Energy management steps STEP 4: Create Action Plan

Spread the Knowledge

In the previous articles we discussed the first three steps to build energy management system in your organization and before that we clarified why you need to be a proactive energy manager. You can refer to the previous articles at the end of this article.

In this article we will discuss the fourth step which is create action plan.


STEP 4: Create Action Plan

With goals in place, your organization is now poised to develop a roadmap to improve energy performance.

Successful organizations use a detailed action plan to ensure a systematic process to implement energy performance measures. Unlike the energy policy, the action plan is regularly updated, most often on an annual basis, to reflect recent achievements, changes in performance, and shifting priorities.

While the scope and scale of the action plan is often dependent on the organization, the steps below outline a basic starting point for creating a plan.

Define technical steps and targets

  • Evaluate technical assessments and audit results – Identify gaps between current performance and goals, by reviewing the results of the technical assessments and audits or progress evaluations.
  • Determine technical steps- Identify the steps necessary for upgrading and moving facilities from current performance to the desired level of performance as defined by the goals.
  1. Define Targets
  • Create performance targets – For each facility, department, and operation of the organization to track progress towards achieving goals.
  • Set timelines – For actions, including regular meetings among key personnel to evaluate progress, completion dates, milestones and expected outcomes.
  • Establish a tracking system – Create a system to track and monitor the progress of action items. This system should track and measure energy use and project/program activities.


  1. Determine roles and resources

The target is to get the buy-in from management and all organizational areas affected by the action plan before finalizing it. Work with the Energy Team to communicate the action plan to all areas of the organization.

 2.1 Determine Roles

2.1.1 Identify internal roles

Determine who should be involved and what their responsibilities will be. Depending on your organization and action plan, this might include departments such as:

  • Facility and operations management
  • Financial management — capital investments, budget planning
  • Human resources — staffing, training, and performance standards
  • Maintenance- maintenance procedures.
  • Supply management — procurement procedures, energy purchasing and equipment and materials


  • Building and plant design- energy review at different project stages.
  • Engineering- considering state of art technologies and efficient equipment’s.
  • New product/process development teams- Brain storming sessions to reduce energy consumption.
  • Environmental, Health, and Safety- Review the CO2 savings and environmental impact of existing operations.

2.1.2 Identify external roles

Determine the degree to which consultants, service providers, vendors, and other product providers will be used. Some organizations may choose to outsource entire aspects of their action plan while others may only want to contract with specific vendors for limited projects.

Establish performance metrics for contractors

If contractors will be used, determine what standards will be used to evaluate bids and incorporated these metrics into agreements with contractors.

2.2 Determine Resources

2.2.1 Define resources needs

For each project or program in the action plan, estimate the cost for each item in terms of both human resources and capital/expense outlay.

2.2.2 Secure resources

Develop the business case for justifying and gaining funding approval for action plan projects and resource needs.


Further reading

Article Link
Why you need to be a Proactive energy manager (PEM)
How to build an effective industrial energy management system in seven steps with no cost. (Part 1 introduction)
Step 1: Management Commitment
Energy management steps (STEP 2: Assess Performance
Energy management steps (STEP 3: setting goals)
My blog 360 Proactive Engineer



Magdy Aly

Energy manager, Energy efficiency consultant Passionate to help others to save Energy and Environment.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *