Energy Culture. Low hanging fruit for businesses? Evert Bevernage 1 December 2011

Transcription

1 Low hanging fruit for businesses? Evert Bevernage

2 Introduction Det Norske Veritas Energy Efficiency Consultant: - Technical assessments - Non-technical assessments Based in Antwerp, Belgium 2

3 Savings potential Belgian industry (2009) 52% 48% 3

4 Potential in Oil & Gas industry 150 million ton/year can be mitigated through behavior related measures, this is 37.5% of all negative cost options Improved Planning Energy efficiency from behavioural changes Energy efficiency from improved behaviour, maintenance and process control on retrofits Energy Efficiency from improved maintenance and process control McKinsey & Company Perspective on Oil & Gas Volume 2,

5 There are examples Colruyt - Belgian supermarket chain Aims for lowest price. High employee involvement in cost-cutting through - Idea boxes, green telephone etc - Cross-unit idea evaluation - Feed back systems Combine energy plan with awareness raising on energy efficiency as a cost-cutter. - Targeted poster campaigns - Measurement of improvement initiatives and communicating results - Shop champions 5

6 So why doesn t it happen? 6

7 Why? Don t believe in it? Bad experience in the past? Difficult to tackle? Other barriers? No interest? No money?, No awareness? No time? Isn t that for residential programs, like light bulbs? We did a program but that didn t work. 7

8 Market Survey March 2011 (1/2) Dutch and Belgian Industry: USP Marketing Consultancy B.V. Market exploration for DNV Climate Change Services 2011 Market Survey for the Dutch & Belgian market 8

9 Market Survey March 2011 (2/2) USP Marketing Consultancy B.V. Market exploration for DNV Climate Change Services 2011 Market Survey for the Dutch & Belgian market 9

10 Safety Culture 10

11 Experience in Safety 11

12 What is? is the combination of all aspects influencing the energy behavior of the members of an organization. Energy culture People Technology EnMS Procedures 12

13 How to improve? Improving the of your organisation in 4 stages So l u t i o n De v e l o pme n t Di agnos i s Sus t a i n i ng l e men t a t i on I mp 13

14 Diagnosis Specific Diagnosis Global Culture Level Competence Learning Error tolerance Collaboration Proactive Continuous improvement Creative Worry Conflicting Goals Compliance Action Reactive Planning Organizational Learning Compliance Immature Awareness Incentives 14

15 Diagnosis Di agnos i s Using a combination of techniques: Observations - Desk review of key documents (e.g. EnMS audit reports) - Create first impression during a site tour - Basis for Questionnaires & Interviews Questionnaires - Large scale - Find out what is (not) happening } initial } mainly impression quantitative info Semi structured Interviews - Smaller scale - Throughout organisation (Include key actors on all levels) - Find out why things are (not) happening } mainly qualitative info Hawthorne Effect will lead to initial changes. 15

16 So l u t i o n De v e l o pme n t Solution development A compelling program has to be developed to ensure stakeholder buy-in. Within this program, Competence Focus areas will be defined based on the diagnosis and company direction Specific projects for these focus areas will be developed. These projects will target awareness, planning, action or anchoring. Creative Worry Error tolerance Collaboration Conflicting Goals Organizational Learning Compliance Incentives The program will be developed to be: - Flexible, allowing for a prioritized implementation based on the company s current needs - Scalable from a pilot project to a company wide implementation - Tailored to the organisation 16

17 Implementation l e men t a t i on I mp Depending on an organisation s maturity level the approach will be defined. Varying implementation speed on the carrying capacity of the organisation to ensure optimum program effectiveness while guarding it from overflow failure. For starting organizations: Start with easy to implement small scale pilots to generate early successes that can be built on. Anchor change projects in the KPIs For more mature organizations Coaching & Mentoring Train champions to change the organization from within 17

18 Sustaining Sus t a i n i ng Perform diagnosis to measure status - Did your organization evolve? - In what direction? Evaluate plans - Did they meet the objectives? - What feedback was received? Error tolerance Competence 5 Collaboration Evaluate Implementation - What went right or wrong during the implementation? - Unexpected side effects? Creative Worry 0 Conflicting Goals Why (not)? Organizational Learning Compliance - Identify barriers and opportunities for improved solution development and implementation. Incentives Previous Target Current 18

19 What are Culture Levels? New ideas are seen as a business opportunity. Continuously looking for new potential. Management is open but still focussed on statistics. The workforce takes ownership of procedures. We found the magic formula! A system is in place. Lots and lots of audits. Rules imposed, but not followed. No follow-up on imposed rules. Barely compliant with legislation. Learning Proactive Compliance Reactive Immature Continuous improvement Action Planning Awareness 19

