6 Ground Rules for Moving Operations Without Losing Quality
By Fidel Kandell | OpExecs
A field-tested playbook for managing Transfer of Work (TOW) projects, from ownership and staffing to supply chain control and capability validation.
What Is a Transfer of Work and Why Do So Many Go Wrong?
Transfer of Work, or TOW, involves the movement of all products, people, materials, and associated activities from one site to another. These are often manufacturing operations, but they can also involve service processes. When a TOW is not properly managed, it can negatively impact customer service, quality, and profitability.
Transfers of Work can be messy. These types of projects are often complex, requiring much strategy, coordination, and excellent communication between the teams. They may involve teams separated by geography, language, time zones, and institutional knowledge, all of which create opportunities for misalignment.
If you are overseeing or managing this type of project, it boils down to one principle: both the transferring site and the receiving site must be on the same team. When that alignment breaks down, so does the project.
For a detailed walkthrough of these ground rules, watch our webinar: Transfer of Work Webinar – OpExecs Video
Below are the six ground rules that determine whether a TOW project succeeds or fails.
Ground Rule 1: Ownership
The Pitching Site Owns It Until Completion
The site that is transferring its operations does not just “pitch” the product over an invisible wall. They must own it until completion. As the process experts, they’ve seen it all and done it all. Now, it’s up to the receiving site to trust the experts, to “catch” the product or service, and accept the challenge.
One approach that works well is to tie both sets of KPI metrics so that both sites either succeed or lose together. When the pitching site’s performance is measured by the catching site’s results, there is no room for finger-pointing. Both teams have a shared stake in the outcome.
Another way to control ownership is to gauge the willingness for both teams to meet all agreed timelines. This is generally done through frequent project management reviews.
From the field: During one of my first TOW projects, the plant manager of the pitching site was also assigned ownership of the product’s KPIs at the catching factory. This removed any of the typical excuses for why a project was not going as planned. It also incentivized both sets of project teams to be creative and collaborate.
Ground Rule 2: Staffing, Staffing, Staffing
Use Your Best People, No Rookies
Use your most experienced people for such a large undertaking. No rookies. Key positions at the pitching site throughout the transfer will demand full-time responsibility. Refrain from assigning your star players another side job. Make this their one and only priority.
At the catching site, there will most likely be periods with partially dedicated resources to support the transfer while they balance other day-to-day duties. The tipping point will be somewhere near one-third of the project execution, after which the catching site may need to assign fully dedicated resources.
Remember that the receiving site is not familiar with the new product or service, so first-rate staffing is a must. Do not use inexperienced workers for critical leadership roles.
From the field: For the TOW projects that I led, it was customary to identify key positions and request the best and brightest workers, even if it meant reassigning those talented resources from other departments.
Ground Rule 3: Financial Accountability
Deliver on the Business Case, and Track Every Dollar
There are many valid reasons for relocating a partial or an entire business: supply chain consolidation, operational efficiencies, product or service synergies, to name a few. The initial work transfer project proposal should contain information that outlines potential risks and should clearly state the need for change. This typically also identifies critical success factors, which might include cost reductions, lead-time or process-time reductions, quality improvements, customer or internal operational constraints. The initial business proposal should ultimately look to confirm alignment to the business strategy or need.
A good TOW plan delivers on its financial commitments, whether it’s Contribution Margin or an overall project payback. This means that a budget with both Investment and Expense funds must be established and controlled by the project manager, with regular oversight from the Finance team.
Resist the Temptation to Throw More Resources at Delays
One way to maintain financial discipline is to adhere firmly to any headcount targets. It’s often tempting to throw more resources at the catching site if the project gets behind schedule. But doing this might mask an underlying issue rather than address the pain point. It’s best to understand the root cause.
For example: Is the project behind schedule because some key equipment is stuck in Customs? Adding more people will only exacerbate the cost, because the machine still needs to be released no matter how many people are added.
Track Plant and Equipment Assets
Another often overlooked aspect during a TOW is failing to keep close track of Plant and Equipment assets. This can have financial implications given the importance of depreciation schedules that will be transferred as information or data to the receiving site. Be sure to maintain an up-to-date inventory of the tags that can trace any equipment that needs to be transferred or was previously removed from the pitching site. Working closely with a Finance or Maintenance colleague will minimize errors or loss of property.
