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