Energy leaders are gaining a competitive edge. Can you count yourself among them? If not, how do you become one? We’ve developed a model to help.
Figure 4: Based on responses to 12 questions in the Energy Leadership Survey—see “About this research” on page 30 [Base: 1,633]
We’ve established a unique tool to help you understand what you need to do to get more from energy.
Our Energy Leadership Model looks at a range of indicators, including attitude to energy, use of energy solutions, sophistication of controls, and measures and targets in place. It sets out four stages of energy leadership, based on vision and execution.
Most advanced: Most likely to have a formal energy strategy and a dedicated energy team.
Very advanced: Likely to have a formal strategy and measure energy usage on a continuous basis.
Fairly advanced: Have moved beyond considering energy exclusively as a cost of doing business.
Least advanced: Least likely to look at energy for competitive advantage.
Less than one in ten organizations count themselves among the most advanced in their approach to energy. These companies are excelling, relative to their peers, in both execution and vision. They’re maximizing internal efficiencies and building resilience. And they’re also addressing more outward-facing energy priorities, such as achieving sustainability, and social and environmental responsibility—and, in doing so, they’re enhancing the reputation of their brand.
At the most advanced companies, energy is embedded at the very heart of the organization, and is playing a significant role in improving business performance.
The latest energy solutions can help you achieve much more than simply managing energy costs. It takes more than a new solution to become an energy leader though. Those who can sell a vision of how energy can make a difference will be the ones that get noticed by the board. If you want your organization to be among the most advanced, you’ll need to take longer-term focus, be open and transparent with stakeholders and embrace innovation.
Figure 5: Based on responses to nine questions in the Energy Leadership Survey. Shading denotes proportion responding positively to question [Base: 957–1,007]
Taking an industry view of energy leadership suggests that manufacturing is out in front in terms of vision and execution. This is likely to be because energy is so critical for these businesses, making it a clear priority for investment.
Following manufacturing is real estate. This includes construction—an industry under pressure to adopt sustainable practices. The EU’s Energy Performance of Buildings Directive, for example, requires all new buildings to be “nearly zero energy” by December 2020. Policies like this are stimulating industry-wide discussions about energy-efficient technologies.
While smaller businesses tend to be less advanced when it comes to energy leadership, opex-based financing models are making advanced solutions more accessible. Many small businesses are already benefitting from investments in solutions like smart lighting which have shorter term ROI.
The segment of companies with the highest average position on our model is those with 2,500 to 9,999 employees. This is likely to be because these organizations have the scale to see the benefits of energy efficiency clearly and they are able to drive change. Larger organizations, with more than 10,000 employees, may face complexities in terms of decision-making and implementation where existing policies and attitudes may result in a slower pace of change.
Our research suggests that energy leadership isn’t predicated by what industry you’re in, or the size of your organization. It’s about attitude, investment in innovative solutions and your approach to management.
Energy leaders are those who have both the vision to recognize the strategic role that energy can play and the ability to deliver against that vision. Traditionally, energy managers have focused on execution and have been challenged with getting support for the vision. The most successful energy managers are those who collaborate effectively with business stakeholders for whom energy is critical. By working together, it is much easier to develop a compelling vision of the role of energy in achieving business goals and to capture the attention of the board.
To push your agenda forward, you need a coherent strategy that balances vision with execution. And that requires strong ‘C-level’ support.
Figure 6: Based on responses to 12 questions in the Energy Leadership Survey— see “About this research” on page 30 [Base: 1,633]
Figure 7: Based on responses to 12 questions in the Energy Leadership Survey— see “About this research” on page 30 [Base: 1,633]
