Presented by-

Anurag Satpathy U113074

Ashish Singh U113075
Rosali Priyadarshini U113105
Anshuk Pradhan U113072
Abhinav Prakash U113063
Amit Shukla U113069
PRESENTATI ON
ON
SI EMENS: BUI LDI NG A STRUCTURE TO DRI VE
PERFORMANCE AND RESPONSI BI LI TY
Siemens in the
Past & 21st
Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Werner von Siemens and Johann Halske established
telegraphen- bauanstalt von Siemens & Halske on 12
th
oct,
1847.
Invention of Pointer telegraph in 1846 & first dynamo
generator.
Halskes departure & entire management & control by
Siemens brothers.
Innovation in electrical engineering, first electric
locomotive and streetcar.
Collection of three inter-related companies focused on
High voltage current products, Electrical medical
equipment, Telegraph & radio technology.
1969- Three entities consolidated under Siemens AG.
Included Six operating groups & five central
departments.
Reorganization in 1989- Functional reporting structure
to Divisional Structure.
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Kleinfeld succeeded Heinrich von Pierer to become CEO
Global presence in many sectors like power generation,
SCM sloutions, MRI machines, Water treatment plants,
IT Security, Motors etc
Competitors like GE, United technologies, Honeywell
International, ABB
Innovation in electrical engineering, first electric
locomotive and streetcar.
Main focus to achieve ambitious profit margin goals.
Corporate management structure
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Supervisory Board- oversaw
and appointed the members of
MB & approved major
business decisions.
Managing Board- Preparing
annual financial statements &
convening shareholders
meetings.
CEC- Elected by MB, charged
with strategic management of
company, M& A, R& D
spending
Operating group into 6 business
areas. Further divided into
divisions & sub-divisions.
Worldwide presence.
Operating groups, regional
units, shared services,
corporate departments and
corporate centers
Operating group grated
substantial autonomy and
coached by CEC.
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
12 operating groups with
70 divisions.
Corporate technology
supported OG and divisions in
innovation. Conducted
research with long term
horizon.
Four Eyes principle- Divisional
level, decision making with
technical head (CEO) &
Commercial head (CFO)
Fit4More- 2 year restructuring
programme. Commit & Deliver.
Megatrends-Global developments,
shape future market, generate
above average growth.
Siemens One- Simplify large-scale
projects for customers by creating
a unified front and experience,
Focus on global customers.

Intent on delivering integrated
solutions to customers by
coordination of many
businesses.
Country manager for all of
Siemens business in a specific
geography.

Serve local Customers.

Responsive to local market
needs.
Collaboration between divisions
occurred due to rotation of
employees through operating
groups.
Committees- Responsible
for decisions at each level
of the organization, from
CEC to segments.
Mr/Ms. Siemens, executive
manager for countries
where Siemens was most
active.
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Kleinfeld had
critics- Heartless,
most hated boss.
Outsider, experienced
global leader, former
president & CEO of GE
Healthcare
Biosciences.
PETER LOSCHER,
July 2007.
Emphasized
transparency and full
support to external
authorities, launched
amnesty program.
Siemens Bribery
scandal one of the
largest in
European history.
Reorganization of
companys Managing
board and resignation
by Kleinfeld.
Formed a dedicated team
to manage legal
compliance. Hired Peter
Solmssen to assume the
role of general counsel.
Replaced many operating
group and division heads.
Dismantled CEC and made
Managing board as sole
governing body.
Abolished Four eyes
principle and
established CEO
Principle
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
From 10 operating groups to 3
sectors.

Destruction of CEC and
establishment of the Managing
Board as the sole governing body
The Managing Board to comprise
CEO, CFO, general counsel, CEOs
of three newly created sectors.
2-D structure with the global
business as 1
st
dimension and
regional units as 2
nd
dimension
Organization of 190 countries of
operations into 17 regional
clusters.
Each division had separate
business units. Had own strategy
within its area of responsibility.
SIS & SFS- Cross sector
businesses- Dealt with external
and internal customers & fully
fledged with P& L responsibility
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Introduction of
Clusters
190 countries into
17 regional
clusters.

Responsible for
shared services

Enable the
regions to focus
fully on
customers-
minimize the
administrative
activities.

