Royal London

Royal London

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £114 billion, 8.8 million policies in force and 3,637 employees.

“The Litmus Partnership expertise and experience clearly showed the ability to carefully tailor our FM service requirements."

Background

Royal London had procured Facilities Management (FM) services in a silo approach – essentially procuring services by local geography rather than within any estates plan.  The future move of their Headquarters created a realisation that there was a need to review the current model and create a facilities management solution that met today’s needs and was robust enough to match future company growth strategies.

Brief

As part of the 2019 commission, our brief was to generate a new Target Operating Model (TOM) for the Society. This included the need to assist with the relocation of their Headquarters in Wilmslow into a new building on Alderley Park.  The aim was to streamline the Royal London FM management solution and the service provision that supported it.

Approach

Our first approach was to review the current solution and capture, then evaluate, users’ FM requirements through interviews, questionnaires and workshops with the existing facilities managers and key stakeholders.

We then reviewed the current market and models available that would be able to deliver Royal London’s requirements going forward.  Encompassing the Royal London values, the key outcomes required were value for money, innovation, effective and efficient service, compliance, alignment to industry and sector best practices and the in-house vs. outsourcing dynamic.

Outcomes

Following the completion of the review, Litmus identified Royal London’s FM priorities and proposed a number of possible FM operating models and prepared information (operational, financial, legal etc) to support the rationale for each model, which assisted in our evaluation to select a preferred FM strategy.

Royal London endorsed our top recommendation and a two-phased approach was deployed.  The first was to re-align the Royal London FM Management structure.  The second was to tender the FM services solutions to support the business.

Working with Royal London we have created a robust model of management and delivery of the services.  The procurement exercise has generated a £1m annual reduction of cost (£5m within the five year contract).

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“The Litmus Partnership expertise and experience clearly showed the ability to carefully tailor our FM service requirements. They understood the needs and importance of the project and how to implement the most appropriate solution, whilst generating real value to Royal London.”

Group Sourcing & Supplier Manager, Royal London