Founded in 1919, Halliburton is one of the world’s largest providers of products and services to the energy industry. They have approximately 50,000 employees, representing 140 nationalities, and operations in approximately 70 countries. Halliburton serves the upstream oil and gas industry throughout the lifecycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction, completion and production optimisation.
In 2016, Halliburton announced a journey of discovery regarding their support functions, which included facilities management.
There was a realisation that the services across central Europe and the Nordics differed to those in the UK. Halliburton instigated a project to benchmark the service delivery partners with the objective to have a best in class approach, which delivered value to their European operations, and would demonstrate a desire to encourage the industry to work together more effectively, whilst concentrating on their core business.
The board at Halliburton approached Litmus to assist them in a review of their operations in the UK, Netherlands and Norway.
The key required outputs from the review project were:
- To understand that invoices from the supply chain were fair and accurate;
- To evaluate workload planning to ensure it was efficient and cost effective;
- To understand whether there was a need to consider bringing certain tasks from the contract to in-house; and
- To understand benchmarks to compare the overall efficiency of the FM services with their key competitors.
Karl Cundill, the Litmus Partnership, said: “So we could benchmark the delivery across the European and UK sites, and provide a detailed report on productivity and value, we needed to visit various sites and review the current operations. Our team of consultants visited sites in Aberdeen, Amsterdam and Stavanger and carried out full assessments. We analysed the processes, procedures & responsibilities and benchmarked each of the individual service delivery elements.”
Litmus produced and presented a final report to the Senior Halliburton Management Team, which outlined the risks and opportunities with the delivery of their current facilities management services. There was also a clear recommendation provided on what the long-term management strategy, policy and business plan should be, along with opportunities to streamline processes, reduce costs and improve efficiency of the overall service delivery.
Litmus’ benchmarking assessed service performance with respect to standards, delivery methods and statutory requirements.
“Working with Litmus helped us to understand the difficulties faced by facilities management delivery and ensured that we were being offered best value from the current contract. It also gave us the confidence that our systems are sufficiently robust to control the work streams within the FM contract.”