Conservation Applied Research
& Development (CARD) Program
FINAL REPORT
Achieving Energy and Cost Savings
in a Healthcare Organization
with a Behavior-Based
Energy Efficiency Program
Prepared for:
Prepared by:
Minnesota Department of Commerce, Division of Energy Resources
CLASS 5 Energy, Inc.
FEBRUARY 2013
COMM/OES-01192010-B43210
Prepared by:
Primary Author(s):
Amy Anderson
Joe Hallberg
Kathleen Murray
CLASS 5 Energy, Inc.
1750 Commerce Court
White Bear Lake, MN 55110
651-748-4370
www.class5energy.com
Contract Number: B43210
Prepared for:
Minnesota Department of Commerce, Division of Energy Resources
Mike Rothman, Commissioner
Bill Grant, Deputy Commissioner, Division of Energy Resources
Mary Sue Lobenstein, Project Manager
651-539-1872
[email protected]
ACKNOWLEGEMENTS
This project was supported in part (or in whole) by a grant from the Minnesota Department of
Commerce, Division of Energy Resources through the Conservation Applied Research and Development
(CARD) program, which is funded by Minnesota ratepayers.
NOTIFICATION
This report does not necessarily represent the views of the Department of Commerce (Commerce), its
employees or the State of Minnesota (State). Commerce, the State, its employees, contractors and
subcontractors make no warrant, express or implied, and assume no legal liability for the information in
this report; nor does any party represent that the uses of this information will not infringe upon
privately owned rights. When applicable, the State will evaluate the results of this research for inclusion
in Conservation Improvement Program (CIP) portfolios and communicate its recommendations in
separate document(s).
2
ABSTRACT
In 2010, CLASS 5 Energy received a Minnesota CARD grant to test a comprehensive behavioral and
operational energy efficiency program for the healthcare market, which saw energy costs rise 36% from
2003-2008 1. The goal was to create a program that could reduce energy use and costs in healthcare
organizations without a significant financial investment.
After interviewing a number of appropriate partners, Ridgeview Medical Center (RMC) was selected in
May of 2011 based on its previous sustainability efforts, enthusiasm for adding a behavior component
and diverse building mix (hospital, off-site clinics, professional buildings, hospice house, etc). Beginning
that spring and running through December of 2012, a CLASS 5 program consultant worked with RMC’s
leadership and employees to implement and evaluate the program, which was modeled after CLASS 5's
successful Schools for Energy Efficiency® (SEE) program.
During the pilot, RMC followed a step-by-step plan focused on gaining leadership support and buy-in,
identifying and implementing no- and low-cost operational strategies, and utilizing tools and materials
for employee awareness and engagement. In addition, CLASS 5 provided utility tracking so RMC was
able to measure whether the program was actually achieving energy and cost savings.
With 15 months of data, the pilot results showed that a behavior energy program for healthcare can
provide significant energy and cost savings without major financial investments on the part of the
organization. RMC saved more than $75,000 and reduced overall energy use by 6% without negatively
affecting patient comfort or safety. In addition, an employee survey was conducted to determine how
the program affected employee attitudes and behaviors. With nearly 400 of RMC's 1,575 employees
responding, 89% are more likely to engage in energy saving behavior, 83% have a more positive attitude
toward saving energy, 91% learned that individuals can have an impact on organizational energy costs,
and 94% are willing to submit an energy saving idea to their department if they had one.
This report will detail some of the key strategies used, results in terms of energy and dollars saved as
well as employee attitudes, key findings and recommendations for implementing the program in other
healthcare facilities, as well as other workplaces.
3
TABLE OF CONTENTS
ABSTRACT...................................................................................................................................................... 3
TABLE OF CONTENTS..................................................................................................................................... 4
EXECUTIVE SUMMARY .................................................................................................................................. 5
BACKGROUND ............................................................................................................................................... 9
A Decade of Success................................................................................................................................ 10
Adapting the Program for Healthcare .................................................................................................... 11
THE CLASS 5/HEALTHCARE ORGANIZATION PILOT ..................................................................................... 13
May – December 2011: Laying the Foundation ...................................................................................... 13
January – December 2012: Operations and Engagement ...................................................................... 17
RESULTS ...................................................................................................................................................... 20
Energy Savings ........................................................................................................................................ 21
Employee Attitudes at RMC .................................................................................................................... 22
CONCLUSIONS ............................................................................................................................................. 25
RECOMMENDATIONS ................................................................................................................................. 26
REFERENCES ................................................................................................................................................ 28
4
EXECUTIVE SUMMARY
In the United States, healthcare is the #2 most energy intensive industry, spending more than $8.5
billion annually on energy while releasing more than 30 pounds of CO2 per square foot per year 2. In
addition, energy costs in the healthcare industry appear to be on the rise, increasing 36% from 2003 to
2008[1]. Coupling high energy costs with its role as a good steward of the environment, the healthcare
industry has become more earnest in focusing its efforts to decrease its carbon footprint and find new
ways to reduce energy use. At the same time, interest in behavior-based energy management has been
growing as utilities look for ways to achieve energy conservation goals and an increasing number of
behavior-based pilot programs are producing measureable results 3.
