This case study provides interesting insights into the managerial and personal philosophy of one of Europe’s most successful executives, and also demonstrates the fundamental importance of locating the management of people within the wider context of managing the business.
This is a story about the merger, in 1987, of two engineering companies – Brown Boveri from Switzerland and the Swedish firm ASEA – and the role of one of Europe’s most well-known and successful chief executives, Percy Barnevik. ABB was chosen because it represents an example of a company that enjoyed phenomenal growth, financial success and an international reputation for its ability to operate a highly decentralised international business. It is described by Bareham and Heimer (1998) as a ‘globally connected corporation operating a loose-tight network of processes, projects and partners that is held together by highly committed people and strongly held principles’. Its approach to business and Barnevik’s leadership style and global/local business model, set it apart from many of its contemporaries (Bennis, 1993). In particular, the way in which ABB is organised and the approach taken to the management of its employees, certainly in the 1990s, is also of interest.