Introduction

A company geared for success and profitable growth needs a foundation of values, expertise and experience that encompasses both its history and the people who make it what it is: the companys employees, shareholders and customers. At Siemens, sustainability the future orientation that was fostered by our companys founding family back in the nineteenth century and continues to benefit our customers, our shareholders and society today is an integral part of our foundation. This foundation is the basis for the company strategy thats now enabling more than 400,000 Siemens employees around the world to channel their knowledge and skills into providing answers to the challenges of our time. The innovations spawned by the ideas and knowhow of our employees and realized by the strength of our company. And its this strength what we call the power of Siemens thats enabling us to outpace our competitors by breaking new ground as modern-day pioneers and setting milestones for progress and development in societies worldwide.

Our strategy
Responsible, excellent and innovative these are the values that define who we are and what we do. Sustainability in the broad sense support for long-term environmental, economic and social progress is the guiding principle of all our actions. Our company is providing the world with the solutions it needs to master the challenges of demographic change, urbanization, climate change and globalization. To leverage the potential of these megatrends in both traditional and new markets, weve grouped our activities into three Sectors: Industry, Energy Healthcare.

Were in an excellent competitive position. Many of our businesses are already market and technology leaders. But we dont just want to maintain our position; we want to expand it.

Thats why company is: Focusing on innovation- and technology-driven growth markets Strengthening our global presence to be a strong local partner to our customers around the world Teaming up to use the power of Siemens.

One Siemens is the framework for the companys sustainable development and capital-efficient growth. Within this framework, focus areas specify the fields well concentrate on in the years ahead. The company overriding aim is to continuously improve our performance vis--vis the markets and the competitors while increasing the long-term value. The company want to fully unleash the power of our integrated technology for example, by constantly enlarging the Environmental Portfolio and steadily increasing the profit it generates, by continuously expanding the highly diversified service business and by further strengthening our position in the booming markets of the emerging countries. All these strategic factors are combined the companys entrepreneurial vision. As a pioneer in electrical engineering, the company was a major force in industrialization. It was the pioneering spirit that made the global powerhouse. And now company is moving ahead to break new ground in energy efficiency, industrial productivity, affordable and personalized healthcare, and intelligent infrastructure solutions future-oriented fields in which company also play a pioneering role.

Our values
Ideas, inventions, patents ever since the first Siemens company, Telegraphen-Bauanstalt von Siemens & Halske, was founded in 1847, outstanding technological innovations have been the source of our success. As a pioneer in electrical engineering,Siemens was a major force in industrialization. Our company thrived as a pioneer, and the pioneering spirit of our employees continues to drive our success today. Our solutions to the major challenges of our time have made us one of the worlds leading technology companies. Our system of values and our strategy provide us with a framework for profitable, sustainable growth while guiding theactions of all our employees.

Responsible Excellent Innovative

Whoever delivers the best results will ultimately come out ahead, and I always prefer to advertise with achievements rather than words.
Werner von Siemens, January 18, 1876

Vision
To be a pioneer this is our vision and our highest aspiration. Building on our solid foundation, strong structure and forward-looking strategy, were working every day to make this vision a reality. Our vision forms the apex of our strategy pyramid and sets the course for all our activities.

The pioneer in

Energy efficiency Industrial productivity Affordable and personalized healthcare Intelligent infrastructure Solutions

Diversity
The company aim is to consistently outperform the competitors.Company can succeed only by providing our customers with innovative products and tailored solutions,by acting in accordance with binding principles of conduct and, above all, by recruiting and fostering employees who are passionate about what they do. In short: by leveraging the collective energies of our company. Our people are shaping tomorrows world. Their knowhow and commitment are among the most important drivers for our long-term competitive success. Thats why we comply with the relevant international standards, safeguard jobs during economic downturns and invest in our peoples training and continuing education. In fiscal 2010 alone, we spent roughly 225 million, or about 560 per employee, on education. Focused on strategic knowledge and skills, our challenging training and further education programs ensure that expertise in key positions is uniformly conveyed to employees worldwide throughout the course of their careers because life-long learning is indispensable in a globalized world. As a global integrated technology company, we not only have to attract talented people; we also have to create an environment in which they can use and develop their abilities. The new Siemens Leadership Framework helps us apply uniform criteria as we

