

l I have requested that you develop an initial draft of your plan on or before October 1st, in order to better assess our short term resource requirements. This complimenta y resource planning activity will begin with our financial review meeting on September 28th and will be completed in early October.

I also expect that yot. will finalize your local business plans by early November to provide adequate opportunity to incorporate them into the PPR process and to communicate them to your.

team.

As you work with your team to develop your local business plan, questions are likely to develop with respect to the form your plans should take, and to what extent they should conform to the six strategies that we have developed. We will be able to better answer these questions over the next few months as we better understand how to effectively and efficiently manage our j

strategic planning process.

As a group, we have generated the Picture of our Future, and have defined the Focus:

Items for 1994. Through joint brainstorming, and interactive team development we have crafted -.

six strategies critical to our long term success. Now it is time for each of us as leaders of our:

i local teams to use these materials to build local business plans which together will ensure

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success.

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Today we take another step. With your continued support - and the involvement of every member of your team - we will become a WORLD CLASS, COMPETITIVE, NUCLEAR a team founded on TECHNICAL EXCELLENCE and GENERATING TEAM UNCOMPROMISING SAFETY.

Sincerely, I

Michael J. Wallace Vice President and Chief Nuclear Officer Attachments cc:

C. Reed L. O. DelGeorge 5

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Attachnient 1 Picture of the Future

" Vision" World Class Competitive Nuclear Generating Team Uncompromising Safety Tec1nical Excellence kI

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How We'll Get There

" Values" Reality Speed Boundaryless Behavior Stretch j

Absolute Integrity Quality

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In the past couple of years, a number of documents have been created which identify a broad i

range of issues that we must address to become more successful. 'ihese issues are addressed in the Company' Vision Statement, the Division Vision Statement and the NOD. Leadership -

Philosophy document among others. Unfortunately, with all of these various documents in existence, it is sometimes difficult to concentrate on the items that are truly important. The ~

purpose of the Vision and Values presentation is to combine the meaning of these various documents and boil them down to a few critical items that we can focus on.

The Picture of the Future represents Mike Wallace's vision of where we need to be three to five.

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years from now. This time frame is not arbitrary, it is based or the experience of other companies that have undergone cultural changes of similar magnitude. A principal example among these other organizations is the Ford Motor Company. We have a relationship with Ford to learn from their change process, currently in its thirteenth year, Based on their progress, and-

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mistakes they have made that we plan to avoid, we believe that we can achieve the same results in three to five years that it took them thirteen years to achieve. Another prime example of j

cultural chat,ge that we are trying to emulate is General Electric.

Mike offered three points that define his picture of the future:

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World Class:

Though no criterion was provided,it was generally agreed that Ceco is not in the top 10 utilities in the country. He top few were identified as Northern States, Virginia Power and Light, Duke. PG&E, Southern Companies and Union Electric. When the question was asked who the top utilities in the world were, the d

answers were normally EdF, Sweden and Japan.

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What makes these utilities world class is not clear, yet everyone was in agreement that they are in that -

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category. Commonwealth Edison needs to detennine what it takes to be world class and then go out and make the necessary changes to achieve that standing. GE's Jack Welch put it in different terms for his '

j organization, he stated that they would be number one or number two in every market they were in, or they.

-l would buy, sell, or fix the problem to achieve that position.

One clear part of a definition of world class is that the company has the ability to learn from it's own -

experience as well as from the experience of others. 'We must be a learning organization in order to be world class.

Many experts predict that the 100 largest generating companies today, will probably all be part of 10-generating companies ten years from now. His will happen through mergers and acquisitions in order for.-

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the companies to remain financially viable. From this view point, it is obvious what the future holds for.

companies that are not world class. A company must be world class in order to survive,it is a business imperative.

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Competitive:

~ Industry cost reports were discussed. Byron, Braidwood and LaSalle are 'all near the top of the list for lowest cost producers in terms of S/MWe. All of these plants are in the 513 - $18 range. His is compared to our three older plants which are in the $25 - $28 range. Obviously, the way to bring these numbers down is to produce more power and spend less money. Many people seem to believe that those two objectives are contradictory. They believe that you must spend more money to produce more power. If you look at the utilities that are generally acknowledged as the best, you will find that they have very high

i generation at very low cost. We must strive to achieve efficiency in our organization to allow this to happen. We must avoid the tendency to defer work to save money in the short run. _We must complete -

all required work but perform the work more efficiently in order to save money. If this efficient operation -

J-can be achieved, not only will the costs go downl equipment will run better leading to increased generation.

Nuclear Generating Team:

Many of the utilities that we compare ourselves to on the cost report are single site and even single unit utilities. It seems reasonable to think that CECO should have a large advantage over these sites due to our.

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size. We should be able to use " economy of scale" to achieve savings. Unfortunately, the opposite is true.

We are hindered by our size and are actually less efficient than a number of single unit utilities. In order ~

l to take proper advantage of our size. we must operate as a Nuclear Generating Team.' His can not be a' department team or a station team,it must be the NOD team to take full advantage of our size and strength.

EdF utilizes this philosophy and shares expertise across sites. With 54 units at 18 sites, they utilize their size and share resources. Bis allows them to avoid having 18 turbine experts,18 diesel experts etc. We.

must work towards this type of team work in order to be successful.

In order to achieve this vision, we must build upon two fundamentals that make up the

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foundation of our future. These two fundamentals are:

R Uncompromising Nuclear Safety:

i nis is an item that can never be taken for granted. In recent customer surveys, our rate payers have '

l indicated that this is the most important single item that they expect from us. We must maintain'a strict '

',j safety focus. All operating and technical problems must be reviewed for safety context and opportunities sought to improve safety posture.

Technical Excellence:

We must always strive for technical excellence. Engineering must thoroughly understahd the plant,its :

limitations and sensitivities, and will be responsible for conserving and disseminating this information to :

i others. We must avoid taking action based on regulatory or economic pressure unless it also_makes sense from a technical standpoint. We have an obligation to the public to ensure that our plants are run properly.

Dat involves making prudent judgements, properly identifying problems, and resolving them such that they -

do not recur.

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i The Values part of the presentation defined "Ilow we'll get there", referring to Mike's vision of the future. If we truly adopt the following values, we can not help but improve as an organization.

Reality:

.We must strive for self improvement. We must be tireless in our evaluation of root cause to ensure that the actions taken actually address the problem, not just the symptoms. We must maintain an atmosphere of self criticism and problems must be evaluated widely rather than narrowly. We must strive to see things the way they really are, not the way we would like them to be. Effective self-assessment is critical to improvement.

1 Speed:

We have been criticized in the past for being long on plans and short on action.' We must use speed and simplicity as a way to build momentum to overcome the resistance to change. We must have a bias for action, not for study, it is understood that speed will lead to mistakes. It is still to be encouraged. It is ;

better to have nine out of ten things done correctly than it is to have only one thing done. The obvious caveat to this value involves nuclear safety. 'Ihis value does not, and can not, be applied to individuals

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performing tasks that could have an adverse affect on nuclear safety.

l Boundaryless Behavior:

t We must not be tied to our organization charts. What matters is what gets done, not so much who does it. We must learn to work across department lines in order to do the most efficient job possible. We can not let boxology stand in the way of progress.

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Stretch:

5 We must set targets. with intentionality, beyond what we believe we can achieve. This is designed not to l'

frustrate, but to challenge traditional thinking and break paradigms. It must be understood that these targets by their nature. may not be met. However, this should be the norm in setting objectives and

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striving for improvement. We must set goals that will challenge every individual involved to reach a new level of perfonnance.

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In order to adhere to the values, there are two fundamental building blocks upon which all of our behavior must be based. These two items form the foundation for our values:

Absolute Integrity:

We must be open, honest and direct in all of our communications. All of our actions must be taken assuming that they will be put on display. If you do not believe that your actions are defendable, or will not hold up to close scrutiny, then they have failed the test for absolute integrity. One of the problems we currently have in the organization is a lack of trust. This can not be solved immediately, but, adherence -

.. to this value will help to build trust over time.

J Quality:

We must ensure that every job is treated as important and done correctly. There are no insignificant jobs, they all contribute to our overall success. Quality must become second nature and anything less can not be accepted.

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i CNO FOCUS FOR 94 vis10N The Commonwealth E.'.ison Nuclear Program is viewed, throughout the induury, as "WORLD CLASS", Our plants are models for efficient, effective and reliable operations, built on a foundation of " Technical Excellence" and

" Uncompromising Safety". We are " COST COMPET TIVE", attributed in part to the fact that our production costs have decreased significantly each year, beginning in 1993. Our public and our regulators' view our program as successful in meeting their expectations. Our approach is mased by continuous improvement through a participative approach with all our employees (bargaining unit and management). Our people are " energized", proud, and evcited about being members of the " NUCLEAR GENERATING TEAM".

