Kennell Out, Kappa Cancelled. Kappa VP Os Kennell has long been known as a "true believer" in pushing for the Kappa vision (high performance with sets of small, modular components). When Kappa growth did not materialize, upper management made several efforts to get Os to refocus his own efforts and/or re-target the product line. His abrupt departure, referred to in Tom Balpheimer's memo of 16 September 97, reflects his unwillingness to even discuss these changes.

Division of Kappa Resources. The Sigma Reengineering Group is managing Kappa Division during this transition (from Kennell's departure through its dissolution).

As the product lines are closed out, the month of January has been set aside for discussions aimed at incorporating some Kappa assets into the Omega and Omicron divisions. You are reading a white paper prepared for these discussions.

Note: Zeta Division is not involved in the division of Kappa assets.

We expect final decision on the distribution of Kappa assets by February 1st. The months of February and March have been set aside for the implementation of such moves and transitions as may be necessary.

Disposition of Unclaimed Kappa Resources. All non-human assets not claimed by other divisions will be placed in storage for eventual reuse or recycling.

By February 1st, it will be clear whether there are substantial Sigma employees, formerly of Kappa, whose work functions are not being transferred into other divisions. Sigma Human Assets Group (SHAG) has made the following provision for these employees:

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During the month of February, the remaining personnel will be offered first choice of open positions elsewhere in Sigma. They will also be put in touch with the personnel recruiting efforts of our new Sigma Consulting spinoff.

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Early in March, the remaining personnel will be laid off, with appropriate severance packages based on their years of service. Current plans are that full outsourcing support (off-site, not on the Sigma campus) will be available to these former employees for up to six months.