Case Study Three

The business was Highways maintenance, Open Space Management, and building business, wholly owned by its parent. With revenue of over £ 60.000,000, and with two major customers plus several smaller ones, the owner was already of the view that the business was too big, and when one of the major customers sought to have their contract managed separately this provided the catylist for change.

The owner was not confident that the incumbent team would implement the change required and the change management role was put in place.

Initial Findings were

• The incumbent management was not committed to the split,
• Both major customers were in favour.
• Back office services were the most vulnerable area after senior management.
• Retention of shared back office services might be a more cost effective solution
• There was a lack of customer consultation
• There was a lack of employee consultation
• The incumbent Managing Director had been invited to choose which half of the business he wanted to take over, and initially indicated a choice but almost immediately upon the start of the process reverted to challenging it and then took leave due to stress.

The solution included

• Consultation with both customers and staff
• Identification of a suitable person to step up to the role of Managing Director in the other half, and subsequently in both
• Consultation with customers and employees
• Retention of single backroom service
• Agree this option with customer
• Review and update processes
• Effect split and implement processes
• Coach new Managers and phased withdrawl.