Re-making the Siemens brand 14.12.1999A presentation from Wieden & Kennedy Amsterdam

Table of contents

Introduction

Objectives

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 becomea powerful and exciting global brand. This book is a first step towardthat transformation.

But Siemens isn’t a cola or a fast-food chain or a house of fashion.Siemens is a huge, diverse and global company. A company thatneeds to be fully understood and redefined before any relevantcommunication can take place.

For this reason, we have devised a process that will be completed inthree steps. So that we can move forward in a logical fashion, firstunderstanding the brand and its current issues, then redefiningSiemens and finally solving its communication problems.

In this, the first phase, we provide you with observations about thebrand character. From those observations (and their subsequentsummary) we draw conclusions. Finally, based on those conclusionswe make proposals for the next part, phase two.

Please note that we are not management consultants. Our expertiseis in communication. We’re not trying to change the company, onlyhow it will be perceived. Everything in this presentation is writtenfrom a brand perspective.

All the quotes in this book, unless otherwise noted, are taken frompersonal 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 makingrecommendations.

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 researchwe did was extensive and exhaustive and conducted in three parts.

The first, an external audit, was handled by ICON and resulted inglobal, in-depth qualitative findings. It was conducted in 15 countriesaround the world.

The second, an internal audit, was a collaborative effort betweenSiemens and Wieden & Kennedy Amsterdam. A study of thecompany’s culture and values, it was conducted in 10 key countriesaround the world.

The third part consisted of a study of internal and external sourceinformation on all topics including: Siemens history, guidingprinciples, product portfolios, divisions, cultural programmes,research and development and future strategies as well as acompetitive overview and analyst reports.

So...

Observations

After speaking with over 140 Siemens employees, reading morethan our weight in literature and watching videos until our eyesturned red, these are our observations.

Siemens, don’t they make, um...

Siemens, the company that began with the invention of the pointertelegraph, now produces: GSM networks, PET scanners, refuse-firedpower plants, emission-proof PCs, electromechanical brakes andchimney hoods (among other things). Siemens is complex anddiverse. 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 bigpicture, but nobody can finish it.”What the company needs is a single idea that will prove that Siemensis one organism. With a clear identity and a rallying cause, diversity –currently a weakness – will become a strength.

Siemens tends to focus on form not content. On processes ratherthan end goals. On formal structures rather than motivating ideas. How did this happen? As a result of Siemens’ rapid growth andchange over the past ten years, three factors have led to anemphasis on formality. They are: diversification, decentralisationand portfolio management. A clear, unifying vision will allow Siemens employees to focus onwhat inspires them all, rather than what divides them into parts.

You think the shell is gorgeous. But you haven’t seen the pearl.

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 andrelationships. It offers its employees and its customers safetyand stability.On the other hand, it appears to be like molten glass: a slow-moving 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 revolutionarycompany that constantly reinvents itself. It lacks the kind of dynamic thatwould stir it to undergo radical changes. But wait.Look at the company’s development. It has always branched out in alogical, efficient manner. It created a need then had to fill it. The inventionof the telegraph led to the need for cables to be laid. Street-lighting createda 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 arevolutionary one. Evolution is valuable. Evolution can be innovative. Siemens must show thatevolution is stronger than revolution because it allows the company toprovide 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 caughtbetween then and now. Between an industrial and an informationalsociety. Between offering breadth and variety and offering depth andfocus. 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 ofidentity and even the destruction of core values. The company hasturned around so many times it has become dizzy. But maybe Siemens doesn’t need to choose one way over the other.Maybe it needs to learn how to be comfortable taking both roads. Siemenscan become a strong brand by embracing and rejoicing in the paradox.

Siemens has a firm grasp on its markets. It has smart, talentedemployees. It has global reach. So why is it still a follower?The reason has a lot to do with benchmarking. Siemens is constantlylooking to the competition for guidance. It is often the first to find atechnology but the last to introduce it.It seems to feel uncomfortable making the first step and leading. Itspends 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 becomesan attitude it creates a risk-averse culture.And besides, Siemens should be the company that others benchmarkfrom and aspire to be like.

If someone hands you the sceptre, then lead.

Being German isn’t necessarily a bad thing.

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

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 somany countries, you would never guess that by walking around theheadquarters in Munich.Siemens needs to allow its local cultures to more strongly influencethe mother ship. Then it will cease to be a multinational corporation,and begin to be a global player.

Being German isn’t necessarily a good thing.

Most money isn’t smart enough to buy good taste.

Siemens does more than turn a profit. It creates culture. The companyis 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 becharacterised 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 it’s hard to win someone over, it’s probably worth it.

Siemens is good at building trust and loyalty. It establishes andmaintains long-term relationships both internally and externally.The reliability and performance of its products have created agreat amount of confidence in the brand. Siemens is a constant,reliable partner. Still, it needs to be trustworthy in a modern context. A traditionof reliability isn’t enough. Siemens needs to build morepersonal, individual and equal relationships to be successful intomorrow’s world. A world where charisma is almost asimportant as character.

