A method of determining and utilizing an Energy Efficiency Indicator, the method initiating with a step of determining a distal or angular offset between a pair of coupled shafts provided between adjacent rotating machines. The offset is correlated to energy efficiency between the pair of coupled shafts. Correlation is referred to as an Energy Efficiency Indicator (EEI). The Energy Efficiency Indicator (EEI) can be used to predict changes in alignment, changes in energy efficiency, and the like. Monitoring the coupled rotating machines and using the Energy Efficiency Indicator (EEI) can provide the operator with predictive information to enhance the reliability and extend the lifespan of the coupled rotating machines.