match our employees capabilities and potential with the requirements of job openings. Studies have shown that diverse teams of individuals with different skills, experience and qualifications increase the wealth of ideas within a company. Thats why diversity is a key component of our business strategy one were championing as a means of recruiting the best minds in the world and strengthening our power of innovation. By reflecting the varied backgrounds of our customers, our workforce will give us yet another competitive advantage in the global arena. The diversity of our 405,000 women and men with their multifaceted cultural, ethnic and social perspectives and their broad range of knowhow and experience is equipping our company to excel in the 21st century. To ensure that we maintain a sustainable supplier base throughout the company in the future, were constantly improving and integrating our methods, processes and systems on a cross-functional basis and transferring relevant knowhow to our suppliers in order to actively minimize risks and anchor sustainability all along our supply chain. ENCOURAGE LIFELONG LEARNING AND DEVELOPMENT Innovation the basis of sustainable growth doesnt happen on its own. It requires an environment in which a creative spirit can thrive. To foster our employees creativity, were continually promoting their development through challenging training and education programs. In Germany, were a leading private provider of vocational training within

the countrys dual training system, which combines theory with practice. Our Siemens Leadership Excellence programs are designed to prepare company managers for their future responsibilities. We identify talented individuals and offer them exciting management tasks. Our new Siemens Leadership Framework helps us apply uniform criteria when matching individuals capabilities and potential with the requirements of job openings. EMPOWER OUR DIVERSE AND ENGAGED PEOPLE WORLDWIDE Global presence is our hallmark. Thats why diversity is a key part of our company and one that we intend to further cultivate. Our Diversity Initiative is helping us build outstanding teams with multifaceted abilities and experience while fostering the strengths of individuals in heterogenous environments. Its also helping ensure that our managers have international backgrounds, with wide-ranging expertise and extensive experience. STAND FOR INTEGRITY We champion a corporate culture that sets high standards of conduct for managers and employees. Weve formulated transparent and binding principles of behavior that cover all aspects of our business activity, define a uniform ethical framework for our employees and establish clear responsibilities throughout our company. Action areas include occupational safety, health management, environmental protection and the fight against corruption.

And we expect not only our employees but also our partners and suppliers to adhere to clear principles of integrity.

The importance of people in the organisation The part of the Siemens business strategy that relates to people management is referred to as People Excellence. At the heart of People Excellence is the building of a high performance culture. Nothing helps an individual more than to be given responsibility and to know they are trusted.

Almost without exception, people management theorists have shown that real motivation comes from within an individual. Individuals develop such motivation when they feel that their efforts are valued and that they are doing something worthwhile. This is why People Excellence at Siemens is so important. For Siemens, people, like its technology and innovation, are a source of competitive advantage. To make the most of this advantage, Siemens makes sure that its employees work on developing the companys heritage of innovation. Siemens believes that there are many ways to make people feel valued and engaged. These range from a pat on the back, a personal letter or a special mention in a meeting, to a promotion or a higher salary. Feeling part of a successful team is part of the engagement process. Individuals who feel valued want to contribute to the success of the organisation. Creating a high performance culture Siemens operations are based on a teamwork culture. This emphasis on the team is set out clearly in a quote from the global Chief Executive Officer of Siemens, Klaus Kleinfeld: Many times in my life I have seen how one individual can make a big difference, particularly

when working in a great team. The quality of our people and of our teams is our most valuable resource, particularly in todays changing world where knowledge flows round the globe with lightning speed and is easily available. Siemens wants all of its employees to be truly involved in the business and to feel part of its success. Employees therefore need to know how they fit into the business. With this in mind Siemens establishes clear expectations. Targets for individuals are related to targets for the whole business. Everyone plays their part in achieving great results. Siemens states that our business success depends on the performance of each individual, our teams and the total organisation.

A high performance team is one in which all members of the team work towards shared targets and have a sense of shared responsibility for the results the team achieves. As the team performance improves over time, the better the results.

People Excellence is the part of Siemens global action plan concerned with human resource development. It consists of four main elements: 1. achieving a high performance culture

2. increasing the global talent pool 3. strengthening expert careers 4. Siemens Leadership Excellence Programme (SLE). The high performance culture is the way of working at Siemens and it involves everyone. The global talent pool is made up of all Siemens employees. Within Siemens everyone has the opportunity to develop their own specialisms and to acquire further expertise. The SLE provides the highest calibre leadership and management training. Talent management managing people People Excellence involves developing everybody that works for your organisation not just the high-fliers. Siemens talent management philosophy involves making sure that every employee is provided with the guidance and support to achieve their full potential. This aids them to do their best, every day. Everyone works together to achieve the organisations objectives as well as meeting their own personal goals. Everyone shares the same vision and dreams. Within this culture they are able to progress and take on greater responsibility within the company. Everyone has talent. For Siemens, matching talent with tasks produces competitive advantage. Each individual at Siemens can make best use of their talents, whatever they may be. Talent Management enables both: job enrichment, where individuals are encouraged to take on extra tasks and responsibilities within an existing job role to make work more rewarding, and job enlargement, where the scope of the existing job is extended to give a broader range of responsibility, plus extra knowledge and skills development. Talent management is a global philosophy that is a key part of supporting each of the elements of the Siemens business strategy. Talent Management enables Siemens managers to engage and motivate employees throughout the organisation. People Excellence is the part of Siemens global action plan concerned with human resource development. It consists of four main elements: 1. achieving a high performance culture 2. increasing the global talent pool 3. strengthening expert careers 4. Siemens Leadership Excellence Programme (SLE).