20 How to measure? diagnosis consists of eight aspects. Competence 5 Error tolerance Collaboration Creative Worry 0 Conflicting Goals Organizational Learning Compliance Incentives Previous Target 20

21 Competence Establish, maintain and improve individual competence, in line with overall energy targets. When was your last energy training? Which learning points did you implement? Would you recommend your last training to a colleague? What do you do for know-how retention when somebody retires or moves? Do you have a knowledge management strategy? Is there an energy community of practice? Competence Do you have an individual training plan? How often are training programs updated? When did you last share experience with your colleagues? Creative Worry Error tolerance Collaboration Conflicting Goals Organizational Learning Compliance Incentives 21

22 Collaboration Work towards a common goal with and within units. Do you know what your colleague does? When did you last help a colleague? When where you last helped by a colleague? Before starting, do you discuss your work with a colleague? How often do you work with other units? Who is in your phone list? How do you have impact on the work of others? Who did you talk to during your last team event? Creative Worry Error tolerance Competence Collaboration Conflicting Goals Organizational Learning Compliance Incentives 22

23 Conflicting Goals Ensure proper prioritisation of resources, objectives and targets. Are your KPIs in sync with corporate goals? Are your personal energy targets in sync with corporate strategy? Does production pressure prohibit you to work on energy use? Does safety get the better of energy? How do you deal with conflicting instructions? Do you know the principal agent problem? Error tolerance Competence Collaboration Creative worry Conflicting Goals Organizational Learning Compliance Incentives 23

24 Compliance Create, implement and follow consistent procedures. Can you briefly explain the main procedures of your work? Procedures or commandments? Procedures, a tool or yet another burden? Do you work towards improving procedures? When did you last take a shortcut? Competence Do you report shortcuts? Are the procedures lived? Error tolerance Collaboration Creative Worry Conflicting Goals Organizational Learning Compliance Incentives 24

25 Consistent Incentives Use consistent incentives, positive or negative, to stimulate, promote and anchor desired energy behaviour. Whom did you last give feedback to? When? What was the last feedback from your manager? Do you see a sanction as a reward? Do you see lack of a reward as a sanction? What drives you? Competence What incentives work for you? Why don t you care? When would you care? Creative Worry Error tolerance Collaboration Conflicting Goals Organizational Learning Compliance Incentives 25

26 Organizational Learning Grow and strengthen your organization by learning from successes and mistakes. Do you report and document mistakes as much as successes? Reporting on something or someone? Do you report your own mistakes as well as others? Are you allowed to make mistakes? Do you allow mistakes to be made? What happens to reported successes? What happens to reported mistakes? Error tolerance Competence Collaboration What did you learn from your last mistake? What did the organization learn from your last success? Creative Worry Conflicting Goals Organizational Learning Compliance Incentives 26

27 Creative Worry Challenge the status quo continuously by creatively looking for improvements. Do you blindly follow procedures? Can you do your job better differently? Why don t you? Do you just work here? Have you been doing it like this for the last 20 years and never asked why? Are you encouraged to think out of the box? Competence Error tolerance Collaboration Creative Worry Conflicting Goals Organizational Learning Compliance Incentives 27

28 Error Tolerance Build your organization in way that no single incident leads to excessive energy consumption. Do you check and double check? Do you have a co-pilot? How many layers of control do you have on your largest energy consumers? When did a colleague last point out a mistake that you missed? What energy checks and balances are in place? Competence Error tolerance Collaboration Creative Worry Conflicting Goals Organizational Learning Compliance Incentives 28

29 What is a Typical Program? Sus t a i n So l u t i ng i o n De v e l o pme n t l e men t a t i on I mp No typical program: programs must be tailored. Typical tools include: 1. Improve awareness (make people believe) - Training Workshops - Poster campaigns - Case studies (focus on successes) - Use Champions, Messengers or Task Forces 2. Improve planning (make people involved) - Planning workshops - Touch base with the plan - Public commitment 3. Improve action (make people do it) - Initial close follow-up - Reward system - Make it mandatory KPIs 4. Anchor improvement (make it last) - Public recognition of exceptional engagement - Communicate success (and failure) and their reasons - Maintain a good example 29

30 In conclusion 31

31 Conclusion Low hanging fruit may not be so low? - No quick solution There is a way to convince upper management - It worked in the past - Demonstrating a structured approach - Combine it with EnMS 32

32 Who is DNV? 300 offices 100 countries 9,000 employees, of which 82% have university degree 33

33 Safeguarding life, property and the environment For more information: 34