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1 TEAMING UP TO SAVE ENERGY Protect Our Environment Through Energy Efficiency

2 CONTENTS An Energy Wake-Up Call . . . . . . . . . . . . . . . . . . 1 Teaming Up to Save Energy Checklist . . . . . . . . 4 7 Organizing Your Energy Team . . . . . . . . . . . . . . Starting Your Energy Program . . . . . . . . . . . . . . 16 21 Building Capacity . . . . . . . . . . . . . . . . . . . . . . Sustaining the Team . . . . . . . . . . . . . . . . . . . . 29 Maintaining Momentum . . . . . . . . . . . . . . . . . 33 34 For More Information . . . . . . . . . . . . . . . . . . . FOREWORD ith energy programs that achieve Organizations w 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 ® “Guidelines for Energy (EPA) ENERGY STAR 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. “Guidelines f This guide complements or Energy Management,” which is available online a t gov. tar. gys ener www. ii

3 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. SITUATIONS: • Rising energy costs Strong energy management is a strategic asset. Besides and increasing price reflecting overall management acuity, it can be a sign of volatility. future profitability. Financial analysts and investment firms • Concerns about the increasingly view the quality of energy management as an reliability of supply. indicator of financial performance. Organizations often differ dramatically in energy SOLUTIONS: performance, even when they belong to the same - • Consider going be industrial or commercial sector, operate under the same yond the traditional market conditions, and use the same equipment. Why the organizational focus big performance gap? on energy supply and procurement. • Reduce supply risks The high performers adopt a structured approach to by improving energy energy management and establish policies and procedures efficiency. 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. 1

4 The ENERGY STAR “Guidelines for Energy Management” SITUATION: provide a framework for organizations as they develop and • Your organization’s implement an energy management program. The steps of senior managers the management strategy outlined in the “Guidelines for are convinced that Energy Management” are broadly illustrated in the graphic energy management on page 3. More details on the “Guidelines for Energy requires capital- Management” can be found at intensive purchases or new technology. 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, SOLUTIONS: benchmarking, monitoring, and evaluating the organizational • Use internal energy management program. The team’s duties also examples of energy include delivering training, communicating results, and savings from better management providing recognition. practices and low- cost improvements. This guide is designed to help organizations develop • Find examples of effective energy teams. The guide provides assistance wasted energy through checklists, guidance, and examples for: and calculate the savings from better • Organizing your energy team practices. • Starting your energy program • Use life-cycle costs • Building capacity and benefits to • Sustaining the team, and evaluate capital • Maintaining momentum expenditures rather than just initial costs. FOR EXAMPLE, a culture of energy efficiency is • Cite examples of , an Hines embedded within the organization at leading companies international property development company that and organizations builds and manages office space and other real estate. with strong energy “Making wise use of energy is part of our company programs. 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.” 2

5 GUIDELINES FOR ENERGY MANAGEMENT ��������������� ������������������ ����������� ������ ����������� ��������� ��������� ��������� ������������ ����������� �������� �������� This diagram illustrates the main management elements of the ENERGY STAR “Guidelines for Energy Management.” To read the Guidelines, visit 3

6 TEAMING UP TO SAVE ENERGY CHECKLIST Page S ee ORGANIZING YOUR ENERGY TEAM ✔ Able to work with all staff levels from maintenance 7 Energy Director to engineers to financial officers Senior-level person empowered by top management support Energy director reports to senior executive or to a 8 Senior senior management council Management Senior champion or council provides guidance and support 9 Members from business units, operations (e.g., Energy Team engineering), facilities, and/or regions Energy networks formed Support services (PR, IT, and HR) Facility managers, electrical personnel 12 Facility Involvement Two-way information flow on goals and opportunities Facility-based energy teams with technical person as site champion Consultants, vendors, customers, and joint venture 13 Partner partners Involvement Energy savings passed on through lower prices 14 Separate division and/or centralized leadership Energy Team’s Structure Integrated into organization’s structure and networks established 15 Energy projects incorporated into normal budget Resources and cycle as line item Responsibilities Energy director is empowered to make decisions on projects affecting energy use Energy team members have dedicated time for the energy program 4