1 S AFE OPER ATIONS

. Measurement Objectives Site Specific Unit Capability Factors meet or exceed their." Target Values"

. Safety System Availability is in the INPO top quartile and unavailability is below 0.02%

. Safety System are maintained in a nondegraded mode, consistent with our foundation of-UNCOMPROMISING SAFETY

• No Commonwealth Edison plant is on, or being considered for the NRC Troubled Plant List Implementation Appmach Continue implementation of Maintenance and Work Control Improvement Initiatives a Continual reinforcement of an " Uncompromising Safety Culture"

• Benchmark world class organizations to learn how they maximize safe operations.

COST COMPFTTTIVE

• Measurement Objectives 1994 O&M expenditures do not exceed $870 million (5.4% reduction from budget) 1994 Investment expenditures do not exceed $180 million (10% reduction from budget)

Site Specific Production Costs do not exceed their " Target Value"

+ Implementation Appmach

• Leam from organizations, recognized as being world class, to instill the concept of " cost consciousness" at alllevels of our organization.

Full utilization of the VQ " program", and setting quality as our endpoint objective Initiation of process improvements (Work Control, HP, Chemistry, etc.)

PFRSONNFI DEVFI OPMENT

+ Measurement Objectives

+ 100% success in conducting PPR sessions Fully implement Succession Planning Program for Level 9 and above at all l'ocations

. Implement Career Planning at all locations

+ Support and participate in Leadership Development Activities

• Implementation Appmach

+ Use Perfonnance Appraisal (PPRs) for Personnel Development and to instill a team minded approach in all individuals.

Develop and implement Training modules to improve Leadership Skills.

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-Supporting Information-Nuclear Site Unit Capability Factors Station 1994 UCF Targets Zion 69.4 %

Byron 83.2 %

Braidwood 74.5 %

Dresden 79.4 %

Quad Cities 72.7 %

LaSalle County 79.4 %

Nuclear Site Pruduction Cost Tary,ets Station 1994 Pmduction Cost (Dollars /MWe hour)

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$12.64/MWe-hr Byron

$ 8.10/MWe-hr Braidwood

$10.52/MWe-hr Dresden

$15.90/MWe-hr Quad Cities

$16.86/MWe-hr LaSalle County

$ 9.25/MWe-hr Note:

_These targets are representative and are under development at this time. They will be issued at a latter date.

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J Stmtegy:

. Cost Competitiveness Stmtegy Objective:

Promote a cost competitive business culture by demonstrating the impact of individual performance on the cost of our product.

Measumment / Success Criteria:

4 1.

Absolute performance to O&M and Capital budgets.

2.

Station and Division direct costs

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Production Costs

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Busbar Cost

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Station Market Value 6.

Station Profit Center Concept I

• $ or $/MW-hr (with or without fuel) will be used as appropriate.

Action Framework:

1.

Def' e and benchmark m

- World class competitiveness

- Know/ understand competition &. its future direction

- Define performance measures -

- Benchmark our current performance 2.

Develop opportunities and alternatives to beat competition in (value)

- Lower cost of doing business

. Improve perfonnance through:

Production Productivity Reliability 3.

Evaluate and select "best" opportunities

- Determine appropriate selection criteria (best opportunity' mix)-

- Begin action plans to implement into all levels of organization 4.

Communicate strategy and results

- Internal

- External 5.

Monitor / evaluate / feedback / improve g

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Stategy Basis:

Cost Competitiveness t

The Nuclear Operations Division leadership determined that Cost Competitiveness is a critical issue which must be successfully addressed in order to achieve the Nuclear Division " Picture of-the Future" Industry cost comparative data published by utility analysts ' demonstrate that the cost

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competitiveness ($/MWHR) of our product is at risk from both industry competition, particularly' -

neighboring utilities, and from independent power producers.

Cost competitiveness can only be realized through continuous improvement resulting in lasting' efficiency and productivity gains. Development of a competitive business culture throughout the Nuclear Division is integral to achieving continuous improvement and cost competitiveness.

The key to the success of this strategy is the impact of each individuals performance.

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2 Strategy:

Critical Process Improvement

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Stmtegy Statement: To enhance the effectiveness and efficiency: of processes critical to

- t improving our productivity and creating a work environment that values improvement of our business methods on a continuous basis.

Measurement / Success Cdteria:

1.

Major processes and their key customers are identified; owners for these processes are identified.

2.

