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Abb's Relays Business: Building and Managing a Global Matrix

Decent Essays

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 ABB’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 or

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