7 Page ee S ✔ STARTING YOUR ENERGY PROGRAM 16 Senior management briefed on benefits, proposed Management approach, and potential energy team members Briefing Energy team met initially to prepare for official launch 16 Planning Success showcased at the official launch 16 Strategy 17 Organizational kickoff announced energy network, Program Launch introduced energy director, unveiled energy policy, and showcased real-world proof Work plans, responsibilities, and annual action plan 18 Energy Team established Plans 19 Facility audits and reports conducted, energy Facilities efficiency opportunities identified Engagement Page ee S ✔ BUILDING CAPACITY Systems established for tracking energy 21 Tracking and performance and best practices implementation Monitoring Events for informal knowledge transfer, such as 22 Transferring energy summits and energy fairs, implemented Knowledge Awareness of energy efficiency created through 24 Raising posters, intranet, surveys, and competitions Awareness 25 Participants identified, needs determined, and Formal Training training held Involvement in ENERGY STAR Web conferences and meetings encouraged Professional development objectives established for key team members 27 Use of outside help has been evaluated and Outsourcing policies established 28 Outside company successes sought and internal Cross-Company successes shared Networking Information exchanged to learn from experiences of others 5

8 Page ee S SUSTAINING THE TEAM ✔ Awareness of energy efficiency created throughout 30 Effective company Communications Energy performance information is published in company reports and communications 31 Internal awards created and implemented Recognition and Rewards Senior management is involved in providing recognition Credibility for your organization’s energy program 32 External achieved Recognition Awards from other organizations have added to your company’s competitive advantage ee S Page MAINTAINING MOMENTUM ✔ 33 Built-in plan for continuity established Succession Energy efficiency integrated into organizational culture Sustainability of program and personnel achieved 33 Measures of Success Continuous improvement of your organization’s energy performance attained 6

9 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. “I’m FOR EXAMPLE, The energy director should be passionate about energy on the road 50 to management without being a zealot or grandstanding, 60 percent of the both of which can decrease team cohesion. time,” says Fred Dannhauser, former Some energy directors have a technical background; global energy manager others have financial experience or have been plant Owens Corning . at managers. Regardless of background, the energy “I’m interested in director must be able to work with all staff levels, from going to the plants maintenance to engineers to financial officers. and being out on the floor and being their Share credit for the achievements of the energy DO: barrier buster with the management program with everyone involved. This corporation.” practice avoids “ownership” struggles and can increase participation because everyone wants to be part of a winning effort. Visit the organization’s facilities on a regular basis to DO: determine their needs. 7

10 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. 8

11 ENERGY TEAM FOR EXAMPLE , at As with the strategic-level council, the number of people California Portland on the energy team at the operational level depends on Cement Company , a the size of your organization. The right mix of players on subset of the company’s this energy steering committee is crucial. The energy energy team is made director might recruit team members based on business up of process engineers units, operational areas, and/or regions. who visit a different plant every six weeks Consider a representative from each operational area that and do an energy audit. significantly affects energy use, such as: At one plant, the pro - cess engineers focused on the finish grinding system and identified - $300,000 in opportuni ties for annual energy Purchasing savings. Engineering Financial and Process Management Operations and Research and Maintenance Development Energy Team Utilities Building Design and Facilities Management Contractors Environmental and Suppliers Health and Safety Construction Corporate Management Real Estate and Leasing 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. 9

12 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 team to 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 shareholder value. 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. Speak the 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. 10

13 Additional Support Services: • Public Relations: PR departments can help share at FOR EXAMPLE, information with the organization and help ensure Colorado Springs favorable publicity for your organization’s energy School District 11 , a management accomplishments. team with engineering • IT personnel can help with Information Technology: and technical expertise tracking systems and web-based communications. - coordinates energy proj Human Resources • : HR personnel help you staff ects. The team meets the energy team, train the workforce, and administer with a committee made performance standards and rewards. - up of principals, teach ers, building managers, a INVOLVING FACILITIES AND PROPERTIES procurement department Most energy improvements are implemented at the facility - representative, food ser and property level. Changing current, often inefficient, vice managers, security operating practices to a culture of efficiency requires department director, and that facilities or properties buy into the principles of the vendors. organization’s energy management program. SITUATION: the FOR EXAMPLE, General Motors Corporation • Facility employees has an Energy and Environmental Strategy Board and managers are consisting of directors and headed by the executive too busy to work with vice president. At the next level is a Global Energy the energy team, but Team with representatives from GM North America, are the ones whose GM Europe, GM Latin America, and GM Asia/Pacific. help you need. 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, SOLUTION: • Attend facility meet - which is responsible for energy consumption and ings or participate in the energy budget for GM North America. Finally, discussions to learn every plant has an Energy Conservation Team that about their concerns includes both salaried and hourly people. and how you can address them. • Provide information, tips, and reminders on how to save energy. 11

