ABB Asea Brown Boveri (ABB) is constantly attempting to streamline it
operation. (Pearce & Robinson, 2003) In 1997, the company had four core
business segments: industrial automation and robotic, electrical power
generation and distribution; oil, gas and petrochemicals and, industry and
building technology. In 2000, ABB underwent an expansion to six divisions.
These were: automation technology, electricity transmission, electricity
distribution, oil, gas, petrochemicals, building technology and financial
services.(Bierbaum, Kischewski, Kischewski, & Schmidt, 2001) In 2003, ABB
in a strategic shift in favor of specialization, has chosen to concentrate
its resources and research and development on two main core sectors of
power technology and automation technology.(ABBWebPage, 2003)
The organization has dedicated and committed leaders who are willing to
critically analyze the market they face and change the organization to make
it competitive in new and changing markets. Currently the company is
considering divesting its oil, gas and petrochemical division. (ABBWebPage,
2003) The leadership at ABB was willing to change the core business of the
company from a "capital intensive and heavy engineering products to
knowledge and service based business and high-tech integrated solution"
business. The company success in managing this change would not have been
possible without the dedication and support of trained and expert talent
the company employed. Too much of a good thing can be a bad thing.
Constantly restructuring and changing the core competencies of ABB can be
confusing to the stakeholders (employees, shareholders, the community in
which ABB operates) of the organization. While many organizations are
priding themselves on their ability to change quickly and constantly to
maintain ...