Successful outsourcing of a division to an internal team

Fast Moving Consumer Goods Producer (ranking in the top 20 of its kind globally)
Assisted a productive and innovative internal team secured a lucrative outsourcing contract and established an independent company. 

Our client was facing changes within their organisation and were wanting to shut down a division and then outsource sections of the operation.  The opportunity to tender for the outsourced contracts was given to four leaders within this specific division and they were tasked with providing a business plan on how they would approach and run the division. 

Approach

Our involvement was to interview each of the leaders and members of their teams in order to understand their roles and qualifications and assist them in compiling business plans for submission to the board via the HR department.  Our engagement with the each of the leaders was viewed as extremely fruitful. They were able to identify members of their teams who were unproductive and this meant certain individuals were going to have no alternative but to take the retrenchment packages on offer. This provided opportunities for one-on-one sessions regarding financial planning and how best to utilise the capital amounts paid out to them, along with investment options for their pension capital.  

Results

The approach that each leader took to the proposals was quite different and the key for us was not to influence them in any specific direction but assist them to present their proposal as they saw it.  The result was positive in that the most productive and innovative team won the bid with their proposal.  The encouragement to the teams who never won their proposal was that they were more informed and able to either start their own business’s or have CVs and references in order to find alternative employment when the time came for the corporate to follow through with retrenchments.