Saving Energy Step 1 ? Implementing a Management System

There has been much hype down the years regarding whether management is art or science. Thankfully, where people are concerned the pendulum has swung away from standard times in sweatshops in the west. However, when it comes to measuring physical things like harvest per square meter and the amount of energy consumed there is no substitute for scientific measurement, and this implies a system.

Managing energy cost and consumption down is like any other strategy. American engineer / statistician / management consultant W. Edwards Demming may have passed on in 1993. However he was as right as ever when he said:

When people and organizations focus primarily on quality, this tends to increase and costs fall over time.

However, when people and organizations focus primarily on costs, costs tend to rise and quality declines over time.

Demming believed that 90% of organizational problems arise from systems we put in place ourselves. This can be because we are so accustomed to them that we fail to notice when they are no longer relevant. The currently prevailing laissez faire towards energy is a case in point. What is managed improves and what is not, deteriorates. We know this. Let us take a look at how to apply this principle to energy management.

First, you need to get the subject out the closet and talk about it. How often do you do this is your boardroom, and how does energy rank against other priorities? Good governance is about taking up a position and following through on it. Here is a handy checklist you may like to use.

Do we use a consistent language when we talk about energy? Is it electricity, or carbon emitted (or are we merely fretting over cost).

How well engaged are we as a company? Looking up and down and across the organization are there points where responsibility stops.

How well have we defined accountability? Do we agree on key performance areas and how to report on them.

Are we measuring energy use at each point of the business? When did we last challenge the assumption that ?we’re doing okay?.

Have we articulated our belief that quality is endless improvement, or are we simply chasing targets because someone says we should.

A management system is a program of policies, processes and methods to ensure achievement of goals. The next blog focuses on tools and techniques that support this effort.

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Spreadsheet Reporting – No Room in Your Company in an Age of Business Intelligence

It doesn’t take a genius to understand why spreadsheet reporting still pervades the enterprise despite the rise of a complex but highly effective IT solution known to big shot CIOs as Business Intelligence or BI.

If you’re still in the dark as to what BI is, don’t worry because we?ll enlighten you shortly.

Business decisions from disparate data sources

In the meantime, let’s talk about how you make business decisions. If you’re a top executive, then you make decisions based largely on reports submitted to you by your managers, department heads, and so on. They in turn obtain information from different sources, like the company ERP and CRM as well as other external sources (e.g. market surveys).

Now, before their reports ever reach your desk, a lot of data is extracted, shared, filtered, analysed, consolidated, and summarised so that they become actionable information. In all these activities, one software tool gets to take part in most of the action – the spreadsheet.

The problem with spreadsheet reporting

The problem with spreadsheets is that they have very poor built-in controls. Thus, they are susceptible to human errors and are vulnerable to fraud. What’s more, collecting data and manually consolidating them into spreadsheets can be very laborious and time consuming.

If you don’t get accurate, reliable information, your judgement will be fuzzy and your business decisions compromised. In addition, if you don’t receive the information you need on time, your business will constantly be at risk of breaching critical thresholds, which may even force it to spin out of control.

Business Intelligence – actionable information on time

This is mainly the reason why large companies implement Business Intelligence systems. BI systems are equipped with built-in features like reports, dashboards, and alerts.

Reports consolidate data and present them in a consistent format composed of intuitive text, graphs, and charts. The main purpose of having a consistent format is so that you will know what kind of information to expect and how the information is arranged. That way, you don’t waste time searching or making heads or tails out of the data in front of you.

Dashboards, on the other hand, present information through visual representations composed of graphs and gauges that are aimed at tracking your business metrics and goals. The main function of dashboards is to feed you with actionable information at a glance.

Finally, alerts keep you informed when certain conditions are met or critical thresholds are breached. Because their main purpose is to prompt you at the soonest possible time wherever you are, a typical alert can come in the form of an SMS message or an email.

As you can see, all three features are designed to get you making well-informed decisions as quickly as possible.

The problem with Business Intelligence and the alternative solution

The usual problem with full BI systems is that they can be very costly. Hence, if your organisation does end up implementing one, chances are, not everyone under you will be able to access it. As a result, some departments will be forced to go back to using spreadsheets.

If your company cannot afford a full BI system, then that probably means you don’t need one. What you need is a more affordable alternative. There are actually Software as a Service (SaaS) Business Intelligence solutions that may not be as comprehensive as a full BI system, but which may suffice for small and mid-sized businesses.

The disadvantages of spreadsheets are more damaging than you could have ever expected. Be free of it now.

More Spreadsheet Blogs

Spreadsheet Risks in Banks

Top 10 Disadvantages of Spreadsheets

Disadvantages of Spreadsheets – obstacles to compliance in the Healthcare Industry

How Internal Auditors can win the War against Spreadsheet Fraud

Spreadsheet Reporting – No Room in your company in an age of Business Intelligence

Still looking for a Way to Consolidate Excel Spreadsheets?

