The Business Case and Beyond: Getting Management Support

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The Business Case and Beyond Getting Management
Support Resources for Energy Efficiency
Projects Patrick Crittenden Sustainable Business
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The question

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

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The companies involved

• Rio Tinto Iron Ore
• Ron Finemore Transport
• Simplot Australia
• Spotless Group
• Sydney Water
• The GPT Group
• Woolworths

• Australia Post
• Centennial Coal Company
• Downer EDI Mining
• Fosters Group
• Linfox
• National Australia Bank
• New Hope Corporation
• Newmont Asia Pacific

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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!)

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6 key strategies
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1. Link your project to business priorities

• 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

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2. Involve the right people

• You cant 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.

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3. Communicate with decision makers early

• Use existing communication forums such as
  management meetings
• Use the right business speak
• Use clear and focused messages and questions

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4. Identify and manage project risks

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

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5. Consider all business costs and benefits

• Cost reduction
• Salvage value
• Maintenance benefits
• Deferred CAPEX
• Productivity

• Product quality
• Greenhouse gas reductions
• OHS
• Corporate reputation

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6. Identify funding options

• RD tax breaks
• Government funding
• Energy performance contracting
• Internal energy funds

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Clean Energy Future Package

• 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)

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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

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Low Carbon Australia

• Range of financing options
• Currently seeking proposals for co-investment in
  investment-ready energy and carbon saving
  projects/
• Submission deadline 30th September 2011
• See www.lowcarbonaustralia.com.au

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Some unexpected answers

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

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(No Transcript)
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Monitor, verify and promote success

• 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

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Regularly brief management

• 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

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Adapt project approval processes

• 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

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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!)

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Group Work

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