The successful double turnaround of ASEA and ABB—twenty lessons

The double turnaround at ASEA and ABB is one of the most spectacular renewals of large and complex industrial firms in Europe during the last decade. However, we did not know that we had picked a winner when we started in‐depth, longitudinal studies of ASEA in 1982 and ABB in 1987. We consider the change of CEO as the starting point of the turnaround process which can be divided in five phases from retrenchment to international expansion. The lessons cover issues as the CEO's role, the initial situation, the climate for change, the turnaround process, the grand plan and learning. In comparison with earlier studies we have found that the deep involvement of CEO and the top management team in the implementation of the turnaround strategy is of decisive importance for success.