A " family" of performance measures are identified and created for all major processes.

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Several processes have been evaluated and improved with the benefits quantified, and shared throughout the division.

4.

Survey of a cross-section of employees, including mechanics, station laborers, individual performers, middle and upper station management, reveals-A demonstrated awareness of critical site / department processes.

f Group opportunities have been provided for Process identification.

Process improvement' discussions or work are included as part of daily stadon/ department / work group meetings.

. i Action Framework:

1 1.

Promote a sense of " Process Thinking" to encourage the identification of improvement l

opportunities.

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Continue work on currently identified critical processes including those from IM AP (ME-7,.

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ME-10, ME-ll, and ME-12).

3.

Identify key multi-department processes inhibiting productivity and requiring improvement.-

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Designate process." owners" and " sponsors" of improvement efforts.

Benchmark initial conditions Identify performance measures for the process Implement improvements Evaluate the improved process Ensure a feedback loop exists in the process te facilitate continuous improvement -

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Identify additional processes in control of a single department and initiate improvements.

6.

Communicate improvements and share results with other facilities for implementation.

7.

Develop a recognition and reward systems to reinforce process improvement and continuous 1

improvement of all tasks, large or small.

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1 Stmtegy Basis:

Critical Process Improvement O

Process improvement is a key challenge with near-term and strategic importance to the Nuclear Operating Division. Inefficiencies and outdated methodologies need to be addressed so that our processes are recognized for their speed, simplicity, and effectiveness.

'1 Several major processes have previously been identified that'would benefit from improvements including:

. present work ' control process, modification process, procurement process.

Improvement efforts for these and other processes are underway. However, we must adopt a habit of continually renewing and improving our business practices.

Many of our complex processes have no single, clear " owner" and,- as a result, they are difficult l

to change. Promotion of a continuous improvement philosophy throughout the organization is j

necessary to encourage improvement by all employees on all tasks.and processes, whether large l

or small, as part of their normal activity. Process " measurement" is necessary to provide the feedback loop necessary to identify that improvements are occurring and continue to' be made.

This philosophy also requires reinforcement by appropriate reward and recognition system. Our-long term survival and profitability as a competitive organization is dependent on our success in this area, i

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. Stmtegy:

Issues Management Stmtegy Objective: To capture existing and emerging major issues in a unified management decision framework that forecasts, identifies, prioritizes and allocates i

resources to the resolution of issues; assists with interpreting and defining i

implications and options - for issue resolution;. and. assigns cleitr responsibility and accountability for each issue.

l Measurement / Success Criteria:

1.

Costs due to Regulatory Oversight (e.g.10CFR 170) are stable or decreasing.

2.

The conduct of site and/or Division-wide focus groups with a cross-section of -

l management reveals:

The issues Management process has visibility. at virtually all levels of -the Division.

The individual or group assigned responsibility for an issue is clear throughout the organization for every type of issue and for each phase of the issue's life.

The issues Management system is tied into the. business. planning process i

(planning, scheduling, and budgeting).

The Issues Management process promotes consistency in the evaluation of issues.

The Issues Management process provides the decision maker (at the appropriate l

level) with the information needed to make an intelligent, informed, and optimally j

beneficial decision.

The process provides a traceable decision basis that is defensible to regulators and

-i that assures critical safety, regulatory, and operational concerns receive proper attention.

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A forecast ratio (issues generated internally versus issues generated externally) increases

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i Action Fmmework:

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Completion of the development of the IM process framework and EIS database by the working group.

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Completion of awareness training, implementation, and integration of the IM-process j

framework into site processes and procedures for budgeting, busine'ss planning,

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communication of regulatory objectives, and others as appropriate.*

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Completion of inventory of current site issues as evaluated by the IM process..

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Conduct NOD integrated comprehensive self-assessment of.IM process and make j

recommendation regarding use of " integrated schedule" with NRR/ Region.

Training should be provided to key site individuals with direct process involvement. Tailgate information to be provided for those indirectly involved.

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Strategy Itasis:

Issues Management Several external reviews have identified a.need for an improved / integrated process of issuen management for resource allocation and long-range planning. The issues Management Proces:;

(originally developed as Integrated. Management Action Plan IM-1) represents a critical aspect of an integrated, business management approach to improving nuclear operations.while maintaining flexibility for site specific initiatives. It will represent a disciplined and proactive approach by which management will make resource decisions.

