IAEE Living Laboratory Approach to Behavior Change

A Living Laboratory Approach to Improving Utility Program and Technology Engagement

Changing Behavior for Sustainable Valueand Energy Efficiency

Presenters

Scott BOWMANPE, LEED Fellow

Midwest Coach

[email protected]

[email protected]

Bob FERGUSONDirector of Business

And Network Development

[email protected]

© 2014 True Market Solutions


Agenda

▸Why Behavior Change?

▸ The TMS Sustainability Circle

▸ Sustainability Circle Value

▸Where TMS is Heading

Why Behavior Change?


First, what do you think?


We have done

audits and

studies, but

energy costs

keep rising!

My energy and resource

costs are going up and

there’s no end in sight.

I know there is a more

sustainable way to run

our business, but I don’t

know how to start.

Our employees don’t

seem to buy into

sustainability, but it is

important to our future

business.

Customers and

stakeholders are

asking about

sustainability;

what do I tell

them?

What is going on?


Cost Value

Sustainabilityas Business

Strategy

% CEOs who say sustainability is

critical to competitive advantage

2007 2011 2013

<25% 67% 80%Sources: Sustainable Value Partners survey (2007);

MIT-SMR and Boston Consulting (2011); UNGC – Accenture (2013)

mindset


Technology▸ Sometimes technology can

get in the way

▸ Users still run systems, and

the culture has to reward the

right metrics

▸ Technology cannot change

culture or directly change

behavior

▸ Tech CAN work to alight

good behavior

▸ Meters are great, but only if

we read and management is

there value


Behavior Change

▸ Change individuals and

companies culture to align with

goals

▸ Technology only works if we

fund it AND use it right!

▸ Examples:▸ Proctor & Gamble

▸ Mi Rancho Tortilla

▸ Wellmark– Stairs

▸ Unilever’s 5 Principles:

▸ Make it understood

▸ Make it rewarding

▸ Make it desirable

▸ Make it easy

▸ Make it a habit


Behavior Integration

▸ Strategic Development

▸ Voluntary means optional

▸ Executive Sponsorship

▸ Management Champion

▸ Specific Meaningful Metrics

▸ Progress must be visible and

regularly reviewed by

management

▸ Progress reported to company

on highly visible dashboard


What gets measured gets done!


The TMS Sustainability Circle


Typical Programs▸ Energy Audits

▸ Very good economics

▸ Limited implementation

▸ Focused only on equipment

▸ Rebates and Incentives

▸ Targeted on certain technologies

▸ Often largest for new construction

▸ Customers not always aware of

opportunities

▸ Economics of Business

▸ One dollar toward growth will

ALWAYS beat a dollar toward

efficiency

▸ Metrics are not aligned to efficiency

▸ Not in business to save energy!