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, it’s hard to findevidence of co-operation or synergy.Boundaries are often drawn among divisional lines. There isn’t much internal fighting. It’s just that there isn’t much internal sharing.How can Siemens develop a culture of participation andpartnership? It should shift its focus. From internal competition, to the customers’ needs for synergy.

You’re either making music or else you’re making noise.

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 provideslife-long learning for its employees.What an incredible place to work.However, Siemens can’t afford to act like an isolated campus. Itneeds to be more active in sharing and marketing its knowledge.A university that is cut off from the real world teaches theoriesthat cannot be applied.

Siemens is a comfortable place. A little too comfortable, perhaps.Siemens has done such a good job of creating the perfect workingenvironment that its people sometimes lack ambition. They’re notquite hungry enough. They don’t set the bar as high as it can go.They don’t try harder.People at Siemens need to be encouraged to change theirperspectives, their roles, their situations more often. Greatopportunities exist, but right now there are few takers. Somehow, Siemens needs to create an environment that’s a littleless comfortable. It needs to once again be a place where peoplestrive toward ambitious goals.

There are very few overfed geniuses.

Nobody’s 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 thosechanges 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. It’s easy to forget about that.Siemens needs to adopt a customer perspective. It needs to standon the outside and look in. It needs to be more curious about andinvolved with the world around it.

Siemens is a perfectionist. Positive or negative?Siemens is focused on improving people’s lives through thehighest possible quality of technology. It is dedicated to fixingproblems 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 highquality but fast. Its excellence can distinguish it as a premiumbrand, thus separating it from its competitors. On the other hand, there’s only a market for a better mousetrap as long as there are still mice in the house.

It’s not perfect if it’s not on time.

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 toproject itself into the future, defining its goals and moving towardthem directly and fast. When Siemens assumes a more confident leadership style, it will bemore able to lead its customers to think in aspirational terms as well.

You don’t get anywhere with one foot on the accelerator and onefoot on the brakes.

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 don’t really mean “yes.” They mean

“I’ll think about it and in the meantime let’s 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.

Siemens does not have a culture of brand ambassadorship. Itsemployees are reluctant to wear the brand name or logo, or discussits 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 greaterunderstanding 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 itsemployees. In the headquarters. In the divisions. And in the regions. Siemens has the power to make 416,000 x 10 positive brand contactsper day. It should use them wisely.

You don’t win extra points for modesty.

It’s not a Martini until you mix it.

Siemens is in the business of integration. It melds parts intolarger systems and products into lives. It integrates with localcultures. It integrates with key customers. It becomesembedded in and essential to the history of entire nations. One of the company’s key strengths is its ability to formsymbiotic relationships with its customers in which both cansimultaneously flourish and grow.

Siemens provides access in a very democratic way. It providespower 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.

Power is more accessible than wealth.

If we’re 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 businesspartners. It connects with its employees.Siemens is like a big circuit board in which all the parts areinterrelated. It is truly a model for the ideal network.

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 preparedinner, Siemens provides the parts, both large and small, whichallow 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.

In a society of hunters and gatherers, who’s constructing highways?

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 shouldn’t be.

Then we offer you a single idea. A guiding principle. A focused identity.

Siemens is:Innovative

Reliable

Honest

Responsible

International

Precise

Enduring

Premium

Generous

German

Dedicated

Stable

Siemens should also be:Dynamic

Open

Curious

Optimistic

Co-operative

Ambitious

Siemens should look:

Clear

Reduced

Modern

Embracing

Consistent

Well-travelled

Strong

Diverse

Siemens should sound:

Serious

Focused

Concise

Confident

Unassuming

Inviting

Human

Proud

Siemens should never be:

Loud

Aggressive

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.

Because it:

plans

creates

modernises

builds

invents

supervises

authors

crafts

Siemens is all about the idea of architecture.

Because it: structures

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 thatprovide 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 bigallows the company more opportunities to solve more issues usingmore individuals and resources.

In order to do so, Siemens should see itself as a large network ofsmaller companies that are all connected to the hub. Then it canunderstand and manage not only the different parts of networks butalso the bigger picture.

In this way, it can use its size to provide more than any othercompany in the world.

“A room should not be fixed, should not create astatic mood, but should lend itself to change, sothat 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 understandsconnections. Between micro and macro levels of society. Betweenpeople and technology. Between different activities and processes.

An architect is someone who listens to the customer’s needs. Thenprovides 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 feelcomfortable and inspired.

An architect is someone you hire to create the environment whereyou will flourish twenty years or fifty years in the future, not onlytoday. Architecture is about creating potential. Siemens is aboutrealising 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 world’s most influential brands. We look forward to meeting with you again.