Are there more important things than a record-high stock price? Yes, said CEO Roland Busch at the Siemens Annual Shareholders Meeting on 13 February – and not as an afterthought, but right at the beginning of his speech. This is noteworthy, as it suggests that the company is on the verge of major changes.

However, this necessity does not immediately stem from Siemens' business performance. While the overall economy is struggling, and the company faces strong headwinds in China, Siemens still managed to increase its revenue in the first quarter of the fiscal year. Its operating profit also exceeded market expectations, driving the stock to a new all-time high.

Against this backdrop, Busch announced that Siemens will make big changes to the way the company operates. Anyone who has upgraded from Windows 7 to Windows 10 or even switched to Linux knows how profound such a change can be. Busch made it clear to shareholders that this is about the bigger picture – addressing structures, processes, and even how success is measured. But his remarks remained vague.

This is no coincidence. The executive board plans to present the full concept at the Capital Markets Day in December, and until then, it is still taking shape. Ultimately, Siemens aims to eliminate the valuation gap compared to its key competitors. The public debate largely revolves around the idea that Siemens should no longer be a conglomerate. Management is addressing this concern by making a significant reduction in its stake in Siemens Healthineers increasingly likely.

Yet, the real priority is operational progress. The key challenge is to develop market-driven sales solutions that focus less on Siemens’ divisional structure, and more on solving customer problems. While this may sound simple, successfully implementing such a shift within a large organisation is a complex task. If executed well, it could unlock further growth – and new stock price records would follow as a natural consequence.