1. Phoenix Convention Center Phoenix, Arizona Engaging Senior Management to Effect Change Institutional Change: Session 7 Christopher Payne (Lawrence Berkeley National Lab), Rick Diamond (Lawrence Berkeley National Lab),and Amy Wolfe (Oak Ridge National Lab) August 12 th, 2015

2. Energy Exchange : Federal Sustainability for the Next Decade Presentation Outline Overview of 5-step framework for organizational change Applications: Breaking down organizational stovepipes and engaging senior management Summary and small group activities 2

3. Energy Exchange : Federal Sustainability for the Next Decade 3 5-Step Framework for Organizational Change

4. Energy Exchange : Federal Sustainability for the Next Decade 4 5-Step Framework for Organizational Change Step 2: Identify Context ●Who are the key players (roles) ●What are the important rules (formal and informal) ●What are the processes and/or infrastructure (tools) Current context, but also what needs to be modified to achieve your goal

5. Energy Exchange : Federal Sustainability for the Next Decade Roles: Who has responsibility? Who has authority? Who has the incentive to act? Who takes action? Examples of key roles: Chief sustainability officer Building manager Contract officer 5 5-Step Framework for Organizational Change Roles

6. Energy Exchange : Federal Sustainability for the Next Decade Rules: What rules exist? (Formal and informal) Which requirements are salient? How are they enforced? Examples: Statutes, executive orders, regulations Agency policies, site policies Trainings, certification requirements “The way things are done” 6 5-Step Framework for Organizational Change Rules

7. Energy Exchange : Federal Sustainability for the Next Decade Tools: What systems support desired action? What are the default system conditions? What additional tools are needed? Examples: Physical infrastructure Standard forms Training content Recognition and awards programs 7 5-Step Framework for Organizational Change Tools

8. Energy Exchange : Federal Sustainability for the Next Decade 4 Key Elements: Engage Educate Enable Evaluate How do we address these 4 key elements? 8 principles provide guidance 8 5-Step Framework for Organizational Change Developing an Action Plan

9. Energy Exchange : Federal Sustainability for the Next Decade Engage Principle 1: Social Network People take cues from others, so identify and highlight change in peers. Example: The single most explanatory factor in a recent analysis of residential PV adoption was proximity to previously-installed systems. Principle 2: Social Empowerment People often seek engagement to greater purpose, so support a sense of shared group participation. Example: The US Postal Service's 630 Lean Green Teams collaborate across job functions to identify and implement sustainable actions. Principle 3: Social Commitment Specific, public commitments support taking action. Example: Assessors working with a California utility asked homeowners to commit to a time when they would undertake an energy efficiency project, increasing the number of completed projects by 3x - 4x. 9 5-Step Framework for Organizational Change Developing an Action Plan

10. Energy Exchange : Federal Sustainability for the Next Decade Educate Principle 4: Information and Feedback Information must be actionable, and results must be perceptible. Example: Workers in an industrial organization increased energy-saving behavior when they received weekly updates on their energy use and reductions. Principle 5: Multiple Motivations Different people will be attracted to different elements of change. Highlight variety of benefits. Example: Maintenance staff at a Navy base preferred energy-efficient exit signs because they lasted longer, reducing effort for replacement. Principle 6: Leadership Transformational leadership must be visible and consistent to allow new actions to be accepted and integrated. Example: At the CDC, the charismatic Director led stair walks that were part of the sustainability connection between health and "green" efforts. 10 5-Step Framework for Organizational Change Developing an Action Plan

11. Energy Exchange : Federal Sustainability for the Next Decade Enable Principle 7: Infrastructure Changing the physical context makes new behaviors easy or desirable. Example: Prompts and enhanced aesthetics, visibility, and accessibility to stairwells prompted an 8.2% increase in stair use. Principle 8: Continuous Change and Innovation Develop a process for change, not an outcome. Example: IBM implemented a monthly energy reporting system for its various facilities where operations are driven by simple checklists…Facility managers use the checklists to verify that procedures have been performed on a regular basis. 11 5-Step Framework for Organizational Change Developing an Action Plan

12. Energy Exchange : Federal Sustainability for the Next Decade Breaking down organizational stovepipes 12

13. Energy Exchange : Federal Sustainability for the Next Decade Roles, rules, and tools exist that create organizational stovepipes Stovepipes can create obstacles to achieving your goal Example: Sustainability initiatives may require the involvement of energy managers, sustainability officers, and procurement officials to be successful. However, these groups may not interact with each other within your organization and may not be well-positioned to work towards a common goal. 13 Breaking down organizational stovepipes

14. Energy Exchange : Federal Sustainability for the Next Decade Apply framework to your organizational context With whom do we need to engage to reduce stovepipes? Example: Engage people with authority (leadership principle) How can we educate about stovepipes? Example: Are stovepipes inhibiting achieving your goal? (information and feedback principle) How can we enable people to work across departments? Example: Change physical locations (infrastructure principle) How can we evaluate our impact? Example: pilot tests, treatment and control, collect data 14 Breaking down organizational stovepipes

15. Energy Exchange : Federal Sustainability for the Next Decade Example from Better Buildings Challenge: Kohl’s Energy Finance Strategy “Despite a track record of successful projects, the Energy team was having trouble getting and defending sustained corporate funding for unbudgeted energy efficiency projects. In order to overcome this barrier, Kohl’s strengthened the relationship between the Finance and the Energy teams by embedding members of the company’s Finance Department into the Energy team.” 15 Breaking down organizational stovepipes

16. Energy Exchange : Federal Sustainability for the Next Decade Takeaways How to break down stovepipes is a question of organizational change Start with identifying the Roles, Rules, and Tools that create stovepipes Think about how to Engage, Educate, Enable, and Evaluate to change the situation 16 Breaking down organizational stovepipes

17. Energy Exchange : Federal Sustainability for the Next Decade Engaging senior management 17

18. Energy Exchange : Federal Sustainability for the Next Decade Roles, Rules, and Tools analysis shows which roles have the potential to either bolster or hinder success Key roles include senior management and/or other individuals in the position to change the way things are done Tie goals to mission, consider 8 principles 18 Engaging Senior Management

19. Energy Exchange : Federal Sustainability for the Next Decade Apply framework to your organizational context How can we get our leaders to engage? Example: Participatory activities, what other managers are doing (social empowerment, social commitment, social network) How can we educate leaders? Example: Appeal to different aspects of sustainability, highlight existing data (multiple motivations, information and feedback) How can we enable our leaders to act? Identify steps or opportunities to facilitate action (infrastructure, continuous change) How can we evaluate our progress? Have a clear picture of what success looks like 19 Engaging Senior Management

20. Energy Exchange : Federal Sustainability for the Next Decade Example from the Federal Green Challenge: “The U.S. Navy’s Naval Station Great Lakes, near Waukegan, Illinois, increased its amount of materials recycled by an astounding 114 percent...Garnering the support of Navy’s senior officers and managers was crucial to the success of the recycling and composting programs. The commanding officer is provided quarterly status reports with tonnages of material recycled at each collection point.” 20 Engaging Senior Management

21. Energy Exchange : Federal Sustainability for the Next Decade Takeaways Roles, Rules, and Tools analysis can show that engaging senior management is important for achieving your goal Leadership can be a mechanism for allowing change and experimentation Engage, Educate, Enable, and Evaluate approach can expand our thinking on how to change current processes 21 Engaging Senior Management

22. Energy Exchange : Federal Sustainability for the Next Decade 22 Questions and Discussion

23. Energy Exchange : Federal Sustainability for the Next Decade Small group activity 23