3 Ways to Simplify Your Company Culture and Build Trust

The 2015 books are closed and the 2016 kickoff meetings have concluded. Now is the perfect time to take one final look at what went well last year and what we could have done better. It’s also a great time to review our 2016 priorities. Which areas demand better performance? Which programs will we emphasize in the coming months?

Simplification is a major initiative for many organizations, including SAP. By reducing complexity and striving for simplicity, we know that companies can develop new opportunities for competitive advantage. In contrast, firms that cling to complex processes, structures, and tools hold themselves back. In a recent Knowledge@Wharton study, 74 percent of respondents said that complexity hurts their ability to meet goals.

And the cost of complexity is significant. Authors Simon Collinson and Melvin Jay characterize complexity as one of the biggest challenges facing modern business. They write that complexity “is slowing companies down, costing them on average 10 percent of their profits and harming employee morale.”

Complexity also has a negative impact on employees. Studies have shown that trust, diversity, and innovation suffer when employees are overwhelmed by complexity. In contrast, trusted leaders experience greater innovation and better performance. Yet only four in 10 employees trust their boss. I view this as a huge gap that can potentially shrink when we reduce complexity.

Leading by example.

Some leading executives of highly innovative companies clearly understand the need to share their authentic selves as a way to build trust. In 2014, Apple CEO Tim Cook publicly came out in an opinion piece published in Bloomberg Businessweek. In an essay advocating for human rights, Cook said he set aside his privacy and publicly declared that he is gay in the hopes that he could help others who might be struggling.

Facebook’s chief operating officer Sheryl Sandberg wrote movingly about her grief over the death of her husband Dave last year. In discussing her painful loss, she talked about how she decided to be open about her feelings with employees. “I realized that to restore that closeness with my colleagues that has always been so important to me, I needed to let them in,” Sandberg wrote on Facebook. “And that meant being more open and vulnerable than I ever wanted to be. I told those I work with most closely that they could ask me their honest questions and I would answer. I also said it was okay for them to talk about how they felt.”

Closer to home, our own SAP CEO Bill McDermott recently suffered an injury that led to the loss of his left eye. He reached out to SAP employees and spoke from the heart about the accident, his gratitude to family and colleagues and his optimism about the future. SAP employees responded with heartfelt wishes for his recovery, many inspired by his willingness to be so open about such a tragic accident. The tragedy inspired him to increase his focus on individualized healthcare and the role SAP might play in making it better -- and simpler -- for people around the world.

Getting started on simplification.

These executives turned difficult situations into opportunities to build trust. But you don’t need a tragedy to begin simplifying your company culture. Why not consider ways to begin simplifying your corporate culture as one of your key 2016 initiatives?

Let’s define our terms. A simplified corporate culture strives to:

• Do things in the way that creates the most value and engagement for all, with the least effort for all
• Make it easier for people to be their best and do great work

According to a report by The Jensen Group, a simpler environment gives employees the power to get their work done, to make a difference, and to control their own destiny. Simpler workplace cultures also make it easier for employees to do their best and be their best selves. But how can you create an ideal balance of deep trust, real inclusion and maximum engagement within your organization?

There are three key steps that can help you simplify the company culture:

1. Develop senior executive alignment and commitment to the cause. Business leaders need to embrace the idea that ease of use and ease of effort can help create corporate return on investment. For example, at SAP, we have a shared aspiration to "make the world run better and improve people's lives." This is a bold but simple statement - and a sincere goal -- that is at the heart of everything we do and every business decision we make. Our executives and leaders are unified behind this goal. It is repeated and shared often so there is no doubt about our commitment.
2. Train mid-level managers to make simplicity for all a priority. Ensuring that managers on the frontline understand their role in simplifying, communicating, and exemplifying the organization’s messages and goals is critical. At SAP, we are proud of the training we offer to address the needs of those colleagues. There is often no greater representative of a group’s goals than the mid-level manager with whom you interact on a day-to-day basis.
3. Design work tools, communication, training, and development using simplicity criteria. SAP’s own CEO, Bill McDermott, sets the tone for simplified communication -- starting with our internal communication and meetings. He rarely relies on typical tools such as PowerPoint to share a message. Instead, Bill prefers to speak directly to audiences when possible (often via global broadcasts), engage in open Q&A sessions, or to send a simple one-paragraph mail -- no “bells and whistles.” We offer programs to help colleagues break messaging down to its most basic components, conduct “design thinking” training to enable out-of-the-box approaches to innovation and encourage simple storytelling whenever possible. While there’s still work to be done, I’m proud of my company’s commitment to be more engaged “human to human” -- and less reliant on slides or fancy presentations that can often complicate things.

Simplification won’t happen overnight, but with proper planning and commitment, you can begin moving your organization in the right direction. Resolving to simplify your company culture is a great first step toward meeting your 2016 goals.

Anka Wittenberg

5 Mistakes to Avoid as an Entrepreneur

Entrepreneurship is a land of risk and reward where most of your traditional work boundaries have been removed. No one tells you how to work, how long and how hard to work or how much you can make. There are, in fact, a million advantages to the freedom of entrepreneurship.

However, there are also an equal number of pitfalls that this same freedom creates. One of them is that entrepreneurs have the "freedom" to think they are doing things right, when in fact they are doing them wrong. Here are five common mistakes to avoid on your own entrepreneurial journey:

1. Chasing the wrong success

If you are not careful, you can fall into the trap of believing that certain material items make you "successful." That a certain lifestyle is what success looks like. Often, people try to buy their way to success and happiness, only to find out that they don’t even want what they were pursuing.

To conquer this trap, make sure to think about and write down what success means in your perfect world. Be conscious about what you are aiming at, and take consistent steps to reach it.

2. Improper communication

It is comfortable to feel confident and assume that you are communicating properly -- with employees, contractors and mentors -- but the bottom line is that many of us don't. What you intend to say, and the impact you intend to make, when communicating with staff, for example, may not be the right words or have the right impact at all.

To avoid this mistake, make sure to speak using facts, leaving out the emotion those facts may invoke. Have your employees take personality tests, so you know ahead of time how they will communicate. They may need more detail from you than you normally communicate -- or less -- but knowing is the first step.

3. Poor 'servant leadership'

"Servant leadership" is a buzzword right now; however, many business owners don’t understand what it entails. Servant leadership means not allowing others to walk all over you. It is not about creating an environment of dependency on you. Often, subservient leaders are ones that need others to need and rely on them.

To solve this pitfall, you need to practice true servant leadership. Servant leadership means providing an environment of service. It means doing what is best for your employees, which might include firing them. Serving your staff well requires setting them up for success by training them properly and holding them to a high standard.

4. The customer is always right

This is a common misconception that can leave you worn out and exhausted. