TEAMING UP TO 

SAVE ENERGY

Protect Our Environment 

Through Energy Efficiency
ii

FOREWORD

Organizations with energy programs that achieve 

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 

(EPA) ENERGY STAR® “Guidelines for Energy 

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. 

This guide complements “Guidelines for Energy 

Management,” which is available online at 

www.energystar.gov.

CONTENTS

An Energy Wake-Up Call . . . . . . . . . . . . . . . . . . 1 

Teaming Up to Save Energy Checklist . . . . . . . . 4 

Organizing Your Energy Team . . . . . . . . . . . . . . 7 

Starting Your Energy Program . . . . . . . . . . . . . .16 

Building Capacity . . . . . . . . . . . . . . . . . . . . . . 21 

Sustaining the Team . . . . . . . . . . . . . . . . . . . . 29 

Maintaining Momentum . . . . . . . . . . . . . . . . . 33

For More Information . . . . . . . . . . . . . . . . . . . 34
1

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. 

Strong energy management is a strategic asset. Besides 

reflecting overall management acuity, it can be a sign of 

future profitability. Financial analysts and investment firms 

increasingly view the quality of energy management as an 

indicator of financial performance. 

Organizations often differ dramatically in energy 

performance, even when they belong to the same 

industrial or commercial sector, operate under the same 

market conditions, and use the same equipment. Why the 

big performance gap? 

The high performers adopt a structured approach to 

energy management and establish policies and procedures 

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. 

SITUATIONS:

• Rising energy costs 

and increasing price 

volatility. 

• Concerns about the 

reliability of supply.

SOLUTIONS:

• Consider going beyond the traditional 

organizational focus 

on energy supply and 

procurement.

• Reduce supply risks 

by improving energy 

efficiency. 
2

The ENERGY STAR “Guidelines for Energy Management” 

provide a framework for organizations as they develop and 

implement an energy management program. The steps of 

the management strategy outlined in the “Guidelines for 

Energy Management” are broadly illustrated in the graphic 

on page 3. More details on the “Guidelines for Energy 

Management” can be found at www.energystar.gov.

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, 

benchmarking, monitoring, and evaluating the organizational 

energy management program. The team’s duties also 

include delivering training, communicating results, and 

providing recognition. 

This guide is designed to help organizations develop 

effective energy teams. The guide provides assistance 

through checklists, guidance, and examples for:

• Organizing your energy team

• Starting your energy program

• Building capacity

• Sustaining the team, and 

• Maintaining momentum

FOR EXAMPLE, a culture of energy efficiency is 

embedded within the organization at Hines, an 

international property development company that 

builds and manages office space and other real estate. 

“Making wise use of energy is part of our company 

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.”

SITUATION:

• Your organization’s 

senior managers 

are convinced that 

energy management 

requires capitalintensive purchases 

or new technology.

SOLUTIONS:

• Use internal 

examples of energy 

savings from better 

management 

practices and lowcost improvements. 

• Find examples of 

wasted energy 

and calculate the 

savings from better 

practices. 

• Use life-cycle costs 

and benefits to 

evaluate capital 

expenditures rather 

than just initial 

costs. 

• Cite examples of 

leading companies 

and organizations 

with strong energy 

programs. 
3

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GUIDELINES FOR ENERGY MANAGEMENT

This diagram illustrates the main management elements of the ENERGY STAR “Guidelines 

for Energy Management.” To read the Guidelines, visit www.energystar.gov.
4

ORGANIZING YOUR ENERGY TEAM

Energy Director Able to work with all staff levels from maintenance 

to engineers to financial officers

Senior-level person empowered by top 

management support

7

Senior 

Management

Energy director reports to senior executive or to a 

senior management council

Senior champion or council provides guidance and 

support

8

Energy Team Members from business units, operations (e.g., 

engineering), facilities, and/or regions

Energy networks formed

Support services (PR, IT, and HR)

