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Customer Utility Boards

Frequently Asked Questions
Entrepreneurial Management


What is different about entrepreneurial management (EM) from past "change" initiatives?
One of the most significant changes in the entrepreneurial management model is involving customers in rate-setting and giving them the opportunity to exercise choice in what services they buy from DAS.  
 
In addition, DAS has changed its organizational structure as necessary to support the new business model. A lot of budget and accounting work has also been done to support the restructuring so that DAS can provide effective management information to the Customer Utility Boards (CUBs) and programs to ensure their success.

 
How do the policy goals of the state remain intact in the new 'utility' and 'marketplace' models?
A key component of entrepreneurial management is separating policy development, compliance and monitoring from customer service delivery. Most policy development and compliance work will happen in the Office of the Chief Operating Officer ― this is the Leadership component of the utility/marketplace/leadership triad of EM. Customer service delivery will happen in service enterprises. CUBs and members of the DAS Executive Team will work together to ensure that service delivery functions align with the policy goals of the state.


How can government run like a business?
The relationship between DAS and its customers is where you will see the most similarity to business. EM allows customers more choice in what they purchase from DAS and at what levels. Customers will participate in negotiating the rates they'll pay on customer boards. And, customers may have the flexibility to go outside of DAS for certain "marketplace" services.

 
Customer Utility Boards


What are Customer Utility Boards?
Each CUB acts as a governing board for the DAS services designated as "utility" services. Utility services were identified by a large group of DAS leaders, customers and stakeholders who in 2010-11 slotted all of DAS' services into common categories during the planning phase of the entrepreneurial management implementation. In its capacity as a governing board, the CUB will ensure that utility services provide effective and efficient quality service that benefits customer agencies and the citizens they serve.


What are the key responsibilities assigned to CUBs?
Approval of Master Service Agreements (MSAs) and approval of rate methodologies and resulting rates are two of the main responsibilities of the CUBs.


What criteria determines the membership of each CUB?
Where possible, CUBs are comprised of representatives from large, medium and small state agencies as well as from other government customers. The criterion used for determining the size of state agencies is the aggregate "spend" by each customer for the services delivered by all programs in a specific service enterprise.  


As a non-CUB member agency, what is my role and how can I be part of decision making?
It is the responsibility of CUB members to represent other agencies of similar size and customers in general. Customer agencies that are not members of a CUB are welcome to attend CUB meetings as well as bring questions, comments and concerns to CUB officials (chair, vice-chair) or other CUB members.

 
Rate Setting 


What types of charges are paid by customers? What is the difference between an assessment and a service rate?
Assessments are fixed charges that are communicated to each customer before the beginning of the biennium. These charges are calculated to provide sufficient revenue to cover all costs associated with service delivery during a biennium. The basis for the allocation of the program costs among the different customers can be the customer agency's FTE, budget size, actual historical costs incurred per agency, or the time spent on a customer agency during a look-back period, etc. Allocations can also be developed using any combination of these criteria.

Service rates allow agencies to estimate costs based on an agency's projected consumption. During a given biennium, agencies buy each service at a known price (the rate) and pay only the amount they use. 


What difference will a CUB make in setting DAS charges? 
The CUB gives customers the responsibility to approve rate methodologies and resulting rates. Their role brings customer involvement and accountability in developing charges and rates for DAS services.

 
Service Level Agreement Development

What is an SLA? In what way is it different from a Service Level Expectation?
A Service Level Expectation (SLE) is a written, measureable target for the performance of a service or process as agreed between service provider and customer.

A Service Level Agreement (SLA) is a document, specific per program, which includes three core elements (and potentially much more): (1) A service catalog; (2) Agreed SLEs (performance targets); and (3) a statement of the responsibilities of the service provider and customer. All these elements help improve service delivery, manage expectations, clarify responsibilities and facilitate communication between the parties.


Is DAS going to develop an SLA for all services they provide?
DAS anticipates development of SLA documents for each of the following service areas:

1. Enterprise Asset Management (six SLAs)
            1. Administration, Planning & Construction Management
            2. Operation Services
            3. Maintenance Services
            4. Real Estate Services
            5. Fleet & Parking Services
            6. Surplus Property

2. Enterprise Goods & Services (five SLAs)
            1. Shared Financial Services
            2. Financial Business Systems
            3. Procurement Services
            4. Publishing & Distribution
            5. Risk Management

3. Enterprise Human Resources Services (a single SLA)

4. Enterprise Technology Services (a single SLA)


Are SLA documents agency specific? If not, will there be an opportunity for my agency to sign an agreement specific to my agency needs?
SLA documents will define boilerplate terms and conditions, common performance targets and common responsibilities for all customers of a Service Enterprise or program.

Where there is a business need, after SLAs have been defined, individual customers can request a Service Agreement with DAS. The agreement would reflect customer-specific information such as the customer's choice of services from the service catalog, customer-specific operational commitments or procedures, contact information for escalation procedures associated with critical information systems or processes, etc.