More with less. This is the reality in today’s volatile market. 

Everyone I know in the energy industry is concerned about cost, said Stephanie Hertzog, CEO of Sodexo Energy and Resources for North America. Energy prices are rebounding, but uncertainty has companies seeking to conserve cash. Combine that with inflation as well as the need to accelerate innovation, it is a challenging time to be an executive in an energy company.

With ample assets and physical property, on paper, real estate appears to be the easiest path to savings. We have found in the past two years, more real estate leaders in the energy industry are seeking help from Sodexo to control costs while readying for the future. 

Stephanie Hertzog, CEO of Sodexo Energy and Resources for North America, said:

It isn’t as easy as ‘cut here and invest there.’ We advise each client or prospective to think about their business through a new lens. Unfortunately, it is no longer ‘business as usual.’  Energy companies today need to embrace new ways of working.

How do you shift your perspective to find savings? Sodexo Energy & Resources asks each prospective client to start by looking at these four areas of operations: 

1. Review Legacy Standards

Are you running your business activities a certain way because you have always done them this way, or because they follow the latest industry insights? Review your scope of work, processes and seek support in identifying what the right level of service is for today’s operations. 

2. Simplify Spending

Many energy companies have grown through mergers and acquisitions. Unfortunately, this has led to a lack of standards across the portfolio. The easiest way to find savings is to consolidate procurement decisions. One process, limited decision makers and approved products or service providers will quickly reduce duplication and deliver savings to your bottom line. 

3. Reimagine Your Structure

This may be the toughest action. Do you have the right positions on your operational team? Are there areas that can be outsourced or consolidated? Are your people focusing their resources on the right things, or are they spending time on non-critical activities? It is a hard conversation to have but having the right people in the right places will increase efficiency while finding additional dollars for you to invest.

4. Recognize the Impact of Change

It is easy to talk about finances, assets and profits; it is harder to get your people to accept, adopt and embrace the changes required. Change management is an essential step to any cost saving initiatives. Stakeholders need to understand the who, what, where, when, why and what’s in it for me. Without change management, even the best strategies are bound to fail. 

 

Next time you are asked to lower costs without compromising service quality, take a breath and look through this new lens.

Ask us about our cost-saving solutions

 

 

December 14, 2021