The Business Case

normaldeerManagement

Nov 20, 2013 (3 years and 7 months ago)

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The Business Case

and Beyond:

Getting Management Support

& Resources for Energy

Efficiency Projects


Patrick Crittenden

Sustainable Business

The question

What do you do that helps get
support and resources for energy
efficiency projects?

The companies involved


Australia Post


Centennial Coal
Company


Downer EDI
Mining


Foster’s Group


Linfox


National Australia
Bank


New Hope
Corporation


Newmont Asia
Pacific



Rio Tinto Iron Ore


Ron
Finemore

Transport


Simplot
Australia


Spotless Group


Sydney Water


The GPT Group


Woolworths

A common message

Get the technical detail right

(engineering and accounting)

AND

Develop strategies to

“win friends and influence people”

(getting support & resources for
anything


is a political process!)

6 key strategies


Piggyback on whatever is ‘hot’ in the business
right now


Solve an existing problem through your ‘energy
efficiency project’


Use compliance requirements to drive change



1. Link your project to business priorities

You can’t work in silos. Get the right people
with different expertise involved. It is the only
way to build a credible business case for a
project.


2. Involve the right people


Use existing communication forums such as
management meetings


Use the right ‘business speak’


Use clear and focused messages and questions



3. Communicate with decision makers early

4. Identify and manage project risks

Thinking about a project from a risk
perspective helps you reduce the chance of
unforeseen things happening…it
demonstrates that you have thoroughly
thought the project through.


5. Consider all business costs and benefits


Cost reduction


Salvage value


Maintenance
benefits


Deferred
CAPEX


Productivity


Product quality


Greenhouse
gas reductions


OH&S


Corporate
reputation


R&D tax breaks


Government funding


Energy performance contracting


Internal energy funds



6. Identify funding options



Part of
Clean Energy Future

package worth $1.2
billion total:


Clean Technology Investment Program ($800m over 7 years)


Clean Technology Food and Foundries Program ($200m over
6 years)


Clean Technology Innovation Program ($200m over 5 years)



Associated Assistance


Steel Transformation Plan ($300m over 4 years)


Clean Technology Focus for Supply Chains ($5m over 4 years)


Clean Energy Future Package

Timetable


Public consultations on all Clean Technology
Programs in October 2011


Call for applications


Clean Technology Investment Program
-

first half
2012


Clean Technology Food and Foundries Investment
Program


first half 2012


Clean Technology Innovation Program
-

first half
2012


National awareness raising campaigns from mid
2012


Register interest with AusIndustry on their website
www.ausindustry.gov.au

Low Carbon Australia


Range of financing options


Currently seeking proposals for co
-
investment in investment
-
ready energy and
carbon saving projects/


Submission deadline 30
th

September 2011


See www.lowcarbonaustralia.com.au


Some unexpected answers

This is what we do to influence our
company culture, systems and
processes to improve the success
-
rate
of future projects…

M
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Budget for monitoring & verification as part of the
the business case proposal


Leave room to deliver more than you promise


Make sure the right people know what has been
achieved and keep it on record


Monitor, verify and promote success


Business drivers, risks and opportunities change


keep managers informed


Communicate information about what your
competitors are doing (or not!)


Use relevant graphs and statistics


for example,
how well you are tracking towards targets


Regularly brief management


Consider:


Combining smaller projects into one larger
project


Establishing an internal fund for energy
efficiency projects


Adding questions on energy impacts to capital
expenditure approval processes


Adapt project approval processes

Conclusion

Get the technical detail right

(engineering and accounting)

AND

Develop strategies to

“win friends and influence people”

(getting support & resources for
anything


is a political process!)

Group Work

What strategies have you used to
get support and resources for an
energy efficiency project?