Maintaining Focus During Divestiture
Client Issue
One of the world’s leading manufacturing companies, with 70,000 employees and 64 manufacturing facilities in 26 countries, was in the process of divesting a significant division. A buyer for the division had been identified, but the division’s HR organization was fairly intermingled with the parent company’s function. The division did not have a defined HR structure, and the division’s employees often split time between the division and the parent.
The parent needed to set up a distinct infrastructure for the division. The company initially formalized a process in which the parent’s HR staff would continue to perform HR services for the division, but would perform them distinctly through a lease arrangement with the division. It quickly became apparent that although the parent’s HR staff had deep HR subject matter expertise, they didn’t have the required change management and project management skills needed to manage the transition.
Solution
Solleva Group:
- Supported the parent company throughout the divestiture process by providing project management and change management support to ensure the parent company supplied deliverables on time and in advance of the “Go Live” date when the company was officially transferred to a private equity firm.
- Our change services team took a facilitative approach, raising red flags as needed, allowing the parent company to focus on the projects that were most important.
- Identified the need for global support, and formed teams in each of the parent company’s regions of operation: Europe; the United States; Eastern Europe, Middle East, and Africa; Latin America; and Asia-Pacific. In each geographic area, Solleva brought valuable subject matter expertise, including country laws and regulations, technology, process, labor union issues, retirement, health and welfare benefits, and compensation.
- Used its strong project management experience to integrate various work streams and identify interdependencies.
This unique combination of project management and subject matter expertise enabled the Solleva team to readily assess situations and troubleshoot problems.
Results
With Solleva Group’s project management and change management assistance, the parent company met all its deadlines and the division was successfully transferred to its new owner. Initially, there was concern that HR issues might be a problem and could delay the purchase date, and the parent company had made financial projections based on being able to execute the transfer date on time. However, because Solleva Group identified the need for a global support team at the inception of the project, and brought together resources to work through HR structure, technology, and process challenges as they arose, the right infrastructure was developed the first time. Solleva Group’s experience and hard work facilitated a smooth transition, and there were no HR issues or delays.
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