On a global scale, excess energy consumption in retail businesses has an enormous impact on a company’s bottom line. As a result, an increasing number of retail chains are placing energy into the “strategic asset category.” Best-in-class organizations are proving that it is possible to cut costs and to increase revenues by proactively managing energy consumption and operational processes.

With the renewed focus on energy costs and consumption, the boardroom is taking greater interest in energy management and energy management technologies. It’s come to the point where poorly-managed energy and operational costs are having a direct, negative impact on competitiveness, and that’s something that gets the attention of just about any C-level executive these days.

Yet, there’s still work to be done in terms of creating a culture of energy awareness within corporations on a global level.

For C-level Energy Awareness, Many Corporations Start With Data Visibility

In order to get energy awareness buy-in from C-level executives (as well as other decision-makers who might not have a C-level title), the pitch needs to be made from an angle they understand, and in a way that will hit home in terms of their corporate responsibilities. In most cases, this starts with visible energy cost and consumption data that can’t be ignored by those in charge of spending and saving money throughout the organization.

Whether it’s a C-level executive or a facilities manager, each has a duty to save their organization money wherever possible. Even if their drivers are different, the bottom line can still be measured in dollars:

Function	Driver
CFO	Save $$
COO	Improve operations
CSO	Meet sustainability goals
Facilities Manager	Visibility into operational patterns
Energy Manager	Identify energy savings opportunities

 

Energy Management Needs Strategy – Which Happens in the Boardroom

Strategy is a management task. As the role of energy management becomes more strategic, upper-level management is taking notice and is inviting energy management, operations and sustainability people into the boardroom for more discussions and sustainability/energy planning. This planning must include those in charge of knowing where the energy goes, what it costs, and how energy and operational costs can be lowered. More and more, this is becoming a challenge that is moving from the facility level to the enterprise/boardroom level.

Move to Centralized Energy Management Strategies

Whenever something gets centralized within a company or organization, it’s often given a place in the boardroom. The same is true with energy management. Whether it falls under the domain of the COO, VP of Energy, or some other title, as more corporations make energy a priority, bringing it to a prominent place in the boardroom where it can be part of the strategic domain will become commonplace.

Energy awareness is inevitable, but those corporations who embrace it with purpose and defined methodology will be the ones who fare better than those who take a more reactive stance. While it’s true that the state of the energy market itself is driving awareness to the boardroom, there’s still much to be done to get complete awareness. Data-driven awareness, strategic response initiatives and dedication to the bottom-line will all help toward energy awareness in the boardroom. 

Jon Rabinowitz is Senior Director of Marketing at Panoramic Power, a leading provider of device level energy management solutions for retail business around the world. In this role he advocates on the use of sensor energy monitoring technology to make proactive operational decisions and reduce energy costs.