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A Human Giant

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Following major restructuring, Siemens decided it needed to realign its HR strategy with its business goals
15 NOVEMBER 2010 Daniel Shane
Siemens’ human capital management system is said to be the largest cloud computing deployment in the world
In summer 2008, global technology and engineering conglomerate Siemens announced plans to cut 17,000 jobs, roughly 4% of its total workforce. The company’s rationale was that it needed to become a leaner, more efficient organisation in order to prepare for the global recession that was then looming.
To make sure it became more efficient, not less effective, as a result of these jobs cuts, Siemens decided that it needed to align its human resources operations with the strategic objectives of the business. “It was about having the right people for the right job,” recalls Marion Horstmann, corporate vice president of HR, “and linking employment strategy with global business strategy.”
Siemens decided that the best way to achieve this was to standardise all of its global recruitment and personal development processes onto a single system. This was no mean feat, as even after huge cutbacks Siemens still employed more than 400,000 people distributed across 190 countries. “We saw strong globalisation in our business, which enforced the need for a common backbone,” explains Siemens group CIO Dr Norbert Kleinjohann.
Supplier search
Dr Kleinjohann decided that building the solution itself would be time-consuming and would offer Siemens “no great differentiation”, so the company began scouring the supplier landscape. He says Siemens examined approximately 50 HR solutions from nearly 30 vendors during the procurement process.
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