CL&P Rapid Results Final Project Review April 27, 2007

1. CL&PRapid Results Final Project ReviewApril 27, 2007

2. The Objective of Strategic Execution “If you could get all the people in an organization rowing in the same direction, you could dominate any industry, in any market, against any competition, at any time.” The Five Dysfunctions of a Team by Patrick Lencioni

3. The Strategic Execution Process • A limited number of strategic priorities -- 4 to 6 • Cross-business accountability -- champions • Actionable challenges • A focus on results • 100-day implementation • Sustain and expand

4. Final Review Objectives • Share results and learnings across teams • Acknowledge the achievements of the teams • Recognize the effort and contribution of team members • Communicate next steps to sustain and expand the process

5. The Sustainability Challenge When the rapid results team is the “temporary process owner”… End-of-process goal (Rapid Results goal) Knowledge transfer Regulatory compliance Reliability Productivity Ergonomics Revenue Growth …How do we establish accountability for sustaining results? Functional performance goals

6. Rapid Results ProjectsFinal Review Agenda • 8:00 – 8:15 Introductions • 8:15 – 9:15 Growth Team • 9:15 – 10:15 Productivity Team • 10:15 – 10:30 BREAK • 10:30 – 11:30 Safety • 11:30 – 12:30 LUNCH • 12:30 – 1:30 Making and Meeting Commitments • 1:30 – 2:30 Workforce Planning • 2:30- 2:45 BREAK • 2:45 – 3:45 Reliability • 3:45 – 4:15 Summary and Recognition

7. 1-Hour Project Discussions • 20 Minutes Team presentation • 10 Minutes Discussions at tables around 3 questions: • Unanswered questions from the presentation • Most important accomplishment of the team • Additional ways to build on success • 30 Minutes Open Discussion

8. Discussion Questions (10 minutes) • What unanswered questions do you have about the work of the team? • What do consider to be the most important accomplishment of the team? • Can you see additional ways to build on the work of the team?

9. Rapid Results Projects Final Review Event April 27, 2007 Strategic Priority:Growth Co-Champions:John Ferrantino, Jim Langenbach Team Members: Brad Shaw, Bryan Barbera, Michael Collins, Edward Davis, Stephen Gibelli, John O’Toole, Mark Massaro, Dan Moore, Bill Pernaa, Jeff Franson, Dave Ferrante, Jeff Plocharczyk, Tim Simmonds, Mike Viccaro Rapid Results Goal: Book an additional $250,000 of Incentive Payments by April 15th.

10. Results Achieved(progress towards the goal; other measurable results)

11. Innovations in Work Processes(new ways of working which contributed to success) • Revised work plan PA05-01 vs. Load Response Program • Mobilized AE’s and rededicated/ramped up effort. • Acquired, compiled & analyzed data on targeted customer categories. • January 29, 2007 developed and executed a communication plan. 457 letters mailed to Presidents & CEO’s. • Leveraged three January meetings to get the message out, over 325 large C/I & Municipal customers registered at UConn Stamford, Foxwoods & Marriott Farmington.

12. Key Learnings(about the goal, the strategic priority, overcoming obstacles, CL&P) • Measurement – Identify and Quantify Rapid Results success • Refinement – Sales Focus LRP vs. Emergency Generators • Time Compression • Motivation/Focus – AE’s & Customer • Communicate the Strategic Plan for Effective Team Selling • Maximize Revenue & Relationship

13. Opportunities to “Move the Needle”(how your work can contribute to broader success this year) • Partnering with Dept. Emergency Management & Homeland Security momentum to achieve $9.6 million by year end • National Accounts • Continuous Focus on Load Response Program • Marketing/Outbound calls to Customers <350kW • Market & Educate Customers, Vendors & Suppliers the benefits of PA05-01

14. Sustainability Plan(steps to take within the next 30 days to sustain results, who is responsible and whether an investment decision needs to be made) • Capital Grant Application i.e. switchgear/rewiring • Scope of Work to be continued • Multiple Performance Customer Solutions • Account Executives Organizationally Responsible • Prospecting & quarterly follow-up with potential LRP Customers • Continuation to pursue other opportunities-short & long term success i.e Capital Grant Application

15. Expansion Recommendations(how to build on your work) • Next Phase of Rapid Results…Yankee Gas Opportunities

16. Discussion Questions (10 minutes) • What unanswered questions do you have about the work of the team? • What do consider to be the most important accomplishment of the team? • Can you see additional ways to build on the work of the team?

17. Rapid Results Projects Final Review Event April 27, 2007 Strategic Priority:Productivity Team Members: Charles Jones,Hugh Costello, Bruce Bernier, George Rebecchi, Diane Orsini, Rich Witte, Tom Moen, and Veronica Santiago Rapid Results Goal: Achieve a 33% increase in crew productivity at the CL&P Newtown and YG Danbury Area Work Centers

18. Results AchievedCL&P Newtown

19. Results AchievedYG Danbury

20. Innovations in Work Processes(new ways of working which contributed to success) • Assigned Process Based Clerical support to Line Department • SDL Field Time Increased (Jan 26.5hrs / Mar 37.6hrs) Improved management of crew assignment to weekly planned work Improved Quality/Quantity of Pre-checks Performed Improved Quality of Safety Observations Increased Opportunities to Remove Barriers at Job Sites Review Monthly Detail Efficiency Report • Use of “Totes” to pre-pack for jobs • YG Planner Assisted Field Supervisor with Admin Duties

21. Key Learnings • Emergent Work Included in Productivity Measurement • STORMS Estimates Times is based on Planned Work • Issues with Standard Estimated Times • Set-up Time not included in some job codes • Travel Time may-be an issue for some job codes • Indirect Benefits of Increased Supervisory Field Presence • Improved Morale of Workers • Increased Opportunities for Feedback & Coaching • Teamwork and Shared Knowledge via Daily Interaction Contributes to a Properly Loaded Schedule • People Want and Need Frequent Feedback on Results in Order to Improve • Schedule Adherence and Efficiency • Daily Jobs Assigned vs. Jobs Completed

22. Key Learnings (Cont)

23. Opportunities to “Move the Needle”(how your work can contribute to broader success this year) • Getting More Work Done • 202 more jobs done this year over last • More Diverse Work Plan • Less dependent on contractors • Improves Reliability • Inspections and Maintenance Work • Better Safety Record • First Quarter Triple Zeros • Customer Satisfaction Will Improve • Meeting Commitments

24. Sustainability Plan(steps to take within the next 30 days to sustain results, who is responsible and whether an investment decision needs to be made)

25. Expansion Recommendations(how to build on your work) • Implement Rapid Results Efforts within the Southern Division • Assign process based clerical support to line department • Provide training to supervisors on Detail Efficiency Report reviews • Assign responsibility to appropriate resource for addressing Efficiency Report findings • As an alternative to the above, consider taking initiative to all of CL&P/YG areas with Directors’ concurrence

26. Discussion Questions (10 minutes) • What unanswered questions do you have about the work of the team? • What do consider to be the most important accomplishment of the team? • Can you see additional ways to build on the work of the team?

27. Strategic Priority:Safety Initiative Team Members: Carol Brochu, Chris Durost, Bret Factora, Dominick Lauria, Jim Millspaugh, Dan Patalano, Warren Rogers, Mike Vengruskas, Bob Rumbel Rapid Results Goal: Eliminate biomechanical/soft tissue injuries from March 1 to April 13, 2007, in CL&P/YG Operations Departments at Waterbury and Torrington. Rapid Results Projects Final Review Event April 27, 2007

28. Rapid Results - Safety Initiative Milestone: Increase employees awareness and participation in the elimination of biomechanical and soft tissue injuries. Tactics: • Focused Promotion of injury prevention Programs such as “Form First”. • Implementation of Comprehensive Injury Prevention Programs such as Physical Therapist Services.

29. Results Achieved---Major--- • GOAL ACHIEVED ZERObiomechanical/soft tissue injuries from March 1 to April 13, 2007, in CL&P/YG Operations Departments at Waterbury and Torrington. • Successful implementation of a Physical Therapist Program in Tolland.

30. Results Achieved Highlights • Successful rollout of “FormFirst” Program Company wide. • Endorsed by both Bargaining Units. • Self motivated morning stretching routines initiated in Waterbury/Torrington. • Revised Job Hazard Analysis Forms and “Safers” to incorporate Form First principles. • Established Physical Therapist weekly meetings.

31. Results Achieved Highlights • Physical Therapist morning stretching initiated April 10 (Tolland) • Eight employees working directly with Physical Therapist (Tolland) • Specific work method under review. (Tolland - cable pulling) • System Projects piloting bucket liner thigh brace. • Revised 2007 CL&P/YG Ergonomic Program. • Reaffirmation of CL&P Policy for Employee Input Committees (EIC).

32. Innovations in Work ProcessesForm First Promotion • Prior to Program Presentation: • Engage local area management in interactive discussions to: • Identifying the specific “opportunity for improvement”. • Review the proposed solution and format. • List anticipated results and time table. • Revise Program to include local area management suggestions and comments. • Receive local area Bargaining Unit endorsement. • Schedule “Dry Run” Presentations for local area management and ABAs. • Advertise Program.

33. Innovations in Work ProcessesForm First Promotion • During Presentation Rollouts: • Revised the following forms to include “Form First” Reference; • YG Pre Job Hazard Assessment. • YG Field Safety Audit. • CL&P Safety Analysis Sheet. • CL&P “Safers” data base. • Created one page laminated “Form First Employee Sheets”. • Monitored Presentations for consistency and employee participation.

34. Innovations in Work ProcessesForm First Promotion • Post Presentations: • Formally solicit local area management feedback. • Utilize feedback to develop and implement promotional activities to keep employees focused. • Refresh Posters. • Promote on Company LED Signs. • Conducted employee drawing for correctly answering Program Quiz. • Emphasize Program highlights at internal meetings.

35. Innovations in Work ProcessesPhysical Therapist Program Management Actions: • Establish Physical Therapist Program qualifications: • Knows the utility business. • Documented success. • Established Program including milestones. • Accept short term impact to: • DART Rate Goal. • Productivity. • Budget. • Recognize: • Early intervention will minimizes injury severity. • Reduction in Workmen’s Compensation.

36. Key Learnings • It is possible to eliminate biomechanical soft tissue injuries. • Reducing injuries is a “marathon” with “water stops” along the way. • Injuries are personal “so” Reducing injuries is personal. • Achieving employee “buy in” and gaining employee’s trust is required. • Employees will “own” the Physical Therapist Program

37. Opportunities to “Move the Needle” Establish A “Design Team” to: • Reinforce the elimination of biomechanical and soft tissue injuries with creative, frequent, low cost reminders such as; • Stretching video. • Internal meeting stretches. • Morning stretching routines. • Formal Wellaware presentations. • Publications. • Involve employee’s families. • Posters. • Games/Quizzes. • Rollout Physical Therapist Program to all AWCs and YG.

38. Sustainability Plan Apply the “Learning's” of the Rapid Results Team to the CL&P/YG Safety & Health Department’s 2007 Ergonomics Program to include: • Implementation of the 2007 CL&P/YG Safety & Health Department’s Ergonomic Program. • Establishment of an Ergonomics “Design Team.” • Immediately market “FormFirst” Basic Principals. • Establish Physical Therapist Program in Each Division.

39. Discussion Questions (10 minutes) • What unanswered questions do you have about the work of the team? • What do consider to be the most important accomplishment of the team? • Can you see additional ways to build on the work of the team?