Issues and concerns will be prioritized in a sy'tematic manner that integrates with the Division's overall business plan and facilitates comparis in of each issue relative to its value to Nuclear Operations. The issues Management process should facilitate greater communication of issues,.

focus all stakeholders on high priority issues, 'mprove the effectiveness of issue resolution, and support the capability to revisit the approaches taken in resolving issues as new facts and concerns evolve.

Issues Management is a key component to the Nuclear Operating Divisions Strategic Plan.

Through this structured decision support process the goals of cost effectiveness and workforce management will be enhanced.

In support of the Division's key strategy on personnel development -- Key Nuclear managers will have the forum a sharpen their mid and long range planning skills, as well as providing a learning opportunity for others to develop. As the issues Management Strategy is advanced and the benefits of improved planning are realized, Public Confidence will be enhanced.

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Strategy:

Personne! Development t

, Strategic Objective: Create a work place environment that values joint ownership between the.

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individual and supervisor for personnel' development and continuous

-j learning while meeting the business needs of the organization.

Measurement / Success Criteria:

.i A yearly customer satisfaction survey of employees, supervisors, managers, and executives j

chat measures the success of the process in meeting the following criteria:

f Management, leadership and technical competencies are identified, developed, and l

utilized to effectively manage the business.

l The process promotes the selection, integrity, professional development and career ~

progression of all personnel.

1 The process promotes diversity and supports the changing expectations of the workforce; provides accountability, personnel assessment and evaluation; and l

anticipates and develops future human resources.

Action Fmmewmt:

1.

Continue to define the needs of the organization in terms of technical and organizational processes and leadership behaviors (include actions of Integrated Management Action Plan-ME-3 " Improve Management Development and Training Process").

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Establish an environment of trust, learning, and growth which supports free access to information and provides an opportunity for a 360 degree performance review.

jI Develop the value of joint ownership of personnel development through the cooperative and collaborative efforts of the incividual and supervisor (include actions of Integrated i

Management Action Plan ME-4 " Improve Employee Evaluation and Assessment

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Process").

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Develop a system of,ecognition and rewards for the desired values and behaviors (see -

also IMAP ME-4).

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Stmtegy Basis:

Personnel Developmer,t The Nuclear Operations Division desires to hcome World Class and Competitive. For this to occur the work force must.be highly skilled in'leaderJlip behaviors and. technical and organizational competencies. Weaknesses have been 'dentified in all of these areas during the' recent ICC, INPO, Tenera,~ and Towers Perrin reviews of the organization.

Weaknesses identified by the ICC Management Audit included succession planning, continuous learning, leadership and the development of personnel to effectively manage the business p10 cess.

In response to the 1992 INPO Corporate Evaluation finding on Management Effectiveness (item 1.2A.1), the division idenufied steps, through the Integrated Management Action Plan (IMAP),

to improve management capabilities and skills. This strategy includes the continuation of the implenrntation of IMAP steps ME-3 and ME-4.

ME-3, '" Improve Management-Development and Training Process", focuses on enhancing.

management capabilities through skill development and professional experience opportunities.

ME-4, " Improve Employee Evaluation and Assessment Process", improves and reinforces measurement and accountability for achievement of performance results. In. ddition ME-4 will' enhance the Perstmnel Evaluation and Assessment process to connect performance appraisals and reward systems with performance objectives.

In summary, this strategy is intended to create an environment and process in which personnel can develop management,~ leadership and technical competencies to meet the business needs of the organization. In addition, the strategy recognizes that the establishment of a viable succession planning process is necessary for organizational procreation.

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C Strategy:

Public Confidence '

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~ Strategy Objective:. To create and enhance a' positive perception of nuclear operations both' externally-with the public and internally with employees in all functional areas of the company, o

I Strategy Framework:

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Develop positive relationships between Nuclear Operations Division (NOD) leadership and NOD employees.

j Create an environment characterized by honesty, openness, and the timely, two-way' flow of accurate, unfiltered information throughout the division.

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Develop positive relationships between the Nuclear Operdons Division and the.other -

l furstional areas of the company.

Cnnte a " Nuclear Road Show" for presentation to *he other functional areas of the.

corrpany.

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Develop positive relationships between the Nuclear Operations Division and the community.

1.

Improve the performance of our nuclear plants.

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Id::ntify the emotional issues that form the public's perception of nuclear. power -

and focus our communication on these issues.

1 3.

Identify our allies in the' community and utilize them as credible third party spokesmen to assist us in communicating our message.

4.

