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

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Case

Reference no. 303-157-1

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: 15 pages

Data source: Published sources

Topics: ABB; Matrix structure; Percy Barnekiv; Restructuring; Goran Lindahl; Organisational restructuring; Customer-centric organisation; Decentralisation; Globalisation; Jorgen Centermann; Jurgen Dormann; Transnational corporation

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Abstract

This is the second of a two-case series The case discusses the organisational restructuring of Switzerland-based ABB (Asea Brown Boveri Limited), during the period 1998 to 2002. It discusses in detail Goran Lindahl's organisational restructuring, Jorgen Centerman's customer-centric structure, and the changes Jurgen Dormann made in the customer-centric structure. The case also explains the benefits reaped and problems faced by ABB after each restructuring exercise. It also details the strategic and human resources implications for ABB due to frequent organisational restructuring.