Re-making the Siemens brand

A presentation from
Wieden & Kennedy
Amsterdam

14.12.1999

Introduction
Objectives

Table of contents

Research Methodologies
Observations
Getting to the core
The single idea
Next steps

Introduction:
a macro view

Wieden & Kennedy was invited to help Siemens once again become
a powerful and exciting global brand. This book is a first step toward
that transformation.
But Siemens isnt a cola or a fast-food chain or a house of fashion.
Siemens is a huge, diverse and global company. A company that
needs to be fully understood and redefined before any relevant
communication can take place.
For this reason, we have devised a process that will be completed in
three steps. So that we can move forward in a logical fashion, first
understanding the brand and its current issues, then redefining
Siemens and finally solving its communication problems.

In this, the first phase, we provide you with observations about the
brand character. From those observations (and their subsequent
summary) we draw conclusions. Finally, based on those conclusions
we make proposals for the next part, phase two.
Please note that we are not management consultants. Our expertise
is in communication. Were not trying to change the company, only
how it will be perceived. Everything in this presentation is written
from a brand perspective.
All the quotes in this book, unless otherwise noted, are taken from
personal interviews with Siemens employees or customers.

Phase one objective:

our present aim

To understand where the Siemens brand is and where we

would like it to be.

In order to shift a perception, you must first understand

where that perception lies. This presentation focuses on
the current state of the Siemens brand before making
recommendations.

Research Methodologies:
how we learned what we know

Good advertising is based on strong strategies. Strong strategies

are based on having full information. For this reason, the research
we did was extensive and exhaustive and conducted in three parts.
The first, an external audit, was handled by ICON and resulted in
global, in-depth qualitative findings. It was conducted in 15 countries
around the world.

The second, an internal audit, was a collaborative effort between

Siemens and Wieden & Kennedy Amsterdam. A study of the
companys culture and values, it was conducted in 10 key countries
around the world.
The third part consisted of a study of internal and external source
information on all topics including: Siemens history, guiding
principles, product portfolios, divisions, cultural programmes,
research and development and future strategies as well as a
competitive overview and analyst reports.
So...

Observations

After speaking with over 140 Siemens employees, reading more

than our weight in literature and watching videos until our eyes
turned red, these are our observations.

Siemens, dont they make, um...

Siemens, the company that began with the invention of the pointer
telegraph, now produces: GSM networks, PET scanners, refuse-fired
power plants, emission-proof PCs, electromechanical brakes and
chimney hoods (among other things). Siemens is complex and
diverse. The result is that people feel overwhelmed and confused.
How do all the parts fit together? What is the common link that binds?
We heard, Siemens is like a 1,000-piece puzzle. It creates a big
picture, but nobody can finish it.
What the company needs is a single idea that will prove that Siemens
is one organism. With a clear identity and a rallying cause, diversity
currently a weakness will become a strength.

You think the shell is gorgeous. But you havent seen the pearl.

Siemens tends to focus on form not content. On processes rather

than end goals. On formal structures rather than motivating ideas.
How did this happen? As a result of Siemens rapid growth and
change over the past ten years, three factors have led to an
emphasis on formality. They are: diversification, decentralisation
and portfolio management.
A clear, unifying vision will allow Siemens employees to focus on
what inspires them all, rather than what divides them into parts.

Stability is not the same thing as standing still.

Siemens is solid. Is that good or bad?

On one hand, it is a solid structure, with solid products and
relationships. It offers its employees and its customers safety
and stability.
On the other hand, it appears to be like molten glass: a slowmoving liquid.
What Siemens needs to be is a large network of flexible entities.

Revolutions come and go. Evolution sticks.

Siemens is not 3M or Nokia or Mannesmann. It is not a revolutionary

company that constantly reinvents itself. It lacks the kind of dynamic that
would stir it to undergo radical changes. But wait.
Look at the companys development. It has always branched out in a
logical, efficient manner. It created a need then had to fill it. The invention
of the telegraph led to the need for cables to be laid. Street-lighting created
a need for better ways of distributing power.
Siemens developed over long periods of time within its core businesses.
So maybe Siemens is something bigger. An evolutionary company, not a
revolutionary one.
Evolution is valuable. Evolution can be innovative. Siemens must show that
evolution is stronger than revolution because it allows the company to
provide its customers with long-term views and stability.

