TEAMING UP TO
SAVE ENERGY
Protect Our Environment
Through Energy Efficiency
ENERGYSTAR
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CONTENTS
An Energy Wake-Up Call
Teaming Up to Save Energy Checklist.
Organizing Your Energy Team
Starting Your Energy Program
Building Capacity
Sustaining the Team
Maintaining Momentum
For More Information
FOREWORD
Organizations with energy programs that achieve
results have senior-level support, sufficient energy
program staff, and management structures that
empower staff to address energy efficiency issues
directly. The U.S. Environmental Protection Agency's
(EPA) ENERGY STAR* "Guidelines for Energy
Management" provide a management structure for
organizations to follow in developing a strategy for
achieving sustained performance. Forming an energy
team is one of the first steps in this framework.
Teaming Up to Save Energy is a "how-to" guide on
building an energy management team. The guide
discusses the structure, launch, and maintenance
of an energy team. Examples from ENERGY STAR
partner organizations and a checklist are provided
to illustrate practices and help with implementation.
This guide complements "Guidelines for Energy
Management," which is available online at
www.energystar.gov.
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AN ENERGY WAKE-UP CALL
Management of energy is good business because it
strengthens the bottom line. In many sectors, well-run
energy programs may reduce energy costs by 3 to 10
percent annually. By improving financial performance,
superior energy practices can create a competitive edge.
Strong energy management is a strategic asset. Besides
reflecting overall management acuity, it can be a sign of
future profitability. Financial analysts and investment firms
increasingly view the quality of energy management as an
indicator of financial performance.
Organizations often differ dramatically in energy
performance, even when they belong to the same
industrial or commercial sector, operate under the same
market conditions, and use the same equipment. Why the
big performance gap?
The high performers adopt a structured approach to
energy management and establish policies and procedures
needed to ensure long-term results. They commit to
allocating staff and resources to energy management,
establishing goals, and adopting a philosophy of
continuous improvement.
SITUATIONS:
Rising energy costs
and increasing price
volatility.
Concerns aboutthe
reliability of supply.
SOLUTIONS:
Consider going be-
yond the traditional
organizational focus
on energy supply and
procurement.
Reduce supply risks
by improving energy
efficiency.
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SITUATION:
Your organization's
senior managers
are convinced that
energy management
requires capital-
intensive purchases
ornewtechnology.
SOLUTIONS:
Use internal
examples of energy
savings from better
management
practices and low-
cost improvements.
Find examples of
wasted energy
and calculate the
savings from better
practices.
Use life-cycle costs
and benefits to
evaluate capital
expenditures rather
than just initial
costs.
Cite examples of
leading companies
and organizations
with strong energy
programs.
The ENERGY STAR "Guidelines for Energy Management"
provide a framework for organizations as they develop and
implement an energy management program. The steps of
the management strategy outlined in the "Guidelines for
Energy Management" are broadly illustrated in the graphic
on page 3. More details on the "Guidelines for Energy
Management" can be found at www.energystar.gov.
Establishing an energy team is an important part of the
first step in energy management, "Make Commitment."
The energy team is responsible for planning, implementing,
benchmarking, monitoring, and evaluating the organizational
energy management program. The team's duties also
include delivering training, communicating results, and
providing recognition.
This guide is designed to help organizations develop
effective energy teams. The guide provides assistance
through checklists, guidance, and examples for:
Organizing your energy team
Starting your energy program
Building capacity
Sustaining the team, and
Maintaining momentum
FOR EXAMPLE, a culture of energy efficiency is
embedded within the organization at Mines, an
international property development company that
builds and manages office space and other real estate.
"Making wise use of energy is part of our company
culture," says Jim Green, C.P.E., the company's regional
manager of engineering services. "If I'm visiting a
property and someone shows me new work we've done,
I may comment on the quality of the workmanship, but
my next question is how does it affect the building's
energy picture? Everyone on our staff thinks that way;
we mentor them to think in those patterns."
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GUIDELINES FOR ENERGY MANAGEMENT
Make Commitment
Assess Performance
& Set Goals
Recognize
Achievements
Implement
Action Plan
This diagram illustrates the main management elements of the ENERGY STAR "Guidelines
for Energy Management." To read the Guidelines, visitwww.energystar.gov.
