Michael_A._Hitt,_R._Duane_Ireland,_Robert_E._Hosk

Case 15: Siemens: Management Innovation at the Corporate Level C-207

opportunity to openly and continuously reflect its top+

offered Siemens the opportunity to assess the processes,

tools etc. of the acquired businesses and to adopt suitable

best practices from them within the overall firm.^49

While the implementation of entire sub-programs of

top+ enhanced overall firm performance, the contribu-

tions of applying single management tools of the top+

“tool-kit” were also substantial. For example, in the firm’s

2004 annual report, von Pierer stated the following in

reference to the tool asset management:

“Cash flow development, which has been positive in each
of the past four years, was again very gratifying. Net cash
from operating and investing activities totaled €3.3 billion.
Our managers have learned the art of professional asset
management. Strong cash flow is giving us the entrepre-
neurial leeway we need for targeted strategic moves.”^50

The Future of Management

Innovation At Siemens

While technological and product innovation have always

played central roles at Siemens, management innovation

appears to be critical for future success, too. As this case

study illustrates, a distinct form of vertical optimization

is management innovation performed with support by

the corporate level. Synergy may result not only from

leveraging tools to individual operating groups, but also

from the development of superior capabilities. Although

the firm’s corporate center was repeatedly restructured

during the period from 1998 to 2007, the case suggests

that corporate development and corporate-level pro-

grams aiming at management innovation will always

remain important for the firm’s overall value creation. In

2007, Siemens top management team decided to continue

the efforts of the top+ program as part of the updated cor-

porate program Fit 4 2010. Because of its past contribution

to operational excellence and thus firm performance and

because of the increasing present and future importance

of innovative management, top+ is likely to constitute an

integral part of future corporate programs, even beyond

2010. Indeed, current CEO Peter Löscher, an executive
      with extensive management experience at GE, wants to
      strengthen the efforts of Siemens in management inno-
      vation and operational excellence with the top+ program.

NOTES

1. Siemens Annual Report 2007; Siemens
   Company History, Document from the
   Siemens History Online Archives, http://www.
   siemens.com.


2. Siemens Annual Report 2001: 18.


3. Johannes Feldmayer, Presentation
   “Management-Innovationen” at
   Fachkonferenz Innovation@Siemens, Berlin,
   July 10, 2006.


4. Interview with head of Siemens top+
   program, April 2008.


5. Siemens Annual Report 1998.


6. Siemens Annual Report 2000: 14; Siemens
   Annual Report 2001: 16.


7. Heinrich von Pierer, Siemens Annual
   Report 2003: 7.


8. Siemens Annual Report 2007: 33.


9. Siemens Annual Report 2007: 41


10. Siemens Annual Report 2004: 15.


11. Siemens Annual Report 2004.


12. Johannes Feldmayer, Presentation
    “Management-Innovationen” at
    Fachkonferenz Innovation@Siemens, Berlin,
    July 10, 2006.


13. Siemens Annual Report 2001: 123.


14. Zhao, F. 2004. Siemens’ business excellence
    model and sustainable development.
    Measuring Business Excellence, 8(2): 55–64.


15. Siemens Annual Report 2001: 122.


16. Klaus Wucherer, Siemens Annual Report
    2006: 23.
    17. Siemens Annual Report 2007: 41.
    18. Siemens Annual Report 1999.
    19. Siemens Annual Report 2001: 5.
    20. Siemens Annual Report 2003: 31.
    21. Zhao, F. 2004. Siemens’ business excellence
    model and sustainable development.
    Measuring Business Excellence, 8(2): 55–64.
    22. Siemens Annual Report 2005: 19.
    23. Heinrich von Pierer, Siemens Annual
    Report 2004: 7.
    24. Zhao, F. 2004. Siemens’ business excellence
    model and sustainable development.
    Measuring Business Excellence, 8(2): 55–64.
    25. Heinz-Joachim Neubürger, found in and
    translated from Preissner, A. 2002. Zwei
    Männer unter Strom. Manager Magazin
    06/2002: 68–78.
    26. Preissner, A. 2002. Zwei Männer unter
    Strom. Manager Magazin 06/2002: 68–78.
    27. http://www.siemens.com.
    28. Interview with project manager of SMC,
    March 2009.
    29. Siemens Annual Report 2001: 17-18.
    30. Siemens Annual Report 2002: 16.
    31. Siemens Annual Report 2001: 17.
    32. Siemens Annual Report 2001: 29.
    33. Kleemann, B., Seitz, N., & Wio, H.-J. 2007.
    Das Führungskräftetraining für top+
    Qualität und Six Sigma bei Siemens Power
    Generation. In A. Töpfer (Ed.), Six Sigma -
    Konzeption und Erfolgsbeispiele für

praktizierte Null-Fehler-Qualität, 4th ed.:

278–288. Berlin: Springer.

34. Siemens Management Consulting (SMC),
    http://www.smc.siemens.com.


35. Siemens Annual Report 2003: 7.


36. Presentation of Horst Kayser at the
    University of St. Gallen, June 2007.


37. Siemens Annual Report 2001: 17.


38. Heinrich von Pierer, Siemens Annual
    Report 1998: 6.


39. Heinrich von Pierer, Siemens Annual
    Report 1999: 9.


40. Interview with head of Siemens top+
    program, April 2008.


41. Siemens Annual Report 2007: 41.


42. Siemens Annual Report 1998: 6.


43. Siemens Annual Report 2007: 160.


44. Interview with project manager of SMC,
    March 2009.


45. Siemens Annual Report 2003: 27.


46. Wolfgang Dehen, Siemens Annual Report
    2002: 27-28.


47. Heinrich von Pierer, Siemens Annual
    Report 2004: 6.


48. Heinrich von Pierer, Siemens Annual
    Report 2002: 16.


49. Correspondence with project manager of
    SMC, April 2010.


50. Heinrich von Pierer, Siemens Annual
    Report 2004: 5.