Communicating is critically important in today's energy environment.

Delivering power is the core business of a distribution cooperative. Yet, ever since joining the cooperative network more than three decades ago, I've considered communication to be the most essential component for developing a successful cooperative business model. Cooperatives have always proclaimed they put a tremendous emphasis on transparency and member education, but unless that's supported through apparent action, it's simply paying lip service to the cooperative difference.

It Starts With an Inside-out Approach

The most effective communications programs I've been involved with have one thing in common--a realization that all employees must be well-versed in the cooperative member education efforts. When United Cooperative Services was created in 2000 through the consolidation of the former Johnson County and Erath County electric cooperatives, the top priority was to ensure that the employees would never lose sight of the fact that United is a member-owned cooperative committed to the communities it serves, and that it is ultimately committed to the principles that truly demonstrate the merits of the cooperative business model.

To accomplish this at a cooperative of our size (70,000 meters), it was clear we needed support from the employee group. We established United's Employee Relations Committee, comprised of eight employees from both pre-consolidation cooperatives, who would help lead the internal communications efforts and help to pave the way for a successful consolidation. The committee meets on a monthly basis with senior staff, and addresses how to incorporate the co-op's objectives into employee communications and activities.

While the employee relations committee was instrumental in helping the consolidation succeed, the establishment of monthly employee meetings has proved to be one of the most effective tools in our ongoing communications efforts. Getting 151 employees to communicate the same message to the membership is challenging. We overcame--and continue to overcome--that hurdle by bringing every employee into monthly meetings. In those gatherings the executive staff and other employees clearly lay out objectives, messages, and a range of other essential information for the employees. In turn, United's employees utilize the meetings to discuss their roles in educating our members. We also emphasize to the entire employee group that each person is an ambassador of the United brand, which means they individually have some accountability in the image we want to project.

Because Texas is deregulated (despite cooperatives being excused from participation at this time), it's essential that United continues to drive the message home to the members about how cooperatives are different--that we provide a level of service unmatched by our neighboring investor-owned utilities (IOUs). At each employee meeting, our staff explains how the virtues of the cooperative business model should always be at the forefront of United's endeavors, no matter how large the co-op grows to be To reinforce the messages delivered during employee meetings, the communications department develops a 12-page four-color employee newsletter, which includes articles on industry-related audits (the key to being invited into the homes) and have received instruction on how to communicate effectively with members.

While the audits certainly offer members the information needed to be more energy efficient, the purpose is two-fold. First, it validates the personalized service that cooperatives are perceived to offer. Second, it arms the member with the information to make a well-informed choice on whether to implement more efficient practices. By putting the energy conservation program under the direction of the vice president of communications, the effort has multiple benefits that go beyond recommending that members utilize compact fluorescent light bulbs. It's an opportunity for front-line employees to tell the cooperative story and shows United has a personal commitment to its membership. United conducted more than 700 free home energy audits in 2007, and will easily complete 1,000 in 2008.

How many other businesses can go into a home and educate consumers on how to use less of the product it sells, and does so because it's the right thing to do? United does that because we want our members to make well-informed decisions when it comes to using the power United provides.

Clearly Defined Path

Like everything else at a cooperative, it's essential to gauge the effectiveness of our communications program. Each department at United is responsible for developing annual measurable strategic objectives, with all containing an element of communications (internal and/or external). Combined, these objectives make up the cooperative's annual strategic plan. Each month, the staff devotes time to assess communications efforts and methods for improving the messages to employees, members and the media. Because the electric utility industry is constantly shifting in new directions, United's strategic communication plan--while structured with objectives in print and broadcast communications, advertising, speaking engagements and employee training--is an evolving tool. If an issue arises affecting the membership or the industry, United's staff assesses it and communicates accordingly. By involving all of the other departments in the communications efforts, I am convinced that our messages are stronger and contain relevant information.

One of the leading components of United's overall strategic plan calls for the cooperative to provide members and the general public with a "real-world" perspective of industry-related issues that could affect them. In essence, these communications give members an accurate, no-holds-barred report on topics that receive a cursory mention or, as is often the case, a one-sided (typically IOU) perspective. Through a range of vehicles, we inform the public (members and nonmembers alike) about growing electric capacity problems in North Texas and how, collectively and individually, everyone should play a role in averting unpleasant scenarios, such as unscheduled outages. This objective cannot be realized without a focused and strategic effort to inform the members and public how their efforts, through conservation, can help mitigate these risks. This is accomplished through United's well-defined media/public relations campaign that includes op-eds in local newspapers, interviews during news radio and TV broadcasts, and articles in local, statewide, regional and national publications.

Without the support of the United board of directors, our communications program would not be what it is today. This is clearly demonstrated by the funding they approve for each program. Our board understands how essential it is that we contrast the misinformation distributed by the expensive public relations machine of United's neighboring utility (and largest competitor in dually certified service territories), TXU (now Oncor). It's essential to embrace the media as a resource for getting your message out. Too many times in our program, co-ops fail to take advantage of this communications vehicle, preferring to bury their heads in the sand and fly under the radar. If we're to promulgate an image of transparency, we need to use the media to tell our story. It's a great one to tell.

Is it Successful?

At the end of the day, you have to know if your messages are hitting the mark. We obtain an objective third-party assessment of all cooperative initiatives. Through a quarterly Member Satisfaction Survey conducted by TSE Services we're able to evaluate member awareness, understanding and satisfaction with United's annual program of work. It also provides an honest appraisal of the cooperative's effectiveness in communicating with our membership.

The unbiased third-party assessment is another tool for demonstrating real-time strengths and weaknesses in cooperative planning. It also clearly determines whether our passionate campaign to promote energy conservation (a sweeping movement that has left no conventional media resource untapped) has resonated with cooperative membership and propagated an interest in and adoption of more energy-efficient lifestyle choices. Survey results have corroborated that member interest in energy efficiency and United's continuing communications emphasis on efficiency measures are in direct correlation to higher member satisfaction scores.

The move to place United's perceived accomplishments under a microscope has today helped usher us into a consistent overall member satisfaction percentile of 87 in the American Customer Satisfaction Index, well above the industry's national and statewide averages. There's no doubt that our communications efforts are a primary reason we've attained such high praise.

Ray Beavers is CEO of United Cooperative Services in Texas. He has led many innovative communications efforts at United since assuming that position in 1999. Prior to his tenure at United he served as CEO of Southwest Rural Electric Association for 12 years.

Ray Beavers, CEO, United Cooperative Services

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