Inverse of Partnerships: Part 2
Hello!
In our last newsletter, we began a conversation about the inverse of partnerships – spinoffs, divestitures, and dissolutions of partnerships. We hope that the questions that we posed to you on the fundamental topics of alignment, motivation, governance, and identity and branding gave you insight into the starting point for spinoff processes or conversations.
In this issue, while retaining much of the urgency that the situation of 2025 is presenting, let’s take things a step further. Let’s delve into the details of what a spinoff would look like for your organization at a more operational level.
With this type of structural change, there is a fundamental disruption to the way that work gets done within your organization. There will be new duties that used to be the responsibility of another part of the original structure, new compliance considerations, and new practices to unlock the capabilities driving the structural change. For example, if you’re divesting from a fiscal sponsor, back-end finances and human resources responsibilities will soon become your responsibility.
Operational Questions
Below we have outlined a few brief questions to get you started in thinking about these operational details:
Programs: What programs will the organization provide? Will any programs be sunsetted or transferred to another entity? How will the programs within your entity be aligned and implemented to capture the benefits of integration?
Staffing: What is the optimal organizational staffing structure for the divested organization? Will there be gaps to be filled or new positions that will be required?
Finance and Funding: What financial risks and opportunities will the organization face? What one-time expenses need to be borne?
Facilities: How will ownership of real estate and/or leases be handled? What impact will this have on the organization?
As you consider these questions, are you at a stage to bring in other people, speak to stakeholders, or create a working group on this topic? OR do you need time and space to work privately on your answers to these questions so you can continue to think about them?
No matter where you are in this process, we are always available to you as a resource. We can help talk you through what the process looks like, or help throughout the entirety of the process. As always, please feel free to visit our website at tangelotree.org/contact to get in touch or simply respond to this email!
In Community,
Tangelo Tree Consulting