Information
about Hydo ProfitAbility®
Understand the financial
basis of success in the Hydo generation business.
- Understand how accounts
are used to measure success.
- Understand the market
forces affecting Hydo generation.
- Understand the operating
issues that affect on a daily basis commercial success.
- Know what has and
has not been important under regulation.
- Know what will drive
success in the future.
- See how they personally
contribute to that success.
- A rapid and lasting
increase in the "business sense" applied to everyday
work throughout the organization.
- Better communication
between senior management and others throughout the business.
- Improved understanding
of the need to improve the business wherever possible, and how
that can be done.
- Increased motivation
resulting from a better understanding of how each person makes
a difference.
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Course
Outline
Hydo Profitability®
is an intensive 2-day program. Group sizes can range from 12 to
24 participants, preferably from the same business unit, but often
of mixed level and job type.
To picture what experiencing
the simulation is like, imagine yourself in a room with 12 to 24
other participants. You are seated with 2-4 team mates at a table
with a game board representing the hydro
generating business that you and your team members are going
to run. There are 5 other teams in the same room each seated in
front of their own game board.
You have control of
a mid-sized hydoelectric generating station, with 2 operating units.
One unit is a peaking unit built at the mouth of a short deep gorge
in the hills. You also have a baseload unit powered by a 3-mile
resevoir with a 1-mile long island in the middle of it. Your cost
of generating power depends on the way that you use the units. Your
demand is seasonal. Maintenance is essential. You have expansion
and cost reduction opportunities.
Each year the participants
fill out an Income Statement and Balance Sheet for the business,
reinforcing their understanding of the basic financial concepts,
and seeing how profit, leverage and shareholder's equity are affected
by the performance of the business.
Participants calculate
several financial ratios, and see how these change with the ups
and downs of business. They also run a stock market on the industry,
valuing each other's shares. This enables them to link their decisions,
the financial results, and the stock prices.
Finally, a series of
exercises and discussions helps each participant see how they contribute
to the financial success of their real company, and how they can
help it succeed in the future. A local manager presents the figures
for their own operating units, in the roughly the same simple format
used throughout the simulation, and leads to a discussion of their
role in meeting the present challenges.
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