In 2010, CLASS 5 Energy received grant funding from the State of Minnesota to assist utilities in meeting
the 1.5% energy conservation goal through a behavior-based energy efficiency program, similar to the
successful Schools for Energy Efficiency® (SEE) program. The goal was to create a comprehensive, multiyear behavioral and operational energy efficiency program for the healthcare market. The new
healthcare-focused program utilized the same proven organizational change process as the SEE
program. However, given the unique challenges of a healthcare setting, the new program was designed
with a healthcare “look-and-feel,” and also addressed specific issues relevant to the health care industry
including medical devices/technologies and facilities that are open 24/7.
The majority of grant funds were dedicated to testing various program components within a healthcare
setting that included a 109-bed hospital. After talking with a number of appropriate partners, Ridgeview
Medical Center (RMC) was selected in May of 2011 as the test site based on its previous sustainability
efforts and enthusiasm for adding a behavior component. RMC’s organization, based in Waconia, MN,
includes a hospital, five clinics, four professional buildings and a hospice, as well as a HomeCare/HME
site and a staff office building.
Beginning in June, 2011, and running through December, 2012, a CLASS 5 program consultant worked
with RMC’s leadership and employees to implement and evaluate the new program, called The CLASS 5
Plan for Healthcare. With an emphasis on no- and low-cost energy saving strategies, the CLASS 5 Plan for
Healthcare includes a step-by-step guide focused on gaining leadership support and buy-in, tracking
ongoing energy use, implementing operational strategies and utilizing materials and tools for employee
awareness and engagement.
5
With 15 months of data, the pilot results showed that a healthcare-focused behavior energy program
can be successfully implemented. RMC saved more than $75,000 and reduced overall energy use by 6%.
During this period, there were no asset projects implemented and the only other investment on RMC’s
part was its leadership’s time to oversee and implement the program. The figure below shows energy
use savings for Ridgeview’s hospital as well as for the entire 13-building campus.
Figure 1: Results of Total Energy Savings by Quarter at Ridgeview Medical Center
In the final month of the pilot, an employee survey was conducted to determine how the program
affected employee attitudes and behaviors. With nearly 400 of RMC’s 1,575 employees responding, the
results were consistently positive:
•
89% are more likely to engage in energy saving behavior
•
83% have a more positive attitude toward saving energy
•
91% learned that individuals can have an impact on organizational energy costs
•
94% would be willing to submit an energy saving idea to their department if they had one.
6
Employee comments from the survey also reinforced these positive results:
“Was amazing how much energy buildings/departments saved when everyone did a little.”
“I’ve tried to become much more energy conscious since your campaign to help us reduce energy
in our own departments. It’s a wonderful reminder to us all to conserve energy any way we can.”
“The energy conserving tips have been very helpful and I have used them at home.”
“Mike from facilities told me how much money can be saved if everyone turns their monitors off
at night. I was so surprised at how high the amount was, so I try to remember to turn mine off
now.”
“This initiative is so important! Yeah, Ridgeview!”
“Learning about CLASS 5 Energy has helped me become more aware of my surroundings at work
as well as noticing how it affects my personal life. I’ve been able to cut costs on my own energy
bill as well!”
“I thought the CLASS 5 energy plan was a great idea – all employees need to be cognitive of
surroundings and work together as a team to save their employer money. The plan teaches
responsibility and carries over to individual home situations as well.”
Overall, hospitals’ ability to hold operating margins relatively steady over the longer term is likely tied to
their capacity to control expenses to match fluctuations in revenues 4. With minimal financial
investment, RMC was able to utilize the tools and strategies of behavior-based energy efficiency
program to fit its culture and achieve significant and measurable results in both energy and cost savings.
This healthcare pilot, as well as CLASS 5’s experience with K-12 education, office/commercial
organizations, higher education and local government, demonstrates that any organization interested in
saving energy and money without significant capital investment can do so, provided three key
components are in place:
1. Senior-level support for the effort. When employees know that organizational leaders are
committed to the effort, they are much more likely to participate. Moreover, management buyin helps mobilize human and financial resources to support the effort, expedites coordination of
working relationships and schedules across departments, and helps remove any institutional
barriers to success. At RMC, CEO Bob Stevens provided the public backing which migrated to
every director, department head and manager.
2. An internal coordinator. There is no such thing as an effort that implements itself. The internal
coordinator serves as the point of connection between building occupants, the facilities team,
7
communications and IT, and the Energy Steering Committee. He or she acts as opinion leader,
role model, messenger, “boots on the ground,” and change advocate. At RMC, the Director of
Facility Services and the Director of Organizational Effectiveness partnered in this role. With
support from CLASS 5’s consultant, these two employees provided day-to-day coordination and
direction for the effort.
3. Measurement. You can’t manage what you don’t measure. An accurate and timely
measurement system for energy savings and cost avoidance is critical to the effort. While many
measurement tools are commercially available, for the pilot RMC utilized CLASS 5’s utility
tracking tool.
In addition, CLASS 5 believes that utility companies can play a significant role in identifying and
supporting customers who are interested in participating in an approved, multi-year behavior-based
effort. Behavioral shifts take time. Utility involvement can provide validation of the effort through
recognition opportunities and/or financial incentives that increase the likelihood of ongoing
participation, which gives the organization time to shift its culture toward increased energy efficiency.