40. Strategic Priority: Making & Meeting Commitments – YG Compliance Team Members: Dan Hagan, Garry Daigle, Ed Easley, Mike Fortier, Lauren Gaunt, Dave Hatfield, Joyce E. Raffone, David Senetcen Rapid Results Goal: Yankee Gas Meriden and Yankee Gas Waterbury will achieve 100% compliance with General Operating Procedures and Standards with all work performed between March 13 and April 13 in the following four areas: plastic pipe joining, clearances, meter protection, and steel pipe coating inspection. Rapid Results Projects Final Review Event April 27, 2007

41. Results Achieved(progress towards the goal; other measurable results) • GOAL ACHIEVED!!!!!!! • 52 Audits/Work Observations Performed • Zero Compliance Issues • Organization acknowledged the compliance problem and recognized the need to improve. • Waterbury • Meriden • Construction • To achieve success, it is essential to establish and monitor expectations. • The biggest issue with non-compliance is process/organizational – not individual performance.

42. Innovations in Work Processes(new ways of working which contributed to success) • Implemented an effective change management process to change behavior at all levels of the organization. • Operations and Engineering collaborating on procedure revisions. • GOs in trucks.

43. Key Learnings(about the goal, the strategic priority, overcoming obstacles, CL&P) • The goal was very aggressive. • Our performance was not as good as we thought it was. • Working together we can achieve 100% results. • Management and union • Operations and engineering • Field and training • Initial expectations of the worker response to the audits was inaccurate: • We expected resistance. • Most workers were very supportive.

44. Opportunities to “Move the Needle”(how your work can contribute to broader success this year) • Improve communications between YG and the DPUC Gas Pipeline Safety Unit. • Communicate the Rapid Results Process and Results to the GPSU. • Improve overall compliance awareness. • Move the Field Crew Checklist into SAFERS as a template.

45. Sustainability Plan(steps to take within the next 30 days to sustain results, who is responsible and whether an investment decision needs to be made) • Communicate YG Compliance Team Results • Sustaining & Expanding Compliance Performance in Meriden & Waterbury • Continue Work Observation and Audit Program • Monthly Focus Topics • Employee Briefings • Reset Compliance Expectations and Training in GO/Standards in: • Danbury • Norwalk • East Windsor (incl. Danielson and Waterford) • Field Observations – All employees, all areas • Establish Audit Team • Auditors • Roles & Responsibilities • Organization • Perform Audits in all YG & Construction work groups

46. Sustainability Plan (con’t)(steps to take within the next 30 days to sustain results, who is responsible and whether an investment decision needs to be made) • Develop WO Skills in Supervisors and Exempt Employees • WO&C Training • Field Practice with Auditors • Transition to YG only Observations • Field Observations Reporting • Enhancements to Field Crew Checklist • Transition to SAFERS • Tracking & Trending Observations • Owner • Common Cause Analysis • Performance Indicators and Goals

47. Sustainability Issues(issues to consider in developing your plan) • Finalize discussions with directors to determine what, if any, staffing changes will be needed.

48. Expansion Recommendations(how to build on your work) • Expand Process into Danbury, East Windsor, and Norwalk • Expand the four compliance topics to all GOs and all Standards. • Implement on-going audit process.

49. Discussion Questions (10 minutes) • What unanswered questions do you have about the work of the team? • What do consider to be the most important accomplishment of the team? • Can you see additional ways to build on the work of the team?

50. Rapid Results Projects Final Review Event April 27, 2007 Strategic Priority: Workforce Planning Team Members: Don Chamberlin, Franco Cristofaro, Doug Faraday, Ed Hammett, Donna Hanks, Walt Heinig, Diane Jones, Ed Parke, Bob Wojciak Rapid Results Goal: Identify two critical positions and bring at least one person to proficiency by April 15, 2007 as defined by a pre-established evaluation method.