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TEAMING UP TO SAVE ENERGY CHECKLIST
ORGANIZING YOUR ENERGYTEAM SeePage
Energy Director
Senior
Management
Energy Team
Facility
Involvement
Partner
Involvement
Energy Team's
Structure
Resources and
Responsibilities
Able to work with all staff levels from maintenance
to engineers to financial officers
Senior-level person empowered by top
management support
Energy director reports to senior executive or to a
senior management council
Senior champion or council provides guidance and
support
Members from business units, operations (e.g.,
engineering), facilities, and/or regions
Energy networks formed
Support services (PR, IT, and HR)
Facility managers, electrical personnel
Two-way information flow on goals and
opportunities
Facility-based energy teams with technical person
as site champion
Consultants, vendors, customers, and joint venture
partners
Energy savings passed on through lower prices
Separate division and/or centralized leadership
Integrated into organization's structure and
networks established
Energy projects incorporated into normal budget
cycle as line item
Energy director is empowered to make decisions on
projects affecting energy use
Energy team members have dedicated time for the
energy program
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STARTING YOUR ENERGY PROGRAM SeePage
Management
Briefing
Planning
Strategy
Program Launch
Energy Team
Plans
Facilities
Engagement
Senior management briefed on benefits, proposed
approach, and potential energy team members
Energy team met initially to prepare for official launch
Success showcased at the official launch
Organizational kickoff announced energy network,
introduced energy director, unveiled energy policy,
and showcased real-world proof
Work plans, responsibilities, and annual action plan
established
Facility audits and reports conducted, energy
efficiency opportunities identified
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BUILDING CAPACITY SeePage
Tracking and
Monitoring
Transferring
Knowledge
Raising
Awareness
Formal Training
Outsourcing
Cross-Company
Networking
Systems established for tracking energy
performance and best practices implementation
Events for informal knowledge transfer, such as
energy summits and energy fairs, implemented
Awareness of energy efficiency created through
posters, intranet, surveys, and competitions
Participants identified, needs determined, and
training held
Involvement in ENERGY STAR Web conferences
and meetings encouraged
Professional development objectives established
for key team members
Use of outside help has been evaluated and
policies established
Outside company successes sought and internal
successes shared
Information exchanged to learn from experiences
of others
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SUSTAININGTHETEAM
Effective
Communications
Awareness of energy efficiency created throughout
company
Energy performance information is published in
company reports and communications
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Recognition and
Rewards
Internal awards created and implemented
Senior management is involved in providing
recognition
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External
Recognition
Credibility for your organization's energy program
achieved
Awards from other organizations have added to
your company's competitive advantage
MAINTAINING MOMENTUM
Succession
Built-in plan for continuity established
Energy efficiency integrated into organizational
culture
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Measures of
Success
Sustainability of program and personnel achieved
Continuous improvement of your organization's
energy performance attained
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ORGANIZING YOUR
ENERGY TEAM
One person cannot do it all. Energy management is a
cooperative activity involving a team and, usually, multiple
subteams. A team approach improves buy-in from all
levels of the organization, which helps to ensure greater
energy savings.
ENERGY DIRECTOR
Senior management needs to perceive energy management
as part of the organization's core business. The key is
an energy team leader at the corporate-level who is
empowered by support from the top senior management.
The energy director should be passionate about energy
management without being a zealot or grandstanding,
both of which can decrease team cohesion.
Some energy directors have a technical background;
others have financial experience or have been plant
managers. Regardless of background, the energy
director must be able to work with all staff levels, from
maintenance to engineers to financial officers.
DO: Share credit for the achievements of the energy
management program with everyone involved. This
practice avoids "ownership" struggles and can increase
participation because everyone wants to be part of a
winning effort.
FOR EXAMPLE, "\'m
on the road 50 to
60 percent of the
time," says Fred
Dannhauser, former
global energy manager
at Owens Corning.
"I'm interested in
going to the plants
and being out on the
floor and being their
barrier buster with the
corporation."
DO: Visit the organization's facilities on a regular basis to
determine their needs.
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SENIOR MANAGEMENT
The energy director needs to be in touch with the big
picture. One way to help ensure empowerment is for the
energy manager to report directly to an executive who can
serve as a corporate ally.
Another option is a senior management council that
provides the energy director with guidance at the strategic
level and serves as the corporate champion. The council
might meet annually and be composed of representatives
from each business unit and, for multinational
organizations, each region. Other members might include
the CFO, treasurer, and director of purchasing.
DO: Secure an ENERGY STAR Partnership letter signed
by your CEO and use it as one of the team's credentials to
help empower your team.
DO: Involve your CEO in recognizing individuals and
facilities that achieve significant gains in energy
performance.
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ENERGY TEAM
As with the strategic-level council, the number of people
on the energy team at the operational level depends on
the size of your organization. The right mix of players on
this energy steering committee is crucial. The energy
director might recruit team members based on business
units, operational areas, and/or regions.
Consider a representative from each operational area that
significantly affects energy use, such as:
Purchasing
Energy
Team
Financial
Management
Operations and
Maintenance
Contractors
and Suppliers
'Uilding Design
and Facilities
Management
Environmental
Health and Safety
Construction
Management
Corporate
Real Estate
and Leasing
FOR EXAMPLE, at
California Portland
Cement Company, a
subset of the company's
energy team is made
up of process engineers
who visit a different
plant every six weeks
and do an energy audit.
At one plant, the pro-
cess engineers focused
on the finish grinding
system and identified
$300,000 in opportuni-
ties for annual energy
savings.
Other possible members of the core energy team
include plant managers, plant engineers, and electrical
supervisors. One important consideration is to ensure that
the team is multidisciplinary. A diverse, cross-functional
team can find more opportunities for reducing energy use.
Some multinational organizations have multiple levels of
energy teams, which form an energy network. A small
organization may have only a few key representatives.
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SITUATIONS:
At many manufacturing sites, investments
in process improvements take priority over
energy investments.
Usually the funding of projects is based on first
cost rather than life-cycle cost.
SOLUTIONS:
Include process engineers as part of the
energy teamto provide access to process
improvement planning.
