Bjorn Rosengren, ABB's newly appointed CEO, told the media that he is determined to decentralize the authority of ABB in order to improve the company's performance.
ABB's products range from circuit breakers to Marine motors, but the company has been held back by an overly complex business model, says Bjorn Rosengren. "I do intend to further decentralize," he says. "so far we have only discussed four business units, and I will delegate responsibility to our 17 business units."He also said that he will outline the company's new strategy on June 10, when he will reveal more details, which will be a gradual change."What caused ABB's problems was the complex business model", pointing out that this was the structure that headquarters used to involve in most decisions.
"This matrix organization is costly because headquarters is more of a hindrance to the business than it creates added value," Rosengren said.The lines of business know best how to work and responsibility will now be devolved to them."
In January, ABB announced the appointment of Bjrn Rosengren, then CEO of Swedish engineering group Sandvik, as its new CEO.He will join ABB on February 1, 2020, and become its CEO on March 1.Peter Voser, ABB's current chairman and interim chief executive, will continue as group chairman.ABB announced in April 2019 that then-ceo Steve speefer was stepping down and looking for a new CEO.
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