Discussion about Palm Bay Utilities experiences with using an ISO certified management system (ISO 14001) to institutionalize performance measurement of continuous improvement throughout the organization and involving all employees. This environmental management system was initiated by Jason Yarborough, Palm Bay Utilities Director.

1. A Performance Management Framework for
State and Local Government:
From Measurement and Reporting to Management and
Improving
CASE STUDY FORM
Establishment of a Performance Based,
Continuous Improvement Management
Framework at the City of Palm Bay,
Florida, Utilities Department

2. National Performance Management Advisory Commission
Case Study Form
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INSTRUCTIONS FOR SUBMITTING CASE
STUDIES:
The National Performance Management Advisory Commission is seeking case studies
and examples that illustrate framework elements. Illustrative case studies will be
included or referenced in the framework document. To submit a case study, please
complete this form with information about performance management practices in your
organization.
After completing this form, please submit to:
Mike Mucha
Email: pmcommission@gfoa.org
If you have any questions, please contact Mike Mucha at:
Email: pmcommission@gfoa.org
Phone: 312-578-2282.
CONTACT INFORMATION:
Name: Dan Roberts
Title: Assistant Utilities Director
Organization: City of Palm Bay, Florida
Phone: 321-952-3410
Email: droberts@pbfl.org

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Case Study Form
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1) BACKGROUND ON PERFORMANCE MANAGEMENT
EFFORTS
Please briefly describe the history of your organization‟s performance management
efforts.
In 2007 the City of Palm Bay, Florida, implemented “PalmStat” as an accountability
management system that is used to improve performance and service delivery of all
departments within the city. The Utilities Department participates weekly in this
performance management practice. Further explanation with a link to an interactive
graphic is at the following web site:
(http://www.palmbayflorida.org/citymanager/budget/palmstat/)
Also, early in calendar year 2007, a 15 year strategic plan for the City of Palm Bay was
developed by senior management and elected officials. Supporting strategic plans were
also developed by each department, and the Utilities Department, as one of several
department goals, set an organizational goal to become a “world class utility”. One of
several targets to demonstrate that the Utilities Department was “world class” was to
obtain international certification and registration as an ISO Standard 14001:2004
Environmental Management System (EMS) organization. The FY 2008 municipal budget
was simultaneously prepared and included line-items to support implementation of an
EMS titled “GreenWay”. The City of Palm Bay Utilities Department’s strategic plan,
dated February 2007, can be viewed at the following web site:
http://www.palmbayflorida.org/utilities/about/documents/strategic_plan.pdf
Subsequently, with City Council approval of a strategic plan and supporting budget the
City of Palm Bay Utilities Department implemented a performance based management
system (EMS) and received its certification as an ISO Standard 14001:2004 compliant
organization in August 2008. The Utilities Department was the first water and wastewater
department in the state of Florida to achieve an international certification of its
environmental management system and is the first utility in the nation to have all aspects
of a water and wastewater utility independently recommended for certification after an
initial audit. The following websites have further information on this achievement:
http://www.treeo.ufl.edu/ems/
http://www.peercenter.net/
http://www.palmbayflorida.org/utilities/index.html

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Case Study Form
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2) REFERENCE TO THE FRAMEWORK
Please identify the section of the report that your case study is meant to illustrate. Case
studies will be used to further explain the following sections of the report:
 Any of the Performance Management Principles
 Benefits of Practicing Performance Management
 Initiating, Implementing, and Sustaining Performance Management
 Any Performance Management Practice
We believe that this case study, because of the scope of implementation and the
radical change in paradigm to the organization‟s method of management, illustrates
all sections of the performance management framework report. Several specifics are
offered below to illustrate this point.
 Performance Management Principles
1. “A results focus permeates strategies, processes, and decisions.”
The holistic approach of a performance based management system that
permeates the organization with policy, processes, and procedures that focus on
results from top to bottom is a primary strength of this implementation effort. The
internationally certified performance management system requires by definition
that performance is measurable results of an organization‟s management of
environmental aspects. Implementing performance based management has
been a key to demonstrating objective evidence of achieving the community and
organizational goals identified in the department‟s strategic plan.
2. “Information, measures, goals, priorities, and activities are relevant to the
government and the community.”
Correlating the community‟s strategic plan and budget objectives with the
community and organizational objectives of the department has created a
synergism for attaining mutually supporting objectives. When the departments
strategic planning and correlated budget are coupled with a performance based
management system – achievements, or objectives and targets that need more
resource priority, are readily identified by senior management and supported by
community leaders.
3. “Information, decisions, and processes are transparent (easy to access and
understand) to stakeholders.”
An internationally approved written standard coupled with the department‟s
standard referenced management system manual makes the parts of the whole
more clearly supportive, understandable, and transparent.
Also, by involving a third party to certify conformance to the performance
management system there is an objectively demonstrated transparency.

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4. Goals, programs, activities, and resources are aligned with mission, priorities, and
desired results.
The international management standard requires objectives, goals, and program
steps to have associated measurements and to address significant aspects and impacts
of activities, products, and services of the organization. These objectives, targets and
goals must be considered in conjunction with other elements of the system (such as
policy, technological options, operations/business requirements, views of interested
parties, etc.) and must have responsible persons identified and program step completion
times for accountability purposes. Objectives, targets, and program steps that align with
the strategic plan, mission, and policies of the organization and are tied to objective
measures and individuals for accountability facilitate ensuring desired results. A template
is used to standardize objectives, targets, and program steps across functional areas
within the department.
5. Decisions and processes are driven by timely, accurate, and pertinent data.
Determining what data is needed; and how to obtain, interpret, and present that data as
relevant information is critical to decision making, Subsequently, training is key to
objectively measured continuous improvement, – providing the workforce with the
skills/competence and tools to be confident of their decisions is a goal of training.
Training the department‟s managers and supervisors in continuous improvement tools
has given the individuals attempting to make improvements the skills and knowledge
necessary to identify typical improvement situations (working with numbers, working with
ideas, or in teams) and use the appropriate tools to ensure data is being converted
properly to valid and pertinent information to base decisions and processes upon.
Measurements of process performance and targets have been enhanced with statistical
tools and strategies which look forward and not backward. Six Sigma techniques have
provided managers and top management with measurement tools and strategies to
more effectively control their divisions and give added confidence to decisions that affect
future performance.
6. Processes are sustainable over time and across organizational changes.
The documentation and record control procedures demanded by the ISO standard
provide a foundation of support for maintaining and controlling standard operating
procedures, process manuals, work procedures, organization charts, emergency
procedures, etc. The review and update procedures help ensure documents are kept
current and capture changes to critical activities, processes, products, and services.
7. Performance management transforms the organization, its management, and the
policy-making process.
The journey taken to successfully implement GreenWay was one of useful assessments
and sometimes blunt, internal critiques of the way the organization had “always done
things.”

