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Creating a new Organisation (Spinning off a division to a new entity)

The Client:

Our client, operating in the education sector, had to spin off a division into an independent entity with profit and loss accountability. The decision came as rapid technological advancements were impacting the education industry.



The Challenge:

The advent of technology has sparked profound transformations within the education sector, necessitating significant changes in content development methodologies. Moreover, the mode of delivery also changed to embrace digital platforms and innovative learning tools. As a result, the instructional design emerged as a critical component with the emphasis on creation engagement and effective learning experiences tailored to diverse learner needs and preferences..


Our Premise:

We needed to create a fundamentally new design for the new entity to ensure it had a robust P&L.  Digital disruption, complexity, and connectedness are ubiquitous themes across the education sector. We decided to design an adaptive organisation that responds faster to changes in the education business.  The new organisation would be less about reporting lines, organisation charts, spans, and layers and more about interconnected teams, collaboration, and leveraging technology.  We believed the new organisation design and inspiring leadership would motivate employees to become part of this fresh corporate entity and mitigate resistance to change.



The Solution:

What we did:

Tier 1: Assessing Change Readiness

  • To evaluate the organisation's preparedness for change, we conducted a comprehensive Change Readiness Survey. The aim was to uncover employees' apprehensions and gauge their receptiveness towards the impending changes. The survey results provided valuable insights into the underlying causes of resistance. We categorised the survey results into two distinct categories: 'Rational' and 'Emotional'.

    • At a rational level, concerns predominantly revolved around job security, as employees feared potential disruptions to their roles and responsibilities. Uncertainty regarding the adaptation to new processes and procedures also emerged as a significant worry. Additionally, employees expressed concerns about the organisation's perceived lack of sufficient resources, potentially hindering a seamless transition and adaptation process

    • On the emotional front, employees expressed apprehensions stemming from fear of the unknown. The impending changes evoked feelings of uncertainty about the future and their roles within the organisation. Additionally, there was a sense of loss of control over their work environment, coupled with a reluctance to depart from established norms and practices.


Tier 2: Imagining the future

  • We worked alongside the top management team to co-create the new entity, prioritising rapid technology integration, experimentation, and fostering a culture of continuous learning. Utilising the Appreciative Inquiry methodology, we embarked on envisioning the new organisation and crafted a roadmap for transformative change. We meticulously identified key organisational levers crucial for the adaptive organisation, spanning 'Structure,' 'Process,' 'People,' 'Technology,' and 'Culture.' Consensus was reached on governance processes aimed at facilitating a seamless transition to the adaptive organisation model. We designed roles with intrinsic meaning and purpose, providing employees with opportunities to not only develop but also broaden their skill sets while on the job.


Tier 3: Rallying support

  • To rally support for the upcoming changes, we introduced the V4 framework: Vision, Values, Voice, and Variety, encompassing the Organisation Vision, Work Values, Voice of Employees, and Variety in Jobs. We shared the results of the change readiness survey, outlining reasons for resistance at rational and emotional levels. In collaborative discussions, we explored strategies to address resistance and support employees throughout the change process. Open dialogue sessions were held to foster understanding and alignment. Finally, we developed clear action plans to enhance employee commitment and realise the vision


The Result:

Most employees enthusiastically transitioned to the new corporate entity, eager to be part of a forward-looking organisation with less bureaucracy. They expressed confidence in the intention and capability of the top management to execute the change effectively.

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