8
BACKGROUND
The role of behavior in energy management has been a topic of interest since the energy crisis in the
1970s. The scarcity of oil triggered research on energy consumption behavior, bringing social science
into the analysis of energy issues to augment traditional asset-based approaches. According to a recent
report from the American Council for an Energy Efficient Economy (ACEEE), due to the lack of a costbenefit analytical approach and the absence of an evaluation framework suitable for application to
existing energy behavior programs, such programs have been inadequately studied and thus are often
omitted from current efforts to promote building energy efficiency[3]. However, research shows that
operations and management best practices can reduce energy bills by 5% to 20% without investing
significant capital 5. Depending on building size and use, this can represent annual savings of hundreds of
thousands of dollars.
Not all behavior-based energy programs are created equal. According to that same ACEEE report,
effective, sustainable behavior-based energy efficiency programs share several common strategies: 1)
setting the tone with the strong support of upper management; 2) building a team with a project
committee and peer champions on board; 3) utilizing communication tools to reach target audiences;
and 4) engaging building occupants.
These combined elements are necessary because changing behavior requires more than simply asking
people to turn off their lights or lower the thermostat. Organizations have accepted ways of doing
things, “rules of the road,” so to speak, which do not always take energy efficiency into account.
Without directly addressing and changing these rules, the same barriers to effective energy
management come up time and time again. People will make changes for a while, but the impact erodes
over time as they slip back into old habits that have not become part of the organizational culture.
The solution is to provide organizations with a roadmap that helps them create and embed new “rules
of the road” into all aspects of their culture – to become an organization in which people make
intentional choices to save energy, not because they are told to, but because they want to. And they are
more likely to make those choices if they understand the benefits it provides to them as employees, to
their organization and to the environment as a whole.
9
A Decade of Success
Since 2002, CLASS 5 has specialized in creating and supporting behavior-based energy efficiency
programs for K-12 schools. To date, its programs have been implemented in more than 750 buildings,
helping school districts reduce energy use by as much as 30% and collectively avoid more than $30
million in energy costs.
CLASS 5’s programs are designed around two converging and predominant approaches: an engineering
approach to improving business processes and a psychological approach to managing the human side of
change. From an engineering standpoint, a business is like a clock where each of the mechanical pieces
can be changed or altered to produce a predictable and desirable solution. From a psychological
standpoint, it’s important to help individuals make sense of what a change means to them.
Either approach, in isolation, often proves unsuccessful. An exclusively engineering approach results in
changes that are only marginally implemented or supported by the people being asked to make the
change. An exclusively psychological approach results in a willingness to change without a specific plan
for what needs to be changed and how to do it.
CLASS 5’s programs incorporate a dynamic, reiterative change management process that addresses both
organizational systems as well as culture. The process includes:
•
EDUCATING people about why saving energy is important, and
how they can help.
•
IDENTIFYING opportunities for quick wins and early results.
•
ENGAGING people across the organization and asking them to
do their part.
•
MEASURING and tracking progress toward the energy-saving
goal.
•
COMMUNICATING and celebrating results often and with
everyone.
To support program implementation, CLASS 5 Energy provides organizations with a 10-step guide that
walks a designated “energy efficiency coordinator” through the steps and strategies needed to organize
and direct the energy saving effort. Each step includes an overview and a list of tasks that need to be
completed before moving to the next step. An extensive library of customizable templates and materials
10
that support each step is available through CLASS 5’s Members-Only website. Along with the guide,
organizations receive printed and electronic materials (posters, tip sheets, bookmarks, e-tips, e-cards,
light switch stickers, etc.) to support employee education, engagement and recognition.
The 10 steps of the program are designed to lay a solid foundation for energy efficiency while also
allowing for measurable results within the first six months. The steps include:
1. Making key connections
6. Evaluating and communicating results
2. Setting up an energy baseline
7. Customizing an operational strategies plan
3. Getting to know your facilities
8. Implementing your operational plan
4. Educating and involving people
9. Ramping up involvement
5. Tracking your progress
10. Initiating recognition efforts
Every aspect of the program supports the change process. Sometimes the connection is readily
apparent, sometimes it’s more subtle. But as people are implementing the program, the process is at
work in the organization, creating both immediate and sustainable changes.
Adapting the Program for Healthcare
CLASS 5’s decision to adapt, implement and evaluate a behavior-based energy program in a healthcare
setting was an intentional choice that offered both opportunities and challenges. Designing a solution
for healthcare enabled CLASS 5 to address that sector’s escalating energy costs and growing interest in
sustainability:
•
On average, healthcare facilities are more than two times more energy intensive than
commercial office buildings and average approximately 249,000 Btu/sq.ft.6
•
Ninety-one percent of U.S. hospitals faced higher energy costs over the previous year, and more
than 50 percent cited increases in double-digit percentages 7.
•
Every dollar a non-profit healthcare organization saves on energy is equivalent to generating
$20 in new revenues for hospitals and $10 for medical offices 8.
•
Healthcare executives place a higher priority on energy efficiency than executives in other
industries, with 60 of respondents calling energy efficiency “extremely important” or “very
important.” 9
11
CLASS 5 also hoped to use the complex and diverse nature of the healthcare industry to create
processes and procedures that could be applicable to a variety of workplace settings: office/commercial,
higher education, K-12 schools, congregations, etc.
Key issues explored in the pilot included:
•
Can employees in a workplace setting be called into action on a long-term basis to save energy
through their daily behavior?
•
What activities and communications tools can inspire behavior change with adults?
•
What tools/training are needed to support program implementation?
•
How can technology support program implementation?
•
Who are the key people across the organization that need to be involved to ensure program
success?
•
What are the organizational barriers to engaging employees in an energy saving program?
•
What operational changes can be implemented in a healthcare setting without compromising
safety or patient care/comfort?
•
Are there program components that can be simplified/streamlined to reduce implementation
costs without compromising program quality?
•
What are the baseline characteristics of energy use in healthcare? In other sectors?
•
What type of utility incentive program might be of interest to the organization as well as the
utilities serving that organization?
12
THE CLASS 5/HEALTHCARE ORGANIZATION PILOT
Ridgeview Medical Center (RMC) is an independent nonprofit, regional healthcare network located in
Waconia, Minnesota, just 30 minutes west of Minneapolis. RMC employs more than 1,500 employees
and serves a population of approximately 300,000 people in five-county service area. The pilot officially
began in May of 2011 with an agreement signed by RCM’s CEO Bob Stevens to partner with CLASS 5
Energy and conduct the pilot throughout RCM’s entire organization. RMC chose to conduct the pilot in
all 13 of its buildings, which include a 109-bed hospital, five off-site clinics, professional buildings and a
hospice home for a total of more than 460,000 square feet and an annual utility budget of more than
$1.2 million.
The pilot goals for CLASS 5 included:
 Implement the program components and adapt as needed for a healthcare setting
 Based on input from RMC, develop new components of the program suitable to the healthcare
sector
 Obtain feedback from RMC staff on the effectiveness of the program
 Evaluate the impact of the program on RMC’s overall energy savings
 Use the results of the pilot to create a behavior-based energy program for the healthcare
setting.
The pilot goals for RMC included:
 Increase RMC’s energy efficiency
 Engage staff in energy saving behaviors
 Achieve an 8% reduction in energy costs
 Achieve ENERGY STAR® recognition for RMC’s buildings
 Run an effective program without affecting quality or patient and staff safety.
May – December 2011: Laying the Foundation
During the first six months of the pilot, the main focus was on laying the foundation for a behaviorbased energy efficiency program. Activities included:
•
Establishing leadership buy-in
•
Establishing a baseline for energy use at RMC
•
Determining behavioral strategies bests suited to the healthcare sector
13
•
Coordinating building walk-throughs by key staff
•
Establishing an Energy Steering Committee
•
Coordinating display materials with the marketing department
•
Conducting implementation trainings.
The pilot kicked off with an initial overview presentation at a quarterly leadership training where Bob
Stevens stressed his support for the effort and emphasized leadership’s role in the success of the pilot.
He also appointed Todd Wilkening, Director of Facility Services at RMC, as the Energy Efficiency
Coordinator (EEC). Todd began by meeting with all key department managers to educate them on the
CLASS 5 program and solicit their advice on what types of operational strategies and employee
engagement activities might work best for their departments.
At the same time, RMC facilities staff was trained on entering monthly utility bills into CLASS 5’s
proprietary utility tracking software. To begin, a 12-month baseline of energy use was established for
each meter at each Ridgeview facility by gathering actual utility bills and entering the meter data into
the utility tracking software. After all data was entered and error-checked, each meter’s usage was then
analyzed for its statistical relevance to weather. This was done by running a linear regression for usage,
compared to heating and/or cooling degree days. If a valid correlation was found (an R-squared greater
than .75) the actual baseline monthly usage values were replaced by the linear equations, and were
used as the basis for comparison with on-going monthly data. If no correlation was found, the actual
baseline usage was used to compare future energy savings.
During these first few months of the pilot, the EEC and his facilities team spent time reviewing CLASS 5’s
proposed operational and behavioral strategies and determining which ones would work best in a
healthcare setting, which ones need to be adapted and which ones weren’t appropriate. This review led
to the development of an Energy Management Plan that included procedures for each department
regarding employee behavior and equipment use. These procedures were broken into two areas -departments that are open 24/7 and those departments that close on evenings and/or weekends. The
main strategies in the departmental procedures included:
•
Manually adjusting thermostats in all areas except patient rooms and having setbacks for areas
of the organization that were not open 24/7
•
Putting timers on equipment that can be shut off on evenings and/or weekends without
affecting patient care
14
•
Utilizing power-saving features on equipment and computers
•
Asking employees to shut off lights in unoccupied areas even for short periods of time and
encouraging the use of task lighting instead of overhead lights
•
Delamping in areas that were overlit.
The CLASS 5 Plan recommends building walk-throughs by the EEC along with key staff in the Facilities
Department. This helps familiarize the EEC with the building layout, energy usage, staffing and operating
hours. It was during these walk-throughs that opportunities were identified for equipment shut-off. The
mind-set in healthcare is to be ready 24/7, which meant that equipment was often left on even when
the department was closed on evenings and/or weekends. Working with the clinical staff, RMC was able
to put timers on equipment such as blanket warmers and hydroculators so that they would be ready for
patient use when needed but also could be turned off when procedures were done for the day.
