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FILE PHOTO: The logo of the Swiss energy and automation technology group ABB is seen at the Swiss Economic Forum (SEF) conference in Interlaken, Switzerland, on May 24, 2019. REUTERS / Arnd Wiegmann / File Photo
ZURICH (Reuters) – ABB (ABBN.S) New CEO Bjorn Rosengren is determined to decentralize the Swiss engineering group to improve its performance, he told the Swiss newspaper Neue Zuercher Zeitung in an interview.
The company, whose products range from circuit breakers to electric motors for ships, has been burdened by a business model that was too complicated, the former head of Sandvik said (SAND.ST) that took over in March.
“I intend to decentralize further,” he said in the interview to be published on Saturday.
“So far we have only discussed four businesses, and I will delegate responsibility to our 17 business units,” added Rosengren.
Rosengren said more details will emerge when he describes the company’s new strategy on June 10, adding that it would be a gradual change.
“What caused ABB’s problems was the complicated business model,” he said, referring to the previous structure in which the central office was involved in most decisions.
“Such matrix organizations create high costs because the central office makes business more difficult than it creates added value,” said Rosengren.
“The business units know better how to work, and now the responsibility will be passed on to them.”
Report by John Revill. Edited by Jane Merriman
