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Informative e-book



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
Introduction
Companies of all sizes face      the program for continuous
many challenges in rolling out   improvement will maximize
a energy and environmental       adoption and drive on-going
program that maximizes           tangible best results.
adoption and delivers best
results. Key questions always    This short e-book will outline
emerge - Who is responsible      the key elements of
for the program? Who bares       implementing and managing
the costs? Who reaps the         a successful portfolio-wide
benefits?                        energy and environmental
                                 program.
Our experience has shown
that choosing the proper
implementation
approach, involving all
aspects of the organization
and managing
The Importance of Data
Data types, such as       tracking the success
energy data, facility     of the program.
data, behavioural         Ensuring you have a
data and KPI data,        robust data
are absolutely            foundation in place
essential to              before the program
developing                is implemented is
achievable targets,       essential for program
prioritizing energy       success.
efficiency initiatives,
engaging customers
and employees and
Key Elements
This e-book will highlight the key elements involved in
implementing and managing an energy and environmental
program. The elements include:

        1. Choosing your
        implementation approach

           2. Identifying resource
           requirements

              3. Implementation: where to get
              started?

                 4. Continuous management of
                 program

                    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          This implementation approach focuses
                        ‘command and control’ approach,      on achieving specific targets and
                        this implementation method           objectives, but without rigid operating
                        focuses on determining a distinct    instructions on how to get there.
                        plan of action, with well
                        documented activities and order in
                        which they are to be completed.
Centralization Versus Facility Level Rights

Knowledge Base          Centralized                          Shared

Decision Rights         Centralized                          Facility Level

Investment Rights       Centralized                          Shared

Characteristics

When to use...           Small Organizations                  Large Organizations
                         Easy to Manage                       Empowered Site Managers
                         Homogenous Buildings                 Heterogeneous Buildings
                         Low Admin Requirements               High Admin Requirements
Identifying Resource 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.

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         Data management is just as it sounds, ensuring data
Management   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         1. What training/orientation
and environment program is           may be required to get
getting it started. A program        buy-in from my
launch spells a change in            stakeholders?
behaviour for at least some of
your stakeholders, which can
lead to a natural resistance      2. How do I build quick
point.                               successes to re-inforce
                                     buy-in?

To overcome this, there are
three key questions to            3. How do I integrate this
consider and address prior to        program into my business
launch.                              as usual mindset?
Continuous Management
After you have rolled out your   to ensure your program is
program the next step is to      achieving set goals and
continuously manage the          targets.
performance of it. To do this
you will evaluate the core        Reward & Recognition
aspects of the program and
reward stakeholders for
completion of major              It’s important to recognize
milestones.                      and reward major milestones
                                 in the program, whether it’s
                                 performance based or goal
 Continuous Evaluation
                                 and objective achievement.
                                 This means rewarding all
During the continuous            stakeholders involved in the
evaluation phase changing or     program, including but not
updating your original           limited to, yourself, customers
program strategy may happen      and employees.
Monitor & Verification Plan
The best program has little      to make sure your program is
value if not measured in         on track. This is a continuous
some fashion. A good             process and should leverage
measurement and verification     software to automate this
process will allow effective     process.
management of activities in
the long term.                                        1. Design
                                                     Performance
                                                       Criteria

The diagram to the right
outlines five steps to follow    5. Feedback                              2. Gather
when measuring the success      Into Program                                 Data

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             4. Verify
                                         Savings
                                                                   3. Analyze
                                                                      Data
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
Burlington, ON                      Montreal, QC                       Vancouver, BC                       Charlotte, NC                     All rights reserved.
5420 N. Service Road                276 Rue Saint-Jacques              422 Richards St.                    15720 John J Delaney Dr.          © Energy Advantage Inc.
Suite 501                           Bureau 802                         Suite 300                           Suite 300
Phone: (905) 319 1717               Phone: (514) 843 4665              Phone: (877) 702 3992               Phone: (800) 354 1266

Monterrey, México                  New Delhi, India                    Dubai, UAE                           www.energyadvantage.com
EQUUS Parque Corporativo           Newbridge Business Center           Maktoum Street                       contactus@energyadvantage.com
Ricardo Margain 444                1st & 2nd Floor, Tower B            Concorde Office Tower                www.energyadvantage.com/blog
Col Valle del Campestre            INOX Tower, Plot No. 17             2nd Floor, Office no. 205
San Pedro Garza García             Sector 16A, Noida 201301            P.O. Box 1630
Nuevo León , CP: 66265             Phone: +91 9810387133               Phone: +971 4 2249977
Phone: +52 (181) 4780 2049

Energy Advantage Inc. provides total energy and environmental management solutions to our customers’ sustainability challenges, delivering them ‘best results’ in
managing their risk, reducing their costs, and enhancing their reputation within the markets and communities they serve.