Consider developing indicators that measure
the financial and environmental benefits,
as well as productivity improvements, that
are understandable to everyone in the
organization. Energy savings can be presented
as an equivalent amount of product that would
need to be sold to obtain the same financial
gain (net profits).
Measure the impact of the program by its
effect on earnings and shareholdervalue.
ENERGY STAR provides a financial value
calculator to help measure this impact.
Use financial metrics such as net present
value, simple payback, internal rate of return,
and hurdle rate to make your case effectively.
Speakthe language of your organization's
financial officers when explaining the program.
Focus on internal rates of return to
demonstrate that energy projects may be
better investment alternatives than capital
allotted for process improvements.
Explain how investing in technologies and
practices that reduce energy can affect
your organization's energy security and
help insulate the organization from the risks
associated with supply and price uncertainties
in a deregulated market.
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Additional Support Services:
Public Relations: PR departments can help share
information with the organization and help ensure
favorable publicity for your organization's energy
management accomplishments.
Information Technology: IT personnel can help with
tracking systems and web-based communications.
Human Resources: HR personnel help you staff
the energy team, train the workforce, and administer
performance standards and rewards.
INVOLVING FACILITIES AND PROPERTIES
Most energy improvements are implemented at the facility
and property level. Changing current, often inefficient,
operating practices to a culture of efficiency requires
that facilities or properties buy into the principles of the
organization's energy management program.
FOR EXAMPLE, the General Motors Corporation
has an Energy and Environmental Strategy Board
consisting of directors and headed by the executive
vice president. At the next level is a Global Energy
Team with representatives from GM North America,
GM Europe, GM Latin America, and GM Asia/Pacific.
The third level is a Manufacturing Leadership Team,
which monitors progress on a quarterly basis. A
fourth level is the Energy and Utility Services Group,
which is responsible for energy consumption and
the energy budget for GM North America. Finally,
every plant has an Energy Conservation Team that
includes both salaried and hourly people.
FOR EXAMPLE, at
Colorado Springs
School District 11, a
team with engineering
and technical expertise
coordinates energy proj-
ects. The team meets
with a committee made
up of principals, teach-
ers, building managers, a
procurement department
representative, food ser-
vice managers, security
department director, and
vendors.
SITUATION:
Facility employees
and managers are
too busy to work with
the energy team, but
are the ones whose
help you need.
SOLUTION:
Attend facility meet-
ings or participate in
discussions to learn
abouttheir concerns
and howyou can
address them.
Provide information,
tips, and reminders
on howtosave
energy.
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FOR EXAMPLE, during
visits to Mines'
managed properties,
Jim Green offers
suggestions on
introducing new
technologies, but he
also finds that ideas
are a two-way street.
"I might visit a property
that has a technology
that I've not seen
installed before, so I'll
ask the manager to
put together a 'best
practices,' and I'll
show him how to do
that. That way, we
share information and
spread concepts and
technologies."
FORMING A FACILITY-BASED ENERGY TEAM
A mechanism to involve people at facilities and properties
is essential since day-to-day working practices in the
facilities greatly influence energy efficiency.
STEPS:
Send out the ENERGY STAR Partnership letter signed
by your CEO to the facility managers and ask them to
participate. The letter is a proven door-opener.
Ask the plant or property managers to identify a person
who will "own" energy management at that facility and
serve as the site energy champion.
Provide the site champion with information on
the benefits of energy efficiency to educate other
employees.
Encourage the site champion to form an energy
team that includes the plant's key operations and
maintenance people.
DO: Meet informally during half-hour breaks so as not to
interfere with regular work schedules of the site energy
team.
DO: Recruit candidates for the energy team by letting
them know that it is a career-enhancing opportunity. They
will be saving money for their organization, and that is
important in a performance-oriented environment.
DO: Illustrate how energy management practices support
the facility's and company's goals.
FOR EXAMPLE, "Instead of a top-down structure,
Toyota has more of a give-and-take negotiation with
the plants," says Bruce Bremer, manager of Facility
Engineering-Engineering Support at Toyota. "We are
constantly asking them for their input and involvement."
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INVOLVING PARTNERS, CONSULTANTS,
VENDORS, AND CUSTOMERS
Consider engaging your joint venture partners, customers,
vendors, and service providers in the energy management
program.
Vendors and service providers who reduce their own
energy costs might pass those savings on by charging
lower prices. Those suppliers also can help advance your
organization's energy management program by providing
tips on energy-efficient equipment.
By the same token, helping customers reduce their energy
costs might provide a value-added service that can help
retain them as purchasers of your company's products.
FOP EXAMPLE, to demonstrate to the community
that every possible effort is being made to achieve
significant energy improvements without any additional
tax burden, Colorado Springs School District 11 has
used multiphase performance contracts with energy
service companies to leverage energy savings for
financing new capital-intensive projects.
FOR EXAMPLE, Eastman Kodak has preferred
supplier agreements to buy all its motors from
preferred vendors. "With an agreement comes
engineering and technical support, so when we're
doing energy assessments, we can rely on them to
help us decide whether the cost of putting in a high-
efficiency motor is justified," says Kodak worldwide
energy program manager George Weed.
FOR EXAMPLE,
General Motors,
through the Suppliers
Partnership for the
Environment, has
helped its suppliers
evaluate how to
manage and use
energy.