14 FORMING A FACILITY-BASED ENERGY TEAM FOR EXAMPLE, during A mechanism to involve people at facilities and properties visits to Hines’ is essential since day-to-day working practices in the managed properties, facilities greatly influence energy efficiency. Jim Green offers suggestions on STEPS: introducing new • Send out the ENERGY STAR Partnership letter signed technologies, but he by your CEO to the facility managers and ask them to also finds that ideas participate. The letter is a proven door-opener. are a two-way street. • Ask the plant or property managers to identify a person “I might visit a property who will “own” energy management at that facility and that has a technology serve as the site energy champion. that I’ve not seen • Provide the site champion with information on installed before, so I’ll the benefits of energy efficiency to educate other ask the manager to employees. put together a ‘best • Encourage the site champion to form an energy practices,’ and I’ll team that includes the plant’s key operations and show him how to do maintenance people. that. That way, we share information and Meet informally during half-hour breaks so as not to DO: spread concepts and interfere with regular work schedules of the site energy technologies.” 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. Illustrate how energy management practices support DO: the facility’s and company’s goals. FOR EXAMPLE, “Instead of a top-down structure, has more of a give-and-take negotiation with Toyota the plants,” says Bruce Bremer, manager of Facility Engineering–Engineering Support at Toyota. “We are constantly asking them for their input and involvement.” 12

15 INVOLVING PARTNERS, CONSULTANTS, FOR EXAMPLE, VENDORS, AND CUSTOMERS , General Motors Consider engaging your joint venture partners, customers, through the Suppliers vendors, and service providers in the energy management Partnership for the program. ™ Environment , has Vendors and service providers who reduce their own helped its suppliers energy costs might pass those savings on by charging evaluate how to lower prices. Those suppliers also can help advance your manage and use organization’s energy management program by providing energy. 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. FOR 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. 13

16 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 “As part FOR EXAMPLE, organization’s strategic business planning sessions. of our environmental activities, energy Don’t go it alone! Successful teams avoid a maverick savings is listed as one reputation, which can make energy management seem like of our key performance a marginal activity and thus at risk of elimination. Energy indicators,” says Bruce management should be integrated into the organization’s . “So Bremer of Toyota structure as part of its core business, rather than being it’s right up there on a stand-alone activity that gives the impression of being our radar screen. Over in its own world. When energy management is fully the years, we moved integrated, each department or function has an energy it up on the company’s management role as part of its staff members’ jobs. priorities by keeping it visible.” Pass credit to others who are not part of the team but DO: are implementing the energy improvements. INTEGRATION OF Track Plan Develop Implement Establish ENERGY MANAGEMENT Energy Energy Energy Cost Energy ACTIVITIES Projects Goals Projects Estimates Savings Energy Management ✔ ✔ ✔ ✔ ✔ Team Engineering Department ✔ ✔ ✔ Financial Management Department ✔ Building Design and ✔ Facilities Department ✔ ✔ 14

