Divestitures are complex business processes, impacting the entire organizational structure of both parties involved. Thanks to the ever-increasing interweaving of technology and day-to-day business process, divestitures today are as much IT undertakings as business endeavors. If the technology aspects of the carve-out fail, the entire divestiture may be jeopardized, damaging the operations and reputation of the business.
There are countless potential obstacles involved in executing a successful carve-out. But planning for these four primary challenges can make the process smoother.
Successful Divestitures — the FAST Way
The list of obstacles may seem overwhelming but, with careful planning and the right mindset, successful divestitures are within any organization’s grasp. The leaders orchestrating the carve-out must think holistically, planning each portion, including the technological elements, in context of the business as a whole in order to satisfy stakeholders’ expectations. They must also think in “win-win” terms, developing solutions and recommendations that are beneficial for both the parent and the divested business.
But, most importantly, these organizations must think FAST. The FAST process is a Framework for Accelerated Separation of Technology, and its five tenets are as follows:
The FAST process is based on 20 years of experience guiding Fortune 500 companies and state and local governments through divestitures with complex technology components. When combined with the leadership’s intuition, and customized to the organization’s particular needs, this process provides the cornerstones for a successful technology carve-out.
Karthik Agarwal is a client engagement director at Y&L Consulting, Inc. headquartered in San Antonio. Karthik has successfully led large multi-national teams for numerous Fortune 500 firms, non-profits and government entities on complex, high visibility IT projects. Y&L Consulting is a comprehensive IT services and solutions company specializing in Application Development, Information Management/BI, and IT Help Desk Services.