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FOR EXAMPLE, "te part
of our environmental
activities, energy
savings is listed as one
of our key performance
indicators," says Bruce
Bremer of Toyota. "So
it's right up there on
our radar screen. Over
the years, we moved
it up on the company's
priorities by keeping it
visible."
THE ENERGY TEAM'S STRUCTURE
Where the energy team lives in the organizational tree
is important for its success. Sometimes the team is its
own division or a component of Facilities, Operations, or
Environmental, Health, and Safety. Who the team members
report to is also an important consideration. Often, energy
teams are a voluntary network, and the members do not
report directly to the energy director. The exception is
those organizations that operate energy management as a
separate business unit.
The energy team needs to be empowered by "owning"
energy management and by having the authority to make
decisions. The energy director should be part of the
organization's strategic business planning sessions.
Don't go it alone! Successful teams avoid a maverick
reputation, which can make energy management seem like
a marginal activity and thus at risk of elimination. Energy
management should be integrated into the organization's
structure as part of its core business, rather than being
a stand-alone activity that gives the impression of being
in its own world. When energy management is fully
integrated, each department or function has an energy
management role as part of its staff members' jobs.
DO: Pass credit to others who are not part of the team but
are implementing the energy improvements.
INTEGRATION OF
ENERGY MANAGEMENT
ACTIVITIES
Energy Management
Team
Engineering
Department
Financial Management
Department
Building Design and
Facilities Department
Establish Plan Develop Implement Track
Energy Energy Cost Energy Energy
Goals Projects Estimates Projects Savings
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RESOURCES AND RESPONSIBILITIES
Funding is a key to the success of the energy
management program. Some organizations set aside
a percentage of their budgets for energy projects. The
challenge is to get energy projects incorporated in
the normal budget cycle as a line item. Timing is all-
important. Seek funds early, rather than adding projects
after the annual budget is finalized.
DO: Strive to establish the energy director as a full-
time position and allocate at least 20 percent of each
energy team member's time if your company has multiple
facilities and large energy expenditures.
DO: Consider securing a different hurdle rate or return
on investment (ROI) for large or capital-intensive energy
projects that will help hedge against rising energy costs.
DO: Consider developing a capital fund for energy
projects based on a percentage of the savings achieved
from the projects.
FOR EXAMPLE, "Our
biggest areas for
potential improvement
require a large capital
investment," says
Stephen J. Coppinger,
P.E., chief electrical
engineer at California
Portland Cement.
"But we've been able to
show plant managers
that there are a lot of
things we can do short
of spending a lot of
money. A consultant did
a study and came up
with a list of projects
at one plant with a
potential savings of
$400,000 and a one-
or two-year payback.
And those projects
can be replicated at
other plants."
FOR EXAMPLE, General Motors created a business unit that has responsibility for
energy supply, consumption, and efficiency for all of the company's North American
plants. "The company transferred the energy budgets from the plants to this group,"
says Kamesh Gupta, GM energy manager. "All energy-consuming assets of the
plants, such as compressors and air chillers, are part of this business unit. We have
people at the plant level who report to us, and we support the plant energy teams
with resources, common systems, and best practices. We have the responsibility
for capital expenditures for energy improvements. In the last three years, we spent
about $30 million on those projects. If you run energy as a business, you're really
focused on making conservation happen and can leverage your efforts rather
than relying on each plant and hoping they will deliver results. It takes a business
approach and operation to drive this home."
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STARTING YOUR
ENERGY PROGRAM
FOR EXAMPLE,
Raytheon established
an energy awareness
month as the launch
pad for kicking off its
program. "Each site
picked a day during
the month and held
an event," says David
Chamberlain, principal
energy engineer
at Raytheon. "We
focused on employee
awareness of energy
savings at their homes,
since people tend to
be more interested
when they're paying
the bill. We teamed up
with Lowe'sฎ and local
utilities, and people
came out in droves to
find out about energy-
efficient appliances
and weatherizing their
homes." During the
events, Raytheon's
corporate energy team
identified local energy
champions to form
a network of plant
people who know the
equipment that might
be wasting energy.
The experience of organizations with successful energy
programs reveals that careful planning and effective
outreach at the launch of the program creates momentum
for the energy team. Successful program launches have
involved:
Planning - Prior to any official launch, the energy
director should prepare a briefing on the benefits of
energy efficiency, the proposed approach, and a list of
potential members of the energy team.
Presentations to Senior Management - The energy
director, with the support of a senior energy champion,
should brief senior management.
Team Strategy - A series of meetings of the energy
team to prepare for the program's official launch
should be held. The team should consider initiatives to
highlight, such as a successful pilot project that could
be showcased at the program's kickoff. A pilot project
with a short payback period can provide credibility and
real-world evidence of actual dollar savings.
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Organizational kickoff-A formal event (perhaps
even a webcast) that involves senior management
announcing the formation of the energy team network
and introducing the energy director helps to create
credibility for the energy program. If this event will
be the first time that the program goes live, it also
provides an opportunity to unveil the energy policy. As
additional real-world proof of the importance of energy
management, a guest energy director from another
organization could be invited to make a presentation on
its energy successes.
