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Energy Management – 2 Step Process of Continuous Improvement

Energy Management - Continuous improvement_Process

There is no such thing as perfection. We’re all familiar with the concept of continuous improvement – even if you’re already considered “the best” at something, you can always get better. Peyton Manning, Michael Jordan, and of course Wayne Gretzky, were all arguably the best in their respective sports for extended periods of time, because they constantly pushed themselves to improve. Why? It’s simple – if they didn’t, someone else would.

When Wayne Gretzky set a record by scoring 50 goals in 39 games he called his father to tell him. Walter’s response was simple but effective, “what took you so long?”


Wayne was raised in a culture of continuous improvement, encouraging him to develop his talents despite already being the best at every level he played.

Build an energy management plan for success and execute

Managers and coaches are very much the same, those who are the most successful know their players, understand their capabilities, and build their strategy based on their existing state.  This allows them to build a plan for success and execute strategically.

I get it, managing an electricity expense can be challenging; balancing internal constraints as well as unpredictable externalities like price can be daunting. However, as mentioned in my previous post, you can ease some of that stress by following a two-step process that will allow you to identify the current state of your electricity management practices.

  1. Understand how you currently manage electricity by completing a situational assessment.
  2. Perform a baseline analysis to understand your current electricity consumption patterns and use that to begin planning for tomorrow.

Understand your energy consumption to develop a plan

A clear picture of your past consumption allows you to understand the factors that make up your expense so you can create a plan for what it will look like in the future. You may be surprised when you learn how much you consume during non-production periods and that peak consumption often occurs at the most expensive time of day. Do you monitor for cost creep? If you haven’t been watching, your consumption may have crept up while you weren’t looking, eroding margins and making you less competitive. This information is valuable for an energy manager as it will allow you to identify weaknesses and plan to turn them into strengths.

Baseline Analysis – Start a simple measurement and monitoring program

The reality for Ontario businesses is that we can expect to see a 25% increase in electricity prices over the next 5 years (according to the latest Ontario’s 2013 Long Term Energy Plan (LTEP). This can have a negative impact on your profit margins & affect your competitiveness; however, you have the ability to defend against these increases right now. A baseline analysis will get you started and by initiating a simple measurement and monitoring program, you will be a leader in defending the price increases going forward.

Come back in upcoming weeks as we discuss the importance of your team to ensure success.

If you have any questions or comments please share them in the comments section below.