Why Are We Bad at Picking Good Leaders? A Better Way to Evaluate Leadership Potential

5

Judgment

Siemens, the German engineering giant, is one of the oldest, largest, and most prestigious companies in the world. With more than 400,000 employees in 190 countries and revenues in excess of $100 billion per year, the breadth and depth of its operations are impressive by any standard.¹ A global leader in most of its businesses, Siemens makes a wide range of industrial, infrastructure, and consumer products: turbines, energy grids, subway trams, kitchen appliances. Many experts have referred to it as the European counterpart to U.S. powerhouse General Electric.

But in 2007, Siemens was not basking in praise. On the contrary, a series of scandals and uncertain growth metrics had left insiders reeling. Moreover, the international business ...