Peter Loscher and the Siemens Corporation
Traveling around the world from China to India to Japan to Brazil to the U.S., he settled into a routine meeting with customers over breakfast, politicians, high-potential Siemens employee at lunch, local towns meetings and dinner with top leadership’s teams. By doing this he was able to get a good assessment of what is really happening with the company and simply what is on people’s minds. He learned that Siemens employees were frustrated with bureaucracy and wanted more autonomy in decision making. They were growing tireless of the inert cultures felt the leadership had failed them. Also they were surprised and embarrassed to learn of the corruption scandal, because they are proud to be part of Siemens. Meeting face to face with the different cultural people of Siemens Loscher established blind trust, inspired the employees, retained many, and developed a relationship with employees based on trust.
Former CEO as of July 2013 Siemens Peter L?scher is a man made up of unique qualities that give him a firm place as a leader in the world today. Qualities like Intelligence, Knowledge & Expertise, Self-confidence, Integrity, and Maturity (In accordance with the traits and personal characteristics chart on page 324) are traits he would be high on. These leadership traits has had earned him many top executive positions.
When it comes to the knowledge and expertise that L?scher has displayed, I’m sure that it can be seen in some of his achievements. One example of his accomplishments can be seen in the growth that incurred after he joined Siemens in comparison with other companies. Siemens surged 48% in one year which was twice as much as General Electric’s gain. Loscher also has an impressive resume when it comes to his different experiences from the other jobs and cultures he has become involved with over the years. With Loscher being Austrian born he is able to bring a cultural dynamic to the company. Add the fact he has worked in Japan, Spain, and also the United States. This gives him a better set insight as to how different people would act or react to changes within the company. Having legitimate power he is allowed to make the changes people would want to see. L?scher’s reign to power began with his first leadership role was working with an agricultural group that stretched from Mexico to Canada. Successfully uniting different mind sets, different life styles he found a way to work with it embrace the differences to become successful.
USA Today put out an article in 2010 titled “CEO L?scher uses his moral compass to steer Siemens” In the article they interviewed L?scher while he was still CEO. One of the questions a question was posed “How do we know that Siemens was cleaned up?” He responded saying “…Today, Siemens is a role model. Dow Jones has ranked us in its sustainability world index. We went from a compliance ranking of zero out of 100 to 100 out of 100. Siemens stands for clean business always and everywhere.” This shows that during his time as CEO he had indeed affected the company greatly for it to be placed that well after such a bribery scandal.
One of the ways that L?scher really affected the company is through honesty or integrity. L?scher ended up replacing 50% of the middle management in leadership roles to rebuild the trust with employees. He wanted to make sure that any reminisce of the scandal or the ones who caused it were taken from the company. This was a good move to purify the company since they paid 2.5billion in fines and needed to restore its reputation. This was also a large statement being made to the world saying we are getting this company on the right track, yes we had a few mistakes along the way but we have learned from them and we are going to bounce back even better than before. This was also a way of making sure the world could know they want to keep integrity within the company.
Loscher intelligence is another trait he plays high on for trait theories. Obtaining MBA from Vienna University of Economics and Business and landing the Global Human Health position at Merck Loscher was able to understand complex issues. He knew to capitalize on the going green. Wind-energy surged 81%, making it the largest increase the company seen to date. Building up the wind-power business he was able to add 7000 jobs in Denmark. Although he knew where to add jobs he also knew when to fold them. Selling Siemen’s once cash cow a big mobile business and its cash-bleeding computer services he was refining Siemens structure.
Second, managers make their subordinates aware of the subordinates’ own needs for personal growth, development, and accomplishment. Third, managers motivate their subordinates to work for the good of the organization as a whole, not just for their own personal gain or benefits. While at Siemens, Peter Loscher has engaged in transformational learning by introducing a new business strategy that focused on the customer’s needs and keeping the subordinates aware of their priorities as employees.
Loscher’s main priority was to build trust with the employees and for them to trust him and his business ideas. Loscher felt having a team of superstars does not guarantee a great team if there is no trust among them. Having the employees buy-in on his vision for the company Loscher was able to build an efficient and effective leadership team.
Also, Loscher made sure every employee knew how important they were to Siemens and how every little task matters, so always give 100% for maximum productivity. In a Q&A with The New York Times, Peter stated “I’m never satisfied.” His goal was to get Siemens at the top of the game, but he knew the moment they felt they were on top will be the moment they lose it. He gave the organization the mentality to keep working harder and always try to improve. Loscher not only had his employees working for their own benefits, but he finally had his “superstars” playing for the team.
Loscher engaged in transformational leadership because he found the perfect employees for specific positions and turned them into a team. He took the greed within the organization and turned it into pride and integrity. He witnessed that the employees have a high need for achievement where not one worker was working for themselves anymore, now they were working for Siemens both physically and mentally. Peter Loscher completely changed Siemens and planned to take them to the top and stay there.
Today Siemens has replaced Peter Loscher with Joe Kaeser to lead the company, due to a drop in sales and miss communication within the company. Recently Siemens has been doing very interesting things in the business world such as supporting ties with Russian companies even with the political problems going on around them. Kaeser says “that good things have been happening for the company in Russia and that they want to keep the good things going by finding solutions to problems together.” This does not mean that Siemens will stand by if Russia breaks international treaties.