Download - RUSSELL EMWS 2013
UPHILLORDOWNHILL:HowShalltheRockofEnergyEfficiencyRoll?
ChristopherRussell,Principal
Energy PathFINDER .com (443)636-7746
AboutChristopherRussell,C.E.M.,C.R.M.n Independentconsul?ngsince2006
Principal,EnergyPathfinder
n Visi?ngFellow,AmericanCouncilforanEnergyEfficientEconomy,2012+
n EnergyManager,HowardCounty,MD,2010-2012
n DirectorofIndustrialPrograms,AlliancetoSaveEnergy,1999-2006
n Comm.&Indus.ProgramManager,AmericanGasAssocia?on,1995-1999
n MBA,M.A.,UniversityofMD;B.A.,McGillUniversity
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AboutChristopherRussell
TODAY’SPURPOSE:EvolvetheSTRATEGY
ORGANIZATIONCOMMUNICATION&PHILOSOPHY
…ofindustrialenergymanagementintothe21stcentury.
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STRATEGYUPHILL:Proclaim“reducedu?litybills”asyourpurpose.
DOWNHILL:Proclaimavisionforsuppor?ngcorebusinessgoalsthroughstrategicenergymanagement.
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STRATEGYUPHILL:Approachenergymanagementasaproject.
DOWNHILL:Approachenergysolu?onsasaninvestment.
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STRATEGYUPHILL:UseanENERGYAUDITtodeterminealistofprojects.
DOWNHILL:DevelopBUSINESSPLANthatprovidesaroadmaptobusinessresults.
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STRATEGYUPHILL:Evaluateproposedeffortsfortheircosttodo.
DOWNHILL:Evaluateproposals…• forimpactonoverallinvestedcapitalperformance• incomparisontothecostofdoingnothing
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EXPENSES,INTEREST,
ORINFLATION
CAPITALISALWAYSINMOTION
ECONOMY(opportunity)
PLACEOFLOWRETURNS
PLACEOFHIGHRETURNS
CAPITALISNEVERATREST8©2013Energy PathFINDER.com
THEINDUSTRIALFACILITYISAMICROECONOMY
FACILITY(opportunity)
WEALTHINPUTS
WEALTHCREATED
EXPENSES,INTEREST,
ORINFLATION
Whowillgetsuperiorreturnsfromyourfacilityassets?YOURBUSINESSortheUTILITYCOMPANY?
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PURSUINGECONOMICOPPORTUNITY
1. Benchmarkcurrentcapitalperformance2. Perceiveopportuni?esforsuperiorperformance3. Es?mateinvestmentrisk/return4. Reinvestcapital5. Con?nuousimprovement.SeeStep1.
FortheECONOMY…FortheFACILITY…
DYNAMICSARETHESAME
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ORGANIZATION UPHILL:Delegateallenergymaherstoasingledepartment(silo).
DOWNHILL:Organizeleadershipandskillsincross-departmentalteams.
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ORGANIZATION UPHILL:Allocatebudget,skills,and?mecommensuratewithenergy’spropor?ontototalexpenses.
DOWNHILL:Fundefficiencyeffortspropor?onatelytothemagnitudeandspeedofcashflowthatitcreates.
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COMMUNICATIONS
UPHILL:Assumeeveryonealreadyknowswhatyou’retalkingabout.
DOWNHILL:Manageexpecta?onsthrougheduca?on.
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1-2YEARS
2-5YEARS
5+YEARS
PRICE/PROCUREMENT
AWARENESS&BEHAVIOR
O&M/PROCEDURAL
CAPITALINVESTMENT
SAVINGSPOTENTIALOVERTIME**Author’sSummaryofIndustryKnowledge
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COMMUNICATIONS
UPHILL:Addressmechanicalperformance.Explaineverythingintechno-speak.Describeresultsasenergysaved.
DOWNHILL:Addresscapitalperformance.Ar?culateoutcomesandrewardsastheyaccruetotheagendasofotherdepartments.
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Asknothowmuchenergymanagementshalltakefrom
currentresources.
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Askhowmuch(andatwhatrate)energymanagementshallcreatenewwealth.
COMMUNICATIONS
UPHILL:Executewithoutinforming,persuadingorcollabora?ng.
DOWNHILL:Declareamnestyforpastprac?ces;seek,encourage,andrewardcompliance.
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COMMUNICATIONS
UPHILL:Perceiveenergymanagementasadistrac?onfromstandardopera?ngprocedures
DOWNHILL:Foldenergyperformancecriteriaintoexis?ngbusinessmetricsandaccountabili?es
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COMMUNICATIONSUPHILL:Usesimplepayback.ResultsdescribeHOWLONGittakesforabudgettoreplenishitself.
DOWNHILL:Useratesofreturn.DescribetheRATEandMAGNITUDEofcapital:(1) Createdviayour
agenda,or(2) Destroyedthrough
inac?on
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Youshouldnothavetodefendsuperiorratesandmagnitudesof
investmentreturns.
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Detractorsneedtodefendtherateandmagnitudeofcapitaldestruc?oncaused
byDOINGNOTHING.
DEFENDINGENERGYMANAGEMENT?
PHILOSOPHY UPHILL:Confuseenergyefficiencywithenvironmentalism.
DOWNHILL:Perceiveenergyimprovementsasbusinessopportuni?es.
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PHILOSOPHY
UPHILL:Perceiveenergymanagementasacostcenter.Facilityassetsareacosttobeminimized..Success=nounusualexpenses;don’tgetno?ced.
DOWNHILL:Energymanagement=profitcenter.Success=crea?ngcash,improvingreturnoninvestedcapital,getno?cedforsuppor?ngotherdepartmentalagendas
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“Yeah,but…”
UPHILL:Keeppushingthesamebuhons…andkeepgeqngthesameresults.
DOWNHILL:Applysomeoftheideasfromthispresenta?on.
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YOURFACILITY…
CANBEANATMMACHINE.
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CONCLUSIONS
• Demys?fy• Don’tsave…CREATE!• Mone?ze• Collaborate• Documentandcelebrate
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YOU-TUBE:search“EnergyPathfinderInvestmentCalculator”
Energy PathFINDER .com ChristopherRussell
@ENERGYpathfndr
Feb2008 June2010
THANKYOU!