9

Facility 

Involvement

Facility managers, electrical personnel

Two-way information flow on goals and 

opportunities

Facility-based energy teams with technical person 

as site champion

12

Partner 

Involvement

Consultants, vendors, customers, and joint venture 

partners

Energy savings passed on through lower prices

13

Energy Team’s 

Structure

Separate division and/or centralized leadership

Integrated into organization’s structure and 

networks established

14

Resources and 

Responsibilities

Energy projects incorporated into normal budget 

cycle as line item

Energy director is empowered to make decisions on 

projects affecting energy use

Energy team members have dedicated time for the 

energy program

15

TEAMING UP TO SAVE ENERGY CHECKLIST

See Page ✔
5

STARTING YOUR ENERGY PROGRAM 

Management

Briefing

Senior management briefed on benefits, proposed 

approach, and potential energy team members

16

Planning Energy team met initially to prepare for official launch 16

Strategy Success showcased at the official launch 16

Program Launch Organizational kickoff announced energy network, 

introduced energy director, unveiled energy policy, 

and showcased real-world proof

17

Energy Team 

Plans

Work plans, responsibilities, and annual action plan 

established

18

Facilities 

Engagement

Facility audits and reports conducted, energy 

efficiency opportunities identified

19

BUILDING CAPACITY

Tracking and 

Monitoring

Systems established for tracking energy 

performance and best practices implementation

21

Transferring 

Knowledge 

Events for informal knowledge transfer, such as 

energy summits and energy fairs, implemented

22

Raising 

Awareness

Awareness of energy efficiency created through 

posters, intranet, surveys, and competitions

24

Formal Training Participants identified, needs determined, and 

training held

Involvement in ENERGY STAR Web conferences 

and meetings encouraged

Professional development objectives established 

for key team members

25

Outsourcing Use of outside help has been evaluated and 

policies established

27

Cross-Company 

Networking

Outside company successes sought and internal 

successes shared 

Information exchanged to learn from experiences 

of others

28

✔

✔

See Page

See Page
6

SUSTAINING THE TEAM

Effective 

Communications

Awareness of energy efficiency created throughout 

company

Energy performance information is published in 

company reports and communications

30

Recognition and 

Rewards

Internal awards created and implemented 

Senior management is involved in providing 

recognition

31

External 

Recognition

Credibility for your organization’s energy program 

achieved

Awards from other organizations have added to 

your company’s competitive advantage

32

MAINTAINING MOMENTUM

Succession Built-in plan for continuity established

Energy efficiency integrated into organizational 

culture

33

Measures of 

Success

Sustainability of program and personnel achieved 

Continuous improvement of your organization’s 

energy performance attained

33

✔

See Page ✔

See Page
7

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. 

The energy director should be passionate about energy 

management without being a zealot or grandstanding, 

both of which can decrease team cohesion.

Some energy directors have a technical background; 

others have financial experience or have been plant 

managers. Regardless of background, the energy 

director must be able to work with all staff levels, from 

maintenance to engineers to financial officers.

DO: Share credit for the achievements of the energy 

management program with everyone involved. This 

practice avoids “ownership” struggles and can increase 

participation because everyone wants to be part of a 

winning effort.

DO: Visit the organization’s facilities on a regular basis to 

determine their needs.

FOR EXAMPLE, “I’m 

on the road 50 to 

60 percent of the 

time,” says Fred 

Dannhauser, former 

global energy manager 

at Owens Corning. 

“I’m interested in 

going to the plants 

and being out on the 

floor and being their 

barrier buster with the 

corporation.”
8

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.
9

FOR EXAMPLE, at 

California Portland 

Cement Company, a 

subset of the company’s 

energy team is made 

up of process engineers 

who visit a different 

plant every six weeks 

and do an energy audit. 

At one plant, the process engineers focused 

on the finish grinding 

system and identified 

$300,000 in opportunities for annual energy 

savings. 

ENERGY TEAM

As with the strategic-level council, the number of people 

on the energy team at the operational level depends on 

the size of your organization. The right mix of players on 

this energy steering committee is crucial. The energy 

director might recruit team members based on business 

units, operational areas, and/or regions. 

Consider a representative from each operational area that 

significantly affects energy use, such as:

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.

