(C) Reuters. FILE PHOTO: Logo of Swiss power technology and automation group ABB is seen at the Swiss Economic Forum conference in Interlaken
ZURICH (Reuters) – ABB’s (S:ABBN) new Chief Executive Bjorn Rosengren is determined to decentralise the Swiss engineering group to improve its performance, he told Swiss newspaper Neue Zuercher Zeitung in an interview.
The company, whose products range from circuit breakers to electric motors for ships, has been weighed down by a business model that was too complicated, said the former Sandvik boss (ST:SAND) who took over in March.
“I do intend to further decentralise,” he said in the interview to be published on Saturday.
“Up to now we have only ever talked about four businesses, and I will delegate responsibility to our 17 business units,” Rosengren added.
More details will emerge on when he outlines the company’s new strategy on June 10, Rosengren said, adding it would be a gradual change.
“What caused ABB problems was the complicated business model,” he said, referring to the previous structure where head office was involved in most decisions.
“Such matrix organisations create high costs because the head office hinders business more than it creates added value,” Rosengren said.
“The business units know best how to work, and now the responsibility will be passed down to them.”
New ABB CEO Rosengren outlines decentralisation plan: NZZ
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.