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Siemens: Building a structure to drive

performance and responsibility


Group-2
PARAG MOHANTY PGEMP51/A/31
SACHIN DESHKAR- PGEMP51/A/10
VIKALP AWASTHI PGEMP51/A/03
ARVIND SINGH-PGEMP51/A/38

SIEMENS : Journey So Far

19th century

20th Century

21st Century

Close to 82000
Foundation of
Global Scale
employees by the
Siemens & Halske
operation
start of WWI.
Increased breadth of
Telegraph company in
Significant
1847.
the products often
First transatlantic
breakthrough with
compared to
more advance
GE,Mitsubishi,ABB &
cable and dynamo
technology .
United Technologies
generator.
Business expansions .
Opening of
Major restructuring
subsidiaries across
in 1989 and 15 new
Russia & England
operating groups

The Two Personalities

Appointed as CEO in 2005


We commit to do something and we deliver
Target: Improving Profit Margin , customer control,
accounting and cost savings.
Initiatives:
Fit4More
Divesting Unprofitable Business
Siemens One Project.
Focus on Megatrends.
Four eye principle

Peter
Loscher

Klaus Kleinfled

Appointed as CEO in 2007


Background and cultural bringing : a big asset.
Target: Understanding Siemens and building a
team to achieve desired goals.
Initiatives:
Restructuring organization: two dimensional
Structure.
Increased Transparency.
Simplified Financial reporting
Maintaining Entrepreneurial regions.

Supervisory Board
Managing Board

Klaus Kleinfed

Chief Executive committee (CEC)


Automati
on &
Control

Powe
r

Medica
l

Transportati
on

Lightin
g

Information &
Communicatio
n

Regional Units/shared services/corporate department &


Centers

Supervisory Board
Managing Board
Sector CEO
Industry
Industry Automation

Peter
Loscher

Motion Control

Sector CEO
Energy

Sector CEO
Health care

Fossil Power generation

Imaging & TI

Renewable energy

Workflow &
Solutions

Building technologies

Oil & Gas

Osram

Services rotating
equipment

Industry solutions

Power transmission

Mobilty

Power distribution

Diagnostics

Cross sector Business and Regional Units

Corporate
units
Cross-Sector
Services
Strategic
Equity
Investment

A Comparison
Attributes

Klaus Kleinfled

Peter Loscher

Organization
structure

Highly segmented

Reduced

Transparency

No Transparency :
Scams

Transparent

Attitude

Most Hated corporate


boss

Principles

Support Four eye


principle

Removed four eyed


principle, introduced
right of way concept

Change

Implemented abrupt
changes.

Feedback before
actions

Interaction levels

Less local PR

Highly Interactive

Team building

Initiatives : Organization
Design
CEO assigned for each sector, made
accountable
Simplified Reporting
Ease in decision making, Right of
Way concept.
Setting of clear goal objectives.
Introduction of dedicated members in
the management team.