Engineering

and Process

Purchasing Financial

Management

Operations and

Maintenance

Building Design

and Facilities

Management

Environmental

Health and Safety

Research and

Development

Utilities

Contractors

and Suppliers

Construction

Management Corporate

Real Estate and Leasing

Energy

Team
10

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.
11

Additional Support Services: 

• Public Relations: PR departments can help share 

information with the organization and help ensure 

favorable publicity for your organization’s energy 

management accomplishments.

• Information Technology: IT personnel can help with 

tracking systems and web-based communications.

• Human Resources: HR personnel help you staff 

the energy team, train the workforce, and administer 

performance standards and rewards.

INVOLVING FACILITIES AND PROPERTIES

Most energy improvements are implemented at the facility 

and property level. Changing current, often inefficient, 

operating practices to a culture of efficiency requires 

that facilities or properties buy into the principles of the 

organization’s energy management program. 

FOR EXAMPLE, the General Motors Corporation

has an Energy and Environmental Strategy Board 

consisting of directors and headed by the executive 

vice president. At the next level is a Global Energy 

Team with representatives from GM North America, 

GM Europe, GM Latin America, and GM Asia/Pacific. 

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, 

which is responsible for energy consumption and 

the energy budget for GM North America. Finally, 

every plant has an Energy Conservation Team that 

includes both salaried and hourly people.

FOR EXAMPLE, at 

Colorado Springs 

School District 11, a 

team with engineering 

and technical expertise 

coordinates energy projects. The team meets 

with a committee made 

up of principals, teachers, building managers, a 

procurement department 

representative, food service managers, security 

department director, and 

vendors.

SITUATION:

• Facility employees 

and managers are 

too busy to work with 

the energy team, but 

are the ones whose 

help you need.

SOLUTION:

• Attend facility meetings or participate in 

discussions to learn 

about their concerns 

and how you can 

address them.

• Provide information, 

tips, and reminders 

on how to save 

energy.
12

FOR EXAMPLE, “Instead of a top-down structure, 

Toyota has more of a give-and-take negotiation with 

the plants,” says Bruce Bremer, manager of Facility 

Engineering–Engineering Support at Toyota. “We are 

constantly asking them for their input and involvement.”

FORMING A FACILITY-BASED ENERGY TEAM 

A mechanism to involve people at facilities and properties 

is essential since day-to-day working practices in the 

facilities greatly influence energy efficiency. 

STEPS:

• Send out the ENERGY STAR Partnership letter signed 

by your CEO to the facility managers and ask them to 

participate. The letter is a proven door-opener. 

• Ask the plant or property managers to identify a person 

who will “own” energy management at that facility and 

serve as the site energy champion. 

• Provide the site champion with information on 

the benefits of energy efficiency to educate other 

employees.

• Encourage the site champion to form an energy 

team that includes the plant’s key operations and 

maintenance people.

DO: Meet informally during half-hour breaks so as not to 

interfere with regular work schedules of the site energy 

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. 

DO: Illustrate how energy management practices support 

the facility’s and company’s goals.

FOR EXAMPLE, during 

visits to Hines’

managed properties, 

Jim Green offers 

suggestions on 

introducing new 

technologies, but he 

also finds that ideas 

are a two-way street. 

“I might visit a property 

that has a technology 

that I’ve not seen 

installed before, so I’ll 

ask the manager to 

put together a ‘best 

practices,’ and I’ll 

show him how to do 

that. That way, we 

share information and 

spread concepts and 

technologies.”
13

INVOLVING PARTNERS, CONSULTANTS, 

VENDORS, AND CUSTOMERS 

Consider engaging your joint venture partners, customers, 

vendors, and service providers in the energy management 

program. 

Vendors and service providers who reduce their own 

energy costs might pass those savings on by charging 

lower prices. Those suppliers also can help advance your 

organization’s energy management program by providing 

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,

General Motors, 

through the Suppliers 

Partnership for the 

EnvironmentTM, has 

helped its suppliers 

evaluate how to 

manage and use 

energy.

