1. If the performance of a divisional manager at Siemens falls short of target due to external factors such as economic recession, should the manager be held accountable?
2. How might the actual assessment of divisional performance differ in recessionary times?

You know that Siemens operates in many countries and has quite a diverse product offering. With such complex and broad operations, there are many factors that can affect the performance of a business sector or division. In its 2015 Annual Report, Siemens refers to its performance under a number of headings derived from Vision 2020. The performance measures are under seven headings: stringent corporate governance, sustainable value creation, financial, global management, partner of choice for customers, be employer of choice and an ownership culture. Throughout the 2015 and 2014 Annual Report, the targets set under the Vision 2020 programme are mentioned, and in the former performance is reported on. For example, under the financial heading, revenue growth is referred to as follows: ‘our primary measure for managing and controlling our revenue growth is comparable growth, which excludes currency translation and portfolio effects’.