Step 4: Secure

Your goal in this step is to secure executive commitment to providing money, people, and support to reap the benefits of successful SEMP implementation.

Your Hospital is Sitting on an Untapped Gold Mine

Obviously the Financial Department makes one of your best allies. But historically you might have had mixed fixed success getting funding.

Reframe what you are asking for this time. Suppose you estimate you could save 10% or $50,000 in utility costs at your hospital. If your hospital's margin is 3%, you are in the same category as a department generating $1.7 million in revenues (3% x $1.7 million = $50,000). With this argument, the hospital will see you as a producer of revenue that goes right to the bottom line. Has your administration ever looked at your department this way?

The chart below shows the gross revenue (vertical axis) that would be required to generate $50,000 in net dollars depending on your hospital's operating margin.

Talk the Talk and Be Direct

Base your business proposition (financial case) on the way your hospital normally analyses financial decisions. Be sure to match their level of financial sophistication. Be direct. For example: You will save 15% of your hospital's energy costs with a required investment of $4 million, and achieve a 12% internal rate of return. See Step 5, Financial Practices for more information.

The business case (broad business arguments) is equally as important. The message here is that the SEMP is a financial winner and has many other benefits that indirectly affect the bottom line. See Benefits Story.

Tool: Sample Executive SEMP Presentation. This can be a starting point for your presentation.

Tip: Be clear and as brief as possible but be prepared with backup information as needed. Leave them with copies of the presentation and SEMP.