When the road splits, go both ways.

Siemens is in a situation of transition that creates tension. It is caught

between then and now. Between an industrial and an informational
society. Between offering breadth and variety and offering depth and
focus. Between German/European values and US/American values.
Between being slow and solid and being flexible and fast.
The tug-of-war results in insecurity, a loss of orientation, a loss of
identity and even the destruction of core values. The company has
turned around so many times it has become dizzy.
But maybe Siemens doesnt need to choose one way over the other.
Maybe it needs to learn how to be comfortable taking both roads. Siemens
can become a strong brand by embracing and rejoicing in the paradox.

If someone hands you the sceptre, then lead.

Siemens has a firm grasp on its markets. It has smart, talented

employees. It has global reach. So why is it still a follower?
The reason has a lot to do with benchmarking. Siemens is constantly
looking to the competition for guidance. It is often the first to find a
technology but the last to introduce it.
It seems to feel uncomfortable making the first step and leading. It
spends so much time testing the water that it never gets to swim.
Benchmarking is a great tool. But it is only a tool. When it becomes
an attitude it creates a risk-averse culture.
And besides, Siemens should be the company that others benchmark
from and aspire to be like.

Being German isnt necessarily a bad thing.

Even in the most remote corners of the world, wherever you find Siemens
you can see that the company has not lost its strong German roots.
The same behaviour, values and characteristics can be witnessed
worldwide. Precision. Modesty. Reliability. Practicality. Intellect.
Honesty. These are qualities to be nourished and cherished.
However, its strong Germanic heritage often causes Siemens to seem
stiff, rigid, formal, and lacking a sense of humour. These are qualities
the brand could live without.
Siemens needs to become a more open, multicultural environment.
A place where local perspectives mix and strengthen each other.

Being German isnt necessarily a good thing.

Siemens is an international company, but not yet a global one.

In a sense, Siemens is Italian, Brazilian, Polish and Chinese.
Wherever you find Siemens you can also see that it is a very
local company.
But while Siemens is ingrained in the cultures and histories of so
many countries, you would never guess that by walking around the
headquarters in Munich.
Siemens needs to allow its local cultures to more strongly influence
the mother ship. Then it will cease to be a multinational corporation,
and begin to be a global player.

Most money isnt smart enough to buy good taste.

Siemens does more than turn a profit. It creates culture. The company
is a contributor and creator in all the societies it operates in:
Its architecture is not only a strong articulation
of the brand but also a relevant landmark.
Its products shape the environments and histories
of cities and people.
Its cultural programmes sponsor and encourage young artists.
Its educational programmes ensure that societies will
have well-developed talents in the future.
Maintain this. The Siemens brand has been and always should be
characterised by its aesthetic taste and cultural appreciation.

Leaving the door open is not the same thing as sending an invitation.

Siemens is open, but not easily accessible.

Internally there are no borders.
But to the people it works with and the societies it works within,
it seems closed, distant and cold.
Its relationships with customers and suppliers are often formal
and impersonal.
Siemens needs to open up. To be more accessible.
More comfortable in crowds. More warm and inviting.

If its hard to win someone over, its probably worth it.

Siemens is good at building trust and loyalty. It establishes and

maintains long-term relationships both internally and externally.
The reliability and performance of its products have created a
great amount of confidence in the brand. Siemens is a constant,
reliable partner.
Still, it needs to be trustworthy in a modern context. A tradition
of reliability isnt enough. Siemens needs to build more
personal, individual and equal relationships to be successful in
tomorrows world. A world where charisma is almost as
important as character.

Youre either making music or else youre making noise.

Siemens is a community of individual players out of sync.

A symphony orchestra without sheet music.
Outside of a few large key projects like airports, its hard to find
evidence of co-operation or synergy.
Boundaries are often drawn among divisional lines. There isnt
much internal fighting. Its just that there isnt much internal sharing.
How can Siemens develop a culture of participation and
partnership? It should shift its focus. From internal competition,
to the customers needs for synergy.