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 highefficiency motor is justified,” says Kodak worldwide 

energy program manager George Weed.
14

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 

organization’s strategic business planning sessions. 

Don’t go it alone! Successful teams avoid a maverick 

reputation, which can make energy management seem like 

a marginal activity and thus at risk of elimination. Energy 

management should be integrated into the organization’s 

structure as part of its core business, rather than being 

a stand-alone activity that gives the impression of being 

in its own world. When energy management is fully 

integrated, each department or function has an energy 

management role as part of its staff members’ jobs. 

DO: Pass credit to others who are not part of the team but 

are implementing the energy improvements. 

FOR EXAMPLE, “As part 

of our environmental 

activities, energy 

savings is listed as one 

of our key performance 

indicators,” says Bruce 

Bremer of Toyota. “So 

it’s right up there on 

our radar screen. Over 

the years, we moved 

it up on the company’s 

priorities by keeping it 

visible.”

INTEGRATION OF 

ENERGY MANAGEMENT 

ACTIVITIES

Establish 

Energy 

Goals

Plan 

Energy 

Projects

Develop 

Cost 

Estimates

Implement 

Energy 

Projects

Track 

Energy 

Savings

Energy Management 

Team ✔ ✔ ✔ ✔ ✔

Engineering 

Department ✔ ✔ ✔

Financial Management 

Department ✔

Building Design and 

Facilities Department ✔ ✔ ✔
15

RESOURCES AND RESPONSIBILITIES

Funding is a key to the success of the energy 

management program. Some organizations set aside 

a percentage of their budgets for energy projects. The 

challenge is to get energy projects incorporated in 

the normal budget cycle as a line item. Timing is allimportant. Seek funds early, rather than adding projects 

after the annual budget is finalized.

DO: Strive to establish the energy director as a fulltime position and allocate at least 20 percent of each 

energy team member’s time if your company has multiple 

facilities and large energy expenditures.

DO: Consider securing a different hurdle rate or return 

on investment (ROI) for large or capital-intensive energy 

projects that will help hedge against rising energy costs.

DO: Consider developing a capital fund for energy 

projects based on a percentage of the savings achieved 

from the projects.

FOR EXAMPLE, “Our 

biggest areas for 

potential improvement 

require a large capital 

investment,” says 

Stephen J. Coppinger, 

P.E., chief electrical 

engineer at California 

Portland Cement.

“But we’ve been able to 

show plant managers 

that there are a lot of 

things we can do short 

of spending a lot of 

money. A consultant did 

a study and came up 

with a list of projects 

at one plant with a 

potential savings of 

$400,000 and a oneor two-year payback. 

And those projects 

can be replicated at 

other plants.”

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.”
16

STARTING YOUR 

ENERGY PROGRAM

The experience of organizations with successful energy 

programs reveals that careful planning and effective 

outreach at the launch of the program creates momentum 

for the energy team. Successful program launches have 

involved:

• Planning – Prior to any official launch, the energy 

director should prepare a briefing on the benefits of 

energy efficiency, the proposed approach, and a list of 

potential members of the energy team. 

• Presentations to Senior Management – The energy 

director, with the support of a senior energy champion, 

should brief senior management.

• Team Strategy – A series of meetings of the energy 

team to prepare for the program’s official launch 

should be held. The team should consider initiatives to 

highlight, such as a successful pilot project that could 

be showcased at the program’s kickoff. A pilot project 

with a short payback period can provide credibility and 

real-world evidence of actual dollar savings. 

FOR EXAMPLE,

Raytheon established 

an energy awareness 

month as the launch 

pad for kicking off its 

program. “Each site 

picked a day during 

the month and held 

an event,” says David 

Chamberlain, principal 

energy engineer 

at Raytheon. “We 

focused on employee 

awareness of energy 

savings at their homes, 

since people tend to 

be more interested 

when they’re paying 

the bill. We teamed up 

with Lowe’s® and local 

utilities, and people 

came out in droves to 

find out about energyefficient 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.
17

• 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. 
18

ENERGY TEAM PLANS

At the first meeting of the corporate energy team, a schedule 

for future meetings is established. How frequently the team 

gets together varies from organization to organization, but 

monthly meetings appear to be the norm. As communication 

channels, meetings are superior to emails, which may tend 

to be ignored. Multinational organizations might conduct 

monthly team meetings by conference call or webcast, with 

face-to-face meetings held on a quarterly or annual basis. 

