Relentless execution

Our second focus area, relentless execution, is one in which ABB has an impressive track record. Our customer satisfaction ratings have improved year after year and we compare favorably with our competitors. On cost reduction, we have consistently been taking out $1 billion-plus in costs annually.

We are now taking those successful improvement processes and making them more widely applicable in a leading operating model that covers the entire value chain of our business. We will maintain the momentum on customer satisfaction and cost, for example, while driving forward white-collar productivity and capital efficiency to free up more resources for growth. To ensure we meet our targets, we have implemented a relentless execution dashboard linked to performance and compensation and are seeing positive results.

In our Power Systems division, we have ring-fenced the risks, changed the business model and are breaking even once again.

To drive change in a focused way, we have initiated 1,000-day programs that focus on high-impact, strategic ABB-wide priorities.

To strengthen the existing alignment among strategy, performance management and compensation, we have introduced a balanced scorecard with robust targets. Progress will be closely tracked through Group-wide program management, which includes dashboards of milestones and actions, and key financial and operational metrics.