Transition management

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Transition management refers to the planned and controlled transition from one functional system to another. In German, the term transition management is mainly used in relation to three completely different subject areas: in banking , in information technology and in corporate management .

Transition management in banking

Transition management in banking describes the process of managing a change - i.e. a transition - in an investor's investments. Transition management typically refers to large, institutional investors or investor groups with large investment stakes that are managed for the benefit of the beneficiaries.

There are numerous reasons that lead to a portfolio having to be transferred or changed. This includes

  1. Mergers and Acquisitions
  2. a modified investment strategy of the investor / investor
  3. Changes in liability / liability profile
  4. a changed mix of assets
  5. Changes in legal framework conditions etc.

In order to carry out transitions, certain systems must be moved, sold and / or bought. The values ​​that are involved in these change processes are mostly substantial and any savings (even by a few basis points [one basis point = 0.0001]) can save the investor (s) millions. Consequently, any unnecessary expense can result in significant losses.

There are a number of stakeholders involved in the transition process: board of trustees, advisors, insurance experts, investment managers, custodians, stockbrokers, etc. To ensure a smooth transition, it is essential to effectively coordinate their individual efforts. Since this is a tedious and time-consuming task, investors usually use the services of a transition manager. Another aspect that speaks in favor of using a transition manager is the fact that he can usually carry out a transition of the securities portfolio at lower costs than the investors themselves.

Transition Management in Information Technology

Transition management in information technology describes the controlled and smooth relocation or transition of an IT system from one IT landscape to another.

There are also various triggers for this:

  1. the outsourcing of companies and parts of companies
  2. the integration of companies and parts of companies
  3. the introduction of new IT services
  4. changing existing IT services, etc.

Major changes to the IT landscape require appropriate planning in order to keep the risk for the current process landscape as low as possible. For this purpose, companies and institutions usually use a professional transition manager. He and his team first carry out a risk analysis, deal with approval procedures and set planning, construction, testing and implementation milestones. The sequence of the individual steps is planned and communicated, any overlaps with further changes are evaluated and consolidated if necessary. The transition manager and his employees are responsible for the coordination of the implementation and the acceptance of the changes made. The transition management is completed as soon as all processes of the new IT landscape run smoothly and all employees of the organization concerned can operate or apply them.

Transition management in corporate management

Transition management in corporate management refers to the specifically planned process through which a company that has got into difficulties or needs optimization in relation to individual areas is brought into a newer, better state. The Business Dictionary defines the term as follows: "systematic planning, implementing, and monitoring change in an organization".

The transition includes in particular:

  1. Restructuring / reorganization / turnaround
  2. the temporary takeover of management , board or committee seats
  3. the resolution of “managed” situations
  4. accepting business challenges
  5. solving very specific problems etc.

The transition manager is usually a temporary manager who comes from outside and takes on a responsible position in the company. He or she introduces the desired or necessary changes conceptually and implements them until the previously agreed goals are achieved.

In contrast to interim management , transition management does not use daily man-hour rates. The transition manager receives a fixed monthly salary plus a performance-related variable that is based on the agreed milestones.

Web links

Individual evidence

  1. ↑ Business Dictionary , keyword "Transition Management"