Deriving Value and Quantified Benefits from Asset Management – The Sodexo Journey

Initially proposed as ‘discretionary’, the Sodexo Asset Management Framework has now become a requirement for all new Facilities Management business and is being universally adopted
Operational efficiency through improved asset management planning of 30%
Demonstration of 100% compliance in regulatory activities
Total cost of operation reductions of between 7% and 12% per annum
Contract Objectives

Sodexo is a global facility management company employing over 480,000 people in 80 countries.  Under the headline service offer of Technical Services, the company provides general repairs, technical maintenance, and asset management support to a wide range of business, industry and public services segments, including corporate services, energy & resources, health, education, justice, defence, process/manufacturing, mining, and others.

As a global business, Sodexo recognised the need to put in place a standard and consistent framework to enable good asset management practice in their facilities management business in order to retain business with existing international clients and to secure new business.  The Woodhouse Partnership Ltd. were engaged to work with Sodexo managers and technical staff to develop a framework and the necessary documented processes and standards to provide facilities management services to a consistently high standard – and crucially enabled the services to be aligned with delivering the client’s objectives and requirements.

Activity Description

This project was a challenging exercise, requiring templates that could be tailored to contracts as diverse as large hospital trust long-term partnerships, call response centers covering multiple contracts for client property portfolios and single stand-alone office buildings.  These templates were designed to be adjusted to create specific solutions scaled and appropriate to each contract. The solution was structured around a management system for assets using PAS 55 as the initial model, later adjusting the model to align with ISO 55001 requirements as these became available.

Creating the process framework was only a part of the challenge.  In order to engage and communicate requirements to a global business, it was necessary to consider the transfer and embedding of knowledge and capability in Asset Management to ensure sustainable implementation of the standards and procedures. Training based on the key principles of Asset Management was developed using ‘e-learning’. The e-learning was enabled to be delivered on a learning platform accessible at the point of work anywhere in the world

The team created bespoke procedures, competencies and a management system flexible enough to be customized to support the wide range of Sodexo’s environments, at strategic, operational and tactical levels.  These needed to be applicable to long-term partnerships, call response centers covering multiple contracts for client asset portfolios and also single stand-alone facilities.  These methods, processes and templates were designed to be adjusted to create specific solutions scaled and appropriate to each contract.

  • Creating a process framework
  • Engage and communicate requirements to the global business
  • Transfer and embedding of knowledge and capability in Asset Management
  • Training based on the key principles of Asset Management
  • Implementation of the ‘Sodexo Asset Management Framework’

Contract Project Outcomes

The project has delivered objectives and realized benefits exceeding preliminary estimates.  Initially proposed as ‘discretionary’, the Asset Management Framework has now become a requirement for all new FM businesses and is being universally adopted.  The framework creates a consistent asset management system compliant with ISO 55000 and good asset management practice, with embedded continual improvement methodology.  Clients are engaged and agree on asset management objectives and strategy that aligns with their business drivers – benefits are realized and measured.

  • Improved control of day-to-day activities and business efficiencies – 10% average improvement.
  • Risk Management put in place for assets and their performance, including the assessment of criticality and the development of contingency planning and mitigating actions to prevent business interruption. Mitigation of potential risk of business interruption – 40% reduction of risk-related costs.
  • Defined strategic alignment of the organization’s key objectives with those of the asset management system, and the specification of performance indicators that directly impact the organization’s ability to achieve its key objectives. Defined improvement in customer service and demonstration of 100% compliance in regulatory activities;
  • Clear definition of asset performance criteria and data collection requirements to ensure effective feedback on asset condition and status and continual improvement of asset management activities. Reduced failure rates – 20%.

 

The Sodexo Asset Management Framework has now been launched on 43 projects across 21 countries and involves a community of 524 managers and technical staff in implementing asset management.

The essence of asset management is to derive value from assets, and specifically, the solution enabled the aspirations and objectives of client organizations to be translated into asset-related objectives, supported by strategies and plans, with measurable improvement objectives. Sodexo is able to demonstrate added value to their customers – and become the partner of choice.

The success of this initiative was recognized in November 2014 with the award of the Institute of Asset Management’s Achievement Award

Woodhouse assisted us to establish a global asset management model that aligns our values and world-class service delivery in very diverse environments. This model helped us create unique and flexible technical services offering that has filled a significant gap in the marketplace.  The results have been impressive.”

 

Nick Thompson MSc
Group VP; Asset Management Deployment & Support

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