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RURAL WATER SYSTEMS: MANAGING IN TRYING TIMES

RURAL WATER SYSTEMS: MANAGING IN TRYING TIMES. Dick McGinity Bill Daniels Chair of Business Ethics University of Wyoming. Who was Bill Daniels?. Bill Daniels’ Values (in his own words). Be humble; don’t brag. Do unto others as you would have them do unto you.

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RURAL WATER SYSTEMS: MANAGING IN TRYING TIMES

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  1. RURAL WATER SYSTEMS: MANAGING IN TRYING TIMES Dick McGinity Bill Daniels Chair of Business Ethics University of Wyoming

  2. Who was Bill Daniels?

  3. Bill Daniels’ Values (in his own words) Be humble; don’t brag. Do unto others as you would have them do unto you. It’s better to give than to receive. Share good fortune with others. Be honest. Be courteous. Treat all others the same.

  4. Daniels Fund Activities in Wyoming • Grants have touched all 23 counties • Targets are youth, elderly, disabled, disadvantaged and homeless • Grants have increased by over 50% since 2005 • 2005-2009: 200+ grants made or pending      • Over 125 students received scholarships since 2002. • Examples of major grants include • Endowing the Bill Daniels Chair of Business Ethics at UW (matched by WY) • $1 million to Central Wyoming Counseling Center for alcohol and substance abuse • $250,000 allocation to the United Medical Center in Cheyenne for the Davis Hospice Center • $250,000 to the Mount Carmel Youth Ranch in Powell for a staff housing and sports facilities. 

  5. Daniels Business Ethics Grants • Amount: $3.52 million • Time Span: 14 years • Purpose: Statewide Ethics Initiative • Develop business ethics curriculum for courses at UW • Develop business ethics curriculum for seven Wyoming community colleges • Strengthen relations between CoB and other UW professional schools via joint coursework, seminars, and research opportunities • Improve business ethics and leadership curricula nationwide • Identify and recognize WY businesses for accomplishments in the area of business ethics and integrity (BBB Torch Awards)

  6. Daniels Grant Supports One of CoB’s Five Major Initiatives • Environment, natural Resources, and sustainable business practices • Entrepreneurship • Technology management • Business ethics • Expanded home for the college

  7. Daniels Grant to CoB Complements Three out of Six Priorities in UW’s Academic Plan • Cultural endeavors, the arts, and the humanities • Environment and natural resources • History and culture of Wyoming and the Rocky Mountain region • Life sciences • Professions and issues critical to the region • Science and technology

  8. Continuing progress in these six areas will position UW to be a major factor in the state’s evolution over the next half century.

  9. And speaking of Wyoming’s next half century….. Wyoming may be a very different place – and not necessarily for the better – when our grandchildren begin assuming its leadership a couple of decades from now. What will we turn over to them? • A state whose distinctive landscapes, wildlife, history and values still exist? OR • A state that looks like the 135 mile-long urban landscape from Fort Collins to Colorado Springs?

  10. Building the hh We Want

  11. “When I consider the most significant challenges facing Wyoming and its future, high on the list is how we can welcome growth and prosperity and still protect the things and places that make Wyoming a special place to live.” - Governor Dave Freudenthal

  12. Our Challenge • How do we build Wyoming’s future in a way that respects, balances and includes all viewpoints? • How do we bridge the gap between where we are today and where we want to be? • How do we have a discussion about the Wyoming we leave behind for our children and grandchildren?

  13. What’s important: -How we grow- Open space and wildlife- Clean air and water- Strong and friendly communities - Cultural heritage- Private property rights, landowners and ranching families

  14. Which problem? Natural gas development? Rural development?

  15. Starting the conversation Building the Wyoming We Want Conferences • January 2008 and June 2009 Conferences • Consensus priorities: open space, wildlife habitat, water development, sprawl, housing needs • Strong support for statewide coordinated process similar to “Envision Utah”

  16. Since then…. • Non-profit organization • Statewide advisory board • Community initiatives • Planning tools for communities • State agency coordination • Grassroots conversations • Legislation

  17. Scenarios • Baseline scenario – what will we look like in the future if we don’t do anything different today? • Explore a range of decisions • Examine the potential consequences of our decisions

  18. Scenarios help define and compare alternatives Contrast today’s choices by showing long-term consequences

  19. Where We Are Now • Advisory board • Statewide values • Tool kit • Pending demo projects • Fundraising

  20. Building the Wyoming We Want “In 2030, I’ll be 80 years old. I want to be able to look at my kids and say we did it right.” • Gov. Dave Freudenthal

  21. Back to the Present Rural Water Systems Market/Economic Trends Strategic Challenges Pressing Problem: Revenue/Cost Squeze Questions Your System Must Answer Now

  22. ECONOMIC/MARKET TRENDS • Economic and Regulatory • Severe recession; slow recovery • New Congress; new agency leadership; ARRA • Restructured funding systems? • EPA-SRF (CWSRF – DWSRF) • USDA-RUS/WWD (WWD) • Market • Uneven growth in customer base • Strong demand for increasing purity

  23. STRATEGIC CHALLENGES:Statewide and Local • Statewide • Evolving technology • Shaping regulation • Rapid growth in some areas; little in others • Revenue/cost squeeze • Your System • Customer satisfaction and loyalty • Covering your costs • Upgrading technology • Obtaining capital in spite of revenue/cost squeeze

  24. NINE QUESTIONS YOUR SYSTEM MUST ANSWER NOW • What capacity/quality must we deliver in 3 years? • What actions must we take to achieve it? • What will these actions cost? • Will these steps cure our revenue/cost squeeze? • Can new capital be obtained? How? When? BRC? • How do we add missing management skills? • With whom can we partner to achieve our goals? • Can our plan succeed? If not, what do we do? • How do we support each other? BW3?

  25. A FEW WORDS ABOUT ETHICS • The driving force of any profession includes • the special knowledge, skills and standards it demands • the duty of its members to serve responsibly, selflessly and wisely, and to establish an inherently ethical relationship between themselves and society. • Effectively answering the “nine questions” is an ethical as well as a operational responsibility.

  26. ETHICAL ISSUES IN RURAL WATER SYSTEMS • QUALITY vs AFFORDABILITY • SUSTAINABILITY • REVENUE INSUFFICIENCY • AFFORDABILITY/HEALTH RISK TRADEOFFS • BALANCING COST AND BENEFIT • REGULATION DEVELOPMENT/COMPLIANCE • SYSTEM FINANCING/CONSOLIDATION

  27. WHERE/HOW A BUSINESSES IDENTIFIES ITS ETHICAL CHALLENGES Financial Community Shareholders The Media Auditors Special Interest Groups Board Government Regulators CEO Community Trade Associations Mktg POM Fin Admin R&D Customers Employees Competitors Suppliers Adapted from Isabelle Maignan, OC Ferrell, and Linda Ferrell, “A Stakeholder Model for Implementing Social Responsibility,” European Journal of Marketing,.

  28. QUESTIONS?

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