Basis of a Sustainability Circle

▸ Curate and Convene

▸ Coach and Educate

▸ Facilitate and Encourage

▸ Invoke the Power of the Peer

Community

▸ Perform Organizational Review

with Culture Assessment

▸ Strong Learning Objectives

and Robust Living Curriculum

▸ Use Adult Learning Principles

Integrated into Curriculum

▸ Learn and Adjust based on

Extensive Feedback Loops


Adult Learning Principles▸ Clearly state reason for learning

and practical relevance

▸ Exchange knowledge and

experience as resourceful peers

▸ Hold responsible for personal

learning, planning, and self-

evaluation

▸ Perform tasks and solve problems

▸ Structure Expectations

▸ Skill Building / Group Exercises

▸ Leadership Development for

Embedding Sustainability

▸ Leadership Development for

Action


Strategic

Tactical

Behavioral

Sustainability Circle Objectives

▸Accelerate the transformation to a new

mindset of Energy and Resource Efficiency

▸ Integrate sustainability thinking and metrics

into small to medium business models

▸Build Peer Learning and Exchange Platform

▸ Identify Behavior Drivers necessary to create

change

▸Test Circle Initiatives savings persistence and

measurement lifetime


Sustainability Circle Basics

ExpertSpeakers

TMS Coaches

▸ Optimal Size

▸ 10 organizations

▸ 2 staff from each, more if appropriate

▸ Program

▸ 6 full-day workshops each month

▸ Include local subject matter experts

▸ Held at participant locations - tours

▸ Utility program information

▸ Direct Coaching and On-Site Visits

▸ Support for Employee Engagement

▸ Sustainability Action Plan

▸ Follow up on Progress after Circle

▸ TMS at 6, 12, and 24 months

6-month Program

Interactive Idea Sharing


Living

Laboratory

Sustainability Circle Basics

Company Profile

▸ 50 to 2,500 employees

▸ 25,000 to 250,000 sf

▸ Owner of Buildings/Site

▸ Long Term Lease (pass thru)

▸ Leading Organizations

▸ Resource Heavy

▸ Utility Partners

Sample Sectors

▸ Manufacturing

▸ Distributors/Warehouses

▸ Hospitality

▸ Health Care

▸ Property Management

▸ Entertainment

▸ Business Services

▸ Non-Profits

▸ Cities/Local Government

▸ School Districts


Circle Sessions At-a-Glance


Session 1 Session 2 Session 3 Session 4 Session 5 Session 6

Sustainable

Value

Action

Planning

Energy

Management

Roadmap

Metrics

Overview

Energy

Efficiency:

HVAC

Utility

Programs,

Incentives

Energy

Efficiency:

Lighting &

Controls

Metrics

Check-in,

Reporting

Sustainability

Marketing ,

Communication

Action Plan

Presentations

Climate

Change

Business

Interface

Water,

Watershed &

Wastewater

Waste

Reduction &

Recycling

Green Office

Measures

Responsible

Procurement

Renewable

Energy

Behavior Change / Stakeholder Engagement

Sustainability Action Planning Sessions

On-Site Walk-Throughs and Organizational Profile Review

Green in the News

“Homework” Projects between Sessions

Circle Experience

▸ Develop New Mindset/lens

▸ Teach to ID Sustainable Value

▸ Opportunities & Risks Utilize

Action

▸ Action Planning

Template/Framework

▸ ID Barriers To Achieving Value

(Coaching)

▸ Focus on Behavior & Culture

▸ Mgmt. buy-in, EE, Deeper

Stakeholder Engagement,

Language & Messaging


Circle Experience

▸ Adult Learning Principles

▸ Tools to Use Mindset &

Promote Action

▸ Power of Peer Community

▸ Real Cases from Each Other

▸ Action Check Ins (Persistence?)


Combine rational, emotional, and social concepts to develop

new mindset with culture of rewards and altered behaviors

Circle Investment

▸ Cost per organization, $7500

▸ Cost share of sponsoring utility

▸ 50% to 100%

▸ Some vary by sector type

▸ Additional resources

▸ Grants

▸ Economic Development

▸ Project Funding


Sustainability Circle Value


Circle Value - Participants▸ Develop new mindset; integrate into

organization

▸ Identify savings opportunities and risks

▸ Establish Peer Community (nearby)

▸ Improve stakeholder presence and

communications

▸ Inspire and engage employees

▸ Leverage investment opportunities

▸ Establish opportunity for credible

leadership and longevity

▸ Develop metrics that strengthen internal

buy-in


Customers find Value!