People secretly envy the crazy inspired ones.

Siemens is like a university: a great pool of talent and intellect.

It has both the breadth and depth of a university. And it provides
life-long learning for its employees.
What an incredible place to work.
However, Siemens cant afford to act like an isolated campus. It
needs to be more active in sharing and marketing its knowledge.
A university that is cut off from the real world teaches theories
that cannot be applied.

There are very few overfed geniuses.

Siemens is a comfortable place. A little too comfortable, perhaps.

Siemens has done such a good job of creating the perfect working
environment that its people sometimes lack ambition. Theyre not
quite hungry enough. They dont set the bar as high as it can go.
They dont try harder.
People at Siemens need to be encouraged to change their
perspectives, their roles, their situations more often. Great
opportunities exist, but right now there are few takers.
Somehow, Siemens needs to create an environment thats a little
less comfortable. It needs to once again be a place where people
strive toward ambitious goals.

Nobodys buying matches in hell.

Siemens has locked itself into a mix of internal perspectives.

It operates from the inside, and often lacks a customer focus.
It obsesses about changes in technology, not the value those
changes might bring to the consumer.
We always look at the number of patents we have a year. But
the client wants to see the value that the technology adds.
The product is the hero at Siemens. The customer? Oh, yeah,
the customer. Its easy to forget about that.
Siemens needs to adopt a customer perspective. It needs to stand
on the outside and look in. It needs to be more curious about and
involved with the world around it.

Its not perfect if its not on time.

Siemens is a perfectionist. Positive or negative?

Siemens is focused on improving peoples lives through the
highest possible quality of technology. It is dedicated to fixing
problems with solutions.
And yet, it is always striving to find the perfect product,
not necessarily the most valuable one for the consumer.
Siemens needs to acknowledge that the market wants high
quality but fast. Its excellence can distinguish it as a premium
brand, thus separating it from its competitors.
On the other hand, theres only a market for a better mousetrap
as long as there are still mice in the house.

You dont get anywhere with one foot on the accelerator and one
foot on the brakes.
Siemens is energetic but hesitant.
It is very practical, positive and has a we can do that attitude.
But it tends to be irresolute, indecisive, passive and insecure.
At times it has trouble taking responsibility and making decisions.
And it feels uncomfortable praising itself.
Siemens needs to become more active and optimistic. It needs to
project itself into the future, defining its goals and moving toward
them directly and fast.
When Siemens assumes a more confident leadership style, it will be
more able to lead its customers to think in aspirational terms as well.

Siemens is kind of, sort of like a circle (maybe).

Siemens is indirect.
It has developed a culture of non-confrontational behaviour.
Employees often consent, but without the goal of co-operation.
When they say yes they dont really mean yes. They mean
Ill think about it and in the meantime lets not have any conflicts.
Siemens needs to become faster, more open and more efficient.
It needs to learn how to deal with opposition.
Without resistance there is no impetus to change.

You dont win extra points for modesty.

Siemens does not have a culture of brand ambassadorship. Its

employees are reluctant to wear the brand name or logo, or discuss
its philosophies. Their attitude seems to be I work for Siemens.
Sorry. This is especially true in Germany.
Oddly enough, people in the regions seem to have a greater
understanding of what the brand stands for and how important
it is to relay that message to the world outside.
Still, Siemens needs to clarify the value of the brand to all of its
employees. In the headquarters. In the divisions. And in the regions.
Siemens has the power to make 416,000 x 10 positive brand contacts
per day. It should use them wisely.

Its not a Martini until you mix it.

Siemens is in the business of integration. It melds parts into

larger systems and products into lives. It integrates with local
cultures. It integrates with key customers. It becomes
embedded in and essential to the history of entire nations.
One of the companys key strengths is its ability to form
symbiotic relationships with its customers in which both can
simultaneously flourish and grow.

Power is more accessible than wealth.

Siemens provides access in a very democratic way. It provides

power in the form of light, energy, health care, communication tools,
and transportation to people around the world.
In this sense, Siemens is the ultimate enabler.