An Energy Steering Committee made up of people from key departments including Management
Information Systems (MIS), Finance, Marketing, Administration, Clinical and Facilities received training
on the program in June and used the first meeting to approve the Energy Policy and Departmental
Procedures. This group continued to meet monthly to review and discuss progress, as well as suggest
and “sanction” behavioral strategies across the RMC campus. During the course of the pilot, the
importance and value of the Energy Steering Committee became increasingly clear. In schools, the
Energy Steering Committee was primarily a vehicle for disseminating information – the EEC would bring
news to share to the committee, and the committee members would take that news back to their
respective departments and buildings. At RMC, the Energy Steering Committee acted as both a sounding
board and governing board for the EEC and Program Consultant, providing insights on navigating the
various departments across RMC but also creating a sense of accountability for those involved in
implementation who were expected to “report back” each month.
In addition, CLASS 5’s program consultant worked with RMC’s Marketing Department to review which of
CLASS 5’s communications pieces and awareness tools would be effective at RMC. A second aspect of
healthcare that differed from schools was the presence of a more sophisticated Marketing Department
that wanted to make sure the materials being used throughout the facility fit with RMC’s look and
branding. Many hospitals, RMC included, have spent considerable dollars creating a specific aesthetic
experience across their organization. Subsequent discussions with RMC’s Marketing Department led to
15
the creation of templates into which organizations can drop in their logo or adapt an image or text to
better suite their unique organizational culture and style.
The development of implementation training – for whom, on what, and delivered in what way – was
another major focus at the start of the pilot. Experience has shown us that the success of a long-term
energy efficiency program is dependent upon the knowledge and effectiveness of the individual or
group responsible for implementation. In the grant application, we had proposed to automate the
training process with an online combination of implementation training and operational strategies
training. Our proposal was based on our work with K-12 schools, in which the training we provide – to
the EEC, building operator, administrator or principal – is very prescriptive and consistent because by
and large, all schools across the country operate in much the same way with much the same types of
equipment. As the pilot got underway, and we began to train the various stakeholders at RMC, two
things became increasingly clear:
1. While it was important that people understood that they were following a proven program,
backed by scientific research and principals, it was neither possible nor beneficial to tell
them exactly how that program should or could work in their organization. There simply are
too many differences in organizational culture and formalized processes and procedures to
create a “one-size-fits all” approach to implementation.
2. Implementation of the program in a multi-facility, multi-faceted organization presents a
unique training challenge because of the number of different people who need to be
educated and buy into the program: clinic managers, Information Technology and marketing
professionals, doctors and nurses, building engineers, office workers, etc. Although a similar
training outline was used with each of these people/groups, it became quickly apparent that
the training had to be flexible enough to address their unique issues, concerns, and
operating conditions.
CLASS 5’s solution was to create a series of training tools and materials, some automated and some that
required in-person delivery either by a CLASS 5 staff person or the EEC. The automated training focused
on specific, routine tasks surrounding utility tracking bill entry and data reporting. These tasks do not
vary by person or organization so providing automated training modules allowed users to review the
steps and tasks as often as needed. We also created a three-chapter video designed to inspire people
around the role they could play in organizational energy savings, as well as to explain the science and
16
the steps that make up CLASS 5’s behavior programs. In talking with people at RMC, these were the
topics they felt least comfortable presenting to other groups.
Finally, CLASS 5 developed a series of PowerPoint presentations that included all the main points
needed to explain how each group fit into the overall energy saving effort and what steps they needed
to take to be successful. The PowerPoint format allowed for customization and dialogue between the
presenter and the audience, which enhanced both understanding and buy-in for the program. We
learned that it’s more powerful to educate people on what you’re trying to do and how they can help
rather than “train” them to simply do what they’re told. The result of this shift in thinking becomes quite
apparent in the written responses employees provided as part of the end-of-pilot survey (described in
more detail in the “Employee Attitudes” section later in this report).
January – December 2012: Operations and Engagement
Beginning about six months into the pilot, key aspects of operations and employee engagement
included:
•
An organization-wide kick-off to launch the energy saving initiative
•
Establishing a network of peer champions called the Energy Protection Agents
•
Creating a tracking system for employee suggestions for how to save energy
•
Implementation of energy saving operational strategies
•
Distributing/displaying energy education materials
•
Sharing stories about employee participation and overall results through multiple
communications channels
•
Celebrating good results in ways that increased motivation and participation
Once the Energy Policy for RMC was approved and the leadership was on board, the EEC and Program
Consultant, with the support of the Steering Committee, began rolling out high-impact behavioral
strategies and providing education and awareness materials. A system-wide kick-off took place at the
main hospital and each site during the months of January and February of 2012. As part of the roll-out
and employee engagement campaign, a Human Power Generator was on display on site. The generator
uses mechanical energy to power a CFL or traditional incandescent lamp, allowing employees to see
how much of their “energy” it takes to power each. Employees were also encouraged to make
suggestions for ways to save savings at work and were rewarded with a free CFL bulb.
17
One of the challenges after the kick-off was how to keep momentum going. As part of its schools
program, CLASS 5 had created “SEE Squads” in which students were given responsibility to be the “eyes
and ears” in their classrooms and to think of fun ways to engage their fellow students in the energy
saving effort. At RMC peer champions (later named “Energy Protection Agents” or “EPAs”) were
recruited to serve as liaisons in each department and also to develop activities in their departments
around energy efficiency.
