Christian Klein - One hundred percent Homeoffice finds many 'not so great' - says the SAP-CEO
In an interview published on a Sunday by the "Süddeutsche Zeitung" (SZ), SAP CEO Christian Klein spoke about the current digital transformation and plans for the company. Controversial new development at Walldorf software company: a system for evaluating work performance that categorizes employees as "Performer," "Achiever," and "Improver."
"Performers" exceed expectations and should benefit significantly from bonuses. "Achievers" meet the company's expectations – neither more nor less. "Improvers" are essentially underperformers and must improve.
"We want managers to sit down with their employees and discuss performance: Where are we on the right track, and where can things be improved?", Klein said in the SZ. This is something that has been missing at SAP in recent years, according to the CEO.
Further construction sites include a cultural shift towards open feedback and the need for digital transformation. The focus of planned changes at SAP is on the new performance evaluation system. This is expected to be rolled out to the entire workforce after a testing phase in top management starting in 2025.
Unlimited Homeoffice not popular for many
With the new course, Klein has a clear goal: "I'm about openness, telling every employee how they can improve." If everyone pats each other on the back, that won't get us anywhere. "I could certainly say, we do 100% Home-Office, we don't do performance feedback, everyone gets the same salary. But I wouldn't want that, and neither would SAP. There are also many people in the company who wouldn't find that appealing."
In the past, employee satisfaction at SAP had declined – due to the performance evaluation system and a new rule requiring three days in the office per week. "I'm not saying anything new – our restructuring will be tough," Klein told the SZ. "But we have to weigh what's best for the company." If employee satisfaction drops in the short term, that's not great, but it's the price for making the right decisions and ensuring the future viability of SAP.
One reason for the dissatisfaction in recent years was Klein's strategy shift towards cloud technology as the basis for SAP systems. "I had to swallow a lot of criticism for that. Four years later, we can see that the path was the right one. The stock price is now at a historic high," Klein commented to the SZ.
Currently, SAP is focusing on the topic of generative artificial intelligence. In this context, Klein emphasized the need for young talents and digital experts in the company and the necessity of continuing to train and recruit young talents.
SAP-CEO Klein sees great potential in AI
Furthermore, CEO Klein spoke about the protectionist tendencies worldwide and the challenges they pose for SAP. He emphasized the need to find new solutions, such as enabling SAP customers to map their global supply chains worldwide.
Finally, Klein emphasized the potential of artificial intelligence (AI) for SAP. He mentioned, for example, the development of the digital assistant "Joule," which supports the work of developers and represents a significant productivity boost. Here, he sees future potential, especially in the area of simulation.
SAP CEO Christian Klein mentioned that the new performance evaluation system, which includes categories like "Performer," "Achiever," and "Improver," will be implemented in 2025, following a testing phase in top management, using the DAX-listed company's SAP software. During the interview, Klein expressed his disdain for a system where everyone receives the same salary without performance feedback, as it would not align with SAP's goals or appeal to many employees.
