Succeeding in IT and Business Carve-Outs

Executing an IT separation within a business carve-out can be a daunting task for leadership teams. However, by considering the following points, the transformation can be executed with greater efficiency and clarity.

Be clear on strategy & purpose
Before initiating any execution, it is vital to have a clear future state and end-game in mind. Leaders must ask themselves critical questions such as the reason for the transformation, whether it involves an internal restructuring or a transaction, and if it's the separation of a division, subsidiary or multiple businesses.

“Failure to give clear direction will leave the transformation halting”

These questions must be addressed to provide clear direction for the transformation, which will facilitate decision-making. Failure to give clear direction will leave the transformation halting and might leave the organization questioning its purpose.

Align senior management on transformation
Executing a successful transformation requires clear communication throughout the organization. Senior management must be aligned with the strategy and purpose of the project. Their support and resources will be crucial for executing the transformation activities. If senior management is not aligned, it may be challenging to obtain prioritized time from their resources, which can lead to delays in initiatives important for the overall transformation.

Investigate business & IT impact for detailed planning
Transforming the IT landscape and organization will impact not only the IT department itself but all other business functions that it supports. It is crucial to investigate the impact on the business and clarify necessary actions & decisions before executing the transformation. This includes identifying restructuring needs, organizational changes and process changes. Having these prerequisites identified facilitates a detailed plan that both business and IT can follow which minimizes confusion, and disruption to day-to-day business.

 All functions are affected by IT separations


“Define a clear strategy, create a detailed plan and execute accordingly ” 

By having a detailed plan, based on a clear strategy that is aligned with senior management, IT separations can be executed with confidence, efficiency and minimal disruption to day-to-day business and employees. Clear direction, guidance and persistence in execution is critical for a successful outcome.

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