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How to Implement & Manage an Energy Management Program

  • 1. Informative e-book 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
  • 2. Introduction Companies of all sizes face the program for continuous many challenges in rolling out improvement will maximize a energy and environmental adoption and drive on-going program that maximizes tangible best results. adoption and delivers best results. Key questions always This short e-book will outline emerge - Who is responsible the key elements of for the program? Who bares implementing and managing the costs? Who reaps the a successful portfolio-wide benefits? energy and environmental program. Our experience has shown that choosing the proper implementation approach, involving all aspects of the organization and managing
  • 3. The Importance of Data Data types, such as tracking the success energy data, facility of the program. data, behavioural Ensuring you have a data and KPI data, robust data are absolutely foundation in place essential to before the program developing is implemented is achievable targets, essential for program prioritizing energy success. efficiency initiatives, engaging customers and employees and
  • 4. Key Elements This e-book will highlight the key elements involved in implementing and managing an energy and environmental program. The elements include: 1. Choosing your implementation approach 2. Identifying resource requirements 3. Implementation: where to get started? 4. Continuous management of program 5. Monitor & verification plan
  • 5. 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 This implementation approach focuses ‘command and control’ approach, on achieving specific targets and this implementation method objectives, but without rigid operating focuses on determining a distinct instructions on how to get there. plan of action, with well documented activities and order in which they are to be completed. Centralization Versus Facility Level Rights Knowledge Base Centralized Shared Decision Rights Centralized Facility Level Investment Rights Centralized Shared Characteristics When to use... Small Organizations Large Organizations Easy to Manage Empowered Site Managers Homogenous Buildings Heterogeneous Buildings Low Admin Requirements High Admin Requirements
  • 6. Identifying Resource 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. 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.
  • 7. Identifying Resource Requirements continued... Data Data management is just as it sounds, ensuring data Management 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?
  • 8. Implementation: Getting Started One of the most difficult parts of implementing an energy 1. What training/orientation and environment program is may be required to get getting it started. A program buy-in from my launch spells a change in stakeholders? behaviour for at least some of your stakeholders, which can lead to a natural resistance 2. How do I build quick point. successes to re-inforce buy-in? To overcome this, there are three key questions to 3. How do I integrate this consider and address prior to program into my business launch. as usual mindset?
  • 9. Continuous Management After you have rolled out your to ensure your program is program the next step is to achieving set goals and continuously manage the targets. performance of it. To do this you will evaluate the core Reward & Recognition aspects of the program and reward stakeholders for completion of major It’s important to recognize milestones. and reward major milestones in the program, whether it’s performance based or goal Continuous Evaluation and objective achievement. This means rewarding all During the continuous stakeholders involved in the evaluation phase changing or program, including but not updating your original limited to, yourself, customers program strategy may happen and employees.
  • 10. Monitor & Verification Plan The best program has little to make sure your program is value if not measured in on track. This is a continuous some fashion. A good process and should leverage measurement and verification software to automate this process will allow effective process. management of activities in the long term. 1. Design Performance Criteria The diagram to the right outlines five steps to follow 5. Feedback 2. Gather when measuring the success Into Program Data 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 4. Verify Savings 3. Analyze Data
  • 11. 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
  • 12. Burlington, ON Montreal, QC Vancouver, BC Charlotte, NC All rights reserved. 5420 N. Service Road 276 Rue Saint-Jacques 422 Richards St. 15720 John J Delaney Dr. © Energy Advantage Inc. Suite 501 Bureau 802 Suite 300 Suite 300 Phone: (905) 319 1717 Phone: (514) 843 4665 Phone: (877) 702 3992 Phone: (800) 354 1266 Monterrey, México New Delhi, India Dubai, UAE www.energyadvantage.com EQUUS Parque Corporativo Newbridge Business Center Maktoum Street contactus@energyadvantage.com Ricardo Margain 444 1st & 2nd Floor, Tower B Concorde Office Tower www.energyadvantage.com/blog Col Valle del Campestre INOX Tower, Plot No. 17 2nd Floor, Office no. 205 San Pedro Garza García Sector 16A, Noida 201301 P.O. Box 1630 Nuevo León , CP: 66265 Phone: +91 9810387133 Phone: +971 4 2249977 Phone: +52 (181) 4780 2049 Energy Advantage Inc. provides total energy and environmental management solutions to our customers’ sustainability challenges, delivering them ‘best results’ in managing their risk, reducing their costs, and enhancing their reputation within the markets and communities they serve.