the seven habits of highly efficient companies · 2018-09-28 · the seven habits of highly...

The Seven Habits of Highly Efficient Companies

What Makes a Highly (Energy)

Efficient Company?

Kitchener, Ontario

September 21st, 2018

Seven Habits – 28 Elements

2

Todays Objectives

3

Approach

Tools

ExamplesInspiration

What You Do!!

Reference

• Survey of ~100 companies

• Identification of best practices

• Detailed case studies

4

https://www.c2es.org/site/assets/uploads/2010/03/PEW_EnergyEfficiency_FullReport.pdf/

Seven Habits

5

Efficiency is a Core Strategy

Leadership and Organizational Support is Real and Sustained

The Company has SMART Energy Efficiency Goals

The Strategy Relies on a Robust Tracking and Measurement System

The Organization Puts Substantial Resources into Efficiency

The Energy Efficiency Strategy Shows Demonstrated Results

The Company Effectively Communicates Efficiency Results

Efficiency is a Core Strategy

6

Not just another “issue”• Efficiency is an integral part of corporate strategic planning

and risk assessment, not just another cost management issue or sustainability “hoop” to jump through

7

Recognizing ALL the Benefits

Aspirational• Efficiency is part of the organization’s

aspirations and metrics for itself

8

Example Toyota - Key Efficiency

Strategy Successes:

• Engaging people across multiple levels

and job functions to implement the

energy efficiency strategy and sustain

results;

• Moving beyond supplying energy

efficiently to production shops, to

engaging shop staff in rethinking

operating practices to drive down

energy needs.

Leadership and Organizational Support is Real and Sustained

9

Today, energy is a real job!

• At least one full-time staff person is accountable for energy performance• depending

on size of the company

10https://www.thunderbay.ca/en/city-hall/corporate-energy-management-plan.aspx

There is an “energy conversation”

• Corporate energy management leadership interacts with teams in all business units.

11

https://www.c2es.org/site/assets/uploads/2010/03/PEW_EnergyEfficiency_FullReport.pdf/

On the radar!

• Energy performance results affect individuals’ performance reviews and career advancement paths.

12

• Mechanism may exist already…

• Manager realized energy cost variation far exceeded performance bonus• Not explained by

weather or production

• Brought more focus to energy line item –specifically energy waste!

Cultural• Energy efficiency is part of the company’s

culture and core operations.

13

“In leading companies, the energy issue is owned by whole teams and/or whole departments and does not fade away when champions move on to other causes. It is supported by change-management processes that ensure the new practices become part of the company’s culture. It becomes self-sustaining, with lots of people engaged, lots of results showing, and the ‘buzz’ remaining strong.”

Empowerment

• Employees are empowered and rewarded for energy innovation.

14 https://vimeo.com/59734197

The Company Has SMART Goals

15

https://localadventurer.com/smart-goal-setting-new-city-new-mindset/

Inclusive• Goals are organization-wide.

https://www.caledon.ca/en/townhall/resources/environment/Corporate-Energy-Management-Plan.pdf16

Relevant• Goals are also translated into

operating/business unit goals.

http://ieso.ca/en/sector-participants/conservation-delivery-and-tools/conservation-e-blasts/2018/08/the-bottom-line-on-energy-management-refreshed-brochure17

Measureable

• Goals are specific enough to be measured.

18

https://www.ugdsb.ca/wp-content/uploads/2017/07/Energy-Management-Plan-2014-2019.pdf

Time-bound• Goals have specific target dates.

19

Linked to Action

• Goals are linked to action plans in all business units.

20

Aspect Time Scale

Level of Detail Staff

Involvement

Goals Long Term

Low “broad brush”

Top & Senior Managers

Objectives Medium

Term Medium

“initiative” Middle

Managers

Actions Short Term

High “specific actions”

Operational Staff

Adaptive

• Goals are updated and strengthened over time.

21

Energy Management System (ISO50001) Model

The Strategy Relies on a Robust Tracking and Measurement System

22 Source: http://wallpaper222.com/explore/quotes-by-lord-kelvin/

Data Stewardship• The system collects data regularly from all

business units

23

Tool: RETScreen® Expert Performance & Portfolio Analysis- available from www.retscreen.net

Comparisons are Valid

• The data is normalized and baselined

24 Source: Cristina Guido, Specialist, Energy & Environment, Town of Caledon

Timely• Data collection and reporting is as granular as possible

25 Reference: David Gallagher, Oxford Properties

Are We Improving?• The system tracks performance against goals

in a regular reporting cycle

26 Source: Cristina Guido, Specialist, Energy & Environment, Town of Caledon

In the loop!

• Performance data is visible to senior management in a form they can understand and act upon

27 Reference: David Gallagher, Oxford Properties

Everyone’s in the loop!

• Energy performance data is shared internally and externally

28

https://www.c2es.org/document/from-shop-floor-to-top-floor-best-business-practices-in-energy-efficiency/

The Energy Action Cycle• The system is linked to a commitment to

continuous improvement

29

Energy Management System (ISO50001) Model

The Organization Puts Substantial Resources into Efficiency

30

People

Systems

Capital

Effectively resourced• The energy manager/team has adequate

operating resources• Assigning priority to EE is key.

31https://www.c2es.org/document/from-shop-floor-to-top-floor-best-business-practices-in-energy-efficiency/

Efficiency is a great investment!

• Business leaders find capital to fund projects• Driven by fantastic one page proposals & solid

financials

32

Amazing returns!• Companies invest in human capital

33 https://www.theboc.info/why-boc/success-stories/testimonials/

60 operators x $4,000 = 240,000 invested for $300,000 year savings.Over 5 years, with a 4% inflation and 8% discount rate:

MIRR = 53.5%, NPV = $1,177,000, Savings to Investment Ratio = 5.9 !

The Energy Efficiency Strategy Shows Demonstrated Results

34

Easier than we thought• The company has met or beat its energy

performance goal• KI Canada saved 30% - will in excess of target!

35 https://www.youtube.com/watch?v=n3_BC-FBo5g

Recognition• Successful energy innovators are rewarded

and recognized

36

Persistence• Resources are sustained over a multi-year

period

37

https://energy.gov/eere/amo/articles/3m-and-schneider-electric-implement-iso-50001-and-superior-energy-performance-and

The Company Effectively Communicates Efficiency Results

38

http://www.prismengineering.com/sites/default/files/upload/BCIT-Office-Doctors-Campaign-White-Paper.pdf

The Power of People

• An internal communications plan raises awareness and engages employees

39

RRSP• Successes are communicated externally

40 https://saveonenergy.ca/Business/Testimonials.aspx

Using the Seven Habits

41

Simple Survey

Integrate w/Strategic

Planning

Critical Questioning

Consensus Building Meeting

Review & Revise EMP

Lot of Good Ideas!

• Survey of ~100 companies

• Identification of best practices

• Detailed case studies

42

https://www.c2es.org/site/assets/uploads/2010/03/PEW_EnergyEfficiency_FullReport.pdf/

Thanks for Your Participation!

The HELP Desk is Open…

Stephen Dixon

sdixon@knowenergy.com

866-230-5534