Siemens' New Boss

Workers at a Siemens (SI ) unit that makes X-ray machines and other diagnostic equipment were shocked when, in 1998, a cocky new boss asked them to work more flexible shifts to speed production. The new guy, a 40-year-old up-and-comer named Klaus Kleinfeld, even wanted some people to work weekends, then practically unheard of. Yet employee representatives knew the unit in the Bavarian town of Forchheim was getting beat up by rival General Electric Co. (GE ), and that shareholders were nagging Siemens to dump its medical equipment unit. Everyone's job was on the line.

The negotiations were tough. But Kleinfeld won over workers, hanging around the factory asking detailed questions. He answered e-mails from employee reps almost immediately, even late at night, recalls Werner Mönius, chairman of the workers council in Erlangen, Germany, home base of Siemens Medical Solutions Div. "He was able to motivate people to pull together," says Mönius. The workers signed off on Kleinfeld's plan, which helped cut the time it took to build a $100,000-plus diagnostic scanner from six weeks to one. Siemens Medical is now Siemens' most profitable business.