17 FOR EXAMPLE, “Our biggest areas for potential improvement require a large capital investment,” says RESOURCES AND RESPONSIBILITIES Stephen J. Coppinger, Funding is a key to the success of the energy P.E., chief electrical management program. Some organizations set aside engineer at California a percentage of their budgets for energy projects. The . Portland Cement challenge is to get energy projects incorporated in “But we’ve been able to the normal budget cycle as a line item. Timing is all- show plant managers important. Seek funds early, rather than adding projects that there are a lot of after the annual budget is finalized. things we can do short of spending a lot of Strive to establish the energy director as a full- DO: money. A consultant did time position and allocate at least 20 percent of each a study and came up energy team member’s time if your company has multiple with a list of projects facilities and large energy expenditures. at one plant with a potential savings of Consider securing a different hurdle rate or return DO: $400,000 and a one- on investment (ROI) for large or capital-intensive energy or two-year payback. projects that will help hedge against rising energy costs. And those projects can be replicated at DO: Consider developing a capital fund for energy other plants.” projects based on a percentage of the savings achieved from the projects. 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.” 15

18 STARTING YOUR ENERGY PROGRAM The experience of organizations with successful energy programs reveals that careful planning and effective FOR EXAMPLE, outreach at the launch of the program creates momentum established Raytheon for the energy team. Successful program launches have an energy awareness involved: month as the launch pad for kicking off its • Planning – Prior to any official launch, the energy program. “Each site director should prepare a briefing on the benefits of picked a day during energy efficiency, the proposed approach, and a list of the month and held potential members of the energy team. an event,” says David Chamberlain, principal • Presentations to Senior Management – The energy energy engineer director, with the support of a senior energy champion, at Raytheon. “We should brief senior management. focused on employee awareness of energy • Team Strategy – A series of meetings of the energy savings at their homes, team to prepare for the program’s official launch since people tend to should be held. The team should consider initiatives to be more interested highlight, such as a successful pilot project that could when they’re paying be showcased at the program’s kickoff. A pilot project the bill. We teamed up ® with a short payback period can provide credibility and with Lowe’s and local real-world evidence of actual dollar savings. 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. 16

19 • 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. 17

20 ENERGY TEAM PLANS At the first meeting of the corporate energy team, a schedule FOR EXAMPLE, the for future meetings is established. How frequently the team energy team at gets together varies from organization to organization, but California Portland monthly meetings appear to be the norm. As communication Cement meets every channels, meetings are superior to emails, which may tend six weeks, each time at to be ignored. Multinational organizations might conduct a different plant on a monthly team meetings by conference call or webcast, with rotating basis. “During face-to-face meetings held on a quarterly or annual basis. our initial audit, we learned about energy At the meetings, the team members report on their progress improvements that on assigned tasks and provide monthly reports on energy use we are now applying so that the team can build up data. The meetings also offer at other plants,” says opportunities for presentations on best practices by in-house Stephen Coppinger, and outside technical and operational experts. In addition, “such as putting new members can network with each other, learn about key timer cards in dust contacts, and share problems for which the other attendees collectors, which save might be able to offer potential solutions. Meetings also are compressed air. And, a mechanism for linking facilities so they can replicate best instead of repairing old, practices and thus avoid reinventing the wheel. less efficient motors, we’re looking at our Each year, the energy team should develop an action plan purchasing policy on for the year ahead, with activities to be conducted. In this premium energy- way, the team becomes proactive in planning its time and efficient motors.” ensuring that projects are funded. corporate energy team meets every month with plant energy General Motors’ FOR EXAMPLE, 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.” 18

21 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. Eastman FOR EXAMPLE, 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.” 19

22 “Deliver the goods” by ensuring that responses to DO: suggestions from plant workers are positive and prompt FOR EXAMPLE, and that results are obtained quickly. “At facilities where we are making the Prioritize the actions and improvement that should DO: same product at each take place first and that will lead to early success. and every shift,” says ’s Owens Corning Suggest schedules and timelines to ensure that DO: Fred Dannhauser, “we recommendations will be implemented. got some mileage by creating a competition Leverage existing assessment methods and problem- DO: - once we were bet solving techniques employed by your company. ter able to measure energy use.” If Shift A consumed less energy FOR EXAMPLE, - than Shift B, for exam also conducts kaizens, plus Toyota ple, the second shift three-day assessments called treasure hunts. The hunt begins on a Sunday to see whether equipment decided to be more conscientious so they is shut off, continues on Monday and Tuesday to look at production startup and shutdown. At the could win. “First, we closing meeting on Tuesday, the team presents had to have data that ideas and cost savings to the plant managers. The would stand the test of participants, gathered from Toyota’s other plants, integrity,” Dannhauser cautions. 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.” 20

