Maximizing Your Energy Dollars A Strategic Approach to Energy Management

Abstract

Energy management pa ys. And it pa ys considerably. Companies
w ith c omprehen si ve energ y plan s report 20% sa vings . Historicall y,
most c ompan y executives left the energ y decisions in the hand s of the
plant managers or procurement d epartments. But as the financial stakes rise and the energy issues become more complex, corporate ex-
ecutives are beginning to engage in the decision-making process. Two
years ago, research indicated that only 32% of the energy decisions
were made at the corporate level. Recent research reveals that the
number has increased to 48%. In addition, another 8% expected the
decision to move to corporate within the next three years.
Since energy is a new area of focus, many executives are just
starting to familiarize themselves with the critical components of an
energy management program. Time is of the essence. If your company
is failing to address energy from a strategic perspective, it risks end-
ing up with a cost disadvantage against its competition. Organizations
have long embraced strategic planning in other areas of the com -
pany-now is the time to address energy strategically as well.
Embarking down the path of strategic energy management, how-
ever, can be overwhelming. Many people have significant questions
about this burgeoning trend. In this article, we answer some critical
questions concerning energy management. Are the choices too endless
and complex to have real benefit? Are large companies the only ones
with the time and resources to devote to energy management? Do
small companies really gain from adopting a total energy manage-
ment plan?
This report is designed to walk you through the initial steps of
an energ y management program. It can serve as a guide for your
company as you develop your strategic direction in a changing energy
marketplace. Before you set your objectives, however, you need to
determine your company's current energy management IQ. The fol-
lowing quiz will help you assess how well your company is posi-
tioned relative to other large energy users. Once you know your start-
ing point, the rest of the report can help you reach your ultimate des-
tination: unprecedented savings.