SIEMENS: A PLODDING GIANT STARTS TO PICK UP SPEED.

This article focuses on the efforts of Karlheinz Kaske to improve the performance of Siemens. In October 1988, Kaske ignited the biggest reorganization in Siemens' 141-year history, replacing its rigid, centralized management structure with smaller independent units. Once only a regional power, Siemens has made the U.S. its first target. Kaske also directed a $2 billion acquisitions rampage in 1988, launching Siemens' first hostile takeover bid, with British General Electric PLC for Plessey PLC, a British defense and telecommunications supplier. And Kaske bought Bendix Electronics and French IN2 computer maker. He also agreed to acquire Rolm and formed joint ventures with Westinghouse, Intel and Asea Brown Boveri. Kaske still has $13 billion in cash to use in pursuit of his vision. Thus, rivals are eyeing the transformation in Munich at the company's stately Wittelsbacherplatz headquarters. Along with his bank roll, Kaske can count on his credibility to help win the revolution. Reared in Essen, Germany, he has spent his entire career at Siemens. And he helped plan an earlier successful reorganization when he was just 40. Still, it has taken him eight years to awaken Siemens' bureaucracy who have been content to live off lucrative state contracts.