STEP 3.1: Determine Scope

Organizational Level

The level at which performance goals will be set depends on the nature of the organization and how it uses energy. Common organizational levels for setting goals include:

Organization-wide

Setting goals at this level provides a big picture of how the entire organization wants to improve. Organization-wide goals provide a framework for communicating the success of energy management both internal and external audiences.

Facility

At this level, goals may vary to take into account the performance of specific facilities based on benchmarking results or an energy audit. Facility level goals are designed to help the broader organization to meet its goals.

Process or equipment

Some organizations may find it useful to establish goals for specific process lines and equipment when energy use is concentrated in specific areas.

Time Periods

Establishing appropriate and realistic target dates for goals ensures that they are meaningful and promote change. A combination of short and long term goals can be effective.

Short-term goals

Annual goals provide the necessary markers for tracking and reporting progress on a regular and on-going basis.

Long-term goals

Long-term goals are usually organization-specific and may be shaped by:

• Internal rates of return
• Internal planning horizons and guidelines
• Organizational strategic plans
• Commitments to voluntary environmental initiatives

In Practice

Johnson & Johnson’s Planning Horizons

Johnson & Johnson (J&J) uses a variety of goals and planning horizons to execute change. J&J established organization-wide "Next Generation Goals" for reducing greenhouse gas emissions by 4 percent by 2005 and by 7 percent by 2010 from a baseline of 1990. At the facility level, J&J set a goal of 100 percent completion of its list of best practices by 2005 for all facilities worldwide. J&J’s estimates that at the midway point of completing implementation of the best practices, nearly $20 million had been saved worldwide.

Back to Top