Direct Line Group separation from Royal Bank of Scotland

Procurement & Supplier Engagement

The Issue

Urgent separation from the Royal Bank of Scotland

The Royal Bank of Scotland ran into difficulties in the financial crisis and needed to divest some of its non-core assets. RBS decided to separate one of its subsidiary companies, Direct Line Insurance, and seek a listing for it on the London Stock Exchange.

The challenge was to un-pick Direct Line Group’s operations from those of the main bank, creating a self-contained, free-standing operation. In particular, the problem was to separate all property-related support mechanisms, including the process for acquiring and disposing of property, for delivering projects and for facilities management of the estate.

The Solution

Working closely with the management team, we developed a set of requirements for the future operating of its facilities management services.

We tested the facilities management market and then ran a two-stage competitive tender to help Direct Line Group select the most suitable supplier.

As well as helping the client team manage the supplier’s performance, we helped finesse the operating model as the supplier went through the initial transition phase.

The period from the day we were appointed to assess the client requirements to the day the contractor arrived on site was just nine months – a major achievement for a portfolio comprising just under 100 properties located all around the UK.

The Outcome

Our approach and plans enabled Direct Line Group to increase levels of efficiency and service facilities management delivery.

Our work was completed quickly, decisively, with full client engagement and participation enabling the efficient separation of Direct Line Group from RBS … not to mention a 25% cost saving. We also enabled Direct Line Group to establish a continuous improvement culture, leading to further service level enhancements.