I have outlined based on the case study the challenges that ABB must overcome. please let me know if additional challenges should be identified?
Challenges ABB have to overcome to use the global mode:
Dual reporting can lead to conflict and confusion and increased stress, the expansion of communication channels and committee assignments can overload and bog down the system., and overlapping responsibilities generates turf battles and a general loss of accountability.The 3rd U.S. Circuit Court of Appeals in Philadelphia would at least reconsider some of its ruling rejecting ABB's petition to include its Lummus and Basic Industries units in the company's overall settlement plan, which centers on its subsidiary Combustion Engineering. Keeping Lummus and Basic Industries out of the settlement could hamper ABB's efforts to sell the two units because of potential litigation headaches for any buyer."We regret but expected this decision," ABB spokesman Thomas Schmidt said Thursday. "The claims against these companies are insignificant and we are working on a solution for these companies."
Operating in a global mode places a much greater emphasis on developing interpersonal and communication skills and competencies as an important part of the mutual adjustment process, and transformational leadership as opposed to international mode or Multi-Domestic Mode. It is clear that implementing a global mode is a complex process that goes well beyond structural change per se, involving concomitant changes in organizational strategies, processes, behaviors, and culture. ABB, a global leader in power and
automation technologies, and Braintech, Inc., a pioneer in Vision Guided Robotics ("VGR") technologies, today jointly announced the signing of a new, expanded strategic agreement between the Companies providing for Braintech to grant ABB rights to its proprietary and patented VGR technologies.
As you have indicated in your reply, as global mode appears to hold promise as facilitators during periods of organizational change for ABB, there is danger in making ABB top heavy. The top management should pay more emphasis on data ...