SIEMENS: BUILDING A STRUCTURE TO DRIVE PERFORMANCE AND RESPONSIBILITY (B)

INTRODUCTION In the spring of 2010, three years after assuming the position of CEO of Siemens, Peter Löscher felt that his changes were taking hold. Though the global economic crisis had presented substantial challenges, the organization was moving in the right direction. Under the leadership of Löscher and the revamped Managing Board (Vorstand), the company had made a series of dramatic shifts to its strategy and corporate structure. Löscher noted, “If you look back at the last three years, we have made the fastest company repositioning of any industrial company in the world.” (See Exhibit 1 for Siemens’ financial performance.) What the numbers did not reveal, however, was what Löscher believed to be the most substantial impact he had made: a transformation of employees’ attitudes and a renewed spirit among the managers in the organization.