Abbs Relays Business Building and Managing a Global Matrix

Because this is a complex organization with sophisticated management practices, in MBA classrooms it may be necessary to spend some time in the early discussion ensuring that there is a clear understanding of the ABBÂ’s matrix structure and the management roles and relationships in the relays business. In executive education programs, participants are more likely to have had experience in such subtle organization processes, and the instructor can move more quickly from the basic diagnosis to the more evaluative and reflective discussion. Executives will be interested to discuss issues like what makes this global matrix work when so many others have failed, and what value is being created in return for the substantial operating cost such†¦show more content†¦The most likely scenario is that Jans will push for relief from the Comsys constraints so that he can focus more development resources on his local projects. This appeal will likely meet with approval from Baker, whose interests are aligned with actions designed to maximize local profitability. Gundemark, on the other hand, is likely to resist this request, arguing that it will set a dangerous precedent for other local operations to continue with their individual product development agendas. He will likely reaffirm the reasons behind the important commitment the relays BA has made to finding a common platform for future product development. Ideally, the debate should continue towards resolution, but if the parties seem as if they are polarizing or digging in, the instructor may intervene and ask if this is the way things work in ABB. Since Gundemark is likely to be in the minority, the instructor may ask what kinds of incentives, compromises or persuasions he may use to shift the debate. One obvious lever for Gundemark to use is his agreement to send two of his technical managers to Coral Springs to help out Jans. He might suggest that if Jans wants to ensure continued support from the BA, he also cooperate with its programs. At some stage during the discussion, particularly if it becomes heated orShow MoreRelatedBuilding and Managing a Global Matrix8112 Words   |  33 PagesHarvard Business School 9-394-016 Rev. April 26, 1999 ABB’s Relays Business: Building and Managing A Global Matrix It was a casual conversation between the chairmen of Asea and Brown Boveri in 1987 about the dismal state of the utilities equipment market that eventually led to merger talks between these two giant power equipment companies. Within weeks of the announcement in August 1987, Percy Barnevik, the CEO of Asea who was asked to lead the combined operations, had articulated a strategicRead MoreAbb Relay Business: Building and Managing Global Matrix811 Words   |  4 Pagesn the case study titled â€Å"ABB’s Relay Business: Building and Managing a Global Matrix†, the author attempted an examination of the success and challenges that occurred as a result of the decision to merge two medium scale telecommunications companies - Asea and Brown Boveri. The merger was necessitated by the depression in the utility equipment market. As a result of this, the chairmen of both companies met and decided it was in the best interest of the two companies to come together in forming an