Case study: how Solvay managed the emotional impacts of splitting its business

Solvay is a 160-year-old chemical company and the disparity between its traditional business and its cutting-edge speciality operations had become inescapably clear.

Sonia Cambier, insurance and prevention director at the company, explains: “We found ourselves with two operations with very different needs. The specialist business was all about delivering innovation and it was competing for funding with our more established operations. It was clear that something needed to happen, and the decision was taken to spin off the specialist business.”

What was key for Cambier was the ability to be at the heart of the process from the outset. “It was important to have a seat at the table,” she explains.

“We spent hours discussing with and informing all stakeholders and then beginning the preparations for the spin off.”

OVERCOMING MANY HURDLES

“Time was the first concern,” Cambier explains. “It was very much a moving target.”

The group set an 18-month target to deliver the spin off and Cambier says while the period of time initially looked to be sufficient, it became apparent that the pace had to be significant from day one.

There was no room for flexibility or for project deadlines to be missed or extended. The group also had to look at how to transfer historic risks to a new entity, and the budget that would come with the new operations.

“The challenge, which many may not recognise, is that of emotions.”

“It was a real challenge to create the new budget,” she explains. “It involved the transfer of the historical risk to a newly formed captive, with the existing captive being used by the specialist operation.”

And, perhaps surprisingly, issues arose around the workforce and how to manage concerns surrounding their movement to the new entities.

Cambier says: “The challenge, which many may not recognise, is that of emotions. You have teams working together, knowing that one day in the near future we will split. It is like a divorce, but both sides still love each other.”

MAINTAINING COMMUNICATION

To manage these issues, Cambier says from day one there was a concrete framework around the project. There was also a clear communication plan in place, which saw regular contact with stakeholders and importantly a system that ensured that feedback was gathered and fully considered.

“There was also the need to create the agility to adapt to changing dates and deadlines,” Cambier adds.

“In order to meet these needs, we had to have the sponsorship of the CEO from the outset. I do not think you can underestimate the issues around emotion. Prior to the spin off, we did a number of presentations and there were tears – including from the CEO!”

“The biggest difficulty was managing changes that came at the very last minute.”

The move was finally completed in the middle of 2024. Cambier says the key factors for success were “leadership, transparency, trust and having people who are willing to go beyond. We put in place a system that six months after the spin-off will allow the teams to continue to communicate on issues should they need to.

“We recognised that there would be questions and issues that would arise in the months after the spin-off, so we wanted to ensure that we had systems in place that would allow us to address them effectively.”

Cambier says while the change created challenges for the risk management team, it also presented opportunities for the business, and those positives were at the heart of the decision to complete the project. However, they needed to be explained effectively to stakeholders from the outset.

“With every change, you have the opportunity to make things better,” she added. “Personally, the biggest difficulty was managing changes that came at the very last minute. It is often difficult to ensure the team understands the changes and what the effects will be.”

POST-SPLIT ADVICE

Having been through the process, Cambier is clear in terms of her advice to risk management teams who face a similar process.

“First, it is very much about organisation – planning is key,” she says. “Use every minute you have. For us, 18 months sounded like a long period but as we found out, time accelerates.

“Engage with the leadership from the outset, ensure you have a seat at the table and identify those in the boardroom who will sponsor and champion the project. Communicate quickly, clearly and e ectively. Ensure that the message is understood and listen to feedback.

“Finally, expect the unexpected and ensure you have the ability to be quick to change in the face of challenges that may come from areas that you have not previously considered.”