Disadvantages of Spreadsheets

Spreadsheet woes – ill equipped for an Agile Business Environment

Spreadsheet Fraud

Spreadsheet Woes – Limited features for easy adoption of a control framework

Spreadsheet woes – Burden in SOX Compliance and other Regulations

Spreadsheet Risk Issues

Server Application Solutions – Don’t let Spreadsheets hold your Business back

Why Spreadsheets can send the pillars of Solvency II crashing down

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4 Reasons Why You Might be Missing Out on Energy Savings…

?well your company actually, although for many small-to-medium businesses it boils down to the same thing. Governments usually lag behind in terms of innovation but are beating us hands-down when it comes to going green. I have heard that private sector energy savings average less than 1% per year and I for one would not be surprised if that were true. So what is causing this rot, when we started out so enthusiastically? Here are four possibilities for you to mull over.

Your Team is Unevenly Yoked ? A pair of mismatched horses cannot pull a wagon in a straight line any more successfully than a business team can achieve its goals, if there is no agreement on priorities. While your sales team may be all for scoring green points against your competition, your accountant has a budget to balance and your operations department just wants to get on with the job.

Energy?s not in Focus ? The above may in part be due to production goals you set your department heads. Energy is not nearly as greedy as raw materials and human capital. If you tell them to cut 5%, where do you think they are going to look first? You need to put energy savings up there, and agree specific targets as you do with other primary goals.

Your Equipment Could be Over-Spec ? It is a very human thing to put more food on our plates and buy faster cars than we need. Only a few generations ago our ancestors lived through feast and famine, and the shadow of this still influences our thinking. Next time you buy equipment sit around the table and agree the decision criteria together. Then stick to them and repel all attempts at up-selling.

You Are Delegating Too Much ? Delegation is part of company culture, or if you prefer the collective way of doing things. If you delegate something completely it is akin to saying I do not care much about this, make it happen. Energy saving is a financial and moral imperative. The fact the oil price is down does not mean there is no place for sustainability on your desk (and the price is likely to be up again soon).

Governments succeed in saving energy (whereas businesses often do not) because governments have a crowd of stakeholders beating down the door and demanding progress. As business owners we are more likely to do the same when the pressure is upon us, and that pressure surely has to come from us.

8 Reasons why you Need to Undertake Technical and Application Assessments

Are your information assets enabling you to operate more cost-effectively or are they just drawing in more risks than you are actually aware of? Obviously, you now need to get a better picture of those assets to see if your IT investments are giving you the benefits you were expecting and to help you identify areas where improvements should be made.

The best way to get the answers to those questions is through technical and application assessments. In this post, we?ll identify 8 good reasons why it is now imperative to undertake such assessments.

1. Address known issues – Perhaps the most common reason that drives companies to undertake a technology/application assessment is to identify the causes of existing issues such as those related to data accessibility, hardware and software scalability, and performance.

2. Cut down liabilities and risks – Unless you know what and where the risks are, there is no way you can implement an appropriate risk mitigation strategy. A technology and application assessment will enable you to thoroughly test and examine your information systems to see where your business-critical areas and points of failure are and subsequently allow you to act on them.

3. Discover emerging risks – Some risks may not yet be as threatening as others. But it would certainly be reassuring to be aware if any exist. That way, you can either nip them in the bud or keep them monitored.

4. Comply with regulations – Regulations like SOX require you to establish adequate internal controls to achieve compliance. Other regulations call for the protection of personally identifiable information. Assessments will help you pinpoint processes that lack controls, identify data that need protection, and areas that don’t meet regulatory requirements. This will enable you to act accordingly and keep your company away from tedious, time-consuming and costly sanctions.

5. Enhance performance – Poor performance is not always caused by an ageing hardware or an overloaded infrastructure. Sometimes, the culprits are: unsuitable configuration settings, inappropriate security policies, or misplaced business logic. A well-executed assessment can provide enough information that would lead to a more cost-effective action plan and help you avoid an expensive but useless purchase.

6. Improve interoperability – Disparate technologies working completely separate from each other may be preventing you from realising the maximum potential of your entire IT ecosystem. If you can examine your IT systems, you may be able to discover ways to make them interoperate and in turn harness untapped capabilities of already existing assets.

7. Ensure alignment of IT with business goals – An important factor in achieving IT governance is the proper alignment of IT with business goals. IT processes need to be assessed regularly to ensure that this alignment continues to exist. If it does not, then necessary adjustments can be made.

8. Provide assurance to customers and investors – Escalating cases of data breaches and identity theft are making customers and investors more conscious with a company?s capability of preserving the confidentiality of sensitive information. By conducting regular assessments, you can show your customers and investors concrete steps for keeping sensitive information confidential.