EFECTIVE IMPLEMENTATION OF ENERGY MANAGEMENT SYSTEM FOR BUSINESSES PART 2: COMMITMENT FROM THE TOP MANAGEMENT

Commitment by the top management and internal energy management organisation for a sustainable energy management programme.

Commitment from The Top

The commitment from the top management is the key and the most important factor in successful implementation of energy management system in any organisation. The top management must demonstrate its commitment to support the implementation of the system and subsequently agree to continually improve it to ensure the system remain relevant and effective.

From  my experiences as a consultant to various type of industry, the failure to get the buy-in and commitment from the top management personnel especially decision makers will deny potentials to achieve the maximum energy costs reduction from energy management initiatives or will bring everything to the end in the worst case scenario.

It is often about how strong the business case proposal that will be brought forward to their attention and consideration such as monetary impacts in the form of business operational costs that will contribute to profitability and business sustainability that could be expected from implementing an energy management programme.

The top management need to be convinced on the benefits of sustainable energy management programme for the organisation. Some business-related of conferences or seminars could be the suitable platform for them to attend to create some awareness.

The expected commitment and roles to be played by the top management are briefly described as follows: -

• Agree and approve the introduction of energy policy for the organisation with defined scopes and boundaries for the implementation and maintenance of the policy in energy management system;
• Ensure objectives and targets for the policy are established with suitable energy performance indicators;
• Include energy performance in a long-term energy planning with results to be measured, reported and as an agenda in the management reviews at agreed frequency;
• Agree to appoint an authorised representative from the top management to oversee the implementation of the energy management system in the organisation’s facilities through the energy management team;
• Approve the formation of internal organisation in the form of permanent energy management committee at the new building which will play the core functions in the implementation of energy management system; and
• Agree to provide necessary resources required for the development, implementation, maintenance and improvement of the energy management system.

Internal Energy Management Organisation

Once the commitment from the top management is secured, the next important step is to establish the team in order to translate the commitment into actions for the organisation. This normally will come in the form of a permanent team which will function as a task force at the beginning and to progress to become an internal energy management organisation or often established as a committee.

The structure and size of the internal organisation or energy committee will vary from one building to another depending on complexity, line of command and management procedures in each building.

The formation of the structure must be discussed and agreed upon to ensure all members will be able to perform their functions effectively with defined roles and responsibilities.

All permanent members from each department or section must have a permanent alternate member to attend the scheduled committee meetings. This is to ensure the proper information sharing and flow and as well as communication between members to act and update on decisions made from scheduled meetings.

The whole idea of whatever structure to be established for the organisation, it should be able to perform its functions as the driver of the energy management system that will produce intended results expected by the top management.

A Well-Defined Roles and Responsibilities
The energy management committee has a coordinating role with respect to the activities undertaken by the energy managers in implementing energy efficiency practices. For each job title that has been identified in energy management committee, management representative has to list the roles and responsibilities for each person in the term of energy management system, starting with the top management and working through the rest of the organisations.

The roles and responsibilities have to be documented, it is important to define clearly who has authorities for which elements of energy management system. This will avoid any conflict or misunderstanding between energy management committee in implementing energy management system. The management representative should ensure the energy management committee are clear with their responsibilities and to what level they have to play their roles in supporting energy management system.

The basic roles of the internal energy management organisation are as listed below: -

• Develop and proposed energy policy for the approval by the top management;
• Identifying resources required to implement the energy management system;
• Ensuring that energy management system implemented and maintained;
• Reporting on the performance of the system to the management representative;
• Providing recommendations for improvement to the management representative;
• Participating in the successful planning and implementation of action plans;
• Participating in trainings provided to improve energy management skills; and
• Follow through on resulting changes in operations and procedures to improve   energy performance.

Energy Management Representative

The management representative selected and appointed must have certain level of authorities in making decisions for the internal energy management organisation in the organisation. He or she is expected to be assisted mainly by the energy manager in the energy management organisation.  

Among the key responsibilities of the management representative are as follows:

• Formation of an energy management team and plan energy management activities;
• Overseeing the planning and implementation of the energy management system in the organisation;
• Reporting to top management on the performance of the energy management system and overall energy performance building facilities in the group. Ensure that reports on the performance of the Energy management system are presented to top management for review and used as a basis for recommendation of improvement of the Energy management system including during the management review meetings;
• Set and achieve milestones and deliverables for the group for tasks and always proactive.
• Leverage on initiatives that have been already in place and in progress of implementation.
• To ensure effective communications of the system, performances and focus continual improvement efforts;
• To ensure that the Energy management system is established, implemented and maintained in accordance with the internal or standard and statutory requirements;
• Ensure that resources essential to establish, implement, maintain and improve the Energy management system
• The resources may be human resources, specialized skills, organisational infrastructure, technology or financial resources.
• To assist the chairman of the management review  meetings;
• Formation of management team whenever appropriate; and
• Plan and direct energy management activities.

Energy Manager

The energy manager is expected to someone who is competent and well-versed in the overall development and implementation of energy management system in the organisation. His or her roles is as the “bridge” between the management and middle management and operational personnel and must be well-trained to have the deep understanding in energy management system.

On-going training in very important for energy managers to gain the required knowledge and competency to play their roles effectively.

The energy manager shall focus on reducing the energy through improved energy efficiency practices, equipment modifications and building occupants’ or employees’ awareness. Energy manager can also identify, design and implement no-cost or low-cost energy saving measures and coordinate the implementation of larger capital projects financed through alternative energy financing, such as energy performance contracting or other external funding options available.

The energy manager has to work on-site or clearly delegate tasks to be performed through the assistance at the building to meet energy management system objectives established that will be established by the organisation. 

The energy manager for the organisation needs thesupports and assistance for the day-to-day implementation and monitoring of the system by the assistant energy manager or other technical personnel who are responsible and competent for the operations and maintenance of the facilities.

Amongst key roles and responsibilities for the energy managers are as follows:

• Responsible for the overall energy management system implementation and compliance according to any standard adopted;
• Provide reports and updates on energy management system performance to the management representative, assistance in drafting an energy management policy, conducting energy reviews and preparing the energy management plan;
• Assistance in the dissemination of information, promotion and progress reporting;
• Maintaining, conducting and coordinating facilities for energy consumption and energy management activities;
• Assistance and oversee the improvement of energy performance and supervising energy consumption for significant energy uses;
• Assistance in the preparation of energy efficiency evaluation criteria in energy related contracts for purchasing of equipment, services and projects;
• Identify competency and the on-going training requirements for members of energy management committee; and
• Preparing regular reports to the management representative on energy performance status, results and potential areas can be improved and to ensure compliance towards regulatory requirements.

The above are the two very important members of any energy in-house energy management organisation or committee. They are expected to be the champions to drive the development and implementation of energy management system in the organisation. 

In the next entry , I will share about the roles and responsibilities of other key stakeholders in the organisation such all heads of department or section that are also required to be well-defined and understood from the beginning for more effective and sustainable implementation of the energy management system. Then, I will share further about the next crucial element in the energy management system which is the energy management policy.