Crisis advice from the CEO of 77bn-euro giant

Peter Löscher, 52, chairman and CEO of Germany’s Siemens industrial concern, is upbeat as regards recovery from the crisis and says this period of economic turmoil has taught the business environment a very important lesson: it is only those businesses that are devised for the long term that are going to endure and develop.

Löscher took over the CEO position at Siemens in July 2007, with the German giant’s turnover reaching 77bn euros last year, more than half of Romania’s GDP, with a number of around 430,000 employees. His appointment at the helm of Siemens came at an extremely delicate moment for the company as it was in the midst of an enormous bribery scandal. Once he took over the position, Siemens underwent a series of dramatic changes to the end of slashing expenses and boosting group profitability.

In Romania, Siemens generates turnover worth above 300m euros, which makes it the biggest industrial group operating locally.

“The global downturn seems to be losing momentum. We can realistically say the decline is bottoming out. The process differs, though, from one region to another. Nevertheless, it’s highly difficult to anticipate how long this context is to last and when and at what pace the global economy is to rebound,” Löscher told ZF.

Löscher has four pieces of advice for Romanian executives. “There are four pieces of advice. First, get to know the business environment and your own business very well. Second, focus on what you can do best. Third, accurately assess risks. And the fourth piece of advice: act determinedly!,” says Löscher, who maintains his group has also been affected by the crisis fallout, but is in no way in a crisis.

“What we need to learn from this crisis is one thing in special: designing businesses for the long term and sustainable development are the main factors bringing growth,” Löscher feels.