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    Case Study

    From complexity to clarity: How ABB transformed its operating model (A)

    By Heather Cairns-Lee, Anand Narasimhan and Valerie Keller-Birrer
    7 pages
    September 2025
    Order this case study
    Reference: IMD-2682

    The case study explores the first phase of ABB’s 2018 to 2024 transformation journey as it tackled longstanding challenges: financial underperformance, declining market confidence and inefficiencies in its complex matrix structure. To streamline operations, CEO Ulrich Spiesshofer initiated a restructuring of its main business areas in 2018, including the sale of the Power Grids business to Hitachi. However, the following April, Spiesshofer stepped down unexpectedly. Would the transition in leadership signal a continuation of the existing strategy, or did it indicate a complete shift in direction? How should the new leadership transform ABB?

    Learning Objective
    • Understand the internal and external catalysts that drive organizational change.
    • Evaluate strategic options to address underperformance and inefficiencies.
    • Identify the leadership capabilities, organizational skills, and cultural enablers necessary to support a successful organizational transformation.
    Keywords
    Business Transformation, Organizational Change, Restructuring, Operating System, Decentralization, Reorganization
    Settings
    Europe, Switzerland
    Asea Brown Boveri, Manufacturing, Electric and Electronic Equipment
    2018-2024
    Type
    Field Research
    Copyright
    © 2025
    Available Languages
    English
    Related material
    Teaching note, Video
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    Reference IMD-2726
    Copyright ©2025
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    Organization MedTech Diagnostics (Fictionalized)
    Available Languages English
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    From complexity to clarity: How ABB transformed its operating model (A)
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    Case reference: IMD-2682 ©2025
    Summary
    The case study explores the first phase of ABB's 2018 to 2024 transformation journey as it tackled longstanding challenges: financial underperformance, declining market confidence and inefficiencies in its complex matrix structure. To streamline o...
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    Reference IMD-2682
    Copyright ©2025
    Copyright owner IMD Copyright
    Organization Asea Brown Boveri
    Industry Manufacturing, Electric and Electronic Equipment
    Available Languages English
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    By Alfredo De Massis
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