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P4P

P4P’s Incompatibility with DEI

By Energy Rant No Comments
When I first heard the term “value proposition” years ago, I thought, what the heck does this obtuse phrase mean? In this context, value is a measure of desirability, and proposition means proposal. Google tells us that value proposition is “an innovation, service, or feature intended to make a company or product attractive to customers.” Oh, you mean selling point: “a feature of a product for sale that makes it attractive to customers.” Wikipedia adds another term, “In marketing, the unique selling proposition, also called the unique selling point or the unique value proposition in the business model canvas, is…
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pay for performance

THE Successful Model for Pay for Performance

By Energy Rant No Comments
Livin' it Up in Hotel California I’ve written about pay for performance (P4P) programs no less than six times in this blog. I’ll start with a recap of those posts and move the ball forward once again. We’re well within field goal range! In Tooling Pay for Performance, I wrote that energy models and dashboards with regression models showing savings performance or lack thereof provide the following Leatherman-like benefits. It provides leverage with visual evidence, so customer stakeholders do more and climb higher. It’s a vise-grip to maintain what was accomplished. It’s a hammer to “persuade” folks. It’s a screwdriver…
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P2P – Proven to Perform – Program Design

By Energy Rant No Comments
This post rolls out better ideas for pay for performance (P4P) programs you read about in the last two posts here and here. But first, I will set the stage from the perspective of the program implementation contractor. Perhaps it is best depicted with a scene from the cartoonish 1977 Clint Eastwood flick, The Gauntlet. I think a bit of cooperative teamwork is needed to make P4P approaches work – and they can work well! Punk There is another issue with third-party P4P concepts, and staying with the Clint theme, it goes like this: “Go ahead, punk. Make my day.”…
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Prospects for Peril in Pay for Performance

By Energy Rant 2 Comments
This week, we are continuing the discussion from last week’s Pay 4 Performance Sequel post. There is a sequel to the sequel? Last week’s sequel referenced the first attempts at P4P programs, which were delivered around the turn of the century in response to the utility deregulation craze. This post takes us a few steps further. More Issues to Slay This post describes why the Energy Service Company (ESCO) model failed and the differences between Energy Service Companies (ESCOs) and modern-day program implementation contractors. Early P4P programs were designed for ESCOs, while today’s are targeted for implementers. The differences pose…
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Pay 4-Performance Sequel

By Energy Rant 3 Comments
For some strange reason, I’ve learned a lot about pay for performance in recent weeks. To spare tongues everywhere, let’s call it P4P. P4P efficiency programs are on the move once again. It is interesting to note that the last time P4P was the rage was during the deregulation gambit, almost 20 years ago. Like denim preferences, what goes around comes around with efficiency fads. The Original One of the most popular programs during the prior faddy P4P era was called a “Standard Offer” program. What marketing genius(es) coined that brand? I like metaphors, but I can’t think of any…
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