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FOR EXAMPLE, the
energy team at
California Portland
Cement meets every
six weeks, each time at
a different plant on a
rotating basis. "During
our initial audit, we
learned about energy
improvements that
we are now applying
at other plants," says
Stephen Coppinger,
"such as putting new
timer cards in dust
collectors, which save
compressed air. And,
instead of repairing old,
less efficient motors,
we're looking at our
purchasing policy on
premium energy-
efficient motors."
ENERGY TEAM PLANS
At the first meeting of the corporate energy team, a schedule
for future meetings is established. How frequently the team
gets together varies from organization to organization, but
monthly meetings appear to be the norm. As communication
channels, meetings are superior to emails, which may tend
to be ignored. Multinational organizations might conduct
monthly team meetings by conference call or webcast, with
face-to-face meetings held on a quarterly or annual basis.
At the meetings, the team members report on their progress
on assigned tasks and provide monthly reports on energy use
so that the team can build up data. The meetings also offer
opportunities for presentations on best practices by in-house
and outside technical and operational experts. In addition,
members can network with each other, learn about key
contacts, and share problems for which the other attendees
might be able to offer potential solutions. Meetings also are
a mechanism for linking facilities so they can replicate best
practices and thus avoid reinventing the wheel.
Each year, the energy team should develop an action plan
for the year ahead, with activities to be conducted. In this
way, the team becomes proactive in planning its time and
ensuring that projects are funded.
FOR EXAMPLE, General Motors' corporate energy team meets every month with plant energy
engineers via webcasts. The plant-level energy teams meet weekly, and internal sharing of
information at the plants occurs on a continuous basis. Real-time electric load profiles at the
sites, for instance, show the level of energy efficiency achieved during weekend shutdowns. By
comparing those readings with the plant's benchmark level, the performance for that week is
determined. The energy team network shares information on a weekly, monthly, quarterly, or
annual basis, depending on the level of detail needed. "We can tie it all together because our
program is a business," says GM's Kamesh Gupta, "not just a staff organization."
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ENGAGING FACILITIES
The energy team and technical experts conduct assessments
at facilities by performing a physical walk-through to find
energy-saving opportunities. The energy team will need to
recognize that they will be competing for time and attention
against the business of the facility. However, assessments
are a powerful tool for involving facilities in a nonthreatening
way and encouraging their buy-in.
During the assessments, energy team members may
see best practices in action, so the audits are a hands-
on learning opportunity for gathering practices and
technology to transfer. After a week-long assessment,
the members write an in-depth report, which might run as
long as 300 pages. A summary is circulated internally on
the intranet or published in the organization's newsletter.
FOR EXAMPLE, Eastman Kodak conducts quick energy assessments called "kaizens,"
a Japanese term for "take apart and make new for the good of others"used
for identifying and implementing rapid solutions that do not require large capital
investments. A compressed air kaizen, for example, might involve fixing leaks. A lighting
kaizen might require ensuring that fixture controls are actually programmed for the
correct "time of day schedules." Another kaizen may involve fixing a faulty steam trap
that is costing the company thousands of dollars per year. The kaizens raise questions
about operations, such as whether a compressed air system should be run at 100
pounds per square inch when 80 psi would do. "In energy management, there is not one
big elephant that saves the day," says Kodak's George Weed, "but a lot of small- and
medium-size things that add up to big savings. The achievements involve improving the
efficiency of the HVAC [heating, ventilating, and air-conditioning] system, right sizing
equipment, and adjusting time-of-day electricity rate schedules."
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FOR EXAMPLE,
"At facilities where
we are making the
same product at each
and every shift," says
Owens Coming's
Fred Dannhauser, "we
got some mileage by
creating a competition
once we were bet-
ter able to measure
energy use." If Shift A
consumed less energy
than Shift B, for exam-
ple, the second shift
decided to be more
conscientious so they
could win. "First, we
had to have data that
would stand the test of
integrity," Dannhauser
cautions.
DO: "Deliver the goods" by ensuring that responses to
suggestions from plant workers are positive and prompt
and that results are obtained quickly.
DO: Prioritize the actions and improvement that should
take place first and that will lead to early success.
DO: Suggest schedules and timelines to ensure that
recommendations will be implemented.
DO: Leverage existing assessment methods and problem-
solving techniques employed by your company.
FOR EXAMPLE, Toyota also conducts kaizens, plus
three-day assessments called treasure hunts. The
hunt begins on a Sunday to see whether equipment
is shut off, continues on Monday and Tuesday to
look at production startup and shutdown. At the
closing meeting on Tuesday, the team presents
ideas and cost savings to the plant managers. The
participants, gathered from Toyota's other plants,
frequently take some of the ideas back to their own
plants, so it is not just the host facility that benefits.
Toyota's Bruce Bremer adds, "As part of our cycle
of kaizens, we also build energy reductions into the
design of new plants so the improvements don't
have to be done later."
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BUILDING CAPACITY
Two essential components of your organization's energy
management program are:
Mechanisms for tracking and communicating progress;
and
Informal and formal tools for transferring that
information to managers and workers.
Systems that track energy performance, implementation of
best practices, and progress toward goals are also effective
tools for evaluating progress and communicating successes.