Attempted to
better manage
resources across
the company
2- Dimensional
Structure & Right
of Way
Global business-
Sectors, divisions
, Business units.

Regional units-
Clusters &
countries.

Right of way
concept to strike
balance between
global business
and regions.

Regional
management to
get more
autonomy.

Simplified
Financial
Reporting
P & L accounts
for 4 categories
Whole,
Sectors,
Divisions,
Business units.

Reinforced
global
entrepreneurs
right of way.
Maintaining
Entrepreneurial
Regions
Empower the
regional leadership.

Drive market share
and share of wallet.

Focus on local
customization.

Cluster
organizations to
take much of
administrative
responsibilities for
Mr/Mrs Siemens to
become more
entrepreneurial.
Megatrends &
Siemens Vision
Climate change and
globalization as
megatrends of
urbanization and
demographic change.

Vision- Siemens- the
Pioneer

Positioned Siemens as
leading provider of
green technology.

Re-launched Siemens
One- Established
market development
board to address
cross-sector projects.

Enhanced account
management through
dedicated professional
account managers.
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Reducing the gap between regional and global structures by
introducing a position in the existing structure that supervises the
business at cluster level and reports to the sector CEO.
Empowering the regional management which are responsible for
key accounts. Periodic meeting of middle and top management to
monitor their performance and take suggestions.
Clear communication of goals and expectations across the sectors
and inside the sectors across the regions to increase profitability
Analyse the P&L of the regional units to access their profitability.
Identifying such non performing units and restructuring them.
Introducing an R & D centre at each sector level which interacts with
their counterparts in other sectors.
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Supervisory Board
Managing Board
Sector CEO Sector CEO Sector CEO
Industry Energy Healthcare
Corporate Unit
Cross Sector
Services
Single Cluster Medium Clust Head Large Cluster Head
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Inclusion of new business development units in the
sectors for exploring new business opportunity and
observing the latest development in sector.
Make cultural diversity part of organizational culture to
reduce the anxiety among the employees for outsiders.
Better internal communication from HR management
Better talent management policies in the companies to
cultivate second line of leaders. Linking the benefits to
performance.
Increased focus on the Energy sector. As it is equal to the
rest combined together. An option could be segregating it
in multiple sectors with designated heads
Conducting regular financial and performance audits of
the sectors to check the irregularities.
Challenges like tension between the global business and the regions, management
and leadership skills and Loscher being a foreigner still exists and whether the
changes brought up by Loscher will be able to overcome it

Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Adopting CEO
principle showed
positive results for
the company by
increasing the speed
of decision making.
Dismantling CEC and
establishing
management board
as the sole governing
body.
There are still people
in the organization
who struggle with
the cultural change
Adopting
performance based
appraisal helped the
management in
identifying talent for
top managerial role
New business
perspectives and
long term planning
became part of
business perspective
In July 2013, supervisory board announced early departure of Loscher and
appointed Joe Kaeser as new CEO. He was a member of the managing board
and the Chief Financial Officer of the company. This decision came as the
company continued to miss the profit forecast in Loschers term.
Joe Kaeser unveiled a global reorganization and eliminated a layer of
organization comprising a group of some 14 regional clusters, each
overseen by its own CEO. Eliminating the clusters would make Siemens
more streamlined and closer to the markets.
His vision is to make Siemens more focused, faster and more reliable
agile and competitive. In order to ensure that local executives follow the
lead from headquarters, regional management now report to the four
management board members in charge of running the company's
operating divisions.
Responsibilities of the company's top management team were shuffled
and CEOs of the four divisionswho are also members of the
management boardnow directly responsible for specific geographical
regions.
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Siemens in
the Past &
21st Century
Era of
Kleinfeld &
Management
Structure
End of
Kleinfeld & A
New Leader
Major
Initiatives &
Restructuring
Suggestion&
Conclusion
Present
Siemens
Managing Board
Supervisory Board
Energy HealthCare Industry
Cross Sector Activities
Equity Investments
Regional Organizations
Infrastructure and cities
Source:
http://www.siemens.com/abo
ut/en/management-
structure/cross_sector_activit
ies.htm