The Changing Role of the Energy Manager

The Role of the Energy Manager - Higher Profile and More Strategic than Ever

Everyone is talking about energy prices. How can we deal with the increases? How can we wean ourselves off this expensive habit? How can we meet our CRC commitments in the middle of this awful recession?

Energy managers are playing a more important, more strategic role than ever before, and they need to equip themselves with new skills and a new way of thinking about their roles.

Why does this role have to change?

Managers at all levels in all types of organisations are subject to similar forces. When the economy changes, or when new technologies or legislative frameworks come into play we all have to adapt to take advantage of new opportunities, or respond to new challenges.

Because of the changes in the economy, plus regulations like CRC and to an extent technological developments, energy managers are having a bit of a "moment".

It's easier to get the ear of senior managers because broad economic drivers are reinforcing the message that energy managers have been pushing for years. Increases and uncertainty in energy prices, globalisation, inflation and recession means most companies have to keep their prices low to retain customers, and keeping their energy consumption as low as possible is now a very high priority.

On top of that, attitudes are changing. Many people - therefore your company's customers, staff, shareholders and wider stakeholders want to buy and support sustainable products and services. But they still want that low, low price!

So how can you position yourself to make the most of this moment?

Take a look at the key skills employers are recruiting now. If other companies are recruiting for those skills, chances are your company would benefit from them too. Ask yourself:

would those skills benefit my company now?
do I have those skills? Am I really using them on a day to day basis?
how could I develop them, or put them into practice more frequently?

Employers want the technical skills, of course, but they increasingly want people with the business and influencing skills who will be able to:

identify and manage risk appropriately
understand the compliance requirements
be able to spot opportunities, not just the potential for cost savings, but also for potential income streams
be able to set priorities, lead people and shape people's attitudes and behaviours around energy consumption ( see our Essential Change Skills for Energy Efficiency workshop)

"Energy is moving up the agenda for many companies. It used to be that the costs associated with energy were fairly low on the totem pole of expenses, way behind staff costs and other materials. Now that prices have increased so much, the cost of energy may be the second or third biggest outgoing. " says Karyn Peacocke, Energy Efficiency and Carbon Recruitment Specialist at Acre Resources

"It's increasingly important to employers that today's energy manager has the technical and financial skills to put together a good business case, say for investing in new equipment that will reduce overall consumption. But on top of that employers want energy managers who will be comfortable pitching their ideas at board level, who have the gravitas to influence people such as Chief Financial Officers and other C level executives."

So which are the top skills today's energy manager should be developing?

Communication - You're now communicating with a complex network of stakeholders, fellow managers, senior executives, staff at all levels of the organisation, as well as external stakeholders, such as your local community and customers. Excellent communication skills are now at least as important as your technical skills.

"Energy mangers need the ability to communicate with all levels of people from janitor to CFO and make each one feel they can be a part of something bigger than themselves. Today's energy manager must be able to convince people to get "buy in" at all levels of employees", says David Doane Energy Specialist at Shoffner Mechanical Services

Communication is about more than just sending out messages - it's about listening to people so you understand their values and priorities, their fears. Most of all though, you've got to be able to inspire people to try something new, make small sustainable changes, and be able to help them see the evidence of their success and celebrate it with them. If you get this right, you'll spend less time telling people what to do to save energy, and more time listening to their success stories of how they reduced consumption through some clever idea of their own.

Influencing skills - A big part of the role is making recommendations up to board level, about how and when investments should be made. You'll need analytical skills, so you can judge the right timing and financial implications of investing (or not) but possibly more important, you'll need to cultivate your credibility as a holder of essential, business critical expertise.

"The energy manager must, among other obvious skills, be able to move all company personnel to an "energy efficiency awareness level" somehow. Most people are at a basic level where there no awareness nor competence. He must be able to raise awareness and competence of all people working at the plant. "says Armando Landa Gudiño, CEO at enerwise

Here's a quote from a recent job ad that demonstrates the fact that employers are looking for leadership from their Energy Managers.

"You will be able to shape sustainability and environment strategy, influence attitudes and process"

David Doane adds "Energy Managers also need to be thick skinned enough to handle rejection, but still hold their own in a board room. Polished, taking calculated risk with new proven technologies, confident, and likeable are all qualities today's energy manager must possess."

Business skills - as energy management moves up the strategic agenda, it's increasingly important for managers to demonstrate their ability to meet their organisation's short, medium and long term strategic aims. This quote from a recently advertised job description in the UK illustrates how central the role is to success for this business:

"With an estimated electricity spend of £XX Million for 2011/12 and (our) inclusion within the Carbon Reduction Commitment (CRC), this role will focus on reducing energy usage both in our existing estate and future properties. With a CRC liability of circa £X00K the development and management of our energy policy will be of paramount importance, combine this with our rapid growth plans and this will mean a very challenging role."

You are going to have to "sell" your ideas at board level, get good at pitching. Think about opportunities as well as risk. How could the way your company uses energy confer strategic advantage? Will you be more secure and sustainable? Will you be more competitive? Will you be able to leverage good PR?

The technical skills are extremely important, but it's the flexibility, the business sense, and the ability to communicate effectively that will really change the way your organisations uses energy.

With so much attention focussed on energy efficiency, this is a great time to push your agenda. This is your moment, so use it well!

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You can reach Karyn Peacocke Acre Resources on +44 (0) 203 008 4699

You might like to attend our next training course - Essential Change Skills for Energy and Sustainability Management - 24th April Birmingham