The founder of a multi-billion dollar global health services company had achieved tremendous success and was ready to do an IPO. However, he wanted to IPO only a part of the business and keep developing the rest for the future.
The RBL Group collaborated with the executive team to determine whether this approach made sense and if so, how to organize to accomplish it. After a several working sessions, it became clear that there were two business models operating within the current structure.
One business was primarily customer driven and the other primarily capacity driven. Because they were managed as one business, neither business was achieving optimal results.
A team of their best and brightest leaders was chartered for four months to work on separating the two businesses and to prepare the larger business for the IPO.
After the businesses were separated, each business was more clearly aligned to its purpose and able to achieve better results. The capacity business reported higher margins. The customer business reported greater customer satisfaction.
Very different cultures also emerged from each business once they were aligned. The capacity business around cost efficiencies and the customer business around deeper customer connectivity and collaboration.
And the stated initial goal, an IPO of part of the original business, was successful.