A second key element is a knowledge management system
or best practices database. The sophistication of this tool
can range from a database published internally on the orga-
nization's intranet, or spreadsheets and electronic charts
provided to facility managers and engineers only. Case stud-
ies on successful projects can be published on either tool,
with information on the relevant contact persons.
ENERGY STAR provides a tool for tracking, normalizing, and
benchmarking energy use in buildings over time. To use this
tool, see ENERGY STAR'S Portfolio Manager. Also available
are ENERGY STAR'S energy performance indicators (EPI) for
plants in select manufacturing sectors. The indicators
enable energy comparisons of a plant's energy efficiency
to that of its industry. All of these tools are available at
www.energystar.gov.
FOR EXAMPLE,
General Motors
uses a scorecard to
track performance at
each plant. TheGM
2100 data-gathering
system contains a
built-in mechanism for
generating charts that
compare energy use
at the facilities on a
monthly and quarterly
basis.
FOR EXAMPLE, Toyota sends out monthly reports on targets versus actuals for the
plants as a whole, monthly reports by shops (paint shop, plastics shop, weld shop,
etc.), monthly productivity reports on energy use by unit of production, monthly
reports on nonproduction energy use over weekends and between shifts, and annual
summary reports that are sent out to all plants. "We go through the reports with the
president for North America on a regular basis," says Toyota's Bruce Bremen "He
receives the reports for North America as a whole and for each plant."
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FOR EXAMPLE,
Frito-Lay holds a
three-day energy
summit annually for
all members of the
energy team, key
plant personnel, and
selected service and
product provider
partners. Other
organizations, such as
United Technologies
Corporation and
GlaxoSmithKline,
hold annual two-day
energy summits.
TRANSFERRING KNOWLEDGE
Two powerful tools for informal training are energy
summits and energy fairs.
Energy summits are usually annual get-togethers for
technology transfer. The energy network gathers to
exchange information on the program and best practices,
and to discuss new project ideas. Energy summits also
provide an excellent time to offer training and bring in
outside speakers to discuss energy management issues.
Attendees can include outside experts from another
industry sector, voluntary program partners, consultants,
and nonenergy corporate divisions such as environment,
health, and safety.
At the summit, a senior manager could articulate the goals
for the coming year and provide recognition for people in
the energy team network. A workshop at the end could
offer a forum for focusing on action steps.
For a multinational organization, the energy summit could
be a global webcast. In other cases, companies might prefer
to host the summit at corporate headquarters and facilities
on a rotating basis. When held at a plant, the summit could
include a walk-through to showcase successes.
Energy fairs and exhibitions are one- to three-day events
for all employees, their families, and even neighbors
to educate them about basic energy strategies for the
home. Energy fairs normally are held at facilities and can
include representatives from outside organizations, such
as government or local utilities, to man the booths. The
energy fair could be held in connection with Earth Day,
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Energy Awareness Month (October), or in conjunction
with "Bring Your Daughter or Son to Work" days. One
approach is to work with your organization's event planner
to help stage the exhibition. The expected outcome is
that employees' increased knowledge will translate to a
culture of energy efficiency in the workplace.
FOR EXAMPLE, to solicit energy project ideas,
Starwood Hotels held a competition where the
prize was a Porscheฎ Boxster convertible. The
energy management team received more than
200 suggestions.
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FOR EXAMPLE, times
is always looking fora
thoughtful, diplomatic
way of fostering
healthy competition
among its properties.
But, in the meantime,
the company is alert
to opportunities
for saving energy
that develop out of
satisfying needs
expressed by tenants.
When one tenant
complained about
noise near the air-
handling rooms,
Mines considered
sound-deadening
technologies, but
found instead that
installation of variable
frequency drives
on the air-handling
units would solve the
problem while also
cutting energy use
in half.
OTHER TOOLS FOR RAISING AWARENESS
Posters, intranet sites, surveys, and competitions are
additional tools for informally raising awareness of energy
efficiency and transferring knowledge. Attractive and
informative posters and intranet sites keep the energy
program vividly in front of people's eyes and educate them
at the same time.
DO: Consider conducting a short survey or questionnaire
that polls the entire workforce or a sample subset
of employees to raise energy awareness and gauge
employee attitudes toward energy efficiency.
DO: Hold contests to build interest and keep the energy
program fresh.
DO: Use free ENERGY STAR Partner and Employee
Awareness poster templates to help raise awareness of
your energy program.
Bur Actions Makfr a Different
We can change Hie World!
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FORMAL TRAINING
Investing in training that promotes employee development
helps ensure the success of the energy program by building
overall organizational capacity. Informed employees
are more likely to contribute ideas, operate equipment
properly, and follow procedures.
Formal training can be targeted to address specific energy
management issues and transference of skills, and it
also can be used as an opportunity to gather feedback.
Training can be conducted at a particular site, or it can
be organization-wide. Consider whether the participants
should include a mix of departments and a mix of managers
and other employees. Including managers can demonstrate
organizational commitment but might inhibit discussion.
Training that promotes the professional development of
key energy team members sustains the success of the
corporate program. Organizations such as the Association
for Energy Engineers offer a one-week course that
qualifies successful participants to become certified
energy managers. Some utilities and community colleges
offer specialized training, such as the Building Operator
Certification for building managers.
