Accountability, transparency and speed is fostered through the implementation of our decentralized operating model, select common processes and our improved performance management system.

Implementation of decentralized operating model

We have converted our operations from a complicated matrix set-up into a decentralized operating model for increased accountability, transparency and speed. Operating decisions are now made close to customers in the approximately 20 different divisions which all have full operational mandate and cost ownership for their respective businesses.

Decentralized model with approximately 20 divisions

ABB Way - select common processes that unite the Group

ABB Way is the “glue” across the group. Each division should benefit from being part of the Group. Under this operating model, smart leaders cooperate to benefit from synergies where it makes sense for the business.

With the operating model in place, we are now cementing the performance culture. Our remuneration system encourages business leaders to find synergies where it makes sense and offers a competitive advantage for them.

Improved 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 are implemented with speed.

Divisions must first focus on stability as well as reaching an attractive margin and return level before turning to growth mode. They are incentivized according to their 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.

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02. ABB Way - accountability, transparency and speed

Implementation of decentralized operating model

Decentralized model with approximately 20 divisions

ABB Way - select common processes that unite the Group

Improved performance management system