ABBs Relays Business: Building and Managing Global Matrix

This case study describes the development and management of the relays business area
(BA) in ABB's global matrix organization. Focuses on three levels of management--corporate,
BA, and operating company. Highlights the roles and responsibilities of individuals at each
level as ABB creates a unique, highly successful organization structure and management
process that enables it to integrate its disparate worldwide operations while maintaining a
highly entrepreneurial front-line environment.
Lindahl used a strategical approach to develop the management team. For Lindahl
personality of the managers were equally important as the career background of the
managers. He wanted to create the environment in which the people working below him
would be most effective. He wanted to make all the managers as leaders, as he believed
once he do that the organization will be self-driven and self-renewing.
Lindahl doesnt believe in bureaucracy and centralised system. He communicated that
companys guiding principle is decentralisation. During the meetings also, top guys will talk
with full transparency and will communicate to their subordinates what is going on in the
industry and where ABB wants to be and they will also listen to the proposals of their
subordinates carefully.
Lindahl was visionary. He knew what he wanted and gave the clear expectations to the
organization. He believed if you want to bring the change, you need to force it and with time
it gains its natural momentum.
Lindahl was optimistic. In the initial days of restructuring process, they faced many issues
like closing the plants, cutting on the product lines but always wanted everyone to believe
that new organisation can become winner-winner.
In ABB the culture of delegated responsibility and intensive communication made this
organization work in matrix structure. Lindahl believed that strategy is an on-going part of
management and used his bi-monthly transmission management segment meetings to
shape the strategic thinking of his key executives. He used to ask their executives to stretch
their thinking and develop such scenarios which can affect their business and how they
might deal with such challenges.

Submitted By:
Bharti Pahwa
2017H1490297P