The high performance culture is the way of working at Siemens and it involves everyone. The global talent pool is made up of all Siemens employees. Within Siemens everyone has the opportunity to develop their own specialisms and to acquire further expertise. The SLE provides the highest calibre leadership and management training. Talent management managing people People Excellence involves developing everybody that works for your organisation not just the high-fliers. Siemens talent management philosophy involves making sure that every employee is provided with the guidance and support to achieve their full potential. This aids them to do their best, every day. Everyone works together to achieve the organisations objectives as well as meeting their own personal goals. Everyone shares the same vision and dreams. Within this culture they are able to progress and take on greater responsibility within the company. Everyone has talent. For Siemens, matching talent with tasks produces competitive advantage. Each individual at Siemens can make best use of their talents, whatever they may be. Talent Management enables both: job enrichment, where individuals are encouraged to take on extra tasks and responsibilities within an existing job role to make work more rewarding, and job enlargement, where the scope of the existing job is extended to give a broader range of responsibility, plus extra knowledge and skills development. Talent management is a global philosophy that is a key part of supporting each of the elements of the Siemens business strategy. Talent Management enables Siemens managers to engage and motivate employees throughout the organisation.

By applying talent management to all staff: all customer-facing staff are engaged, so all customers benefit everyone has the opportunity and choices to achieve their full potential the pipeline of highfliers is sustained. Siemens has created a standard process for managing the performance and development of all employees. This is referred to as the Performance Management Process. The process creates a direct link between the strategy of the whole organisation and plans for each individual. Every individual is given targets based on their role and responsibility within the organisation. It is through meeting personal targets that the individual is best able to help the organisation to achieve its targets.

Performance management is a systematic process that creates trust and open communication by: setting objectives monitoring progress made creating an ongoing dialogue between each team member and his/her manager enabling forthright discussion. Performance management in Siemens is the engine that drives Talent Management. It is the cornerstone of its high performance culture. When carried out in a consistent way, this system makes sure that everyone is told honestly about their performance. Employees are clear about the impact of their performance and what the consequences are for their development. Everyone within the organisation is pulling together to achieve the business strategy.

Conclusion People really matter. Organisational results stem from high performance. People only perform

well when they operate in a culture which nurtures and supports them and helps them to work towards the achievement of their ambitions. Siemens high performance culture provides the framework and support in which high performance people can show their commitment to a high performance organisation.

Identifying training needs For a business to be competitive, it is important that it has the right number of people with the right skills in the right jobs. Workforce planning enables Siemens to audit its current staff numbers and the skills it has in place as well as identify where it has skills gaps needed to meet its business objectives. For instance, Siemens is relocating its main plant in Lincoln to a bigger site outside the main city. This will require new skills for the work to be done there. A plan has been constructed to analyse which skills the company has and what training will be needed for staff to use the new technology in the new location. Siemens needs new skills for many reasons: maintain competitive advantage, in ensuring Siemens has people with the right skills to develop new technologies and innovations ensure Siemens has a pipeline of talent and minimal knowledge gaps, for example, due to retirement fill a gap following the promotion of existing employees. Siemens is a business focused on innovation. This means it needs to anticipate and respond to rapid changes in the external business environment. For example, climate change and the growing emphasis on its carbon footprint has massively increased Siemens focus on wind turbines and renewable energy sources to address this. Siemens needs to attract employees with the appropriate skills, either by recruiting people into the organisation or by training existing employees to develop more skills. A recent example of opportunities is the forthcoming 2012 Olympic Games in London.

Siemens helped advise the Olympic bid and has great opportunities in providing security, healthcare provisions, media and communications technology for the Games. If it wins the bid for these provisions it will need to ensure it has the right people to deliver results. Training Training involves teaching new skills or extending the skills employees already have. There are two forms of training. As

As well as induction training, where new employees learn the basic information they need to begin working. Siemens has three main development programmes designed for Entry Level Talent i.e. those beginning their career with Siemens after education. Apprenticeships Siemens offer a variety of technical apprenticeships, aimed at school leavers who want to 'earn as they learn'. Apprentices can join a variety of engineering/IT apprenticeships across a variety of locations in the UK, although the majority start their working life from their home town working at their local Siemens site. Apprenticeship training is a combination of off-thejob college training and on-the-job work experience. Apprentices work to achieve their HND qualifications in their related field. Entry requirements vary depending on the programme, but fundamentally applicants require good communication skills and the ability to work in a team. Siemens believes apprenticeships provide a clear route in developing staff for the future growth of the organisation. Evaluation of training and development

Well-trained employees provide a number of benefits that contribute to a businesss competitive advantage.

