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

It was one of the most troubled times in the history of the company as the company was reeling from a conformity scandal and had to pay billions of Euros in fines and fees to clear its name. Further, the firm's managing groups had been for some time, and were underperforming their peers in terms of profitability. Succeeding his entrance, Löscher moved speedily to evaluate the organization, a global, multi-line technology and engineering firm with over 475,000 employees and over €66,487 million of revenue and €3,345 million of net income.

Klaus Kleinfeld, the old CEO, had improved business performance, driven the business to become more globally focused, and sold off underperforming and non-core assets. Nonetheless, his tenure was cut short by the bribery scandal. When Löscher arrived, he believed the business was not overly simple, people lacked accountability and essential tension existed between headquarters and the areas. Löscher took benefit of the catastrophe to adjust the corporation from 10 managing groups to 3 sectors, introduce regional clusters to empower smaller markets to concentrate on sales, create the "right of way" of the global business, simplify financial reporting, and enhance the sales effort to market verticals. Along with the changes that Löscher made to the business structure, he transformed workers' attitudes and rekindled the entrepreneurial and innovative spirit among managers in the organization.

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

PUBLICATION DATE: October 07, 2010 PRODUCT #: SM181B-PDF-ENG

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

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