At the meetings, the team members report on their progress 

on assigned tasks and provide monthly reports on energy use 

so that the team can build up data. The meetings also offer 

opportunities for presentations on best practices by in-house 

and outside technical and operational experts. In addition, 

members can network with each other, learn about key 

contacts, and share problems for which the other attendees 

might be able to offer potential solutions. Meetings also are 

a mechanism for linking facilities so they can replicate best 

practices and thus avoid reinventing the wheel. 

Each year, the energy team should develop an action plan 

for the year ahead, with activities to be conducted. In this 

way, the team becomes proactive in planning its time and 

ensuring that projects are funded.

FOR EXAMPLE, General Motors’ corporate energy team meets every month with plant energy 

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.”

FOR EXAMPLE, the 

energy team at 

California Portland 

Cement meets every 

six weeks, each time at 

a different plant on a 

rotating basis. “During 

our initial audit, we 

learned about energy 

improvements that 

we are now applying 

at other plants,” says 

Stephen Coppinger, 

“such as putting new 

timer cards in dust 

collectors, which save 

compressed air. And, 

instead of repairing old, 

less efficient motors, 

we’re looking at our 

purchasing policy on 

premium energyefficient motors.”
19

FOR EXAMPLE, Eastman 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.”

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 handson 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. 
20

FOR EXAMPLE, Toyota also conducts kaizens, plus 

three-day assessments called treasure hunts. The 

hunt begins on a Sunday to see whether equipment 

is shut off, continues on Monday and Tuesday to 

look at production startup and shutdown. At the 

closing meeting on Tuesday, the team presents 

ideas and cost savings to the plant managers. The 

participants, gathered from Toyota’s other plants, 

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.”

DO: “Deliver the goods” by ensuring that responses to 

suggestions from plant workers are positive and prompt 

and that results are obtained quickly.

DO: Prioritize the actions and improvement that should 

take place first and that will lead to early success.

DO: Suggest schedules and timelines to ensure that 

recommendations will be implemented.

DO: Leverage existing assessment methods and problemsolving techniques employed by your company.

FOR EXAMPLE,

“At facilities where 

we are making the 

same product at each 

and every shift,” says 

Owens Corning’s

Fred Dannhauser, “we 

got some mileage by 

creating a competition 

once we were better able to measure 

energy use.” If Shift A 

consumed less energy 

than Shift B, for example, the second shift 

decided to be more 

conscientious so they 

could win. “First, we 

had to have data that 

would stand the test of 

integrity,” Dannhauser 

cautions. 
21

BUILDING CAPACITY

Two essential components of your organization’s energy 

management program are:

• Mechanisms for tracking and communicating progress; 

and 

• Informal and formal tools for transferring that 

information to managers and workers. 

Systems that track energy performance, implementation of 

best practices, and progress toward goals are also effective 

tools for evaluating progress and communicating successes. 

A second key element is a knowledge management system 

or best practices database. The sophistication of this tool 

can range from a database published internally on the organization’s intranet, or spreadsheets and electronic charts 

provided to facility managers and engineers only. Case studies 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 

www.energystar.gov.

FOR EXAMPLE,

General Motors

uses a scorecard to 

track performance at 

each plant. The GM 

2100 data-gathering 

system contains a 

built-in mechanism for 

generating charts that 

compare energy use 

at the facilities on a 

monthly and quarterly 

basis. 

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.”
22

TRANSFERRING KNOWLEDGE

Two powerful tools for informal training are energy 

summits and energy fairs.

Energy summits are usually annual get-togethers for 

technology transfer. The energy network gathers to 

exchange information on the program and best practices, 

and to discuss new project ideas. Energy summits also 

provide an excellent time to offer training and bring in 

outside speakers to discuss energy management issues.

