Energy management purchase decisions are at the heart of every facility and energy management program. According to Buildings.com, today’s level of energy consumption comes with both challenges and advantages, and failure to recognize these factors may lead to lost profitability and higher costs. At the same time, protecting against the risks and enhancing the likelihood of positive outcomes with informed decision-making will have a dramatic impact on the return on investment (ROI). Facilities Managers in the process of making such important decisions should follow these steps to make an informed decision.
1. Recognize Your Limits
The biggest hurdle for Facilities Managers is the recognition of the limitations of their current department. Inability to track data and make informed decisions with little to no advance notice are indicators of poor visibility, which results in less than desired energy management purchase decisions.
2. Build a Preliminary Business Case for Optimal Energy Management System Implementation
The preliminary business case for optimal energy management system implementation should consist of current energy costs, which Facilities Managers should benchmark against other locations within your portfolio and other companies.
3. Create an Internal Team to Handle Energy Management Purchase Decisions
Creating a multidisciplinary team internally to handle energy management purchase decisions, especially when considering the implementation of new software or hardware, is essential to avoiding pushback and encouraging support for new deployments.
4. Set Clear Expectations, Realistic Goals for Improvement
According to Dexma, Facilities Managers should also work to set clear, realistic goals for improvement. Planning to eliminate all energy costs within the first year is both counterproductive and impractical. Instead of focusing on the most significant accomplishment, start small.
5. Narrow Your Software Vendor List to the Top-Performing, Reputable Vendors
After setting the goals, it is time to decide on the top-performing vendors. Numerous facility management vendors exist, and each will position their company in the best light. Different energy procurement partners exist, explains Energy Manager Today.
It is up to the change management team, also known as the multidisciplinary team, to narrow down the list of software vendors to those that meet the business goals and has the resources available at a rate
6. Submit RFPs; Schedule an Energy Audit
The next step consists of submitting the request-for-proposals (RFPs) to chosen vendors. Depending on vendor-specific procedures, the process will unfold with either an inspection, a conference call, and an on-site visit or even an energy inspection and audit.
7. Look Beyond the Scope of Energy-Specific Improvements
It is easy to get caught up in the potential savings and cost avoidance benefits of energy management. However, implementing changes to improve energy management will naturally lend itself to benefits in non-energy activities, including guest comfort, employee happiness and more.
8. Assess Cost Avoidance Versus Spend
Assessing cost avoidance versus spend is essential. Cost avoidance includes all costs eliminated from the equation due to improvement. These differ from energy costs as they may consist of a reduction in the frequency and cost of maintenance needs, increased activity in your business from more customers, and the positive results of better employee productivity.
9. Begin the Recommission Process; Train Staff Accordingly
A recommissioning process is a multi-pronged approach to installing sensors and assets throughout your organization, connecting the sensors to an overarching energy management platform, tracking data to determine what is necessary to achieve optimum performance and continuing to make improvements. At the same time, such changes will require the retraining of staff to use new systems.
10. Leverage Actionable Data to Prove Value of All Energy Management Purchase Decisions
The last step in making energy management purchase decisions involves using dashboarding and reporting capabilities within your integrated facilities management systems, including the computerized maintenance management system and energy management system, to prove the value of deploying systems. Ultimately, this is the part where Facilities Managers show shareholders how this decision contributes to profitability and why future investment may be necessary.
Make an Informed Decision for Optimal Energy and Facilities Management
Making an informed energy management purchase decision is essential in today’s world. As more companies gain the technology in detail-oriented insights necessary to consider all variables and every decision, the importance of gathering data and applying it in making such decisions will grow. At the same time, the frequency of these decisions will increase as more companies look to deregulate. Avoid the pitfalls of guess-based decision-making by choosing the right energy and facility management partner for your organization. Get started by visiting ENTOUCH online or calling 1-800-820-3511 today.