3 Reasons Why Energy Management Programs Fail

Implementing an energy management program is an effective way to save on operating costs. In addition to energy savings, a successful program can really pay off in a number of ways, including:

•    Lower maintenance costs
•    Increased productivity and reduced waste
•    Reduced water consumption and lower material costs
•    Improved workplace safety and better indoor air quality

With these benefits, it's no wonder a growing number of organizations are making energy management a key part of their overall business strategy. Unfortunately, many programs fail to realize their full potential.

The reasons for this vary, but the following are three common issues that cause these programs to fall short of their goals:

1.    Insufficient commitment from top management. The full support and enthusiasm of the CEO and other top executives are critical in realizing long-term savings. Only they have the authority to allocate the staff and resources necessary for success.
2.    Budgets and responsibilities are poorly aligned. In many organizations, one department or budgetary unit must invest in energy efficiency while another realizes the savings. This can be a problem if the program's budget is distributed throughout the organization. Giving the program its own budget can help coordinate the allocation of resources with goals and accountability.
3.    Lack of data transparency. Without a means to track progress, it's difficult to evaluate program success and sustain momentum. Establish metrics and tools to measure energy consumption and regularly compare the results against program goals.

Seven Steps to Success

So how do you ensure the success of your program beyond just avoiding these problems? Use the U.S. Environmental Protection Agency's seven-step approach to effective energy management:

•    Step 1. Commit to continuous improvement. Appoint an energy team and allocate adequate staff and funding.
•    Step 2. Assess performance. Gather energy use data and benchmark against similar facilities.
•    Step 3. Set goals. Establish clear and measurable goals to guide energy management activities and promote improvement.
•    Step 4. Create an action plan. Develop performance targets, set timelines and establish a tracking system. Determine individual roles and define necessary resources.
•    Step 5. Implement the action plan. Develop a communication plan to raise energy awareness. Provide training in energy-saving practices and procedures and offer incentives to motivate staff.
•    Step 6. Evaluate progress. Review energy use data and action plan activities and use this information to create new action plans and update performance goals.
•    Step 7. Recognize achievements. Reward staff who help achieve energy-saving goals. Seek recognition by earning green certifications to validate the importance of energy management.

See Guidelines for Energy Management for details on developing a program that exceeds your expectations.