For a company that built some of the world's most iconic industrial robots, ABB's decision to spin off its entire Robotics division as a separately listed company raised eyebrows across the industry. But spend an hour listening to Morten Wierod — the Norwegian engineer who became President and CEO of the $120 billion Swiss-Swedish industrial giant in August 2024 — and the logic becomes clear.
The Robotics Spin-Off: A Vote of Confidence, Not an Exit
ABB is not abandoning robotics. It is, in Wierod's framing, liberating it.
"Robotics is a good market for the future," he said. "Labor shortages are a problem that will become bigger and bigger."
ABB's robotics portfolio spans industrial robots, autonomous mobile robots, guided vehicles for factory floors, and AI-integrated automation solutions across food and beverage, logistics, and manufacturing. So why spin it off? The argument is about focus and valuation. "We believe that the shareholder value will be higher for both companies," Wierod said, noting that ABB shareholders will receive equivalent stakes in the new entity. "When it becomes its own company, I think a lot of investors will get their full eyes up for this great opportunity."
The remaining ABB will concentrate on electrification, motion, and process automation. The robotics company, freed from operating inside a diversified conglomerate, can be run — and valued — as a pure-play robotics leader.
Automation as an And Equation
ABB's broader mission is what Wierod calls "leaner and cleaner" — helping industrial customers become simultaneously more efficient and less carbon-intensive. "It's not one or the other. It's an and equation," he said.
Robotics and automation sit squarely within that mission. As labor markets tighten and manufacturers face pressure to decarbonize, automation becomes both a productivity tool and a sustainability play. More than 50% of ABB's R&D engineers are now software engineers, and the company tracks over 400 active AI projects internally — accessible to 6,000 employees enrolled in its company-wide AI community. "What I want to avoid is the 'oops, if I only knew' reaction," Wierod said. Teams post projects into a shared repository, others can join or build on them, and duplication is minimized without mandating it from above.
You Have to Earn Your Growth
For B2B companies in capital-intensive sectors like robotics, Wierod's mandate framework deserves close attention. Every division at ABB carries one of three strategic designations: Stabilize, Profit, or Profitable Growth — and the tier is earned through financial performance, not assigned based on market opportunity.
"You're not allowed to grow before you have put your house in order," he said. "You can never grow yourself out of a problem. You need to fix it, become efficient, and then get to scale — that's when you make real money."
He has heard the counterargument many times: if we only sold more, we'd be okay. His response is blunt: "That is normally a bad excuse." ABB now applies this framework not just to its 18 divisions but to individual business lines within divisions — each with its own targets, accountabilities, and incentives tied to where they sit on the profitability ladder.
Speed Over Synergy
ABB's operating model pushes decision-making as far down as possible. Corporate overhead sits at approximately $300 million — not allocated to divisions, which own their own costs entirely, with no internal invoices from above.
"Speed eats synergy for lunch," Wierod said, inverting conventional wisdom about shared services. "We tried the matrix organization — ABB actually invented it — and it became costly because it lacked ownership. If many people are stirring your pot, it's not your pot fully anymore."
For robotics firms building commercial relationships with ABB, this has a practical implication: division presidents hold genuine P&L authority and strategic autonomy. Decisions happen closer to the customer — and faster.
Leading Through Complexity
Wierod describes his leadership contract with his teams in direct terms: "I give openness and trust. I expect transparency and accountability in return."
He is unapologetic about impatience. "Impatience for results now and improvement now is the need for speed, the hunger to do more now. It drives the organization." But for long-cycle investments, he applies a different lens: agree milestones, track direction, and measure over meaningful timeframes. "Predictability is important. It means you're in control."
Reflecting on his first year as CEO, he distilled three lessons: build a strong executive team, manage time ruthlessly, and stay focused on priorities. "Good things have to happen at the right time," he said. "At the wrong time, even good things are wrong."
*Source: Based on an interview conducted by IMD Business School, CEO Dialogue Series, Episode #44, September 2025. Morten Wierod is President and CEO of ABB Ltd. ABB reported approximately $33 billion in revenues in its most recent fiscal year and is listed on the Stockholm and Zurich stock exchanges.*
