Former BCG Principal and New Quantify Energy COO Wants to Ask Executives One Simple but Uncomfortable Question

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“How much do you spend on energy?” Nine out of 10 executives don’t know.

Most executives don’t realize that their company can spend up to 5% of their revenue on energy. Every dollar spent on energy is a dollar that doesn’t reach their bottom lines.

According to Forbes most executives don’t realize that their company can spend up to 5% of their revenue on energy. Every dollar spent on energy is a dollar that doesn’t reach their bottom lines. Quantify Energy’s (http://www.quantifyenergy.com) newly appointed COO, Raj Sandhu, is asking executives “How much are energy costs dragging down your profit margins?”

Forbes also found that when C-level executives were asked how much they spent on energy, nine out of ten times they answered “I don’t know”. “The question about energy costs is critical, given the massive impact they have on profitability,” says Raj. “It can be the difference between thriving and drowning.” Raj, a former Principal at the Boston Consulting Group (BCG), spent over five years working with Fortune 500 and 1000 companies to solve their biggest strategic and operational challenges.

The average lifespan of an S&P 500 company has fallen from 60+ years in the 1950s to below 20 years today. About 50% of the S&P 500 is expected to be replaced in the next 10 years. To ensure survival and grow profitability, it is critical for corporations to control costs. As a former management consultant, Raj was involved in a number of cost-cutting projects, but found that most organizations treated energy costs as a fixed cost that they couldn’t control.

“The key is for executives to realize that every dollar they spend on electricity is a dollar that doesn’t reach their bottom line,” says Raj. “If your profit margins are 5%, generating $1 of profit through top line initiatives will require a revenue increase of $20. However, if you reduce your energy spend, every dollar saved is pure profit. Also, unlike other cost-cutting methodologies like layoffs or outsourcing, energy savings have the advantage of not incurring potential medium-long term downsides.”

Raj decided to join Quantify Energy precisely because he was seeking an executive role in a company that would provide immediate, quantifiable savings for the types of companies that he had long advised. “In consulting for tens of Fortune 1000 companies, I know how hard it can be to maintain or improve profitability with competition and disruption from all sides”, says Raj. “It can be far less glamorous to focus on reducing costs, and especially to find solutions with compelling economics and quick payback. But focusing on energy costs could be precisely what your company needs to free up capital to invest in the future.”

ABOUT QUANTIFY ENERGY:
Quantify Energy’s innovative energy recycling technology can reduce your electricity costs by 3-12% with an 18-24 month payback period and 45-65%+ IRR. Our clients include major corporations like Kellogg's, Starbucks, McDonald's, Mitsubishi Electric, Hyatt, Aldi, UPMC, and Carnegie Mellon University. Our technology is based on a methodology originally developed by the Navy for nuclear submarines and designed with the MIT Design Lab. Our systems have been installed in over 1500 facilities in 44 states since 1993.
To get started, visit us at http://www.quantifyenergy.com

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Raj Sandhu
Quantify Energy
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