23 BUILDING CAPACITY FOR EXAMPLE, General Motors Two essential components of your organization’s energy uses a scorecard to management program are: track performance at • Mechanisms for tracking and communicating progress; each plant. The GM and 2100 data-gathering • Informal and formal tools for transferring that system contains a information to managers and workers. built-in mechanism for generating charts that Systems that track energy performance, implementation of compare energy use best practices, and progress toward goals are also effective at the facilities on a tools for evaluating progress and communicating successes. monthly and quarterly A second key element is a knowledge management system basis. 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 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 Bremer. “He receives the reports for North America as a whole and for each plant.” 21

24 TRANSFERRING KNOWLEDGE FOR EXAMPLE, Two powerful tools for informal training are energy -Lay holds a o Frit summits and energy fairs. three-day energy summit annually for are usually annual get-togethers for Energy summits all members of the technology transfer. The energy network gathers to energy team, key exchange information on the program and best practices, plant personnel, and and to discuss new project ideas. Energy summits also selected service and provide an excellent time to offer training and bring in product provider outside speakers to discuss energy management issues. partners. Other organizations, such as Attendees can include outside experts from another United Technologies industry sector, voluntary program partners, consultants, Corporation and and nonenergy corporate divisions such as environment, GlaxoSmithKline, health, and safety. hold annual two-day energy summits. 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. and exhibitions are one- to three-day events Energy fairs 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, 22

25 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 Porsche Boxster convertible. The energy management team received more than 200 suggestions. 23

26 OTHER TOOLS FOR RAISING AWARENESS Hines FOR EXAMPLE, Posters, intranet sites, surveys, and competitions are is always looking for a additional tools for informally raising awareness of energy thoughtful, diplomatic efficiency and transferring knowledge. Attractive and way of fostering informative posters and intranet sites keep the energy healthy competition program vividly in front of people’s eyes and educate them among its properties. at the same time. But, in the meantime, the company is alert DO: Consider conducting a short survey or questionnaire to opportunities that polls the entire workforce or a sample subset for saving energy of employees to raise energy awareness and gauge that develop out of employee attitudes toward energy efficiency. satisfying needs expressed by tenants. DO: Hold contests to build interest and keep the energy When one tenant program fresh. complained about noise near the air- DO: Use free ENERGY STAR Partner and Employee handling rooms, Awareness poster templates to help raise awareness of Hines considered your energy program. 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. 24

27 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 FOR EXAMPLE, also can be used as an opportunity to gather feedback. , Owens Corning Training can be conducted at a particular site, or it can by educating its be organization-wide. Consider whether the participants employees, improved should include a mix of departments and a mix of managers the operation of air and other employees. Including managers can demonstrate dampers in order organizational commitment but might inhibit discussion. to use less air and natural gas during Training that promotes the professional development of the incineration key energy team members sustains the success of the process, reducing corporate program. Organizations such as the Association energy consumption for Energy Engineers offer a one-week course that for incineration by 10 qualifies successful participants to become certified percent. Training paid energy managers. Some utilities and community colleges off big time. offer specialized training, such as the Building Operator Certification for building managers. 25

28 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. 26

29 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. Consider outsourcing turn-key projects, such as DO: lighting upgrades, that are easily replicated and monitored across multiple sites. FOR 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 Corning’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.” 27

30 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, East man 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 Toyota , with a day in each plant, and we just did a two-day benchmark exercise with 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. 28

31 SUSTAINING THE TEAM Keeping the energy management program alive and fresh is perhaps the greatest challenge. Sustaining the program ’ Hines FOR EXAMPLE, requires ensuring that managers and employees are Jim Green says the aware of the results. Maintaining motivation also may biggest challenge is entail offering recognition and rewards. sustainability. “Our mission is to keep repeating the message and educating our SITUATION: tenants on the • Your organization’s program has lost momentum, advantages of energy and poor energy habits are creeping back in. efficiency, and standing ready to deliver when SOLUTIONS: they’re ready to go • Energy efficiency needs to become a part of forward.” the culture of your organization, integrated into its management systems, so that the 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. 29

32 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 Vincent FOR EXAMPLE, able to link your news to corporate or world events. Also Gates, energy manager consider asking your organization’s public relations depart - Merck & Co., ’s at Inc. ment for advice on your communications plan. facility in Rahway, NJ, says, “Creating a Methods for communicating results include internal unique name and logo progress reports, reports on assessments, emails, pay is critical for building statement mailers, and publications such as newsletters, awareness of your magazines, videos, the organization’s intranet, posters, program and market - flyers, energy calendars posted on bulletin boards, and ing it effectively. We meetings and conferences. include our program logo and the address For celebrating successes externally, press releases and of our internal energy the World Wide Web are your best bets. web page on all energy communications. We DO: Promote your energy program by using the ENERGY have begun adding STAR Partner mark in conjunction with your logo. the phrase, ‘Merck is now an ENERGY STAR DO: Pace your delivery of good news and always have Corporate Partner,’ and something worthwhile to say. including the ENERGY STAR logo as well. The Tailor your messages and communications for DO: greater recognition of your different target audiences, such as management, the ENERGY STAR logo employees, and outside stakeholders. has caught employee interest and helped to Promote the program at a grassroots level DO: increase recognition of by educating employees about your organization’s our program.” partnership with ENERGY STAR. 30

33 RECOGNITION AND REWARDS FOR EXAMPLE, Recognizing the contributions of teams and individuals Energy Food Lion ’s helps to reinforce the value of energy efficiency and Awareness Plan encourage even greater improvements. Acknowledging rewards maintenance successes will help sustain motivation. Verbal appreciation, staff by awarding simple forms of thanks ranging from coffee mugs to formal quarterly bonuses written commendations and certificates, plaques presented for improving energy at award ceremonies, salary increases, and stock options performance. Keeping can all act as motivators. maintenance staff motivated to save Consider recognition to individuals, departments, teams, energy has helped and facilities. Look at incentives from the point of view of Food Lion reduce its employees and ask: “What’s in it for them?” Ensure that utility cost per store all recognition and rewards are equitable and based on per week by 5.5 published criteria. You may choose to recognize the best percent. energy-saving ideas, the greatest reductions in energy use, and savings increased by “x” amount. 31

34 EXTERNAL RECOGNITION FOR EXAMPLE, EPA External recognition from a third party (government recognized with M 3 agencies, nonprofits, the media, and trade associations) the 2005 ENERGY validates the importance of the energy program, provides STAR Partner of Year satisfaction to those who earned the award, and enhances Award for Sustained your organization’s public image. A solid reputation Excellence. For the contributes to your organization’s competitive advantage M has 3 past five years, by making it more attractive to customers, current and reduced its energy use potential employees, lenders, and business partners. by 4 percent annually across all facilities for Awards, particularly from an outside organization, are more than $190 million one of your most powerful tools for persuading senior in savings. 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. Invite corporate officers to accept awards at high- DO: profile industry and government conferences. James T. Mahan, senior vice president–engineering for 3M, accepts an ENERGY STAR Award for Sustained Excellence–Energy Management from EPA’s Kathleen Hogan at the 2005 Partner of the Year Award event. 32

35 MAINTAINING MOMENTUM One test of whether your organization’s energy management program is successful is whether the SITUATION: • The energy energy director would be replaced if he or she left or was director has been promoted. Another test is whether your organization’s promoted to another energy use is showing continuous improvement despite position or the changes in key personnel. senior manager who served as the DO: Recharge commitment by reviewing and updating program’s champion your organization’s energy policy to ensure that it is not has retired. The just regarded as corporate wallpaper. new senior manager lacks a personal commitment to energy efficiency. Toyota FOR EXAMPLE, between 1997 and 2004, decreased energy use per unit of production (cars going out the door) by 20 percent for all its North SOLUTION: American plants. “Everyone has responsibility for • The organization’s improving the environment,” says Toyota’s Bruce energy management Bremer, “not just at work, but also at home.” 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. 33

36 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 or contact: ENERGY STAR U.S. Environmental Protection Agency 1200 Pennsylvania Avenue NW (6202J) Washington, DC 20460 [email protected] 34

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