Transition Management for Corporate Divestiture
Background
Raytheon Technologies (RTX) Partners with growth[period] in Divestiture of its Cybersecurity and Intelligence Services Business
Raytheon Technologies (RTX) was formed in 2020 by a merger between the aerospace subsidiaries of United Technologies Corporation (UTC) and Raytheon Company. Following the merger, Raytheon Technologies – the world’s largest aerospace company – consolidated its business units from four to three. Now, the company is made up of Collins Aerospace, Pratt & Whitney, and Raytheon. This consolidation was part of the company’s efforts to drive its technology synergies and financial targets. This was the first step in RTX’s portfolio realignment initiative. Since June 2022, Raytheon has been headquartered in Arlington, Virginia and is a leading technology provider in the commercial aerospace and defense industries.
With over 180,000 employees, including 58,000 engineers, Raytheon Technologies has been utilizing a $7.2 billion research-and-development investment and 52,000 patents to make air travel safer, more sustainable and more connected; defense systems smarter; and space technologies nimbler and more dynamic.
Challenge
Raytheon Technologies approached growth[period] looking to divest itself of its Cybersecurity, Intelligence, and Services (CIS) business, selling the division to Blackstone Corporation (BX). To accomplish this goal, growth[period] found solutions to the following challenges:
● How to complete separation from RTX on time, with minimal impact on customers, employees, and third-party stakeholders.
- How to prepare and implement a plan to define the CIS spin-off’s future-state operating model, supporting its strategic objectives and allowing it to exit all Transition Service Agreement (TSA) services on schedule and budget.
- How to identify risks and develop mitigation strategies critical to the success of the business transition.
Identifying and addressing interdependence and cross-functional relationships within the CIS business was one challenge. Due to the dynamic nature of the divestiture, the Transition Management Office needed a partner that could provide structure and process discipline to eliminate friction and enable CIS to continue operations as the stand-alone business Nightwing Intelligence Solutions. RTX recognized the need for a partner with a depth of experience in CIS’s core market (US Federal Government) and the ability to define critical processes needed to achieve separation/remove entanglements between CIS and RTX.
The growth[period] Solution
growth[period] delivered the following:
- A post-divestiture readiness checklist, including a risk assessment, to ensure key actions took place on Day 1 of the divestiture by the responsible parties.
- A separation roadmap identifying dependencies and interdependencies, addressing disentanglement issues and aligning them with goals and milestones.
- Assistance in the development of an IT system inventory and transition plan.
- An Integrated Master Schedule to ensure a timely transition process in key departments.
- An end-state action plan to evaluate critical business processes and support functional leads and other stakeholders in defining the Nightwing future-state operating model.
In addition to these deliverables, growth[period] paid particular attention to the culture of the organization being divested and made specific, targeted recommendations to ensure not only a seamless transition but long-term buy-in from all levels of the impacted work force. For this transition to be a successful one, CIS and the Transition Management Office (TMO) required a hard-working partner that could offer dynamic and comprehensive solutions. The extensive experience at growth[period] brings with it an inventory of the best industry practices and lessons learned in divestiture, transition, and integration service, making it the perfect firm to accomplish these tasks.
Results
Within 90 days of the divestiture, growth[period] was successfully able to develop and deliver on all of the proposed solutions contributing to the success of the TSA. By identifying key activities, personnel, and assets, growth[period] presented the Transition Management Office with actions and developments necessary for the Nightwing to operate as an independent business unit. The in-depth roadmap developed by growth[period] experts for the TMO identified key checkpoints in the transition timeline that would save both time and money for Nightwing through their timely implementation. Additionally, the roadmap provided by growth[period] for senior leadership highlighted core dependencies and interdependencies between CIS and RTX and offered key strategies for addressing these issues in alignment with the client’s strategic objectives. Through these efforts, growth[period] was able to successfully contribute to a smooth transition in an all-but-predictable environment for RTX and BX.
As one of the largest defense contractors in the world, Raytheon Technologies (RTX) possesses a reputation for consistently delivering top quality products and services to our Nation’s most critical industry. Working with growth[period] to develop a divestiture roadmap was key in the successful transition from the CIS business’ status as a subsidiary of RTX to a stand-alone company, Nightwing, carrying with it the same history and reputation of its predecessor.
