Klaus Kleinfeld describes his experience turning around Siemens' unprofitable and demoralized angiography and x-ray division.
Instead of traditional cost-cutting measures, which had previously failed, his strategy focused on reconnecting employees with the purpose and human impact of their work.
The pivotal moment was an all-hands meeting where a young patient, whose life was saved by their technology, shared her story, creating a powerful emotional connection for the team.
This purpose-driven approach restored the team's 'soul,' reignited motivation, and was the key catalyst for the business's successful turnaround.
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Concerns Raised
An unprofitable business division with a history of failed turnaround attempts.
High attrition of capable employees leaving for more prestigious divisions.
A deeply demoralized and disengaged workforce that had 'given up'.
Opportunities Identified
Reigniting employee motivation by connecting work to a higher purpose.
Leveraging patient and customer stories as a powerful tool for internal alignment.
Shifting a corporate culture from a cost-focused mindset to a mission-driven one.