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    Case Study

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

    By Heather Cairns-Lee, Anand Narasimhan and Valerie Keller-Birrer
    11 pages
    September 2025
    Order this case study
    Reference: IMD-2683

    The case study explores the second phase of ABB’s 2018 to 2024 transformation journey to restore confidence in the underperforming conglomerate through a simplification of its structure and a focus on accelerating decision making. Under interim CEO Peter Voser and later Björn Rosengren (2020–2024), ABB decentralized operations, optimized headcount, enhanced accountability and empowered divisions to operate as independent businesses. Rosengren formalized the transformation as The ABB Way. On 1 August 2024, Morten Wierod assumed the role of CEO, inheriting a stronger, more agile ABB. To maintain momentum, the company needs to remain committed to operational excellence, relentless innovation and a strong customer focus. Moving forward, Wierod’s key challenges include identifying strategies to build on the transformation’s success.

    Learning Objective
    • Identify the key challenges and pitfalls organizations encounter during transformations.
    • Explore how leadership changes can influence transformation momentum and strategy.
    • Understand the role played by organizational culture in a transformation.
    • Assess the trade-offs between centralized and decentralized structures in the context of 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
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    Available Languages English
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    Summary
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    Available Languages English
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