If were so independent, why do we always have to be linked?

Siemens connects: products to systems, people to power,

people to each other, people to technology, systems to systems.
It connects with its customers. It connects with its business
partners. It connects with its employees.
Siemens is like a big circuit board in which all the parts are
interrelated. It is truly a model for the ideal network.

In a society of hunters and gatherers, whos constructing highways?

Siemens builds: products, systems, networks, large buildings

and infrastructures. It sets up entire social networks.
While most people are busy rushing to work or trying to prepare
dinner, Siemens provides the parts, both large and small, which
allow us to exist as individual, independent units.
Siemens shapes human society on such a grand scale,
and so well, that most people never even think about it.

Getting to the core.

23 observations. Each with their own mini-conclusion.

What do we do with all of that information?
We use it to get to the core. To define the Siemens brand character.
What it is. What it should be. What it shouldnt be.
Then we offer you a single idea. A guiding principle.
A focused identity.

Siemens is:

Innovative

Enduring

Reliable

Premium

Honest

Generous

Responsible

German

International

Dedicated

Precise

Stable

Dynamic

Siemens should also be:

Open
Curious
Optimistic
Co-operative
Ambitious

Clear
Reduced

Siemens should look:

Modern
Embracing
Consistent
Well-travelled
Strong
Diverse

Serious
Focused

Siemens should sound:

Concise
Confident
Unassuming
Inviting
Human
Proud

Loud
Aggressive

Siemens should never be:

Silly
Trendy
Tiny
Temporary
Domineering
Humanitarian

What does Siemens do?

Siemens designs

Siemens plans

Siemens creates

Siemens modernises

Siemens builds

Siemens invents

Siemens supervises

Siemens authors

Siemens crafts

Which leads us to the single idea:

Siemens is all about the idea of architecture.

plans
creates

Because it:

modernises
builds
invents
supervises
authors
crafts

Siemens is all about the idea of architecture.

structures

Because it:

analyses
provides breadth of knowledge
employs tradition
shows cultural sensitivity
and shapes a location or environment.

Siemens is an architect of the modern global society.

It creates the structures, lays the networks and provides

the building blocks that make up our modern world.
Be it energy, communication, industry, transportation,
light or medicine.
Be it physical, embedded or virtual.
Siemens builds and combines systems, solutions and tools that
provide access to power for fundamental human needs.

Wherever technology reaches its full potential,

it transcends into architecture.
-Ludwig Mies van der Rohe

An architect is someone who thinks big.

The fact is, Siemens is big. Big is good. Big is beautiful. Being big
allows the company more opportunities to solve more issues using
more individuals and resources.
In order to do so, Siemens should see itself as a large network of
smaller companies that are all connected to the hub. Then it can
understand and manage not only the different parts of networks but
also the bigger picture.
In this way, it can use its size to provide more than any other
company in the world.

A room should not be fixed, should not create a

static mood, but should lend itself to change, so
that its occupants may play upon it as they would
upon a piano.

-R. Buckminster Fuller

An architect is someone who acts flexibly.

A person who is creative yet practical. Who understands

connections. Between micro and macro levels of society. Between
people and technology. Between different activities and processes.
An architect is someone who listens to the customers needs. Then
provides not only a solution, but an inspiring solution.

For those of us who practice it, we believe in

its potential to make a difference, to enlighten
and to enrich the human experience.
Frank Gehry

An architect is someone who makes people feel

comfortable and inspired.

An architect is someone you hire to create the environment where

you will flourish twenty years or fifty years in the future, not only
today. Architecture is about creating potential. Siemens is about
realising potential.

An architect

is someone who makes the world work.

A few questions.

Does an architect have different roles

in Chengdu and Johannesburg?
Is the idea important to someone who works
in a motorcycle factory in Nicaragua?
How will it affect the price of a phone call in Kiev?

Next steps.

1. Answer questions like these.

2. Further develop a brand character.
3. Provide a brand strategy.

Thank you for the opportunity to be involved in redefining one of

the worlds most influential brands. We look forward to meeting
with you again.