UMC Strategic Planning and Governance 2

Question 1

Which governance framework element ensures utility board members understand their fiduciary responsibilities?

Accepted Answer

Board orientation and education programs

Answer

Operational audits

Answer

Rate case filings

Answer

Capital improvement scheduling

Question 2

A utility's SWOT analysis reveals that aging infrastructure is a significant weakness. Which strategic response best addresses this finding?

Accepted Answer

Develop a long-term asset management plan with capital reinvestment schedules

Answer

Increase customer service staffing

Answer

Reduce operating expenses immediately

Answer

Expand service territory boundaries

Question 3

In strategic planning, what does a 'theory of change' document primarily describe?

Accepted Answer

How planned interventions will lead to desired long-term outcomes

Answer

The utility's rate structure adjustments over time

Answer

Regulatory compliance timelines

Answer

Engineering design standards for new facilities

Question 4

Which of the following best describes 'strategic alignment' in a utility context?

Accepted Answer

Ensuring all departmental goals and initiatives support the overarching utility mission and strategic objectives

Answer

Matching employee schedules to peak demand periods

Answer

Aligning pipe sizes with hydraulic model projections

Answer

Coordinating billing cycles with fiscal year reporting

Question 5

A utility board is considering a major service expansion. What governance step should precede the final vote?

Accepted Answer

Independent feasibility study and public comment period

Answer

Immediate construction procurement

Answer

Hiring additional field crews

Answer

Revising the utility's mission statement

Question 6

Which performance measurement approach links financial metrics, customer metrics, internal processes, and learning to strategic objectives?

Accepted Answer

Balanced Scorecard

Answer

Gantt chart methodology

Answer

Critical Path Method

Answer

Monte Carlo simulation

Question 7

What is the primary purpose of a utility's strategic risk register?

Accepted Answer

To document identified risks, their likelihood, impact, and assigned mitigation owners

Answer

To list all approved vendors for procurement

Answer

To record customer complaints by category

Answer

To track employee safety incidents