FOR EXAMPLE,
Owens Corning,
by educating its
employees, improved
the operation of air
dampers in order
to use less air and
natural gas during
the incineration
process, reducing
energy consumption
for incineration by 10
percent. Training paid
off big time.
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EPA offers several opportunities to keep abreast of energy
issues. Web conferences on energy management featuring
ENERGY STAR partners are held monthly. ENERGY STAR
Focuses identify and reduce barriers to energy efficiency in
specific sectors through technical guidance, performance
indices, and meetings. In addition, online training in ENERGY
STAR sector-specific tools, such as Portfolio Manager, is
free and is offered regularly.
DO: Training that is interesting and fun is more likely to
stick with nonenergy team employees.
DO: If you use a professional instructor, avoid
overscheduling the person's time, lest the sessions begin
to sound canned.
DO: Consider training specific individuals to become
technical experts in key equipment and facility utilities
that affect energy use, such as HVAC systems and
compressed air.
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OUTSOURCING AND SERVICE PROVIDERS
Outsourcing to external consultants to perform
maintenance and metering to gather data can sometimes
have certain advantages. For example, if your organization
has insufficient in-house staff to perform regular
maintenance of steam traps, it can make sense to hire a
consultant. Outside eyes also can catch inefficient practices
that are often overlooked by company employees or even by
the energy team. Using third-party consultants and service
providers can be especially effective when conducting
assessments and technical audits.
If outsourcing is your choice, watch out for certain pitfalls.
Consultants and service providers should not become
the master of the knowledge, leaving no expertise within
your organization. To avoid that, make the outsourcing
company a true partner and team member. Remember,
when meaningful performance metrics, incentives for
good performance, and penalties for lack of performance
are established, there is a common set of expectations
that can reduce problems.
DO: Consider outsourcing turn-key projects, such as
lighting upgrades, that are easily replicated and monitored
across multiple sites.
FOP EXAMPLE, Owens Corning hired a consulting company that placed project
managers in the plants. Some are experts in process improvement, others are energy
experts. "We believe that when you have people on staff, they have a tendency to be
pulled in a hundred different directions," says Owens Coming's Fred Dannhauser. "We
couldn't get enough traction without getting a resource dedicated 100 percent of the
time for a certain period. But we didn't necessarily need someone in that role forever,
just while we addressed the backlog of projects. Whether you use outsiders is not as
important as using someone who is really going to dedicate time and who will be
held accountable for reducing energy consumption. We kept the charges for the project
managers at the corporate level, but the plants did the implementing."
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CROSS-COMPANY NETWORKING
Active participation in industry and energy-focused
associations can provide a way to share program
experiences and results, as well as to learn from others.
Speaking engagements at industry events are an effective
way to share your organization's successes and motivate
others to improve energy performance.
Exchange of information and ideas on energy efficiency
within and across industrial and commercial sectors
and from ENERGY STAR can translate into significant
cost savings credited to your organization's energy
management program.
FOR EXAMPLE, Eastman Kodak leveraged its partnership with ENERGY STAR to look
into saving energy on exhaust hoods in laboratories. "I sent out an email and got five or
six notes back," says Kodak's George Weed. "We learn from each other all the time. We
just did a two-day benchmark exercise with Toyota, with a day in each plant, and we
learned a lot from them and them from us. So now we're sending a person to participate
in a Toyota energy treasure hunt in California. Then after that, they will be helping us
with an energy assessment."
FOR EXAMPLE, California Portland Cement learned
from ENERGY STAR about a U.S. Department of Energy-
funded research project on energy-efficient motors. The
project provides rebates, so the cement manufacturer
will receive a number of new motors gratis in return for
providing readings to the researchers four times per year.
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SUSTAINING THE TEAM
Keeping the energy management program alive and fresh
is perhaps the greatest challenge. Sustaining the program
requires ensuring that managers and employees are
aware of the results. Maintaining motivation also may
entail offering recognition and rewards.
SITUATION:
Your organization's program has lost momentum,
and poor energy habits are creeping back in.
SOLUTIONS:
Energy efficiency needs to become a part of
the culture of your organization, integrated into
its management systems, so thatthe energy
program is self-sustaining and not just a flash
in the pan that is vulnerable to cost-cutting.
The action plan's communications strategies
should celebrate successes and target key
audiences, including staff, stakeholders, and
customers.
A system of incentives, including individual-
and team-focused recognition, can encourage
staff to improve performance.
FOR EXAMPLE, Mines'
Jim Green says the
biggest challenge is
sustainability. "Our
mission is to keep
repeating the message
and educating our
tenants on the
advantages of energy
efficiency, and standing
ready to deliver when
they're ready to go
forward."
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3M
w
FOR EXAMPLE, Vincent
Gates, energy manager
at Merck & Co., Inc.'s
facility in Rahway, NJ,
says, "Creating a
unique name and logo
is critical for building
awareness of your
program and market-
ing it effectively. We
include our program
logo and the address
of our internal energy
web page on all energy
communications. We
have begun adding
the phrase, 'Merck is
now an ENERGY STAR
Corporate Partner,' and
including the ENERGY
STAR logo as well. The
greater recognition of
the ENERGY STAR logo
has caught employee
interest and helped to
increase recognition of
our program."
