ABACUS

Asia Brown Accounting and Communication System

Rebecca Baxter Serena Boccardo Andrej Romandic

Miroslava Petrova Svilen Stefanov

29/10/2008 Strategy implementation and control 2

Role of the ABACUS system at ABB

• Provides timely, detailed and accurate information about activities vital to decision making

• Helps support matrix structure by providing corporate reporting information

• Helps managers execute their strategy

29/10/2008 Strategy implementation and control 3

ABB’s Accounting and Control Policies

• Uniform performance indicators and ratios– Full costs profit calculation– ROCE

• Standardized input• Strict rules

– Operating rules– Controller mentality rules

• Availability of data to managers

29/10/2008 Strategy implementation and control 4

The way ABB performs strategic planning

• Each business area – a worldwide strategic plan

• Targets for each Business area and for each region

• Co – ordination between targets headed down by both Business area and region managers

29/10/2008 Strategy implementation and control 5

ABB – use of the strategic control information

• Evaluation of performance• Verification of whether strategic goals

and targets are being met• Preparation of annual budget and

updated forecasts• Communication of both numerical data

and management comments• Quick decision making