5 Tips to Get Your CFO to Buy into Energy Management
According to a 2014 survey by the Aberdeen Group, measuring return on investment (ROI), competing for resources with other projects, getting operational-level employee support and getting approval from senior management are the most common challenges associated with justifying energy management initiatives. Dexma Energy Management has provided five tips for facility managers looking to get buy-in from their CFOs on energy management initiatives:
- Give Visibility to Results
Reports, charts and graphs generated by energy management software provide a visual representation of measurement data and improvements over time.
- Start with Quick ROI Projects
CFOs want to know when they will see a return on investment. Generally speaking, projects that provide a return in less than two years will be more attractive to CFOs. You can begin to prove the efficacy of energy efficiency initiatives by starting with smaller projects with a faster ROI. As the CFO begins to see energy efficiency and energy management as an investment rather than a fixed cost, the scope of the projects can expand.
- Make an Emotional Appeal
Being known as an energy efficient company can boost a company’s corporate image. Educate your CFO about the non-financial benefits of energy management, such as improving operations efficiency, reducing carbon emissions and improving the environment. All of these things can contribute to providing your company with a competitive advantage.
- Provide Periodic Reports
Quantifying energy savings in terms your CFO understands best — monetary — can help you maintain the support of your CFO. Periodic reporting allows both you and your CFO to see how much money is being saved over time.
- Highlight Successful Cases
If other companies in your field have successfully implemented energy management measures, show these cases to your CFO. Give some background about the case, explain what actions the company took, what savings were gained and how long it took to achieve a return on the investment.
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