Proving the Productivity Boost

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Earlier this week, I wrote about the three “value categories” that you can bring to the table when proposing a project: utility-cost financial benefits; non-utility-cost financial benefits; and, non-financial benefits. One of the most significant (and most frequently overlooked) non-utility-cost financial benefits is the increase in productivity that businesses often experience in the wake of an efficiency retrofit.

If you plan to use “improved productivity” as a selling point, you should be prepared to back it up with data. One of the best studies that I’ve come across covering the intersection of energy efficiency and productivity is a report titled Greening the Building and the Bottom Line. Published back in 1994, this report is a joint effort from the Department of Energy and the Rocky Mountain Institute. While this study was performed more than twenty years ago, it clearly demonstrates the significant correlation between energy efficiency and productivity – a fact that still holds true today.

Here’s a summary of the findings:

Lockheed: 15% rise in production; 15% drop in absenteeism

West Bend Mutual Insurance: 16% increase in claims processed

ING bank: 15% drop in absenteeism

Verifone: 5% increase in productivity; 40% drop in absenteeism

If you are going to emphasize the benefits of energy efficiency on productivity in your value proposition, I highly recommend coming to the table with this report – and any others you might find – when you meet with a prospect. You’ll be prepared to back up any skepticism you might encounter with real-world data from a reputable source.

Click here to read the report.

Interested in finding more contemporary data to support your argument? Check out the work done by Vivian Loftness and her colleagues at Carnegie Mellon University.

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