Attendees can include outside experts from another 

industry sector, voluntary program partners, consultants, 

and nonenergy corporate divisions such as environment, 

health, and safety. 

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.

Energy fairs and exhibitions are one- to three-day events 

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, 

FOR EXAMPLE,

Frito-Lay holds a 

three-day energy 

summit annually for 

all members of the 

energy team, key 

plant personnel, and 

selected service and 

product provider 

partners. Other 

organizations, such as 

United Technologies 

Corporation and 

GlaxoSmithKline,

hold annual two-day 

energy summits.
23

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. 
24

OTHER TOOLS FOR RAISING AWARENESS

Posters, intranet sites, surveys, and competitions are 

additional tools for informally raising awareness of energy 

efficiency and transferring knowledge. Attractive and 

informative posters and intranet sites keep the energy 

program vividly in front of people’s eyes and educate them 

at the same time. 

DO: Consider conducting a short survey or questionnaire 

that polls the entire workforce or a sample subset 

of employees to raise energy awareness and gauge 

employee attitudes toward energy efficiency. 

DO: Hold contests to build interest and keep the energy 

program fresh. 

DO: Use free ENERGY STAR Partner and Employee 

Awareness poster templates to help raise awareness of 

your energy program.

FOR EXAMPLE, Hines

is always looking for a 

thoughtful, diplomatic 

way of fostering 

healthy competition 

among its properties. 

But, in the meantime, 

the company is alert 

to opportunities 

for saving energy 

that develop out of 

satisfying needs 

expressed by tenants. 

When one tenant 

complained about 

noise near the airhandling rooms, 

Hines considered 

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. 
25

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 

also can be used as an opportunity to gather feedback. 

Training can be conducted at a particular site, or it can 

be organization-wide. Consider whether the participants 

should include a mix of departments and a mix of managers 

and other employees. Including managers can demonstrate 

organizational commitment but might inhibit discussion.

Training that promotes the professional development of 

key energy team members sustains the success of the 

corporate program. Organizations such as the Association 

for Energy Engineers offer a one-week course that 

qualifies successful participants to become certified 

energy managers. Some utilities and community colleges 

offer specialized training, such as the Building Operator 

Certification for building managers.

FOR EXAMPLE,

Owens Corning, 

by educating its 

employees, improved 

the operation of air 

dampers in order 

to use less air and 

natural gas during 

the incineration 

process, reducing 

energy consumption 

for incineration by 10 

percent. Training paid 

off big time.
26

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.
27

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. 

DO: Consider outsourcing turn-key projects, such as 

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.” 
28

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, Eastman 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 

just did a two-day benchmark exercise with Toyota, with a day in each plant, and we 

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 Energyfunded 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. 
29

SUSTAINING THE TEAM

Keeping the energy management program alive and fresh 

is perhaps the greatest challenge. Sustaining the program 

requires ensuring that managers and employees are 

aware of the results. Maintaining motivation also may 

entail offering recognition and rewards. 

SITUATION:

• Your organization’s program has lost momentum, 

and poor energy habits are creeping back in.

SOLUTIONS:

• Energy efficiency needs to become a part of 

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 individualand team-focused recognition, can encourage 

staff to improve performance.

FOR EXAMPLE, Hines’

Jim Green says the 

biggest challenge is 

sustainability. “Our 

mission is to keep 

repeating the message 

and educating our 

tenants on the 

advantages of energy 

efficiency, and standing 

ready to deliver when 

they’re ready to go 

forward.”
30

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 

able to link your news to corporate or world events. Also 

consider asking your organization’s public relations department for advice on your communications plan.

Methods for communicating results include internal 

progress reports, reports on assessments, emails, pay 

statement mailers, and publications such as newsletters, 

magazines, videos, the organization’s intranet, posters, 

flyers, energy calendars posted on bulletin boards, and 

meetings and conferences.

For celebrating successes externally, press releases and 

the World Wide Web are your best bets.

DO: Promote your energy program by using the ENERGY 

STAR Partner mark in conjunction with your logo. 

