In an interview with the “Süddeutsche Zeitung”, SAP boss Christian Klein struck a harsh tone. The software company needs a different feedback culture, work performance will soon be assessed more accurately, and there will be less home office work. The employees have recently reacted clearly.
In an article published on Sunday (SZ), SAP boss Christian Klein commented on the current digital transformation and his plans for the company. A controversial innovation in the Walldorf-based software company: a system for evaluating work performance that divides employees into “performers,” “achievers,” and “improvers.”
“Performers” perform above average and should particularly benefit from bonus payments. “Achievers” meet the company’s expectations – no more and no less. “Improvers” are basically underachievers and need to improve.
“First and foremost, we want managers to sit down with their employees and talk about performance: where are we on the right track and where are there things that can be improved?” Klein told the SZ newspaper. This has been neglected somewhat at SAP in recent years, said the CEO.
Other areas of work include a cultural change towards open feedback and the need for digital transformation. The focus of the planned changes at SAP, however, is the new evaluation system. After a test phase in top management, this is to be expanded to the entire workforce from 2025.
Many people find unrestricted home office “not so great”
Klein is pursuing a clear goal with the new course: “I’m interested in being open and telling every employee how they can improve.” If everyone pats each other on the back, that doesn’t help anyone. “Of course I could say we’re doing 100 percent home office, we’re not doing any performance feedback, everyone gets the same salary. But I wouldn’t get anything out of that, and neither would SAP. There are also many people in the company who wouldn’t think that was such a great idea.”
Recently, employee satisfaction at SAP had declined – due to the evaluation system and a new rule requiring employees to come to the office three days a week. “I’m not kidding myself, of course – our restructuring will be tough,” said Klein in the SZ. “But we have to weigh up what is best for the company.” If employee satisfaction declines in the short term, that is not nice, but it is the price to pay for making the right decisions and for SAP’s future viability.
One of the reasons for the discontent in recent years was Klein’s change in strategy towards cloud technology as the basis for SAP systems. “I had to put up with a lot of criticism for that. Four years later, we can see that we are on the right path. The share price is now at an all-time high,” Klein told the SZ newspaper.
SAP is currently focusing on the topic of generative artificial intelligence. In this context, Klein emphasized the need for young talent and digital experts in the company and the need to continue to train and recruit young talent.
SAP boss Klein sees great potential in AI
The SAP CEO also commented on the protectionist tendencies worldwide and the challenges this poses for SAP. Among other things, he stressed the need to find new solutions, also due to geopolitical tensions, for how SAP customers can map their supply chains worldwide.
Finally, Klein emphasized the potential of artificial intelligence (AI) for SAP. Among other things, he mentioned the development of the digital assistant “Joule,” which supports the work of developers and represents a major productivity boost. He sees great potential here in the future, also in the area of simulation.
Source: Stern
