From Strategic Planning to Strategic Dialogue in an Increasingly Dynamic World: The Siemens Case

This paper discusses the evolution of the strategic planning process into a strategic dialogue to cope with rising uncertainty in an increasingly dynamic world in the case of Siemens as a multi-business corporation. It aims to drive the discussion over strategy work and to provide insights into principles and processes at Siemens. After a brief overview of the underlying dynamics influencing strategy processes, the Siemens portfolio and its development are described. The main part comprises an introduction to the levels of strategy as well as an explanation of the historic and current strategy process at Siemens. Siemens’ strategy work has developed into a lean and adaptable process that centers around the strategic dialogue between the Managing Board and the businesses and functions to reflect dynamic times and changing business needs. The annual strategic dialogue consists of the Strategy Review and the Merger and Acquisition (M&A) Deal Book discussion. It has a strong focus on outside-in inputs to recognize megatrends, market trends, technological developments, and disruptions. The goal is to understand and discuss Siemens’ fundamental strategic challenges and opportunities, related strategic goals and options for Siemens, to explicitly formulate a clear strategy that is developed continuously throughout the year, to link corporate, business, and functional strategy, to align management with the company’s strategic directions, and to anchor Siemens’ strategy in the organization at large.