As the Sustainability Circle began, I was

sure that Iowa Veterans Home had already

picked all the low hanging fruit in terms of energy

savings or recycling. I felt pretty sure we would

not have many items we would find. As we began

the process and developed the Green Team, my

thought took a quick turn. The Green Team, while

small, came up with 58 ideas to become more

sustainable. Kathy Shannon

Bureau Chief, Facilities Management, Retired

Iowa Veterans Home

Circle Value - Utilities▸ Expands role of utility beyond EE to behavior

▸ Kw/kwh and therm savings

▸ Carbon Emissions Reduction

▸ Increasing uptake of utility programs and

incentives

▸ Assists in education on complex topics

▸ Energy Efficiency

▸ Demand Reduction

▸ Load shedding

▸ Energy efficiency catalyst

▸ Improve Utility Account Manager channels and

relationships

▸ Behavior Change Laboratory to try out, quantify

and measure change


Circle Value – Cities

▸ Economic Development with environmental

Benefits

▸ Business Health: Reduce Operating Costs

▸ Reduce waste, water, materials use

▸ Strengthens recycling and composting

programs

▸ Helps Cities implement plans and goals

▸ Climate Action Plans

▸ Attract companies from new sectors

▸ Promotes Circular/Shared Economy

▸ Reduces need for prescriptive policies and

regulations from State and Local government


Cities find Value!


The high quality speakers and presentation

topics have exposed me to new depths of

information in the area of sustainability. The plan

Mason City develops will assist us in becoming a

more sustainable organization by reducing our

energy use, looking in to alternative renewable

energy sources and alternative energy powered

vehicles for our large fleet.

Brent Trout

City Manager

Mason City, Iowa

Unexpected Results!

▸ “Plug-load survey” and energy audit of lighting for Cryotech really

brought home a message

▸ Immediately implemented education and management practices

▸ Results:

▸ Reduced non-production electrical usage by 50%

▸ 658,000 kWH saved June-December 2012

▸ Reduction came from operational

changes – No capital investment

▸ Utility thought there was a problem

with their meters!


Unexpected Results!


Quantitative Results…


▸ Projected average number of initiatives and average projected five-

year annual savings per organization from organizations

participating in our 4 most recent Circles as of July 2014.

▸ Additional achievements:

▸ New product & service development

▸ Enhanced employee engagement

▸ Increased community standing

▸ Greater job satisfaction

▸ Enhancing brand, product differentiation, and revenue

▸ Increasing industry leadership, community standing,

and visibility within a market

▸ Enlivened company culture and employee engagement

▸ Attracting and retaining top talent

▸ Fostering organizational innovation and creativity

▸Multiplying affect, extending behavior change into

homes and broader community


Qualitative Results…

Economic Development finds Value!


The Sustainability Circles that True Market

Solutions is bringing to Iowa are a

tremendous asset. The best and quickest way to

integrate sustainability practices into the everyday

operations and mission of our communities and

businesses is to demonstrate the interconnection

between economic and environmental

sustainability as the Circles have shown the ability

to do so well. Jeff Geerts

Special Projects Manager

Iowa Economic Development Authority

Creating High Performance

▸Lead users to higher performance

▸Users become Engaged through SAP

▸Participants become Leaders in the community

▸Utility becomes a Trusted Advisor to users

▸Results can be Expanded to all users



Where TMS is Heading


Future for TMS

▸ Expanding the Circle

▸Working with communities to expand the reach of circle

participants

▸ the multiplier effect

▸ Small Business Circles

▸ Shorter duration curriculum focused on key concepts

▸ Target small companies with smaller bandwidth

▸ Advanced Modules

▸ Additional resources for Circle Alumni to support action

plans

▸ Acceleration strategies and workshops


Future for TMS

▸ Specialized School District Curriculum

▸ Concluded one district in CA with great success

▸ Special circumstances and needs for this type of client

▸ Supply Chain Circles

▸ Large companies care about broader issues

▸ Incentivize and educate to address sustainability

▸ Peer Communities

▸ As circle alumni grow, sharing and community

▸ Additional support and education opportunities


Tomorrow's Sustainability

▸From bolt-on to embedded strategies

▸From incremental change to radical innovation

▸From doing less harm to “net positive” impact

▸From serving the well-off to socially inclusive

▸From pilot mode to scaling system change


Source: Chris Laszlo © 2003-2014

http://weatherhead.case.edu/centers/fowler/

Closing…


What did you think?



Questions?


www.truemarketsolutions.com


IAEE Living Laboratory Approach to Behavior Change

Environment