Creating the right delivery model can set up a carve-out for success—and carefully executing the model moves it across the finish line.
Too often, execution of carve-outs is performed by loosely connected functional groups that operate with an incomplete view of the deal’s scope, combined with a high volume of data and limited communication. So it’s not surprising that the success rate of strategy execution is incredibly low: 83 percent of strategies fail due to faulty assumptions and execution.
The operational structure that companies need to remain competitive today can make successful execution of deal strategy more challenging— especially in carve-outs. Because companies must function via highly integrated processes and systems in order to achieve their desired operating efficiency, executing a separation of these highly integrated components requires thorough planning and sensitive management.