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It was a learning exercise that provided valuable insight and revealed areas and
programs that could be strengthened and enhanced. By equipping employees with the
fundamental knowledge of GreenWay‟s purpose, employees developed a greater
awareness of their role within the utilities organization and increased awareness proved
to be essential in the development of an all-encompassing EMS.
 Benefits of Practicing Performance Management
An EMS has encouraged our organization to continuously improve its environmental
performance and the system is particularly suited for organizations that are striving to
reduce operating costs associated with energy and natural resource consumption. A
major benefit to this department has been the reduction in plant energy costs. It is also
suited for reducing environmental and business risks, and when coupled with the six
sigma breakthrough strategy can be a powerful tool to improve the financial bottom line
of the organization while minimizing environmental and business risk.
This was evidenced by, within one year of becoming certified, Standard & Poor‟s,
announced that Palm Bay‟s Water and Sewer Improvement Bond Rating was raised
from an „A-‟ to an „A‟ rating. The rating improvement in these tough economic times is an
indicator of the Utilities Department‟s stability and creditworthiness. The Utilities
Department‟s Director attributes much of the improved credit rating to the organization‟s
Environmental Management System (EMS) “GreenWay”. It is hoped that as the EMS
matures, and as risks and resources are even better managed, the credit rating will
continue to improve.
 Initiating, Implementing, and Sustaining Performance Management
The “Plan-Do-Check-Act” continuous improvement framework is institutionalized by the
ISO 14001:2004 EMS Standard. For example, this continuous improvement framework
is used in the objectives, targets, and program steps to enhance or mitigate the
significant environmental aspects and impacts of the Department‟s activities, products
and services. Each objective, target, and program has a built-in “Plan-Do-Check-Act”
cycle; next, all programs are incorporated into the “Plan-Do-Check-Act” cycle of the EMS
to include a required periodic management review meeting which assesses the
effectiveness of all objectives, targets, program steps and other elements of the system
and senior management directs changes as necessary..
 Any Performance Management Practice
An example of a specific performance management practice that is required by the ISO
standard is the evaluation of critical skill competencies of the work force. A template with
critical environmental skills was prepared for each job description and person in the
workforce. The template was used to quantify and evaluate competencies with a
supervisor assigning a numerical rating of one, two or three to the critical skill task; e.g.,
one – able to perform task, two - minimal assistance required, three – assistance
required. The template would identify not only personnel requiring additional or the most
training (sum of scores to the right for each employee) but also would identify those skills
needing additional resources (sum of scores downward in the critical skill column for
employees of like job description). The evaluation is required on a six month cycle and is
done for new employees within 90 days of hire date. The results are used to program
resources for training at the individual, Division, and Department level.

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3) LESSONS LEARNED
Please briefly explain how other organizations can learn from your experiences or how
your example may be useful to the framework‟s audience.
An ISO certified management system whether Quality (ISO 9001:2008) or
Environmental (ISO 14001:2004) are excellent ways to institutionalize performance
measurement of continuous improvement throughout an organization and involve all
employees. A third party certification of an ISO certification instills confidence in
stakeholders that the organization is saying what it will do and doing what it says;
demonstrates transparency to its operations, and can provide cost savings to its
customers, i.e., tax payers and/or rate payers.
Applications and advice to other utilities or local government entities that pursue a
certified EMS are the following:
Top Management must fully support implementation of an EMS by
appointing an Environmental Management Representative (EMR),
developing then signing an appropriate environmental policy, and
approving and adequately resourcing an implementation plan.
Implementation is driven by adequate funding for personnel, training, and
providing support services, as well as appointing and training a Core Team
of senior managers. Also, appointing and training an Implementation
Team of key managers and supervisors from throughout the organization
is necessary.
It is highly recommended that a partnership be established with a regional
Public Entity EMS Recourse (PEER) Center for advice and hands-on
implementation assistance. The Center can provide professional trainers,
compliance evaluations, internal audit assistance, and gap analysis among
other services.
During implementation, internal communication must be encouraged and
is greatly enhanced by structured weekly or bi-weekly department,
division, and section meetings throughout the organization. In addition,
monthly Core Team management review meetings are recommended
during implementation.
The training of managers and supervisors is crucial to the success of the
implementation process. Training of the entire workforce in environmental
awareness and relating an individual’s job to significant environmental
aspects is important for an improved compliance posture. The increased
employee awareness serves as a basis for continual improvement through
meaningful and focused employee suggestions.

