C-Suite executives have plenty of responsibilities, and as their titles imply, employees within their respective companies turn to the C-Suite for approval and support of new initiatives. The introduction and implementation of smart building systems, including an energy management system (EMS), can achieve dual goals for both Facility Managers and the C-Suite. Unfortunately, challenges may exist in building support, but the tide is changing. According to Forbes, investors are exceedingly interested in gathering the support and use of sustainable initiatives. Sustainability is considered a “non-financial risk,” and through modern technology, the risk of failure decreases even more. Facilities Managers need to understand how to overcome these challenges and create a successful business case.
Challenges in Building an Energy-Efficiency Proposal
The C-Suite will express concerns over cost. Unfortunately, the very nature of EMS implies an immediate short-term increase in facility spending. This may be the result of investing in both technologies and correcting operational problems that were previously unidentified. Furthermore, the C-Suite wants to see where results will yield and when. This can be a tricky step for Facilities Managers. It is challenging to isolate exact savings without a thorough analysis of current operations, energy use, and facility assets. Therefore, it may be necessary to complete pre-emptive steps, such as an energy and facility condition audit, to provide a baseline of costs associated with maintaining the status quo. Moreover, C-Suite executives may still voice concerns over the financial barriers to energy efficiency, but those that create a thorough business case can indeed secure capital dollars for an EMS investment.
Securing Capital Dollars for an EMS Begins With Recognizing Facility Needs
Securing capital dollars for an EMS goes back to the need to isolate and correct problems, e.g., inefficiencies within current assets. Energy waste might seem like a minor problem, but it carries additional costs. Workers are less likely to stay with companies that do not implement energy-efficiency programs. Meanwhile, customers will push back against companies that fail to deliver on their sustainability promises. Yet, the application of actionable data can solve these challenges and lead to long-term cost savings.
Tips for Improving Support Among C-Suite Members
As explained by Energy Efficiency in Industrial Processes, standardized procedures increase confidence when approaching energy management, and those same factors play into the graces of C-Suite executives. Cost avoidance savings can be used for continuous improvement, reducing the current facility budget. Of course, the typical steps for an energy efficiency project must always follow a few best practices, including:
- Identifying what the project is and how to implement it.
- Calculating the costs for implementation.
- Weighing the costs versus benefits.
- Considering future changes in technology that will enhance efficiency as well.
- Emphasize the role of securing capital dollars for an EMS in terms of improved environmental, social, and governance (ESG) risk management.
- Review available incentive programs that help pay for improvements, especially among public institutions, including schools and health facilities.
Create a Winning Business Case That Puts Energy Management Front and Center in the Eyes of C-Suite Executives
A successful energy management business case must attract the attention of C-suite executives and provide real value. Since investors care about profitability more than anything, energy management is truly the low-hanging fruit, and your organization can pick it with the right business case proposal. Follow the tips mentioned above to craft a winning business case. Also, unlock the secrets to success in getting capital dollars for an EMS by letting ENTOUCH help you build the best business case possible. Align your business case with company goals by contacting ENTOUCH online or calling 1-800-820-3511 now.