Did you ever see the movie, Moneyball? Brad Pitt plays Billie Beane, the General Manager of the Oakland Athletics who in the early 2000s had the smallest salary budget in the league. Despite the salary cap, his team succeeded well beyond expectations – at one point winning 20 consecutive games.
How did they do it? They used sabermetrics – a process that creates objective knowledge from analyzing the statistical record. In Moneyball, the Oakland A’s prioritized players based on a combination of overlooked metrics. They picked players whose particular strengths integrated with, and complemented, others on the team. In the process, they created a batting order of undervalued players into a team capable of beating much more highly rated (and expensive) competitors.
What has Moneyball got to do with controlling energy? The average utility bill contains as many as 25 different data points. Total consumption, time of use, power factor, seasonal rate changes, regulatory charges, demand, credits, taxes…. each one contributes in some way to overall energy costs. Like Moneyball, use your utility bill energy data to create objective, insightful knowledge about your operations you could not get any other way.
Are you a GM like Billie Beane – able to knit together all these data points into an action plan to reduce overall costs and make your operations more competitive?
Most corporate managers focus only on the sluggers – such as total energy cost and cost per unit of energy. The executives who dig deeper, draw on all the data to direct changes in their operations. These are the GMs who achieve competitive success – both in the short and long term.
Baseball managers trade players over time and shuffle their lineup. Don’t be afraid to change on-site operations, production, and equipment. Approach energy use like a baseball coaching roster. Corporate managers apply analytics to energy metrics over time to ensure continual optimal performance under all conditions.
Think like Billie Beane. Apply sabermetrics to your utility bill and you could be headed to the top leagues of your own industry sector.