Ground Rule 4: Proper Documentation
Do Not Underestimate the Engineering and IT Effort
An absolute must is up-to-date drawings, procedures, bills of materials, routing sheets, operational instructions, service instructions, product control plans, customer information, and more. Do not underestimate the time commitment that Engineering and Information Technology teams may require to clean up the documentation. Do not wait until the end of the project to assume the IT department will dove-tail the needed data into the new site’s existing systems. This alone may add months to the project and can bust the budget.
From the field: I recall one TOW that required four engineers to perform six months of work to update design changes that were still marked as “temporary” deviations on product drawings. On yet another project, I hired a full-time person just to translate work instructions into the local language.
The lesson is clear: documentation debt does not disappear during a transfer. It compounds. Budget the time and resources to address it early.
Ground Rule 5: Control of the Supply Chain
Track Every Shipment, Receipt, and Regulation
Keeping detailed records of shipments and receipts seems like an obvious activity, but you would be surprised how many opportunities for error exist. This is especially true given that site operators from the pitching site are likely to be under duress, working long hours, often on weekends or off-shifts, and in many cases towards the end of a project, using skeleton crews before the shutdown.
Be sure to include trusted and valued materials planning experts to keep up-to-date records of the materials coming in and out of both sites. This includes performing frequent Inventory Control audits. Measure any Finished Goods or ramp-up material plans continuously through diligent record-keeping. For service industries, keep track of any stocking or late-point identification materials that might even be located at a customer’s site.
Understand Import/Export Regulations Before They Surprise You
And be sure to understand the import/export regulations. Overlooking this can create costly, time-consuming delays that no amount of project management rigor can recover.
From the field: I once struggled to cross $2,000 worth of custom-made wooden pallets from the US, only to be held up in border customs since they were not properly fumigated. It also turned out these could have been made locally. On another occasion, the product coming out of the new catching site in the Caribbean had significantly longer overseas transportation lead times, which had not been properly communicated to our customers. This set off unplanned discussions for how to improve the overall logistics network after the transfer.
Ground Rule 6: Capability
Validate Your Operations Before the Transfer Begins
Often, we delude ourselves into thinking our products or services are great and therefore we can transfer them “as is.” This can be disastrous because of underlying issues that might only be known to those closest to the action. There might be a piece of machinery or tool that is not working properly. Don’t transfer it, fix it before moving it to the new site. Or perhaps one of your service technicians does not have the most recent certification to perform necessary training at the catching site.
This is where a Capability Analysis of your current product and process will highlight the risks and gaps that need to be addressed. It’s important to place up-front rigor to validate your operations before any transfer even begins. Just remember: complexity is in the eyes of the catcher.
From the field: One of the most successful transfers I led occurred when the pitcher assembly Line Leader volunteered to live with the catching site until the new assembly line performed to the required cycle time. That was an extreme example of the pitcher going the extra mile to support process capability.
The 6 Ground Rules at a Glance
- Ground Rule
- Core Principle
- Key Risk If Ignored
1. Ownership
Pitching site owns it until completion. Tie KPIs across both sites.
Finger-pointing, lack of accountability, stalled handoffs
2. Staffing
Assign your best, most experienced people full-time. No rookies.
Errors, delays, and knowledge gaps at the catching site
3. Financial Accountability
Establish and control the budget. Track headcount and assets rigorously.
Cost overruns, missed payback targets, lost equipment
4. Documentation
Update all drawings, BOMs, procedures, and IT systems early.
Months of rework, budget overruns, data migration failures
5. Supply Chain Control
Track every shipment, audit inventory, understand import/export rules.
Customs delays, lost materials, customer-impacting surprises
6. Capability
Validate product and process capability before the transfer begins.
Transferring broken processes to the new site
The Bottom Line: Same Team, Same Goal
A Transfer of Work project is often a transformative process meant to shift operational, financial, and strategic plans by adapting to the new competitive business landscape. TOWs can be complex and demanding. The vital components of a successful TOW project require a mind-shift away from an “us versus them” mentality. Early engagement from your best workers, financial responsibility, and a clear understanding of the company’s current state and capabilities are essential to a winning strategy.
For a deeper dive into these ground rules and real-world examples, watch the full webinar: Transfer of Work Webinar – OpExecs Video
If your organization is planning or currently managing a Transfer of Work, OpExecs can help. We bring hands-on experience leading TOW projects across manufacturing, service, and multi-site environments. Schedule a meeting with our team to discuss how we can support your project, or explore our M&A and Strategic Transfers services.