When Peter Loscher took over as CEO at Siemens in 2007, he lacked internal connections. He used formal bases of power to bring about organizational change and increase a customer orientation.

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As an outsider, Mr. Loscher found it challenging to establish himself as a strong leader inside the bureaucratic Siemens organization. Naturally, in the early stage of his tenure, he lacked internal connections and the bases of power associated with inside knowledge of people and processes. Absent a more formal power base, he turned to more informal means to accomplish his mandate of organizational change and increasing customer orientation.

When Peter Loscher Took Over as CEO at Siemens in 2007