Leadership time and attention

Companies often encourage spin-offs to free up management's time to refocus on the core business or launch a new business. But it can be difficult to focus on the big picture, particularly for the SpinCos executives who have to develop and execute new strategies.

Executives often spend more time focusing on the mechanics of spinning off units while missing the opportunities that they may unlock. They may wait until the spin-off is completed before preparing for the next step, resulting in being unable to capitalise on the momentum of the spin-off.