A verbal exchange with Sophie Bellon, President and CEO of Sodexo, on skills management, chain resilience, and global growth.
As President and CEO of Sodexo, a French catering and service control company, Sophie Bellon leads one of the world’s largest employers, with frontline staff in approximately 50 countries. Manage this workforce and the source chains that allow them to do their jobs. – is a complex task that involves balancing global strategy and local execution.
In this episode, Alison Beard, editor-in-chief of Harvard Business Review, sits down with Bellon to talk about her approaches to skills management, environmental sustainability, and origin chain resilience, all while driving long-term growth.
Key topics of the episodes include: strategy, expansion strategy, skills management, operations and chain management, chain management, environmental sustainability, food and beverage industry.
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As CEO of Sodexo, a French food and service control company, Sophie Bellon leads one of the world’s largest employers, with “frontline workers” in just about 50 countries.
Managing this – and the source chains that allow them to do their jobs – is a complex task that balances global strategy and local execution.
In this episode, Alison Beard, editor-in-chief of Harvard Business Review, sits down with Bellon to discuss her approaches to skills management, environmental sustainability, and upstream resilience—all while driving long-term growth.
This verbal exchange was originally part of HBR’s “Future of Business” virtual convention in November 2023. There she is.
SOPHIE BELLON: Hello. Hi Alison. Thank you. No, thank you for having me.
ALISON BEARD: Yes, and I know it’s very late in the place where you are, so we’re grateful to you. We’re focusing on transformation in this session, Sophie, and I know that sustainability and food systems are probably your main focus task. What adjustments have you made in terms of sourcing, supply chain, and resource use that you think other organizations could simply apply to reduce their own waste or carbon footprint?
SOPHIE BELLON: First of all, I think sustainability and food are closely linked. I think we are in a global food formula in its last stages. And there is a paradox: another 800 million people are hungry and, at the same time, we are wasting ourselves from farm to fork. A third of food is wasted. And furthermore, until 2050, agricultural production will have to increase by 50%, more than 50%, to feed another hundred billion people. Furthermore, formula food is already responsible for a third of greenhouse fuel projects due to human activity. Additionally, food inflation has peaked in recent months and many other people now rely on food banks because they cannot eat properly. Therefore, the number of another 800 million people suffering from hunger is increasing. But food is not valued enough because we keep throwing it away. So, I really think that to fix our food formula, that has to be a priority first. AND? A giant long-term component will also play out on our plates. And I don’t think it’s anything that’s talked about enough. And I think we certainly want to drive the transformation of our food services. And that is fundamental. And since we manage to reach a hundred million people every day, we have influence to ourselves. And our ambition, as a company, is to be a player in the market for sustainable progress. I think that, as you said, we have always started the company through my father, and he has always, from the beginning, been given a project, a dual project for the company. That’s why I think we were pioneers in this area. But we want, and we want, but we want to continue to influence and deploy this commitment globally and at scale. So, for example, today we are designing a new recipe so that 70% of our dishes can be classified as low carbon by 2030. Or we are also devising local sources and short circuits with SMEs, to spend with SMEs. And now we are at about 2. 2 billion. So, I also believe that to achieve this, you will never have to desire unusual meaning and humility.
ALISON BEARD: Your business is so complex that you operate. Many other geographies, some of which are more complex than others in terms of sustainability practices. So how can you make sure you’re making progress in each of those other regions?of the world, engaging with partners and local governments and making progress?How do you balance global norms with local realities on the ground?
SOPHIE BELLON: Well, first I think, for example, in terms of food waste, because food waste is not acceptable. It’s a scandal, but it’s largely invisible. So, for example, we want to expand this on a global scale, and to do that, we want to measure it. And so we set goals, we set goals and achieving them. We stick to them. And, for example, we have our program called Waste Watch. Therefore, we measure the waste produced at our facilities every day. And that changes things. Create awareness among our teams, our clients, our consumers. So think: through implementation and measurement, we aim to reduce food waste by 40%, on average. So the first thing you shouldn’t forget, especially when you work in a giant organization like ours, is what is measured and achieved. And that is very important. Second example, to reduce our carbon emissions, it is urgent to limit the excessive intake of certain foods. And, for example, we all know that animal proteins are not good, especially with red meat. But in some countries, because the scenario is different around the world, in some countries red meat is not consumed, like in India, for example. We operate in India. And in India, 90% of the food we serve is already vegetarian and vegan. But the challenge in India is that the energy used to cook those foods is not green. So we have a challenge for this. If you take any other country, for example Brazil, much of the energy used in Brazil is hydroelectric, which is good. But it is also one of the countries with the highest meat consumption. That’s why we want to inspire other people to follow a more vegetarian diet. So, I think what we must not forget is that we will have to have a technique for cultural and economic problems that is very local and that takes into account the culture of the country and its habits. Therefore, for a global company, it is not so obvious and it is not easy to have a single solution. You have to adapt.
ALISON BEARD: And I guess part of that is gathering intelligence from the other people you have on the ground. So how do you plan to staff those operations, in terms of core staff on the job site rather than local staff?
SOPHIE BELLON: Yes, I think it’s very important. It’s very important, as you said, to empower other people on the ground. We are a company of other people. We have more than 447 people around the world. And obviously we saw that during the COVID period, those are the other people who made the resolution to adapt. What was happening in China has nothing to do with what was happening in Europe or North America, for example. So after COVID, we resolved to make our organization easier and more agile. And we had an organization through primary market segments, at a global point, and we made the decision to transfer the duty to the countries, to have this agility. And we learned that that helped us have a faster resolution, a greater materialization. So I think it’s very important. At the same time, we are a business. We function cooperatively. We operate in universities. We paint in hospitals and nursing homes. So, within a country we also get advantages from segmentation because the environment of academics in school or university, or of patients in hospitals, or of painters in paintings, is not the same. Possibly they would have other needs. And so we are gaining strong experience in this environment. And that is very important. And we have, for example, a global head of global healthcare. So that we can combine all this experience and spread it to other parts of the world. And I also think that between global and local, of course, in a service company, local size is very important. But I think that also at a global level we have very solid foundations on which we can build. As I said, when the company was created in 1966 by my father, his project was to improve the quality of life of our painters, but also of those we serve, and contribute to the economic, social and environmental progress of the netpaintings where we operate. So it is a very, very solid project that was entrusted to the organization more than 50 years ago. With this we have values, team spirit, spirit of service, spirit of progress. And I can tell you that every time I travel the world to stopover with the team, whether it’s Bangalore or Milan, or Central, Los Angeles or San Diego, where I was there not long ago, I’m very inspired with the way our painters provide those values. And how’s it going? Well, I think our managers and our senior leaders, and then the rest of the managers, have a key role to play in preserving those core concepts. And I think it is also, I am firmly convinced that those basic concepts are what lead us to become a world leader. And I also think this is what will help us continue to differentiate ourselves from our competitors. And also, in giant organizations like ours, global, local, I think, and the bigger you are, the more you have to continually challenge yourself. Well, what do we deserve to do globally? I mean, do we deserve to keep doing this? It is very important, as I said, to maintain the vision, the ambition, to have a strategic plan. But at the same time, you also want to adapt and adapt your organization to be local and empower the team at the local point so that they can make the most productive resolution.
ALISON BEARD: Ouais. Even within geographic regions, I was struck by the breadth of their visitor base. They’ve been provided with everything from local school systems looking to serve children in a healthy and affordable way, to Salesforce and other corporate headquarters. Look to get other people back to the workplace with gourmet meals. So how do you manage to satisfy all those other desires of your visitor base?
SOPHIE BELLON: Well, as I said, within a country or region, we are also organized through segments. We have the equipment in university rate. We have equipment at the price of a school, equipment at the price of a business, a retirement home. So I think having that experience within a company, within a country, is how we continue to adapt. At the same time, the desire of our consumers, because as you said at the beginning, we are in a B2B to C. So, we also have to take into account the dean of the campus or the consumer that is the university, but also take into account the consumers who are students. And for each and every segment that we operate in, when we operate a stadium, stadium or convention center, we have a consumer that manages that convention center. But then we have other people who go to the shows. And by being organized through segments, and we’ve been doing this for many, many years, we start to organize ourselves that way, which helps us satisfy those other desires.
ALISON BEARD: Great. We need to move on to the generation because I know I’m interested in virtual transformation as well. But you’re a company that has a lot of frontline human staff in many parts of the world. So, what does virtual transformation mean to you at Sodexo, and what classes inform you of it?
SOPHIE BELLON: First of all, I think we’re in other people’s business, other people’s business. So the virtual is very, very important. And I think, like I said, we manage to reach a hundred million people every day. Of course, we have women and men who care for other women and men. But now, with virtual, the wonderful thing is that we now have the opportunity to have direct contact with those millions of customers that we are successful with every day. And by having this touch, it helps us serve you better. Understand if they are on a diet. Understand what they like. And help us give them what they need. Understand, offer them multiple choice through an app. If they need to eat at this place to eat or if they need to go to this corner store, or if they need to pass out, for example, when they are in a company. So I think the customer connection is actually helping us and the virtual tool that we have today is actually helping us solve this problem. And that was not imaginable before. This also helps us in terms of running with AI. For example, today, due to hybrid operation, it is very difficult to evaluate how many people pass through to be in a restaurant or how many people we are operating VIP lounges, for example in an airport. Now, with all the AI and alpasrhythm, we can anticipate, compare and anticipate much better what the desires of all those customers will be.
ALISON BEARD: I think it also helps in terms of controlling the source chain. What do you think, especially in a post-pandemic world, about local systems of origin compared to global ones?
SOPHIE BELLON: Well, I think, like I said, we had to adapt. We already have a certain commitment. And I said that we have some commitment to small and medium-sized enterprises, and we have already done so, we are already buying more than $2 billion from those companies. And I’m also thinking about a global and local technique in terms of supply. After the COVID-19 crisis, we have noticed that many of the trends we expected are accelerating. And in terms of local products, in terms of biologics, it’s all that’s accelerating. So it also pushes us to buy more local, more organic, to work with more sustainable suppliers, to them and help them make the transition when they want. And I think that’s a very, very important thing. And when we say that we want to be a market player in terms of sustainability, it will be done through an ecosystem and our suppliers will be a very vital pillar to move in this direction.
ALISON BEARD: We get a lot of questions from the audience, but I’d like to ask a question about the fact that Sodexo is a family-owned business, before I address them. So how did you direct your career and leadership at Sodexo, knowing that your father is the founder?And do you think that being a family business is a strength, in terms of hiring and in terms of the objective you were talking about earlier?
SOPHIE BELLON: First of all, yes, I think it’s a strength. But I will answer later. So for my part, I went to business school and in France, in the north of France. And then IArray at 23, to move to New York. And my father asked me to work for the company but I said no. And when he said, why not? I told him, well, you’ve been telling me for 20 years that you can’t combine a family tree and an organization chart. So now I move on to living my total life. So I started, went to work in New York for a bank and painted in the fashion industry. I even took a lot of acting classes. So I started my career outside the organization. Then in the ’90s, I joined Sodexo and then had a career at Sodexo. And as my father said, I had a boss and he told me: Okay, you can start working at the company. But if you do well, you will be promoted. Otherwise, well, you probably wouldn’t stay. And I’m not going to take care of you. You will have a boss like any other employee. So, I guess that’s how it seemed to me. But I think I started in 1994. Well, here I am, still here. And I became president in 2016, and after two years I also took over as CEO. So you asked me: is the family business a strength? Yes, definitely. I think it’s a strength. And I think, like I said, we’re a company built on solid fundamentals. We had values. We had a corporate project from day one. It was a commitment. And, like I said, when I stop in the country and in the team, I feel very inspired because I can feel that those values are the backbone, component of the DNA or the backbone of the organization. It’s DNA. And then I think what’s very vital when we’re in a family business, at least in our family business, is that we’re not in a short-term vision. We are on a long-term vision and when you replace, at some point, you replace the managers, but they are on this long-term vision. And I think for our team it’s very, very vital. And especially in an era where we have to reshape and reshape ourselves at a sustained pace, I think it’s quite reassuring to know that there are certain things that cannot be replaced.
ALISON BEARD: yes, absolutely. I’m glad I touched on this topic because we know that our HBR audience, especially outside the U. S. , is a good way to get into it. In the US, it is a giant that runs or works in family businesses. We get a lot of questions from the audience. Trung asks: How can small and medium-sized businesses start their businesses and, instead of competing, collaborate with giant corporations like Sodexo?
SOPHIE BELLON: Well, I think it’s a question, as I said, it’s a question of willingness to move in that direction. And as a giant organization, we actually have a lot to learn from a smaller company. And we need to commit, do it and move in that direction. And that is precisely what we are doing. And I think small businesses shouldn’t be afraid of techniques or offer jobs with a giant organization.
ALISON BEARD: Great. We have a couple of questions about metrics, which you think were key to making sure you hit your goals. Michael asks how to measure, track and ensure sustainability, whether it’s the origin of ingredients, handling. , etc. , for your final products. And then Max asks if you use or plan to have blockchain food tracking, from farm to table.
SOPHIE BELLON: Well, I’ll answer the question of the moment. In terms of blockchain, this is anything that we’re exploring, but not yet, we’re not committed to it yet. And in terms of monitoring, we have a tool — a tool called SSEA. Et is a tool that is on our site. And with this tool, we can track precisely what you’re talking about, what products we’re using. And as I said, it’s very vital that when you make a commitment, you follow through. That’s why we track a number of KPIs. And also, the more you progress in a topic, the more you’ll want to find new KPIs to keep improving. It’s nothing static. .
ALISON BEARD: All right. So, Landon asks, he comes from the agricultural sector, and he says that one of the main disruptions we face is not developing enough food while also bringing perishable, nutritious food into food deserts and storing it efficiently. So how do you plan to solve this challenge? Do you think the challenge is distribution or production?
SOPHIE BELLON: Well, first of all, I think we’re not an industry. We are not a commercial manufacturer of products. We are cooks. We use produce, and we do, we have chefs on-site who turn produce into meals. So I think it’s very vital because we cook, we adapt. We adapt to our consumers, to what they need, to what they like. And we build an experience. And that’s why I think it’s very vital. And because it’s a little different when you’re offering a service than when you’re in a production industry and promoting a product. What we do every day is different. So, for example, if we need to paint on food scraps, well, we have the option with the rest of the previous day to make a new recipe the next day, so as not to throw away or throw away the food. So I think we’re in a service business and we have chefs on-site who prepare the food every day. And that’s why our style is a little different from the industry.
ALISON BEARD: Ouais. I mean, at the same time, you’re a very important player in the food industry. And in many parts of the world, we have disorders related to obesity, disorders related to poor diet. So as someone who plays in this hulking role, how do you balance affordability, maintaining margins, and also the quality and usefulness of your offerings?
SOPHIE BELLON: I think it’s appealing, because I think post-COVID, other people are becoming more aware of the importance of fitness. So that’s all we’re proposing now, as I said, in some cases. We need to offer 70% vegetarian options by 2030. On our menus, 70% vegetarian options. And I think that’s very appealing, and very appealing. Because, of course, the balance between fitness and courage is very important. But it is. It’s very attractive because when you offer something that’s smart for your fitness and that’s tasty, other people decide on it. That’s where we have a role. We have a role to play because we can give other people a choice. And I think flavor is very important. And I don’t think we are going to the agri-food industry forcing other people. We’re going to come to the food industry with wonderful flavors and flavors, and other people were looking to enjoy their food, even if it’s different. That’s what I believe.
ALISON BEARD: Great. Well, Sophie, thank you so much. I wish we had more time, but we appreciate you joining us, especially since I know this is your evening.
SOPHIE BELLON: Okay. Thank you.
HANNAH BATES: Sophie Bellon, CEO and president of Sodexo, the France-based foodservice company, in a verbal exchange with Alison Beard at HBR’s “The Future of Business” virtual convention in November 2023.
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