Client Stories

ISG Assures Effective TSA Exit for Major Utility

Written by Admin | Jan 4, 2024, 8:00:00 AM

Following a major corporate divestiture, a North American utility partnered with ISG to manage a complex TSA program. The result was the successful bifurcation of $1B+ in contract value across 500+ contracts, 90 successful TSA exits and uninterrupted service throughout the transition.

Opportunity

This major North American Utility decided to split its organization into two separate public companies, one focusing on transmission & distribution, the other focusing on power generation.

As with every divestiture, there were many moving parts with the TSA guiding the separation process. Three different well known strategic advisors were involved in early strategy setting, however when it came to managing the TSA, the strategic advisors began to faulter when attention shifted to execution.  Assigned resources were inexperienced and methodologies for completing the wide array of activities were immature.

As a result, ISG was engaged to manage the TSA program providing oversite on the TSA service delivery, service exit planning and execution.

Imagining IT Differently

In support of TSA governance, ISG provided oversight for:

TSA service delivery, including:
  • Contract management and governance
  • Invoice and service-level agreement (SLA) validation
Service exit planning, including:
  • Service ID management
  • Integrated transition plan and TSA exit events
Service exit execution, including:
  • Contract bifurcation outcomes
  • Transition plan management
  • Quality gates and interim milestones
  • Accountability and alignment of tasks
Financials, including:
  • TSA invoice burndown

Future Made Possible

ISG’s approach included activities within each service to assure uninterrupted IT service delivery tied to a defined and transparent understanding of progress toward exit:

  • Over $1B of total contract value (TCV) spanning more than 500 contracts bifurcated, leveraging our contract governance processes.
  • 90 unique TSA services exited with no drop in service quality by integrating service ID TSA exit dependencies into the ISG-developed Integrated Master Plan, providing clear dependency mapping and what if analysis.
  • Ensured cost-to-achieve budget was effectively managed, minimizing dis-synergies / stranded costs throughout the TSA.
  • Managed the disposition and migration of ~1,800 business and shared systems applications and data, supporting over 55,000 users.
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