Executive Summary on ABB

Executive Summary
ABB was formed with merger of two European companies. Asea was founded in 1890. Brown Boveri which was founded in 1891. In 1987 both of these companies merged resulting in creation of ABB. The creation of ABB was unique as the reconstruction and organizing of the company globally was a great challenge. Today ABB generate revenue of more than 30 billion dollars and employs over 120,000 people around the world. Current organizing structure of ABB is complex yet very effective. Similar to most companies, at the top sit CEO followed by twelve executive boards of directors. Reporting to these twelve executive boards are about 60 business areas (BAs). BAs are grouped in to eight business segments where each segments consist of BAs anywhere from five to ten BAs. Each of these BAs have a leader who leads their organization to success. This might sound complicated perhaps from where CEO sits. However, where the real work gets done, all of the operations work closely with stand alone operations. All managers have clear defined sets of responsibilities, and accountability. There has been a lot of coordination and ongoing improvement for ABB to stand where it is now. Organizing the physical structure and thousands of employees around the world has proven to be great challenge and ABB has done well.