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Involving the third-party certification body early in the implementation
process and providing for preliminary informal evaluations such as a desk
audit of documentation, and an on-site-readiness review (ORR) can be
beneficial in ensuring success of the certification audit. .
The voice of the customer, both internal and external, needs channels for
expression and then corrective and preventive action which address
comments and suggestions. Concerns have to be tracked and trended to
provide objective evidence of continuous improvement.
Customer satisfaction and feedback should be quantified and trended
against established baselines, entitlements, and applicable benchmarks.
Measurements of process performance and targets can be enhanced with
statistical tools and strategies which look forward and not backward. Six
Sigma techniques can provide managers and top management with
measurement tools and strategies to more effectively control their
organizations and give added confidence to decisions that affect future
performance.
The use of templates is highly encouraged and was found necessary to
ensure that SOP’s and processes addressed ISO 14001:2004 elements,
i.e., purpose, scope responsibilities, associated documents, measurements,
records, etc. The development of standard templates for use by managers
can streamline the implementation process.

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Case Study Form
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4) CASE STUDY DESCRIPTION
SYNOPSIS
In January 2007, the City of Palm Bay, Florida, Utilities Department embarked on
establishing a certified performance based management system throughout the entire
department – including its water and wastewater treatment facilities, distribution and
collection, all divisions, and its state-certified laboratory. For approximately 18 months,
the City of Palm Bay Utilities Department systematically developed standard procedures
and documentation, trained its employees, underwent internal audits, formal compliance
reviews, an on-site readiness review by a third party and a third party certification audit.
The successful execution of these and other progressive actions culminated in a third
party audit finding recommending certification with no deficiencies or non-conformances
to an international standard for performance management (ISO 14001:2004 EMS).
The Utilities Department was assisted in its efforts by the University of Florida‟s Center
for Training Research and Education for Environmental Occupations (TREEO). TREEO
is also a United States E.P.A. designated Public Entity EMS Recourse (PEER) Center,
one of only 8 PEER Centers in the nation. A PEER Center is designated by EPA to
assist public and private entities in establishing continuous improvement frameworks
such as an EMS to implement green initiatives and sustainable practices. TREEO
provided key personnel training to include internal auditor training, compliance
evaluations, and initial internal audits of all Utilities Department Divisions.
The appointment of a Core Team was essential to facilitate and implement the
Department‟s EMS. This team of eight employees included the Utilities Department
Director, Assistant Director, four Division Managers, EMS Coordinator, and Management
Analyst. In addition, a key component to the success of this initiative was the EMS
Implementation Team formed of 25 employees from managers and supervisors from all
areas of the organization.
Palm Bay Utilities Department identified three significant aspects to focus their efforts on
while developing an EMS policy: 1. energy use; 2. production and handling of bio-solids;
and 3. environment, safety & health (E,S, & H). Environmental and business risks
associated with the impacts of these significant aspects were identified, and objectives,
targets and programs to mitigate the negative impacts were initiated.
The Utilities Department embraced the six sigma breakthrough strategy for continual
improvement and the DMAIC cycle (Design, Measure, Analyze, Improve, and Control)
for analyzing and improving processes. All Core Team members completed Six Sigma
training in Project Management and Six Sigma Metrics for Champions. Three Core
Team members successfully completed Six Sigma Green Belt Training, and one has
completed Black Belt Training. A six sigma charter project was established for potable
water plant efficiencies, and the resulting control plan is being reviewed quarterly.
Optimized and reduced energy use at the potable water treatment plants saved
$200,000 in CY 2008, and optimization initiatives are continuing to save energy costs
this calendar year, 2009 over 2008. Other costs (treatment chemical costs and labor
costs) are also being reduced with increased efficiencies realized through incremental
and controlled improvements to processes and objective measurement.

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A six sigma project charter has been initiated for a similar project addressing energy
reduction for the wastewater treatment operations.
In addition to the cost savings of energy use, the Utilities saw its bond rating improve
from an A- to an A in June 2009; less than one year from ISO Standard EMS
certification. This improvement was primarily attributed to the reduction in environmental
and business risks demonstrated by a performance based environmental management
system, “GreenWay”.
For more information about the services offered by the Palm Bay Utilities Department
please visit www.pbud.org or call (321) 952-3410.
Thank you for providing a case study. The commission will review each case
study and respond to the contact listed above by the end of the public review
period (expected late Fall 2009).