New Broom at Siemens

Peter Löscher left the strategy of the scandal-ridden firm untouched. His challenge was the culture

Michael Kappeler / AFP / Getty

Siemens CEO Peter Loescher

Brought in after a bribery scandal to present a fresh face of reform to German engineering firm Siemens, former Merck executive Peter Löscher has ratcheted up accountability and cut down on management committees. He talked with TIME's Bill Saporito about the challenge of change.

Siemens has just delivered a nasty surprise to investors, forecasting a $1 billion earnings shortfall. What happened?

Last quarter I said that we're doing a thorough assessment of projects across our company. This is completely in line with the principles of openness, transparency and accountability that are at the heart of how we're re-energizing our organization. We...

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