The EPAs were brought together for a training session on the CLASS 5 strategy and then were given
materials to take back to their departments. These included tip sheets for each employee, posters that
could be hung in break rooms and “shut it off” stickers for use on equipment and lighting that could be
shut off at night.
One positive challenge was managing all the suggestions that came in from employees. The pilot would
suffer if employees made good suggestions for energy savings that were not implemented or if
employees received no feedback on what had become of their suggestion. The facilities team decided to
create a master sheet of suggestions with a chart that would track when a suggestion came in, who was
responsible for reviewing each suggestion, and what next steps were taken. This chart was reviewed
monthly at the Facilities Energy Use meeting. Many of the suggestions made by employees -- from
installing motion sensors to eliminating unnecessary equipment -- were implemented during the course
of the pilot. This follow-through and communication assisted in building employee buy-in for the energy
saving effort.
Another challenge was overcoming the view that energy is a facilities issue, something that “those guys”
will take care of and others don’t need to worry about it. This misconception permeated many areas of
RMC and was even subconsciously viewed that way by some on the facilities team themselves. A subtle
undertone throughout the first few months of the pilot was that “they” (i.e. facilities) were doing the
pilot but not the entire organization.
This attitude became apparent as we worked to implement the strategy of thermostat adjustments and
setbacks in the summer months. The EEC wanted the facilities engineer to begin with small adjustments
in temperature set points without any communication to staff. His concern was that the CLASS 5
program would get a bad name if people became upset if they were too hot or cold. However,
transparency and open communication are core principals of our program. Our experience has shown us
that changes in temperature settings are much more positively received when employees understand
18
why the change is being implemented. Consequently, a personal email from CEO Bob Stevens was sent,
outlining the reasons for the change and asking each person to be conscious of the potential savings and
to take proactive steps to adapt to this change. His email is also an example of the visible leadership
support, proactive communication and employee engagement that was key to implementing sometimes
difficult operational strategies.
There were minor complaints but facilities felt supported to not react since they knew they had the
backing of management. The facilities team also reported a significant drop in employee overrides of the
temperature. It is unlikely a coincidence that RMC saw its biggest savings during this quarter -- more
than $41,000.
Ultimately, the success of a behavior-based program requires multiple and continual strategies to keep
employees educated and engaged around a change they can see has an impact. Highlights of some of
the more successful strategies and tools used at RMC include:
Employee Communication Tools
•
Ridgenet – RMC’s intranet
•
Emails
•
Staff meetings
•
Posters in employee break rooms, lounges and bathrooms
•
Prompts – “shut it off” stickers for use on computers, light switches and equipment
•
Energy saving tips and communications on time clocks and pay stubs
Engagement Tools:
•
Facility wide public kick-off
•
CLASS 5 Energy Steering Committee
•
Peer champions in each department
•
Mechanism for employee to make energy saving suggestions
•
Communicating and celebrating results
Each quarter, CLASS 5 would print out reports of electric and gas use, as well as costs associated with
that use. As was expected based on CLASS 5’s experience in K-12 schools, the first two quarters did not
show much progress toward the goal: the hospital actually showed a 4% increase in energy during the
first quarter while the rest of RMC’s buildings stayed flat (no increase or decrease). In the second
19
quarter, the hospital improved to a 1% increase (as compared to the base year) while the rest of RMC’s
buildings showed a 1% decrease in energy use. These low savings numbers are because much of the
efforts during the first six months are focused on explaining the program and getting the right support
structure, policies and procedures in place. Once the foundation was in place and employees were
engaged, both the hospital and the overall campus began showing a steady decrease in energy use.
Celebrating these successful results was key to keeping the momentum going during the pilot. RMC
utilized all of their communication tools including emails, Ridgenet, staff meetings, time clocks and even
pay stubs to communicate the results. The Energy Committee spent time each meeting brainstorming
ways to communicate results – sometimes “fun” was the determining factor for which idea was chosen.
For example, to highlight the 16% savings for the 4th quarter (which happened to include Halloween),
special treats were distributed by the EPAs to all employees along with a poster that said “We’re batty
about saving energy.”
We’re just
batty about
saving energy at
RMC!
Last quarter Ridgeview saved
16% on its energy bills—more
than $41,000 in savings! Now
that’s something to get
batty about!
20
RESULTS
Energy Savings
Overall, the CLASS 5 pilot at RMC showed success in both energy and cost savings, as well as positive
changes in employee attitudes and behaviors. Throughout the pilot, RMC’s electric and gas usage were
tracked in CLASS 5’s proprietary utility tracking software. Results were measured against the baseline
(Aug. 2010-July 2011) and quarterly reports were presented to the Energy Steering Committee to
monitor progress and cost savings. The first two quarters showed little progress, but this was as
expected based on past experience. During this time, the EEC was seeking leadership buy-in, the
facilities department was reviewing operational strategies and the Steering Committee was crafting an
Energy Policy and Departmental Procedures.
After the facility-wide kick-off at the end of the second quarter, awareness and engagement strategies
were rolled out and the third quarter showed a 4% savings for the entire complex of 13 buildings (Fig. 2).