DO: Pace your delivery of good news and always have 

something worthwhile to say. 

DO: Tailor your messages and communications for 

your different target audiences, such as management, 

employees, and outside stakeholders.

DO: Promote the program at a grassroots level 

by educating employees about your organization’s 

partnership with ENERGY STAR.

FOR EXAMPLE, Vincent 

Gates, energy manager 

at Merck & Co., Inc.’s

facility in Rahway, NJ, 

says, “Creating a 

unique name and logo 

is critical for building 

awareness of your 

program and marketing it effectively. We 

include our program 

logo and the address 

of our internal energy 

web page on all energy 

communications. We 

have begun adding 

the phrase, ‘Merck is 

now an ENERGY STAR 

Corporate Partner,’ and 

including the ENERGY 

STAR logo as well. The 

greater recognition of 

the ENERGY STAR logo 

has caught employee 

interest and helped to 

increase recognition of 

our program.”
31

RECOGNITION AND REWARDS

Recognizing the contributions of teams and individuals 

helps to reinforce the value of energy efficiency and 

encourage even greater improvements. Acknowledging 

successes will help sustain motivation. Verbal appreciation, 

simple forms of thanks ranging from coffee mugs to formal 

written commendations and certificates, plaques presented 

at award ceremonies, salary increases, and stock options 

can all act as motivators. 

Consider recognition to individuals, departments, teams, 

and facilities. Look at incentives from the point of view of 

employees and ask: “What’s in it for them?” Ensure that 

all recognition and rewards are equitable and based on 

published criteria. You may choose to recognize the best 

energy-saving ideas, the greatest reductions in energy 

use, and savings increased by “x” amount. 

FOR EXAMPLE,

Food Lion’s Energy 

Awareness Plan 

rewards maintenance 

staff by awarding 

quarterly bonuses 

for improving energy 

performance. Keeping 

maintenance staff 

motivated to save 

energy has helped 

Food Lion reduce its 

utility cost per store 

per week by 5.5 

percent.
32

EXTERNAL RECOGNITION

External recognition from a third party (government 

agencies, nonprofits, the media, and trade associations) 

validates the importance of the energy program, provides 

satisfaction to those who earned the award, and enhances 

your organization’s public image. A solid reputation 

contributes to your organization’s competitive advantage 

by making it more attractive to customers, current and 

potential employees, lenders, and business partners.

Awards, particularly from an outside organization, are 

one of your most powerful tools for persuading senior 

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. 

DO: Invite corporate officers to accept awards at highprofile industry and government conferences. 

FOR EXAMPLE, EPA 

recognized 3M with 

the 2005 ENERGY 

STAR Partner of Year 

Award for Sustained 

Excellence. For the 

past five years, 3M has 

reduced its energy use 

by 4 percent annually 

across all facilities for 

more than $190 million 

in savings.

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.
33

MAINTAINING MOMENTUM

One test of whether your organization’s energy 

management program is successful is whether the 

energy director would be replaced if he or she left or was 

promoted. Another test is whether your organization’s 

energy use is showing continuous improvement despite 

changes in key personnel. 

DO: Recharge commitment by reviewing and updating 

your organization’s energy policy to ensure that it is not 

just regarded as corporate wallpaper.

FOR EXAMPLE, between 1997 and 2004, Toyota

decreased energy use per unit of production (cars 

going out the door) by 20 percent for all its North 

American plants. “Everyone has responsibility for 

improving the environment,” says Toyota’s Bruce 

Bremer, “not just at work, but also at home.”

SITUATION:

• The energy 

director has been 

promoted to another 

position or the 

senior manager 

who served as the 

program’s champion 

has retired. The 

new senior manager 

lacks a personal 

commitment to 

energy efficiency.

SOLUTION:

• The organization’s 

energy management 

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.
34

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 www.energystar.gov or contact:

ENERGY STAR

U.S. Environmental Protection Agency

1200 Pennsylvania Avenue NW (6202J)

Washington, DC 20460

buildings@energystar.gov
35
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