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It's a loss for Siemens--and bitterly ironic in that Kleinfeld had acted boldly not only in responding to the investigation but also in separating Siemens' culture and strategy from that of Von Pierer's. Kleinfeld appointed the law firm Debevoise & Plimpton LLP to do a complete audit of...

Author: /time Magazine | Title: Siemens Goes Mega | 5/3/2007 | See Source »

Kleinfeld and Hershman met in early December at the Bayerischer Hof Hotel in Munich, where the consultant sized up the Siemens boss. At one point during dinner, Hershman leaned forward and said, "Don't hire me if you've got a problem, because I'm going to find it, and...

Author: /time Magazine | Title: Siemens Goes Mega | 5/3/2007 | See Source »

During the first phase of his tenure, Kleinfeld focused on putting out the fires that were burning up the company's earnings. Despite accruing restructuring charges of $1.2 billion, the company managed acquisitions totaling $8.6 billion. In the past year, profits were up 35%, to $3.96 billion, and sales 16...

Author: /time Magazine | Title: Siemens Goes Mega | 5/3/2007 | See Source »

In repositioning the company as a focused solutions provider, he split with his predecessor and broke the back of the traditional German business culture that ruled Siemens. Von Pierer, CEO from 1992 to 2005, had begun to transform the company from a sprawling bureaucracy that largely lived off fat contracts...

Author: /time Magazine | Title: Siemens Goes Mega | 5/3/2007 | See Source »

Von Pierer was ultimately a defender of the old Siemens corporate tradition, however, always trying to balance the interests of shareholders and stakeholders, often at the expense of the former. He believed that synergies among the various divisions justified Siemens' cumbersome structure; well-performing businesses would offset weaknesses in other...

Author: /time Magazine | Title: Siemens Goes Mega | 5/3/2007 | See Source »

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