Developing an Asset Management Plan for Your Future Utility or Engineering Organization

RESEARCH BACKGROUND

In 2008, a faculty team at Midway University in Midway, Kentucky, undertook a research project focusing on “Managing Generational Differences in the Workplace.” I was privileged to be a member of that research team. This research consisted of interviews and surveys with 1,000 employees from 15 companies in central Kentucky in 2009, with ongoing research conducted over the next four years, focusing specifically on individual organizational lines, including the water utility. This research was ultimately published internationally, and several notable Kentucky companies used portions of the findings. This #IronStrong Blog will apply the research framework and present the findings in the format of a water utility asset management plan.

How have we progressed since then?

As shown in the chart above, these challenges persist. Workforce issues are a significant concern, ranking 7th among the top 10 challenges in this year's SOTWI survey. The 2024 Interagency Water Workforce Working Group Report to Congress shows that the median age of the current workforce is 48, slightly older than the national median across all occupations. Estimates indicate one-third of the U.S. water utility operators will be eligible for retirement within the next 10 years. Meanwhile, only 10% of the water workforce is under 24. A skillset gap is growing, especially as the current water workforce retires and technology advances. Therefore, organizations need to formalize the sharing of embedded information through mechanisms proven to motivate senior employees by placing them in a teaching role.

• Establish consistent training classes as part of your business plan, allowing senior employees to teach well before they submit their retirement request.
• Bring back retired senior employees to teach in areas specific to their institutional knowledge, possibly offering a stipend for their time and effort.

It has been found that elevating senior employees to the role of “professor” enables a seamless flow of knowledge without compromising security.

ENGAGING STAKEHOLDERS

The definition of stakeholders in this discussion encompasses the entire mosaic of employees within the organization, including multiple generations that interact to achieve organizational goals. I’m sure we are all keenly aware that successfully engaging baby boomers, for instance, may require a different approach than engaging millennials or Generation Z.

The following are findings from our research on the motivational traits of baby boomers, Generation X, and Generation Y (also known as millennials). When engaging these respective stakeholders, organizations need to be cognizant of their unique traits.

Additional findings related to our research on motivational traits are shown above and below. Once again, we should consider these traits when engaging stakeholders within the organization.

ASSETS OVER THEIR LIFE CYCLES

How should we view an employee's life cycle within an organization?

• Organizations must not assume that newer, younger employees are just “passing through." Instead, they should consider elements such as job security (if applicable), encourage and nurture career advancement while providing resources to support it, and, if possible, establish a program that provides a secure retirement. These areas were identified in our research as relevant to attracting and retaining new, younger employees.

DESIGNING COMPETENCY REQUIREMENTS

The millennial generation—and now, even more so, Gen Z—are history’s first generations of digital natives, people born or brought up during the age of digital technology and therefore familiar with computers and the internet from an early age. Our research has shown that this expertise must be recognized and applied within the organization. One recommendation encompasses the concept of “reciprocal mentorship.” This can be achieved by promoting a bottom-up approach to training that complements the traditional top-down mentorship model.

CORRECTIVE ACTION AND RISK MITIGATION

Reviewing research on generations in the workplace, Brad Sago (2000) makes five key observations:

1. Generational differences are real.
2. Generational differences cause misunderstanding.
3. Generational differences cause strife.
4. Generational issues impact the workplace.
5. Generational differences can be minimized.

The key element from Sago’s observations above is that generational differences can be minimized. However, to mitigate the risk of generational conflict, organizations must seek to understand these respective traits, value systems, and expectations of the generations within their organizations.

CREATING O&M STRATEGIES FOR MANAGING

Randy Hain (2013), Managing Partner of Bell Oaks Executive Search, says: “Compromise is inevitable as we hire, train, and develop this next generation of leaders.” He offers advice to baby boomers, Gen Xers, and millennials in the workplace:

For baby boomers and Gen Xers,  he suggests:

1. Start listening and stop assuming.
2. Be present on college and high school campuses.
3. Start viewing Gen Y [millennials] as a strategic business investment.
4. Scrap "do as I say, not as I do."
5. Smart organizations will learn to tap into their potential.

For millennials, he suggests:

1. Having perspective is important.
2. Be patient.
3. Look at relationships and communication differently.
4. Convey respect while pursuing goals.
5. Pursue mentors and advocate.

ASSESSING RISK

When focusing our research on water utility, we first went to a credible source, the American Water Works Association (AWWA), to identify data that might correlate with our findings.

“Overall, how prepared do you think the water sector is to address issues related to talent attraction and retention in the next five years?”

• Only 1% indicated that the water industry was fully prepared to address talent attraction and retention issues over the next five years.
• Fifteen percent thought the industry was not at all prepared.
• 35% thought it was only slightly prepared.
  • Source: 2014 AWWA State of the Water Industry Report (SOTWI)

“Overall, how prepared do you think the water sector is to cope with any expected retirements in the next five years?”

• Only 1% of 2014 SOTWI respondents indicated the water industry was fully prepared to cope with any expected retirements in the next five years.
• Twelve percent thought the industry was not at all prepared.
• Thirty percent thought it was only slightly prepared.
  • Source: AWWA, 2014 SOTWI

This survey by AWWA identified a clear risk to water industry organizations more than a decade ago. Institutional knowledge was at risk of being lost, and the replacement of that knowledge through the attraction of talent needed was not being planned.

CONCLUSION

As Generation Z enters the workforce and surpasses millennials in numbers, organizations have an opportunity to strengthen their teams through intentional asset management that values people as much as infrastructure. Embracing generational diversity and fostering a culture of collaboration can elevate performance, innovation, and long-term success.

Interested in learning more about generational dynamics within the utility industry? Connect with your local McWane Ductile representative. Our team offers a variety of in-person and virtual technical presentations tailored for water and wastewater professionals. Explore our full lineup of topics—and schedule your next Lunch & Learn or Day of Water—at McWaneDuctile.com.

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