Siemens 2007 Annual Report Download - page 160

160 Management’s discussion and analysis
Non-fi nancial performance measures
After conclusion of our Fit4More program in April 2007 we initiated a new pro-
gram called Fit42010 that is based on the pillars of Fit4More. The overall objec-
tives of Fit42010 remain to achieve sustainable and profi table growth and to
increase the value of the company and are defi ned as Performance targets. Our
Performance targets are for our operating businesses to achieve certain margin
ranges and for the Company to continue to grow at least twice the global gross
domestic product, to achieve an appropriate return on capital employed (ROCE), to
attain a cash conversion rate (CCR) of 1 minus less the rate of our revenue growth
rate and to improve the capital structure by reaching a defi ned ratio of adjusted
industrial net debt to EBITDA (adjusted) (for additional information on these
fi nancial performance measures see “Outlook.”
The drivers of the overall Performance targets are Operational Excellence,
People Excellence, Corporate Responsibility and Portfolio. Progress toward the
achievement of these targets is assessed predominantly by reference to non-fi nan-
cial performance measures.
Within Operational Excellence we execute our Siemens Management System
initiative, which focuses on Innovation, Customer focus and Global competitiveness
and is based on our top+ work processes and methods.
Within Innovation we use methods such as benchmarking and lead customer
feedback in order to reinforce the innovative strength of the businesses. Further-
more we identifi ed three additional core issues that we will address in collabora-
tion with the businesses and the regions. These are the identifi cation and promo-
tion of disruptive innovation topics of signifi cant relevance to our future business
(“New Generation Business”), development and expansion of our network of top
innovators, and intensively apply their experience throughout Siemens (“Siemens
Top Innovators”) and the expansion of our corporate image as a leader in innova-
tion (“Innovator Image”).
Market transparency and customer relationship management are examples of
key elements of Customer focus. Market transparency involves setting goals on
what percentage of the overall market must be secured in terms of individual cus-
tomers and specifi c projects. Our customer relationship management is to be fur-
ther improved through a sales transformation project in which information on our
Company will be systematically collected and made available in the future from a
central source. To gauge our customer relationship, we will introduce the “Net
Promoter Score” company-wide. Net Promoter Score is a key indicator to measure
the willingness of customers to recommend our products and services.
Our Global competitiveness corporate program focuses on continued develop-
ment of existing lean production systems at Siemens, and accelerating its expan-
sion through the reference confi guration of a Siemens Production Systems (SPS),
the improvement of the supply chain processes as well as process standardization,
the development of service models and the expansion of expertise management in
connection with service-based transactions.