In a meeting a couple of weeks ago an IT executive discussed his initiative to have his organization go through the process of outsourcing all their work to themselves. His goal was that by having his group properly go through a process like transition he would get service level agreements, work allocation and other opportunities of improvement as an end product without having to outsource.
When we chatted, he was still very early into the process, but had identified some major wins. He had people allocating time and priority to certain low priority items when major issues were being ignored. By putting together a SLA he now had the framework to respond and allocate resources. He also found that the process of the SLA creation actually allowed some of his folks to innovate on how they would work on this process and thus did some process re-engineering.
He is doing this all with the same people he had before, helping to foster ownership, involvement and a more responsive and focused business unit. I think this is a great way to enact change and innovation with your own team.