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Building successful partnerships

Chevron Business and Real Estate Services (CBRES) path from an out-tasking to a bundled-services model features Sodexo for soft services

In today’s facility management market, "business as usual" places an organisation at a disadvantage. Instead, developing the next generation of a Facilities Management model will increase operational efficiency, improve the user experience, reduce customer service response time and ensure scalability over time. 

Making the transition: from ‘out-tasked’ to bundled soft services

The Chevron Business and Real Estate Services (CBRES) real estate portfolio transitioned to a new model with Sodexo selected to manage soft services commencing July 2015. This covers approximately 12 million square feet of more than 15 managed services, including janitorial, landscaping, pest control, mail services, reprographics, move services, shredding, motor pool, audio/visual, conference room management, supplies management, holiday decorations and receptionist. Involving approximately 475 Sodexo managers and frontline employees, the Sodexo/CBRES relationship is collaborative at all levels – from site to senior leadership.
 
The CBRES real estate portfolio was previously managed using the out-task facility management (FM) model. Functions that support building operation and services, such as landscaping, painting, plumbing, building engineering and janitorial services were out-tasked to nearly 90 different suppliers. Managing such a large number of contracts and service providers was inefficient and resulted in inconsistent service and vendor culture complications. Changes to the geographic portfolio were slow to evolve because, without strategic partners to drive change, CBRES’ only option was to replace individual business unit management with their own. Finally, managing safety across so many companies exacerbated safety risk – so this was a key driver in reducing the number of suppliers in a new model.

Based upon current business drivers and market conditions, CBRES decided to move from its out-tasked single-service line model to a multiple-service line model using suppliers who can self-perform substantial portions of the work. This would deliver a strategic integrated facilities management partnership capable of scaling labour and services quickly across the portfolio. Additionally, it would provide improved control over operational costs, support talent attraction and retention and provide consistent quality portfolio maintenance and standardisation while mitigating safety and other risks. Finally, it would provide a more strategic operational model capable of integrating several single lines of service into a seamless function that delivers greater value than the sum of its parts, high levels of service and decision criteria focused on maintaining standardised operational control.

A need for change in the way services were delivered

The path from a self-performed to a bundled-services model required CBRES to change the way services were delivered. Integration of a new FM model would need to be seamless and invisible to customers. To manage, plan and prepare, a global operations service team was established to provide support at the contract level with suppliers and prepare local facilities for transition. The team would plan and coordinate CBRES local facility transitions from direct management of work to managing the performance of new suppliers responsible for managing workstreams in the field. Local facility management would retain key subject-matter experts to perform work verification. Service implementation was an ambitious plan executed over a 12-month period after 24 months of planning. Seventy percent self-performance targets by the new suppliers were expected after a period of stabilisation. The key to successful implementation was transitioning many of the current suppliers to subcontractors to minimise change and maximise safety during transition.
 
To complete a successful transition, CBRES broke implementation into phases: due diligence, transition execution and stabilisation. The global facility-management and category-management teams monitor suppliers’ contract performance and safety through governance and performance-management compliance – a change from the previous decentralized model. Employee-direct management was replaced with auditing supplier performance.

Making the partnerships work

Centralised operations management for work performed by Sodexo at facilities is overseen by CBRES regional, area and facility managers and their teams. Local-facility CBRES teams work and communicate collectively to ensure work is performed safely and in accordance with the service contract. CBRES central-operation teams ensure adherence to company-mandated facility management policy/procedures and agreed-upon service level expectations, and work to ensure a smooth transition and adaptation of the CBRES safety culture.
 
CBRES entered into a new procurement model built on performance-based contracts. The KPIs provide additional measures for ensuring safety and work performance. During quarterly meetings, Sodexo and CBRES jointly discuss value-creation ideas and review KPIs and financial targets, HES impact and highlights from quarterly stakeholder surveys.
 
Through constant collaboration and communication, CBRES and its suppliers have resolved approximately 95 percent of implementation challenges and continue to create success stories.

 

July 16, 2019

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