How to Implement & Manage an Energy Management Program

This short e-book describes the key elements in implementing and managing an energy and environmental management program

October 2011

Informative e-book

Introduction

Companies of all sizes face many challenges in rolling out a energy and environmental program that maximizes adoption and delivers best results. Key questions always emerge - Who is responsible for the program? Who bares the costs? Who reaps the benefits?

 

Our experience has shown that choosing the proper implementation approach, involving all aspects of the organization and managing

the program for continuous improvement will maximize adoption and drive on-going tangible best results.

This short e-book will outline the key elements of implementing and managing a successful portfolio-wide energy and environmental program.

The Importance of Data

Data types, such as energy data, facility data, behavioural data and KPI data, are absolutely essential to developing achievable targets, prioritizing energy efficiency initiatives, engaging customers and employees and

tracking the success of the program.

Ensuring you have a robust data foundation in place before the program is implemented is essential for program success.

This e-book will highlight the key elements involved in implementing and managing an energy and environmental program. The elements include:

Key Elements

1. Choosing your implementation approach

2. Identifying resource requirements

3. Implementation: where to get started?

5. Monitor & verification plan

Implementation Approach

There are many different ways that a program can be successfully implemented, but at a high level there is a configuration of two key concepts, the directive and prescriptive approach. The table below summaries these two approaches:

DIRECTIVE PRESCRIPTIVE

Description Commonly referred to as the ‘command and control’ approach, this implementation method focuses on determining a distinct plan of action, with well documented activities and order in which they are to be completed.

This implementation approach focuses on achieving specific targets and objectives, but without rigid operating instructions on how to get there.

Centralization Versus Facility Level Rights

Knowledge Base Centralized Shared

Decision Rights Centralized Facility Level

Investment Rights Centralized Shared

Characteristics

When to use... Small OrganizationsEasy to ManageHomogenous BuildingsLow Admin Requirements

Large OrganizationsEmpowered Site ManagersHeterogeneous BuildingsHigh Admin Requirements

Regardless of your approach, there are certain resource requirements that need to be addressed prior to program implementation. These resources are identified and described on the next two pages.

Identifying Resource Requirements

Commitment Refers to the degree in which your organization will throw its weight behind a program in order to achieve its targets. This manifests itself in several ways, from the policies and mandates that executives will personally subscribe to and reinforce, to the implementation personnel that will be allocated to successfully meeting targets, to the financial resources available to spend on expenditures and capital in order to achieve success.

Organization Refers to the way resources (people and otherwise) are aligned in order to support an energy and environmental program, and the change that it will bring once underway.

Identifying Resource Requirements continued...

Data Management

Data management is just as it sounds, ensuring data is available, accurate, and timely. This is crucial as without a robust data collection and analysis program, tracking results and then making decisions on these results can be inhibited.

Execution Questions to consider from a resource perspective for execution include whether there is enough time and money spent on effectively tracking results. Is there enough resources in place to help ensure the activities required to achieve results happen in a timely and effective manner (aka project management)? Is there appropriate time and energy is being spent on communicating results and gathering stakeholder feedback?

Implementation: Getting Started

One of the most difficult parts of implementing an energy and environment program is getting it started. A program launch spells a change in behaviour for at least some of your stakeholders, which can lead to a natural resistance point.

To overcome this, there are three key questions to consider and address prior to launch.

What training/orientation may be required to get buy-in from my stakeholders?

How do I build quick successes to re-inforce buy-in?

How do I integrate this program into my business as usual mindset?

1.

2.

3.

Continuous Management

After you have rolled out your program the next step is to continuously manage the performance of it. To do this you will evaluate the core aspects of the program and reward stakeholders for completion of major milestones.

During the continuous evaluation phase changing or updating your original program strategy may happen

to ensure your program is achieving set goals and targets.

It’s important to recognize and reward major milestones in the program, whether it’s performance based or goal and objective achievement. This means rewarding all stakeholders involved in the program, including but not limited to, yourself, customers and employees.

Continuous Evaluation

Reward & Recognition

Monitor & Verification Plan

The best program has little value if not measured in some fashion. A good measurement and verification process will allow effective management of activities in the long term.

The diagram to the right outlines five steps to follow when measuring the success of your program. The first three steps can be completed in the design phase while the last two steps will provide a method for verifying results

to make sure your program is on track. This is a continuous process and should leverage software to automate this process.

1. Design Performance Criteria

2. Gather Data

3. Analyze Data

4. Verify Savings

5. Feedback Into Program

To successfully implement and manage an energy and environmental program you must: Engage the right

implementation approach for your organization

Identify the correct resources

Continuously manage your program with recognition and feedback

Monitor and verify results on an on-going basis

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