abb- corporate governance during a turnaround
TRANSCRIPT
ABB- Corporate Governance During a Turnaround
Presented by:
Hesham Alkheraif and Abdullah Alkheraif
� Transparency
� Cooperation
� Communication
Takeaways
Background � ABB is an industry leader in power and automation
technology
� Merger of ASEA and Brown Boveri (ABB)
� 2001: Dormann became chairman and in the next year he became a CEO
Challenges
� 1997 Asia financial crisis
� Close to collapse
� Former CEOs issues
� Share price
How Dormann thinks ?
� Past
� Present
� Future
Changes in the board & the executive committee
Typical Board Tasks
� Monitoring and supervising
� Selecting, evaluating, and coaching top management
� Substantive input in the corporate evolution
Phase 1
� The formation of the strategy committee.
� “Back-to-basic”
� Timeline of 18 months
Changes in the board & the executive committee
Phase 2
� The strategy committee in action
� Communication
� Weekly letter from the CEO
� Sharing goals
Phase 3
� Leadership in a decentralized governance structure
� Transparency
� Performance
As Result
� 2003: 18.78 Billion of revenue with 105,000 employees
� 2004: he stepped down of CEO and back to be chairman and Fred Kindle will become the new CEO
Takeaways
� Transparency
� Cooperation
� Communication
Questions