As employees became more aware of and involved in the effort, greater results were realized in the 4th
quarter with a 16% savings. The efforts were sustained throughout the 4th quarter, which led to an 11%
savings in the 5th quarter.
Figure 2: Results of Total Energy Savings by Quarter at Ridgeview Medical Center
21
It is worth noting that although energy savings at the hospital were slower and ultimately smaller than
savings at most of the other buildings within the campus, changes were made and savings did occur,
despite the high intensity and 24/7 nature of that environment.
It is also worth noting that several of the off-site clinics in the RMC system realized savings that were
significantly higher than the overall average. Figure 3 below illustrates the results of the five outpatient
clinics showing energy savings as high as 29% in one quarter at the Chaska Medical Plaza and as high as
25% in one quarter at the Chanhassen Clinic. One reason for these higher savings is that unlike the
hospital, these clinics do not operate 24/7, which means employees can implement changes with
equipment, lighting and thermostats. Another reason is that each clinic develops and maintains its own
culture, driven by the employees at that clinic. If one or two employees at a clinic were highly
committed to the energy saving effort, their enthusiasm and advocacy could provide significant
motivation to other clinic employees, allowing energy saving changes to happen more quickly and be
embraced by a larger number of people.
Figure 3: Ridgeview Medical Center Clinics % Total Energy Savings by Quarter
Employee Attitudes at RMC
The philosophy of the CLASS 5 program is that it is better for a hundred people to do one or two things
than for one person to do a hundred things. At RMC, all employees were encouraged to participate in
22
the program by focusing on a couple simple changes to their behavior. These changes included more
efficient use of lighting, computers, and equipment as well as dressing in layers so thermostats won’t be
overridden. Some of the awareness and engagement tools used were posters, “shut it off” stickers,
RMC’s intranet, peer champions, and communicating the results of employee actions clearly and often.
In the final month of the pilot, RMC EPAs were asked to distribute a survey to their co-workers to gather
information on the effectiveness of the pilot as it related to behaviors and attitudes of RMC employees
around energy. Out of the 1,575 employees (full- and part-time), 396 employees filled it out for a
response rate of 25%.
As a result of the pilot, 90% said they were more likely to engage in energy saving behavior, 84% have a
more positive attitude toward saving energy, 91% said they learned that individuals can have an impact
on organizational energy costs, and 93% said they would be willing to submit an energy saving idea to
their department if they had one. Figure 4 below shows the data.
Figure 4: Ridgeview Medical Center Employee Attitude Survey
RMC Employee Survey
Yes
No
No Change
Are you more likely to engage in energy saving behavior?
90% 1%
9%
Do you have a more positive attitude toward saving energy?
84% 2%
15%
Did you learn that individuals can have an impact on
organizational energy costs?
91% 2%
7%
Do you feel there were barriers in your efforts to save energy?
27% 67%
7%
Would you be willing to submit an energy saving idea to your
department if you had one?
93% 4%
3%
23
Employee comments from the survey also reinforced these positive results:
“Was amazing how much energy buildings/departments saved when everyone did a little.”
“I’ve tried to become much more energy conscious since your campaign to help us reduce energy
in our own departments. It’s a wonderful reminder to us all to conserve energy any way we can.”
“The energy conserving tips have been very helpful and I have used them at home.”
“Mike from facilities told me how much money can be saved if everyone turns their monitors off
at night. I was so surprised at how high the amount was, so I try to remember to turn mine off
now.”
“This initiative is so important! Yeah, Ridgeview!”
“Learning about CLASS 5 Energy has helped me become more aware of my surroundings at work
as well as noticing how it affects my personal life. I’ve been able to cut costs on my own energy
bill as well!”
“I thought the CLASS 5 energy plan was a great idea – all employees need to be cognitive of
surroundings and work together as a team to save their employer money. The plan teaches
responsibility and carries over to individual home situations as well.”
24
CONCLUSIONS
Research and experience tells us there are several components that are critical to the success of a
behavior-based energy program. Those include:
 Visible leadership support for the program
 A designated employee (EEC) assigned to coordinate the program
 Strong core team supporting the EEC
 Peer champions in each department/building
 Sharing success stories throughout the organization
 Measuring use/progress
 Communicating results
RMC incorporated each of these components and more:
•
•
•
•
•
•
•
Leadership support for this pilot was unquestioned and on display for employees to see. Key
messages about the CLASS 5 plan were conveyed directly to employees by the CEO himself.
Quarterly management trainings included CLASS 5 updates or presentations so leadership
throughout the organization knew the pilot was a priority for top leadership at RMC.
The designated EEC was both personally interested in energy efficiency and had a history of
implementing sustainable strategies on behalf of the organization.
The Energy Steering Committee included staff from MIS, Marketing, Clinical and non-clinical
departments as well as Facilities and Finance/Administration.
Nearly 50 peer champions were actively participating in CLASS 5 Plan implementation.
Success stories were shared through various communication vehicles such as the intranet, email
and EPAs reporting at staff meetings. RMC Steering Committee members cited this as one of the
main factors in the pilot’s success.
The Steering Committee also cited that measuring the progress with utility tracking and then
sharing those results with employees helped to kick-start and sustain the energy savings.
