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New Most likely the NP would own the biz
I would think they would have to in order to maintain control over the profit donation scheme. I don't have any problem with that approach; I want to spin it off to make money for the parent NP.

Currently, the NP owns the code. But part of creating this new FP would be porting the code to Java, Python, or something else. Fortunately, the real strength of it now is the model, not the implementation details.

Did you end up "working for" the new software development company?

Many fears are born of stupidity and ignorance -
Which you should be feeding with rumour and generalisation.
BOfH, 2002 "Episode" 10
New Yes, but
it wasn't "new" when I was hired on. It had been in existence for about a year. The manager of software development left shortly after I arrived, and then I was promoted to that position.

The VP of the division reported to the VP of the association. I didn't have any budget authority and was never privy to meetings outside the IT division. We did have a slightly different name, The word "enterprise(s)" was added to the association's name.
[link|mailto:jbrabeck@attbi.com|Joe]
New Operational questions
Okay, I'm going to use "association" to mean the existing corp, and "division" to mean the new software development corp:

Did your division market its s/w to companies other than the association?
If so, did that interfere with requirements/priorities from the association?

Did you have your own marketing, accounting, staff, etc.? Your own facility? In other words, how "divorced" was the division from the association in operational and management structure?

Any pitfalls you ran into in the communication between the association and the division?
Anything you dealt with as the dev mgr which was obviously a holdover from the spinoff process being handled either well or badly?

Many fears are born of stupidity and ignorance -
Which you should be feeding with rumour and generalisation.
BOfH, 2002 "Episode" 10
New Attempt to answer...
This was my first job staight out of the Active Army, so I wasn't too aware of organizational politics. That lack ended up costing me my job 30 months later.

The association is a trade association. The division was called the "for profit" side of the association. As a trade association, it was structured as "Not for profit". I don't know how the accounting was handled. I do know that there was only one group of accountants/bookkeepers. We had our own customer support team.

The association hosted trade shows. We/I went and demonstated our software. Association members received a healthy discount if they purchase our software. Non association members paid full price. Also, member owners had the option of joining the software review team. I remember demonstating our software to our competitors, yet when I tried to watch their demo, it was stopped until I left. :)

We had our own marketing staff.

The Executive Vice President of the association reported to the Board of Directors. My VP reported to the Ex VP. I was mgr of "Large Systems Development" (Network [Arcnet anyone?]) and there was a mgr of "Small Systems Development" (stand-alone)

If I've missed anything ask again.
[link|mailto:jbrabeck@attbi.com|Joe]
     Spin out advice requested - (tseliot) - (6)
         Questions for clarity - (jbrabeck) - (4)
             Most likely the NP would own the biz - (tseliot) - (3)
                 Yes, but - (jbrabeck) - (2)
                     Operational questions - (tseliot) - (1)
                         Attempt to answer... - (jbrabeck)
         tried googleing about a local scandal - (boxley)

I think its a fine solution to the problem that you probably shouldn't have.
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