ACEC of Minnesota February 15, 2012

1. Joe Hallberg, PE
CLASS 5, Inc. President
Hallberg Engineering, Inc. CEO

2. • Where people make intentional choices to save
energy not because they are told to but because
they want to…they understand the value it provides
to them as individuals, to their organization and to
the common good.

3. • Reduce energy costs
• Differentiate your organization
• Create / maintain jobs
• Decrease carbon footprint
• Be part of the club
• It’s the right thing to do

4. • The most energy-efficient organizations
in America use 35% less energy, on
average, than their competitors.
• It is estimated that every dollar spent on
energy efficiency creates an average of
$2.84 in benefits over the life of the
improvement – that’s a 184% return on
investment!
• Research shows that up to 30% of energy use can be recovered
through behavior and operational strategies.

5. • Over 130 of the fortune 500 companies have a Chief
Sustainability Officer.
• Kohl's Department Stores has reached another milestone in
its aggressive sustainability campaign: 500 stores in the
retail chain have now earned the Energy Star label.
• Sears Holdings Awarded 2011 ENERGY STAR® Partner of
the Year by EPA
• Millennials - They advocate for the environment and social
justice.

6. • Option 1 – “Wal-Mart: Making Its Suppliers Go
Green”. What are your manufacturers and
suppliers doing to be energy efficient. Find out –
then tell the story.
• Option 2 – Create and implement your own internal
comprehensive asset improvement and behavioral
energy efficiency program, track and measure
results, then tell your story.

7. Energy efficiency is the responsibility of engineers and
building operators and is achieved through asset projects
and controls.
• “Let’s install ??? to be more energy efficient.”
– Energy management systems
– A new boiler
– Photovoltaics / solar panels
– Wind turbines

8. Energy efficiency is an organizational commitment
that is achieved by changing the way everyone views
and consumes energy.
– Individual actions on a daily basis
– Efficient building operation
– Energy efficient asset projects
– Rational choices for renewable supply

10. Engineers: Organizations must
examine their performance,
strategy, processes, and
systems to understand what
changes need to be made.
Convergence over time = CHANGE MANAGEMENT
Psychologists: Organizations
must understand the implications
of a change on its employees
given their culture, values,
history, and capacity for change.

11. • Application of either approach, in isolation, generally
proves unsuccessful.
• An exclusively “engineering” approach results in
solutions that are not adequately implemented or
supported by employees.
• An exclusively “psychologist” approach results in a
lack of appreciation or understanding for what must
actually change to produce the desired outcome.

12. Successful organizational change requires:
1. Sense of Urgency
2. Guiding Team
3. Vision and Strategy
4. Communication
5. Buy-In
6. Small Wins
7. Persistence

13. 1. Sense Of Urgency
– Develop scenarios showing what could happen
in the future if you don’t reduce energy use.
– Examine opportunities that should be, or could be, realized if
you reduce energy use.
– Start honest discussions, and give dynamic and convincing
reasons to get people talking and thinking.
– Review the practices of customers, outside stakeholders and
industry people to strengthen the case for saving energy.

14. 2. Guiding Team
– Identify the leaders in your organization.
– Balance team with skill sets (visionary, doers,
collaborators, numbers people) and job functions
(senior leadership, communications, facilities,
technology) on the team.
– Ask them for a commitment.

15. 3. Vision and Strategy
– What are your organizational
goals around energy? How does
saving energy move you toward
those goals?
– What resources are available (time, talent, and dollars?)
– Determine a strategy and actions needed to achieve those
goals.
– Determine how you will measure progress toward your goals
(utility tracking, ENERGY STAR®)

16. 4. Communication
– Talk often about the value of energy efficiency. Use all
available communications vehicles (wall space, email,
newsletters, website, etc.)
– Lead by example. Use energy efficiency as a filter for making
decisions and solving problems.
– Openly and honestly address peoples' concerns and anxieties
about what you’re asking them to do.
– Apply the value of energy efficiency to all aspects of
operations – from training to performance reviews.

17. 5. Buy-In
– Remove any barriers (human or otherwise) that keep
people from accepting the vision.
– Engage everyone in doing something everyday to
save energy.
– Recognize and reward people for their efforts.
– Identify people who are resisting the change, and
help them see why you’re asking them to participate.

18. 6. Small Wins
– Start your engagement efforts by
asking people to make a simple,
non-controversial change to their
daily habits (save the space heaters
for later).
– Set an achievable short-term goal – then achieve it.
– Identify the success stories and promote them.
– Reward the people who help you meet the targets.

19. 7. Persistence
– Recognize that this is a marathon,
not a sprint.
– After every milestone, analyze what
is working well and what needs
improvement.
– Set goals to continue building on the momentum you've
achieved.
– Keep ideas fresh by bringing in new change agents and
leaders for to your guiding team.

20. • Anchor Energy Efficiency in your Culture
– Talk about the vision and goals for energy efficiency every
chance you get.
– Include the vision when hiring and training new employees.
– Publicly recognize key members of your original guiding
team, and make sure the rest of your employees remembers
their contributions.
– Create plans to replace key change leaders as they move on.

21. • Energy Usage data
• Energy Star Recognition
• Case Studies

25. Behavior-based steps, strategies
and tools that engage people and
inspire change to save energy

27. • Components, training, tools and support to plan, launch and sustain an
organization-wide behavior-based energy-saving effort.
• The CLASS 5 Plan was developed in 2002 by Minnesota-based
Hallberg Engineering.
• Initially designed for K-12 schools and called the Schools for Energy
Efficiency (SEE) program.
• CLASS 5, Inc. was established in to allow for expansion into other
market segments.
• The Plan has been adapted for other settings including corporate
offices, higher education, and local government.
• Affiliate and Reseller opportunities available.

28. This presentation can be accessed immediately via our website at:
www.class5energy.com/2-15-2012
You may also connect with CLASS 5 Energy on:
LinkedIn: www.linkedin.com/company/class-5-energy
Energy Insights Blog: www.class5energy.com/category/all/
Facebook: www.facebook.com/class5energy
Twitter: @CLASS5Energy