02. ABB Way - accountability, transparency and speed

Leveraging on decentralized operating model

Through the period of 2019 – 2023 ABB has transformed into a more agile and efficient company where accountability, transparency and speed is fostered through the implementation of our decentralized operating model ABB Way – this is founded on the belief in

• operating decisions made in the divisions, close to customers
• select common processes
• strong performance management system

Cemented decentralized operating model

Alignment to the ABB Purpose

We have aligned the business portfolio to the ABB purpose, creating clarity and focus on value creation for all our stakeholders.

Each business is expected to hold or achieve a No. 1-2 market position in their chosen segments. Continuous portfolio reviews are an integrated part of the ABB Way operating model.

~20 divisions with full operational accountability

Select common processes in ABB Way

ABB Way is the “glue” across the group with select common process which defines how we operate and act. 

Each division should benefit from being part of the Group and ABB Way, under which our leaders are expected to cooperate to benefit from synergies where it makes sense for the business. Our remuneration system encourages the internal mantra of “smart leaders cooperate”. 

The ABB Way - the "glue" that unites our Group

Strong performance management system

Performance is reviewed on a monthly basis, by tracking standardized KPIs, our so-called scorecards.

This facilitates transparency in performance and operating adjustments can be implemented with accuracy and speed.

Each division makes operating decisions based on their respective strategic mandate prioritizing stability and profitability before growth. Mandates are continuously reviewed and held for at least one year. Remuneration KPIs are linked to the division’s strategic mandate.

Managing the business portfolio is a continuous journey. We apply a systematic portfolio management process across our whole portfolio down to the product group.

Transparency through performance management system