In July, 1998, Siemens CEO Heinrich von Pierer set out a 10-point plan to 
rescue the company from plummeting profits. Here are some highlights:

GOAL                        PERFORMANCE

Turn around the             EXCELLENT Per-share earnings
semiconductor               rose sixfold in the last quarter.
division                    The April IPO of minority stake
                            in Infineon semiconductors unit
                            raised $5.4 billion.

Set clear goals for         GOOD Top managers must
management, with            explain results to peers
consequences if             quarterly; some have been
benchmarks are              eased out. Executive pay is now
not met                     tied closely to performance.
                            But no one talks about
                            Chainsaw Heinrich.''

Rigorously prune            FAIR Medical Engineering unit
problem areas               transformed from money-loser
                            to profit driver within two years,
                            but power-generation and
                            transportation units still have
                            uncomfortably slim profit
                            margins.

Strengthen                  GOOD April purchase of Mannes-
businesses through          mann auto-electronics unit will
acquisitions                create a leader in burgeoning
to achieve                  market for onboard IT. But
world leadership            Siemens may have paid too
                            much. And it still must prove
                            it can keep pace long-term in
                            competitive businesses such as
                            telecommunications.

Reorganize existing         FAIR Created profitable business-
businesses                  services arm, bundled mobile-
                            phone businesses, and boosted
                            market share. However, insiders
                            complain that Siemens' internal
                            decision-making is still too slow.

Become more                 VERY GOOD Siemens on track
transparent by              to report results according to
converting to U.S.          GAAP in the quarter ending
GAAP accounting             Dec. 31, 2000.
standard

List shares in the          GOOD Listing on track for early
U.S.                        2001.


DATA: SIEMENS, BUSINESS WEEK