Effective energy management necessitates getting the best out of suppliers and contractors. This is especially the case for suppliers critical to demand reduction, such as energy control or data providers.
Being a neutral organisation, GAIA works alongside Energy Managers to boost supplier performance though enhancing the success criteria and on-going performance management. The aim isn’t to bully suppliers, but create clarity of expectations and ensure the best outcome.
Here’s 3 steps we commonly take to make it happen.
Step 1: Back to basics
A comprehensive review of services received means going back to basics; working out what the supplier was specifically contracted to do, what you want them to do now and what are they’re actually doing. This may sound odd, but relationships, especially good ones, have the habit of sliding away from the original remit. Whilst the relationships may feel good, if outcomes fail they’ll demand corrections, which sours feelings.
The task is to identifying the difference between expectations and the current reality, from this we’re able to inform actions to restate the original focus or direct to the new objective. We begin by understanding the current state of the service provision, working with the internal stakeholders to rate each supplier’s performance and identify gaps in delivery. We then review existing contracts and associated key performance indicators to establish what was expected at the contract start. This allows us to identify the opportunities to make changes to improve the way the way the contracts work.
Step 2: Realign to the new reality
The aim in Step 2 is to realign to the new reality. This is achieved by identifying the levers to pull to make improvements from existing contract, such as identifying the contracted services, which are not being delivered. It could also be adding services, which were not in the original contract, but are needed now.
We undertake a thorough and open review on this process alongside suppliers to ensure active engagement. Supplier resistance may suggest they don’t value the contract, a good sign to begin looking elsewhere.
By critically assessing the performance of your supplier relationships you will also gain a great deal of insight in how the next contract should be agreed. Even the most well thought out contract will stop being fit for purpose as requirements change and a regular service review should capture this.
Step 3: Maintaining performance
Step 3 is concerned with maintaining the performance. To do this we create specific review dates into the programme, mapped against key performance indicators agreed by all. By doing this review meetings avoid frustrations with all reporting towards the common key performance criteria. This enables review meeting to be focused on improvement rather than disputes over results.
By focusing on these three steps, the client supplier relationship will maintain clarity, meet targets and avoid future conflict.
GAIA supports energy professionals to exceed their goals. Whether one to one coaching, training or contracted energy professionals. www.gaiaactive.com