Split-ups and stand-ups account for much of the recent restructuring activity in the marketplace with companies increasingly selling subsidiaries or carving out non-core businesses. Splits can make sense under the right circumstances. Many conglomerates are recognizing that they might be better off operating as independent entities.
However, poorly executed split-ups and spinoffs can result in some real and unfortunate outcomes — unanticipated resource needs, costly ongoing transition service agreements, long and painful separations, loss of key employees — all of which can destroy value and damage reputation..
In order to realize the full value of a split-up or stand-up, your organization must establish an effective process to manage work over an extended period. A well-articulated separation roadmap, focusing on the following areas, will help you navigate: