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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

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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

Available Languages

English

Related material

Teaching note, Video

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This case study is part of a series

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

This case study is part of a series

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

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

By Heather Cairns-Lee Anand Narasimhan and Valerie Keller-Birrer
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 underperforma...

Reference IMD-2682

Organization Asea Brown Boveri

Industry Manufacturing, Electric and Electronic Equipment

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Business Transformation

Organizational Change

Browse all topics

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

By Heather Cairns-Lee Anand Narasimhan and Valerie Keller-Birrer
Case reference: IMD-2683 ©2025

Summary

The case study explores the second phase of ABB's 2018 to 2024 transformation journey to restore confidence in the underperforming conglomerate thr...

Reference IMD-2683

Organization Asea Brown Boveri

Industry Manufacturing, Electric and Electronic Equipment

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Business Transformation

Organizational Change

Browse all topics

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Available Languages English

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Industry Manufacturing, Electric and Electronic Equipment

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Business Transformation

Organizational Change

Browse all topics

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