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EERE » AMO eGuide » FOUNDATIONAL ENERGY MANAGEMENT

Step 1.2 Understand and communicate benefits

Many organizations have implemented one or more energy efficiency projects. However, often more difficult than implementing energy efficiency projects is maintaining project energy savings and continuing to make additional improvements. An effective energy management program helps make energy efficiency improvement part of an organization’s culture (like safety or quality) and utilizes an organization’s existing systems, procedures, and practices (or helps create new existing systems, procedures and practices if none are already in place).

One key to the successful development of an energy management program is ensuring widespread employee awareness, interest, and involvement in the program. To do this at your organization, you’ll need to make sure you understand and know how to effectively communicate the benefits of energy management. This step will provide you some tips and tools to communicate these benefits.

Advancing from Foundational Level 1 to ISO 50001 Level 2 for Step 1.2

Moving from foundational energy management (Level 1) to ISO 50001 (Level 2) involves transitioning your energy management program into an energy management system (EnMS). Top management has a more visible and extensive role in an ISO 50001 EnMS. The implementation of ISO 50001 goes beyond conducting energy projects. It involves integrating energy management into your organization’s existing business processes and creating a culture of continual improvement in energy management and energy performance improvement.

It will be important for you to identify and communicate to top management the specific benefits of implementing an ISO 50001 EnMS and to ensure a clear understanding of what is involved in its development and implementation. In the presentation for top management, consider incorporating examples of energy savings and other benefits that other organizations have achieved using their ISO 50001 EnMS. If your organization has an ISO 9001-2008 quality or ISO 14001-2004 environmental management system, there may be positive benefits and lessons learned that also potentially could apply to implementation of ISO 50001.

Advance to Next Level

How to do it

There are three associated tasks you will need to complete:

1.2.1 Identify the benefits and business drivers

Energy savings go right to the bottom line. Money that is not spent on energy is money that is kept in your organization for other uses. Energy reductions lower operating costs and can reduce maintenance costs. Conversely, poor energy performance uses capital that could be spent on other business needs. The benefits of a systematic approach to energy management, as reported in a variety of case studies and other analyses, include:

  • Reduced energy costs and environmental impacts. For example, effective energy management programs have been shown to typically save an organization 5 to 15% in the first one to three years
  • Competitive advantages over organizations that neglect resource management
  • Visible demonstration of social responsibility

It can be helpful to also do a Web search for benefits of energy management in your own industry. Be sure to consider the potential benefits of a systematic approach to energy management within the context of your organization’s priorities and needs. Your organization’s management will want to know how improved energy efficiency affects your organization’s specific business drivers—the factors that influence or direct your organization’s strategy and goals and therefore its business needs. These drivers—which include financial, internal, external, legal and social— are described in more detail in the Business Drivers for Energy Management Resource.

The energy management representative (Step 1.4) and the energy team members (Step 1.5) should review this information and identify the specific business drivers most relevant to your organization. Then, you should ensure your organization’s top management understands these impacts as well. If the energy management representative and energy team members have not been appointed yet, then someone who is willing to champion the initiative should accept this responsibility.

To gain support for the development of a systematic approach to energy management, consider identifying key “internal influencers” within your organization. Internal influencers are individuals who do or could have interest or influence on decisions related to energy. Identify how energy is important to them and what would encourage their support and participation. For example:

  • Building Manager or Production Manager – primary focus is energy availability
  • Purchasing Manager – primary focus is energy cost
  • Maintenance Manager – primary focus is energy quality and availability
  • Environmental Manager – primary focus is on environmental impacts (e.g., pollution) from energy consumption

As you identify your organization’s internal influencers, make sure that their needs with respect to energy uses and energy consumption are understood and addressed within the business case you develop. The Example Key Internal Influencers Worksheet illustrates how this information can be captured. A blank Key Internal Influencers Worksheet is also available for use with your organization.

In addition, refer to the Resources & Examples section in this substep for more detailed information on the benefits of an energy management program.

1.2.2 Prepare briefing for top management

Once you feel you have a good understanding of the key benefits and business drivers most important to your organization, you should prepare and deliver a briefing to your top management. If management has not already committed to implementing an energy management program or if their commitment is not strong, they will need to be convinced on the benefits so they can provide the needed support.

Developing an elevator speech can be a good starting point. An elevator speech is a short summary used to get a point across quickly and simply; it should be completed in less than two minutes. Use the Elevator Speech Worksheet to focus on the information that is essential to convey.

After developing an elevator pitch, you can then prepare the briefing to deliver to your top management. You can use the Briefing Agenda Example to help you get started with your presentation. Be sure to develop a presentation using your organization’s standard presentation tools or another format that best displays the information. The intent of the presentation is to briefly provide the information needed for management to make any necessary decisions. The following tips can be helpful while putting together your presentation:

  • Include any expected resource commitments, such as staff time, budget and their personal commitment to certain activities.
  • Frame the presentation using the drivers already identified, to ensure management understands the benefits to be realized with respect to the things that matter most to them.
  • Focus on the issues that matter most to your management. Management is typically interested in the bottom line, but there may be other important drivers. Focus on these items.
  • Make the presentation complete, but brief. Management frequently just wants to hear the major facts. For example, effective energy management programs typically save an organization 5 to 15% in the first one to three years.

1.2.3 Brief top management

After preparing your presentation, you can now brief your management. The intent of the presentation is to briefly provide the information needed for management to make any necessary decisions and to provide any details they require. The Management Briefing Agenda Example can help you stay on track during the presentation. Adjust this agenda based on your understanding of top management’s current level of energy awareness and knowledge.

Resources & Examples