Since 1993, the US Department of Energy’s Motor Challenge Program has developed an array of program offerings designed to encourage companies who use motor systems to focus on a systems approach. The collaborative approach applied to the industrial compressed air systems described in this paper, the Compressed Air Challenge®, was an outgrowth of that effort. This model seeks to effect institutional and behavioral change, rather than technological change. The purpose of the collaboration is to strengthen and promote a “best practices” approach to compressed air systems to achieve greater efficiency. The goal is to replace the existing components focus in the customer/supplier relationship with one that emphasizes a system services approach. Government and public-interest facilitators have an important role in bringing key market stakeholders together to develop a common vision for change. Project costs are shared among all stakeholders, as are the project benefits. Stakeholders share decision-making control, thus motivating them to participate actively and contribute beyond their financial support. The goal of the collaboration A model for applying the collaborative approach in other markets will also be discussed.