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

Board orientation and education programs are the primary mechanism for ensuring board members understand their fiduciary duties to the utility and its customers.

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

An asset management plan with capital reinvestment schedules directly addresses infrastructure weakness by providing a structured approach to renewal and replacement.

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

A theory of change describes the causal logic connecting planned activities and outputs to the intended long-term outcomes the utility seeks to achieve.

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

Strategic alignment means every department's goals, budgets, and projects are directly linked to and supportive of the utility's overall strategic plan.

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

An independent feasibility study and public comment period provide the board with objective analysis and stakeholder input before committing to major capital decisions.

(UMC) Utility Management Certification Practice Test

(UMC) Utility Management Certification Practice Test

UMC Strategic Planning and Governance 2