For RMC, one notable addition to that list was the fact that employees have a strong sense of loyalty to
the organization and its mission, along with a high level of trust in RMC’s leadership. This organizational
attitude is key, especially in a healthcare organization, in order to ask physicians, nurses and other staff
to alter their behavior for something that isn’t directly about patient care.
25
RECOMMENDATIONS
Overall, hospitals’ ability to hold operating profits relatively steady over the longer term is likely tied to
their capacity to control expenses to match fluctuations in revenues[4]. With minimal financial
investment, RMC was able to utilize the tools and strategies of behavior-based energy efficiency
program to fit their culture and achieve significant and measurable results in both energy and cost
savings.
This healthcare pilot, as well as CLASS 5’s experience over the past 10 years with K-12 education,
office/commercial organizations, higher education and local government, has demonstrated that
organizations interested in saving energy and money without significant capital investment can do so.
CLASS 5 recommends, however, that prior to launching a behavior-based energy efficiency effort, an
organization commits to maintaining three key components throughout the effort:
1. Senior-level support. When employees know that organization-wide initiatives are backed by
senior-level support, they are much more likely to participate. Moreover, management buy-in
helps mobilize human and financial resources to support the effort, expedites coordination of
working relationships and schedules across departments, and helps remove any institutional
barriers to success.
2. An internal coordinator. There is no such thing as an effort that implements itself. The internal
coordinator serves as the point of connection between building occupants, the facilities team,
communications and IT, and the Energy Steering Committee. He or she acts as opinion leader,
role model, messenger, “boots on the ground,” and change advocate.
3. Measurement. You can’t manage what you don’t measure. An accurate and timely
measurement system for energy savings and cost avoidance is critical to the effort.
In addition, CLASS 5 Energy recommends that utility companies seek out ways to identify and encourage
customers who are interested in participating in an approved, multi-year behavior-based effort. These
programs represent a unique opportunity for utility companies to promote and measure energy savings
while also providing customers with a process for increasing energy efficiency.
Behavioral shifts take time. Research on behavior management indicates that incentives help foster
desired behaviors, if used correctly 10. Utility involvement can increase persistence and provide
26
validation of the effort through recognition opportunities and/or financial incentives that increase the
likelihood of ongoing participation, which gives an organization time to shift its culture toward increased
energy efficiency. Several “pay for measured performance” pilots with utilities have been completed or
are ongoing 11 as recognition grows that deeper savings can be achieved by treating buildings as
integrated systems and helping owners, occupants and operators embed energy considerations in
ongoing building management, operations and maintenance. CLASS 5 (DBA Energy Efficiency Programs,
Inc.) participated in an state-funded R&D project in 2008 intended to develop an “outcome-based”
program to measure, verify and award utility incentives for energy usage reductions achieved from an
expanded Schools for Energy Efficiency® (SEE) program 12.
CLASS 5 is aware that the difficulties of measuring and quantifying the (sometimes intangible) costs and
benefits of energy behavior programs are one of the main reasons such programs have been slow to
catch on in the marketplace. How do you calculate labor costs, such as time spent by key members of
the Energy Steering Committee, upper management involvement in organization-wide events, and
employees’ time allocated to program activities? On the same token, how do you calculate the value of
creating a “greener image” with your customers and stakeholders, improving employee pride and
morale, and creating a culture of energy conservation that could last for decades?
This successful pilot, funded by the state of Minnesota and monitored by state energy professionals,
offers evidence that behavior-based energy savings are both legitimate and quantifiable. As
organizations continue to seek ways to manage their operating costs and utilities seek ways to achieve
their energy conservation goals, the payoff for including people in the energy efficiency equation is too
great to ignore.
27
REFERENCES
1
U.S. Department of Energy (DOE): Energy Efficiency and Your Hospital’s Bottom Line.
2
Department of Energy, US Energy Information Administration (EIA) Commercial Buildings Energy
Consumption Survey
3
Bin, Shui, 2012. Greening Work Styles: An Analysis of Energy Behavior Programs in the Workplace.
Report B121. American Council for an Energy Efficient Economy: Washington, DC, http://aceee.org/
4
Koepke, David, 2011. “Hospital Operating Trends Quarterly,” Thompson Reuters.
5
U.S. Department of Energy, Federal Energy Management Program, 2010.
6
Energy Information Administration CBECS 2003- revised 2008, adjusted for inflation to 2009 by U.S.
EPA.
7
Health Facilities Management ASHE 2006 Hospital Energy Survey EPA and DOE Energy Star Program.
8
Health Facilities Management ASHE 2006 Hospital Energy Survey EPA and DOE Energy Star Program.
9
American Society for Healthcare Engineering Survey, 2008.
10
Gneezy, Meier, and Rey-Biel, 2011. “When and Why Incentives (Don’t) Work to Modify Behavior,”
Journal of Economic Perspectives, Volume 25, Number 4.
11
Erickson, Kim, 2012. Summary of Commercial Whole Building Performance Programs: Continuous
Energy Improvement and Energy Management and Information Systems. Consortium for Energy
Efficiency: Boston, CEE website: http://www.cee1.org/
12
Hallberg, Joe, 2009. Final Report: Outcome Based Utility Incentive Program R&D Project. A copy of the
report can be retrieved from the Minnesota Department of Commerce web site.
28