EFFECTIVE COMMUNICATIONS
Publicizing the results of the energy management program
helps to integrate it into the organization's culture and
foster organizational pride. If you have a good thing going,
let others know.
Getting across the benefits of saving energy and the results
of your program takes effective communications skills.
Possible newsletter subjects include facility achievements
and brief summaries of assessment reports. You may be
able to link your news to corporate or world events. Also
consider asking your organization's public relations depart-
ment for advice on your communications plan.
Methods for communicating results include internal
progress reports, reports on assessments, emails, pay
statement mailers, and publications such as newsletters,
magazines, videos, the organization's intranet, posters,
flyers, energy calendars posted on bulletin boards, and
meetings and conferences.
For celebrating successes externally, press releases and
the World Wide Web are your best bets.
DO: Promote your energy program by using the ENERGY
STAR Partner mark in conjunction with your logo.
DO: Pace your delivery of good news and always have
something worthwhile to say.
DO: Tailor your messages and communications for
your different target audiences, such as management,
employees, and outside stakeholders.
DO: Promote the program at a grassroots level
by educating employees about your organization's
partnership with ENERGY STAR.
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RECOGNITION AND REWARDS
Recognizing the contributions of teams and individuals
helps to reinforce the value of energy efficiency and
encourage even greater improvements. Acknowledging
successes will help sustain motivation. Verbal appreciation,
simple forms of thanks ranging from coffee mugs to formal
written commendations and certificates, plaques presented
at award ceremonies, salary increases, and stock options
can all act as motivators.
Consider recognition to individuals, departments, teams,
and facilities. Look at incentives from the point of view of
employees and ask: "What's in it for them?" Ensure that
all recognition and rewards are equitable and based on
published criteria. You may choose to recognize the best
energy-saving ideas, the greatest reductions in energy
use, and savings increased by "x" amount.
FOR EXAMPLE,
Food Lion's Energy
Awareness Plan
rewards maintenance
staff by awarding
quarterly bonuses
for improving energy
performance. Keeping
maintenance staff
motivated to save
energy has helped
Food Lion reduce its
utility cost per store
per week by 5.5
percent.
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FOR EXAMPLE, EPA
recognized 3M with
the 2005 ENERGY
STAR Partner of Year
Award for Sustained
Excellence. For the
past five years, 3M has
reduced its energy use
by 4 percent annually
across all facilities for
more than $190 million
in savings.
James T. Mahan, senior vice
president-engineering for3M,
accepts an ENERGY STAR Award
for Sustained Excellence-Energy
Management from EPA's Kathleen
Hogan at the 2005 Partner of the
Year Award event.
EXTERNAL RECOGNITION
External recognition from a third party (government
agencies, nonprofits, the media, and trade associations)
validates the importance of the energy program, provides
satisfaction to those who earned the award, and enhances
your organization's public image. A solid reputation
contributes to your organization's competitive advantage
by making it more attractive to customers, current and
potential employees, lenders, and business partners.
Awards, particularly from an outside organization, are
one of your most powerful tools for persuading senior
management to support the energy program. Besides
creating a sense of ownership by the corporate officer, the
award attracts media attention and positive PR for the
organization.
ENERGY STAR brings credibility to an organization's
energy management program. Once an organization wins
an ENERGY STAR award or earns the ENERGY STAR
for a facility, it becomes an unquestionable symbol of
commitment to achieving excellence in energy performance.
DO: Invite corporate officers to accept awards at high-
profile industry and government conferences.
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MAINTAINING MOMENTUM
One test of whether your organization's energy
management program is successful is whether the
energy director would be replaced if he or she left or was
promoted. Another test is whether your organization's
energy use is showing continuous improvement despite
changes in key personnel.
DO: Recharge commitment by reviewing and updating
your organization's energy policy to ensure that it is not
just regarded as corporate wallpaper.
FOR EXAMPLE, between 1997 and 2004, Toyota
decreased energy use per unit of production (cars
going out the door) by 20 percent for all its North
American plants. "Everyone has responsibility for
improving the environment," says Toyota's Bruce
Bremer, "not just at work, but also at home."
SITUATION:
The energy
director has been
promoted to another
position orthe
senior manager
who served as the
program's champion
has retired. The
new senior manager
lacks a personal
commitment to
energy efficiency.
SOLUTION:
The organization's
energy management
program should
contain a built-in
plan for succession,
such as a provision
for the energy team
and organization
executives to select
a new energy
director.
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FOR MORE INFORMATION
Participation in ENERGY STAR presents an excellent
opportunity for an organization to benchmark itself against
peers, reduce costs, and improve and gain recognition
for its voluntary energy efficiency accomplishments.
Producing an energy management program with results
that the entire organization can be proud of can lead to
recognition for the team and management respect for the
energy manager.
EPA's ENERGY STAR program offers the following
information and resources for creating effective teams:
Sample briefings
Financial analysis calculators
Communications materials
Tracking and benchmarking training
Technical guidance
Networking
Access to energy professionals
Visit www.energystar.gov or contact:
ENERGY STAR
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue NW (6202J)
Washington, DC 20460
energystarbuildings@epa.gov
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NOTES & NEXT STEPS
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