Siemens 2008 Annual Report Download - page 191

Management’s discussion and analysis 95
People Excellence is fundamental to organizational excellence. We therefore aim to create a work environment
that motivates our employees to deliver high-performance results. Our practical approach to people excellence
includes the following focus initiatives: Global diverse talents (Top Talents), Siemens Leadership Excellence (SLE)
Programs, our Performance Management Process (PMP) and Expert careers (Key Experts).
Global diverse talents is an employee development program that starts with recognizing so-called “Top Talents”
early in their careers. We thereafter offer them challenging and rewarding tasks, consistently foster their devel-
opment, and groom them for leadership positions. To remain in the pool of Top Talents, employees must show
both high potential and consistently outstanding performance. The pool of Top Talents included more than
2,200 individuals in scal 2008, of which more than 500 were identied during the scal year.
Our SLE programs prepare Siemens leaders for future responsibilities through a set of courses on business
know-how and leadership capabilities. We launched the programs in scal 2006. As of September 30, 2008, more
than 1,100 leaders from the upper levels of Siemens management have participated in the courses.
PMP, which has been implemented uniformly worldwide, helps leaders and employees determine clear personal
goals and share the open, practical feedback necessary to achieve them. The process also supports us in setting
compensation, providing professional development opportunities and identifying both Top Talents and Key
Experts.
Because our overall success as a company depends on our large, diverse population of people working in a wide
range of technology elds, we established an Expert careers program analogous to Global diverse talents. The
main difference is that the so-called “Key Experts” in the program follow a career path leading to further exper-
tise and leadership in their chosen eld rather than into Siemens management. In scal 2008, we appointed
approximately 335 Key Experts.
People Excellence
 High-performance culture
 Global diverse talents
 Leadership culture &
development
 Expert careers
Portfolio
 Focus on three Sectors
Industry, Energy and
Healthcare
 Stringent resource allocation
 Focus on organic
growth and leveraging past
acquisitions
Corporate Responsibility
Benchmark in Transparency
and Compliance
 Corporate Governance
 Compliance
 Climate Protection
 Corporate Citizenship
Operational
Excellence
Best-in-class for all businesses
and functions through
 Open Innovations
 Global Supply Chain
Management
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 ROCE of 14 -16%
 Optimized capital structure
 Cash conversion rate
“1 – growth rate”
 > 2 x GDP growth
 Best-in-class margin ranges
 SG&A reduction of 10%
Fit4 2010
Performance
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