To measure the effectiveness of its training and development, Siemens uses an appraisal system, known as a Performance Management process. Employees and their line managers agree objectives at the beginning of a placement and progress is then monitored formally and informally throughout the placement. This helps to focus everyone on the developing needs of the business. Annually, the results form the basis of a staff dialogue where the employees manager reviews the progress towards the objectives that have been set. Feedback is discussed with the employee and any development needs are captured in order to decide appropriate training. Together, new objectives for the following year ahead are set. In some instances, appraisals are linked to pay reviews. In these cases, pay rises depend on employees meeting or exceeding their objectives. There are several benefits for Siemens in using appraisal. It can ensure that all training is being used well and for the best interests of the company keep all staff up-to-date in a fast changing business make sure that staff are well motivated get feedback from staff on changes make sure staff are involved in changes.

Conclusion Training and development helps the growth of a business. Siemens has a clear focus on having a well-motivated and trained workforce. The company needs to have motivated and confident staff who have up-to-date skills in order to remain competitive. In addition, well-trained staff are an asset to the business and help to retain customers. Well-trained staff who remain with the business mean that customers enjoy continuity. This contributes to customer loyalty and leads to repeat business. Integrating Transparency and Anti-corruption throughout the business The key drivers for change In a recent report published by Transparency International (TI) and the World Bank, titled Fighting Corruption at Siemens (2008), Siemens identified the costs of corruption as very high, through slowing down economic growth, increasing levels of poverty, siphoning off or misallocating foreign investment, reducing tax revenues and additional government expenses. Taking action New governance structure Siemens governance structure has undertaken a number of drastic changes, with top management being replaced and over 900 disciplinary sanctions taken. Additionally, 90,000 employees have been questioned in a perception survey. Siemens has introduced a new Managing Board position for legal and compliance matters Compliance Siemens has placed the compliance of its rules, values and principles at the centre of the business. To meet the new anti-corruption programme, Siemens has restructured the Compliance Organisation and launched a comprehensive, global Compliance Programme. This has a three pillar system, which consists of the following: Prevent: Providing honest and reliable information and implementing effective training. There are new anti-corruption training events and other legal compliance measures, in line with the new anti-corruption programme. Detect: Siemens aims to detect any potential problems and possible misconduct

at the earliest stage. For example, it has a helpdesk function which encourages employees to communicate problems and thus help build a stronger culture of integrity at Siemens. Respond: Siemens is now responding to misconduct and non compliance through consistent and appropriate sanctioning across all levels of the business. Siemens is working to the letter of the law, with stringent policies and regulations being strictly enforced. Siemens is engaging with international organisations in its aim to improve its Compliance Programme committed to fighting corruption. For example, it has assumed a highly active role in the collective action workgroup of the World Bank Institute. Policies In November 2003, Siemens became a member of the United Nations Global Compact (UNGC). It fully supports the 10th Principle, through its involvement and commitment to the UNGC Working Group and the anti-corruption workgroup of the International Chamber of Commerce. Communication For Siemens to integrate its new strategic direction of greater transparency, ethical behaviour and corporate social responsibility, honest communication assumes a vitally important position. Siemens is now focusing on more direct dialogue between the Managing Board/management team and employees in both directions. Through this approach, Siemens communication of values and rules can be maintained throughout the business, without being lost in translation. Siemens has placed strategic importance on making its anti-corruption guidelines and compliance guide easy-to-read, making it easier for employees to understand. Challenges to Transparency and Anti-corruption Siemens faces significant challenges in integrating Transparency and Anti-corruption, which include: 1. Full integration The key challenge for the company is to embed Transparency and Anti-corruption at every level in every business unit and each individual local operating company.

2. Poor track record In previous years, Siemens has been involved in serious bribery allegations. For example, a company whistleblower exposed an alleged slush fund used to win lucrative European fixed-line telecommunications contracts (http://www.ethicalcorp.com/content.asp?ContentID=5365). It could take considerable time for Siemens to rebuild its reputation after such damaging bribery revelations.

Conclusion To conclude, Siemens has implemented detailed policies on company-specific anticorruption and bribery issues, altered its management structure to fit its new policies and values, introduced a new compliance board, and has made changes to their communication with more direct dialogue between management and employees. Siemens are increasingly engaging in multi-industry initiatives, such as the UNGC and the anti-corruption workgroup of the International Chamber of Commerce.