Siemens: Building a Structure to Drive Performance and Responsibility (A) Harvard Case Solution & Analysis

It was one of the most turbulent times in the business's history as the business had to pay billions of Euros in fines and fees to clear its name, and was reeling from a conformity scandal involving hundreds of millions of Euros in suspected bribes. Farther, the firm's operating groups had been for some time, and were underperforming their peers when it comes to profitability. Löscher was the first outsider to run Siemens since the firm's foundation in 1847.

After his arrival, Löscher moved quickly to assess the organization, a world-wide, multi-line technology and engineering firm with over 475,000 workers and over €66,487 million of earnings and €3,345 net income with million of Klaus Kleinfeld, the previous CEO, had enhanced company performance, driven the firm to turn into more internationally focused, and sold off underperforming and non-core assets. However, the bribery scandal cut short his tenure. He felt the trade was extremely complicated when Löscher arrived, people lacked significant tension and accountability existed between the regions and headquarters. Löscher took advantage of the crisis to rearrange the firm from 10 running groups to 3 sectors, introduce regional clusters to empower smaller markets to focus on sales, create the "right of way" of the global business, simplify financial reporting, and improve the sales endeavor to promote verticals. In further addition to the transformations that Löscher made to the business structure, he transformed employees' attitudes and rekindled the entrepreneurial and innovative nature among managers in the organization.

Siemens Building a Structure to Drive Performance and Responsibility (A) case study solution

PUBLICATION DATE: October 07, 2010 PRODUCT #: SM181A-HCB-ENG

This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT

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