Energy Culture
Low hanging fruit for businesses?
Evert Bevernage
1 December 2011
Introduction
 Det Norske Veritas
 Energy Efficiency Consultant:
- Technical assessments
- Non-technical assessments
Based in Antwerp, Belgium
Energy Culture
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Savings potential Belgian industry
(2009)
52%
Energy Culture
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48%
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, 2009
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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
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So why doesn’t it happen?
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Why?
 Don’t believe in it?
 No interest?
 Bad experience in the past?
 No money?,
 Difficult to tackle?
 No awareness?
 Other barriers?
 No time?
 “Isn’t that for residential programs, like light bulbs?”
 “We did a program but that didn’t work.”
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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
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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
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Safety Culture
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Experience in Safety
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What is Energy Culture?
Energy Culture is the combination of all aspects influencing the energy behavior of the
members of an organization.
Energy culture
People
y
Pro
log
ce
no
du
ch
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res
Te
EnMS
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How to improve Energy Culture?
Improving the Energy Culture of your organisation in 4 stages
n Develo
pm
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S
ol
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tatio
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ai
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gnosis
Sust
Dia
m
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Im
Energy Culture
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e
l
p
Diagnosis
Specific Diagnosis
Global Culture Level
Competence
Learning
Error tolerance
Collaboration
Proactive
Continuous
improvement
Action
Creative Worry
Conflicting Goals
Compliance
Planning
Reactive
Organizational Learning
Compliance
Awareness
Immature
Incentives
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Dia
gnosis
Diagnosis
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
 Semi–structured Interviews
- Smaller scale
- Throughout organisation (Include key actors on all levels)
- Find out why things are (not) happening
“Hawthorne Effect” will lead to initial changes.
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}
}
}
initial impression
mainly quantitative info
mainly qualitative info
ol
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Devel
op
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S
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Solution development
A compelling program has to be developed to ensure stakeholder buy-in.
Competence
Within this program,
 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.
Error tolerance
Collaboration
Creative Worry
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
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n
tatio
m
en
Implementation
Im
pl
e
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
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Sust
ai
Sustaining
ni
ng
 Perform diagnosis to measure status
- Did your organization evolve?
- In what direction?
 Evaluate plans
Competence
5
Error tolerance
Collaboration
- Did they meet the objectives?
- What feedback was received?
 Evaluate Implementation
- What went right or wrong during
the implementation?
- Unexpected side effects?
 Why (not)?
Creative Worry
Organizational Learning
- Identify barriers and opportunities for
improved solution development and
implementation.
Compliance
Incentives
Previous
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Conflicting Goals
0
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Target
Current
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.
Learning
Proactive
Continuous
improvement
Action
We found the magic formula! A system is in place.
Lots and lots of audits.
Compliance
Planning
Reactive
Rules imposed, but not followed.
No follow-up on imposed rules.
Awareness
Immature
Barely compliant with legislation.
Energy Culture
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How to measure Energy Culture?
Energy Culture diagnosis consists of eight aspects.
Competence
5
Error tolerance
Creative Worry
Collaboration
Conflicting Goals
0
Organizational Learning
Compliance
Incentives
Previous
Target
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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?
Error tolerance
Collaboration
 How often are training programs updated?
 When did you last share experience with
your colleagues?
Creative Worry
Conflicting Goals
Organizational Learning
Compliance
Incentives
Energy Culture
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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?
Competence
 Who is in your phone list?
 How do you have impact on the work of others?
Error tolerance
Collaboration
 Who did you talk to during your last team event?
Creative Worry
Conflicting Goals
Organizational Learning
Compliance
Incentives
Energy Culture
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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?
Competence
 How do you deal with conflicting instructions?
Error tolerance
Collaboration
 Do you know the principal agent problem?
Creative worry
Conflicting Goals
Organizational Learning
Compliance
Incentives
Energy Culture
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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?
Error tolerance
Collaboration
 Are the procedures “lived”?
Creative Worry
Conflicting Goals
Organizational Learning
Compliance
Incentives
Energy Culture
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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?
Error tolerance
Collaboration
 Why don’t you care?
When would you care?
Creative Worry
Conflicting Goals
Organizational Learning
Compliance
Incentives
Energy Culture
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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?
Competence
Error tolerance
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
Energy Culture
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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?
Competence
 Are you encouraged to think out of the box?
Error tolerance
Collaboration
Creative Worry
Conflicting Goals
Organizational Learning
Compliance
Incentives
Energy Culture
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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
Energy Culture
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ol
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Devel
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
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
Energy Culture
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m
ni
Im
No typical program: programs must be tailored.
-
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
-
tatio
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Sust
What is a Typical Program?
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pl
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In conclusion
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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
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Who is DNV?
300
100
9,000
offices
countries
employees, of which 82% have
university degree
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Safeguarding life, property
and the environment
For more information:
evert.bevernage@dnv.com
www.dnv.com
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