Editors’ Note

Employed by Shared Services at Siemens since April 2002, Denice Kronau assumed her current position in October 2006. Prior to April 2002, she worked as a shared services consultant. Kronau began her career with the Philip Morris Company, eventually working for its Kraft-General Foods division in Munich, and has held leadership positions in finance and internal audit with GrandMet PLC (now Diageo PLC).

Company Brief

Siemens Corporation (www.usa.siemens.com) is the U.S. holding company for Siemens AG, the German electronics and electrical engineering group. Siemens designs, manufactures, and services a wide array of products across numerous sectors, including energy and power, health care, industrial automation, IT services, lighting, transportation, and water treatment. Global Shared Services executes the back-office processes for Siemens’ companies around the world and has employees on every continent, except Antarctica.

What is the role of Global Shared Services at Siemens?

On behalf of Siemens, we offer cost-effective and high-quality back-office services. We provide centralized accounting and finance services; information technology support; human resources; procurement, mobility, and logistics; and a variety of other services like marketing consulting, insurance, and translation for the Siemens companies.

How do you look to apply technology in your operations?

It’s a key enabler for our well-defined processes. However, we don’t just apply technology to a broken process. We develop the best possible process and look for ways that technology can enable it. We couldn’t do our business without technology, because it allows our customers to operate flexibly and allows us to operate on a large scale.

Shared services are often behind the scenes. Even so, are you able to attract talented people to your organization?

Actually, yes. Most people would think paying an invoice could be boring, but when employees are recognized for processing invoices or booking travel reservations or paying someone’s salary, they are the experts and they like the content of their jobs. The Siemens organization recognizes the importance of Shared Services and values our work. I’ve found that highly skilled people throughout the Siemens organization want to work in Shared Services because of our division’s enthusiasm and energy. Shared Services is a key part of our customers’ back-office processes. They benefit from our work, and we’re experts in what we do. That’s attractive to prospective employees. Most people who join Shared Services stay here. There’s a lot of variety in this division, and I think that’s part of what makes it so attractive as well.

Are you able to provide these shared services in a seamless and consistent manner around the globe?

Yes, because about 80 percent of what we do is common in every location, meaning the core processes we provide to our customers in Brazil, Italy, or anywhere else are 80 percent similar. The very front end and the very back end might be different from country to country, but the processes in the middle are decidedly the same. Siemens is very much an engineering company, and it strives for processes to be consistent across the board. So while we push for standardization, we understand that some unique methods are necessary. We standardize processes in a cost-effective manner as much as possible, but standardization isn’t a goal in and of itself – it has to make business sense.

Are there numerous opportunities within Global Shared Services for women to excel and seize leadership opportunities?

Siemens has a very diverse workforce, particularly in Global Shared Services. About 25 percent of our senior management team is diverse, and that’s a good start. I am sure we will see this percentage increase over time.

Even though you work within the framework of a large corporation, Global Shared Services seems to have an entrepreneurial approach to it.

Absolutely, and that’s how I want people to think of what we do. We look for ways to save our customers money that they don’t have time to look for themselves – that’s the entrepreneurial side of it. We’re constantly looking for ways to find the right level of quality at the right price. I always tell my people, “The worst ideas are the ones I don’t hear.” Are all of their ideas good? No, but the very worst ones are the ones I don’t get a chance to hear.

What would those who work closely with you say of your management style?

My mother once told me that no one would ever think I’m a CEO, and her point was that I am down-to-earth, open, and I listen well. But when I’ve heard all sides, I make the required decisions. I use humor a lot, and I think that makes me unusual as a CEO, particularly in a more conservative company. But a lot of people like my style, and because I’m fully engaged, they are too. People say I have a tremendous amount of energy, which probably explains why I’m tired a lot.

As engaged as you are, are you ever able to turn off the job, so to speak?

I shut it off all the time. I have a rule: If my phone is on, I’ll take the call regardless of what time it is; otherwise it will wait. I work with a great management team, so it’s seldom that a crisis bubbles up to me. Most times, by the time I hear about it, it’s already fixed. I choose to work a lot because I love what I do. I love leading an organization, and I love problem-solving. So I work a lot. But when I’m not working, I’m not working. When I’m on vacation, I check my e-mail every day, but only for five or 10 minutes.

What is necessary for you to achieve your key priorities for Global Shared Services in the years to come?

When I started in this job, I said I wanted this to be one of the top three global shared service organizations in the world within three years. In order to achieve our goals in each of our product areas, it’s essential that even our ground-level employees understand our vision and goals. So I live that message every day, time and again.