Reorganising ABB: From Matrix to Customer-centric Organisation Structure (A)

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Reorganising ABB: From Matrix to Customer-centric Organisation Structure (A)

Case

Reference no. 303-156-1

Subject category: Strategy and General Management

Authors: Vivek Gupta (IBS Center for Management Research); Konakanchi Prashanth (IBS Center for Management Research)

Published by: IBS Center for Management Research

Published in: 2003

Length: 18 pages

Data source: Published sources

Topics: ABB; Matrix organisation; Matrix structure; Organisation structure; Percy Barnevik; Restructuring; Reorganisation; Management levels; Customer-centric organisation; Decentralisation; Globalisation; Group organisation

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Abstract

This is the first of a two-case series The case discusses the matrix organisation structure of the Switzerland-based ABB (Asea Brown Boveri Limited), a global electrical engineering company. It explains in detail the four management levels in the structure and clearly identifies the roles and responsibilities of the management at each level. The case also explains the rationale behind developing the matrix structure and the subsequent changes made in it until 1996. Finally, it discusses the positive as well as negative strategic and human resources implications of the structure on the organisation.