Utilize the Public Affairs Directors to facilitate integration of Nuclear Operations Division leaderrhip into the community (e.3. adopt a school, community outreach, big brother, etc.).

5.

Actively encourage public tours of our nuclear facilities.

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.i Measurement / Success Criteria:

1 1.

None of our nuclear plants are on the NRC watch list.

2.

No civil penalties.

3.

Resident customer satisfaction (Market Strategies and Wirthlin Group surveys) and -

employee satisfaction Arbor and Blackstone Group surveys) demonstrate a steadily i

improving trend.

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4 Strategy Hasis:

. Public Confidence The general public and company employees both' internal and external to the nuclear division j

have a relatively low degree of confidence in nuclear operations as demonstrated by several recent surveys.

q We must gain the confidence of our employees before we can hope to gain the confidence of

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the public. This strategy recommends a " Nuclear Road Show" presentation to the other q

functional areas of the company to acknowledge our contribution to the company's financial situation and to communicate our actions to improve our performance. It also recommends significantly improved communication within the division to build trust and restore confidence.

in division leadership.

The level of public confidence is due in part to the public's perception of nuclear power, the negative publhy our nuclear plant operations frequently receive, and the interlinking;of perceptions relative to rates, reliability, customer service, environmental performance, and management efficiency and competence. Media coverage of plants on the NRC's watch list has a significant negative influence on the public perception.

I This strategy is intended to both improve our performance and improve the public's perception of our performance. Improving our performanc' will minimize the negative publicity _ we-receive and provide additional opportunities fo: wimunicating our successes through third.

party credible spokesmen. We have not been effective at communicating our successes or at.

countering negative publicity due to a lack of credibility. Usu of a' third party spokesman will.

j make these efforts more effective.

a In addition to minimizing negative publicity, this strategy advocates a proactive approach to improving the public's perception by actively encouraging plant tours and integrating nuclear division leadership into the community. The strategy also recommends identification of the emotional issues relative to the public's perception and focusing our communication efforts on these issues. Historically, the most effective communications efforts have been hose that address the emotional issues associated with nuclear power.

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Strategy:

Workforce Management 4

Create a collaborative environment in which the'workforce (CECO and -

Strategy Objective:

non-CECO) continually stretches to win against the competition and

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owns success or failure.

Measurement / Success Criteria:

1.

Reduction in workforce costs per Megawatt-hour each year beginning in 1995 (base year = 1994).

l1 2.

Continuing improvement in collaborative environment as measured through the use of -

l an annual survey instrument (base year = 1994).

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Action Fmmework:

3 1,

Establish a collaborative and trusting work environment throughout the workforce (both CECO and non-CECO).

.!dentify and implement Joint Learning Opportunities between management, bargaining unit, and contractor pers(mnel.

2.

Create a process in which management and labor can successfully resolve work issues.

l such as contracting, work force integration, changes in work due to work practice improvements or process improvements, and transfer of. work between CECO business 1>

units.

3.

Develop a long range process ' hat identifies future work trends and work force level requirements.

'4.

Make Total Quality part of the everyday workforce culture.

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q Strategy Basis:

W3rkforce Management I

i liistorically, the workforce management process at Commonwealth Edison has been based on a philosophy of " entitlement," both for management and bargaining unit personnel. This

- ideology worked from the 1950's through the 1970's because the incremental cost of i

electricity kept falling while the return on shareholder investment kept rising. Workers were used to ever-increasing. overtime, ineffective and inefficient _ work practices, and an over-dependence on contract labor. Today, many of our workers have developed a low sense of value with regard to the work they perform because they run into barriers when doing their work. This, along with the emerging competitive. business environment, has led to an Air of -

mistrust between upper and lower management as well as between management and the l

bargaining unit. This situation is no longer acceptable. In order to achieve a World Clan, Competitive, Nuclear Generating Team, this entitlement " circle" must be broken.

3l This strategy advocates a proactive approach to establishing a trusting and collaborative' work environment that allows management and labor to discuss and resolve issues in a cooperative' process. It wui enable people to become "stakeholders" in the organization, and to invest.

their time and energy into a business with long-term growth. This growth will lead to greater job security, jio satisfaction, and worker empowerment.

Another issue to be addressed by this strategy is the method by wnich we plan for and deploy j

our Inlal workforce to accomplish all of our work. We have lacked a formal integrated process which looks at the total work scope far enough ahead to allow us to accomplish this

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task in the most effective, least-cost manner. This strategy will develop such a process for Nuclear Operations.

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