HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeABB (A): The Barnevik era (1988-2001)back to Strategy

Case Study

ABB (A): The Barnevik era (1988-2001)

By Paul Strebel and Nanci Govinder

15 pages

October 2003

Order this case study

Reference: IMD-3-1241

This is the first case of a 4-part case series which examines the evolution of ABB under its four leaders, from the merger to 2002. The A-case describes the history of both companies–Asea AB and Brown Boveri et Cie–, the rationale for the merger, the merger process and the integration and restructuring of the company under Percy Barnevik, the first CEO of ABB. Why was the merger so successful? What were the advantages and disadvantages of Barnevik’s management system, especially the highly decentralized matrix structure? How did this structure serve ABB? At the end of 1996, Barnevik decided to step down as CEO. Who would succeed him? What were the challenges that the new CEO would face?

Keywords

Engineering

Settings

Switzerland
1988-1996

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

ABB (A): The Barnevik era (1988-2001)
ABB (B): The Lindhal era (1997-2001)
ABB (C): The Centerman era (2001-2002)
ABB (D): The Dormann era (2002--)

This case study is part of a series

ABB (A): The Barnevik era (1988-2001)
ABB (B): The Lindhal era (1997-2001)
ABB (C): The Centerman era (2001-2002)
ABB (D): The Dormann era (2002--)

Keep reading

Article

Ecosystem playbook - Microsoft Growth

Discover how Microsoft’s ecosystem-centric strategy under Satya Nadella fueled its transformation into a cloud and AI leader.

What geopolitical maturity looks like

As geopolitics reshapes markets, leading firms move beyond risk mitigation to use foresight, intelligence, and public-private engagement to create competitive advantage.

Communication Breakdown - Social Media Signals

A study of 1,000 executive posts shows how using social media signals can boost meaningful engagement by over 300% and redefine effective leadership online.

Is your AI strategy built for a world that no longer exists?

Many leaders overlook emerging risks and fall into common AI strategy pitfalls. Understand why old approaches fail and what transformation now requires.

Creating a smoke-free future: How PMI is stubbing out cigarettes

PMI CEO Jacek Olczak details the company’s bold shift toward a smoke-free future, transforming its strategy, culture, and portfolio in a major business reinvention

Leadership Strategy

By Jean-François Manzoni

in I by IMD

Article

AI for HR: Next up – performance reviews

AI is transforming HR, from performance reviews to strategic decision-making. Stacia Garr urges CHROs to lead the revolution and manage the risks wisely.

Human Resources Strategy

in I by IMD

Video

Competitiveness lives on, but the rules are changing

Stephane Garelli and Arturo Bris discuss how world competitiveness is changing, from globalization to fragmentation, and why nations define success differently.

Global Business Geopolitics Strategy

By Arturo Bris

in I by IMD

Article

Gripped by uncertainty? How to unfreeze through experimentation

Steps that are too big can paralyze us. Sometimes we avoid taking action because decisions feel too uncertain or too risky and we choke or “freeze”, making action impossible.

Leadership Strategy

By Amy Bonsall and Alyson Meister

in I by IMD

Article

Outpacing strategy - Chinese EV Manufacturers

Chinese EV leaders show how the Outpacing strategy uses fast evolutionary cycles to shift direction early and gain an edge over slower moving rivals.

Beware the silent fourth: Are you fawning your way through leadership?

But clinical psychologist Ingrid Clayton identifies a fourth survival strategy lurking in your neural circuitry that most leadership training misses – and it might be sabotaging your effectiveness.

Leadership Strategy

By Francesca-Giulia Mereu

in I by IMD

Competitiveness lives on, but the rules are changing

By Arturo Bris
in I by IMD

Summary

Stephane Garelli and Arturo Bris discuss how world competitiveness is changing, from globalization to fragmentation, and why nations define success differently.

Contact

Research Information & Knowledge Hub for additional information on IMD publications