Is the disembodiment or selling of parts or businesses of a company. It is one of the most severe and deep changes an organization and its employees can face.

A Carve Out is one of the biggest challenges for:

  • Organization / Organizational Development
  • Leadership / Management
  • Employees
  • Customers

Challenges during a Carve Out are:

  • Damage of company reputation
  • Loss of customers to the competitors
  • Negative selection of employees
  • Performance Gap in the organization
  • De-motivation, paralysis of organization

Impact of a Carve Out:

1. Individual

Life derails, lose control of life, company betrayals, fear for one’s existence, personal plans/expectations not valid anymore, insecurity, fear, concerns, loss of focus and capacity to act, confusion, defensiveness, emotionality, denial, paralysis

2. Group/ Team

Of no worth to organization, structures are breaking, team focus declining, stress level rising, conflict level rising, co-operation level declining, decreased decision making, decreasing output, future hierarchies

3. Organization

Alienation – still part of the Selling organization, insider/outsider question, cut interfaces/processes, upcoming organizational changes, new systems and procedures, standing in old organization vs. standing in new organization, organizational set-up

To read more about Carve Out:

  • Main overall goals of Carve Out Change Management:
  • Questions to manage Carve Out:
  • Example of Stakeholders to consider in a Carve Out:
  • Generic Carve Out Roadmap: Business Process and Change Management Process
  • Managing Carve Out accelerates closing the performance gap

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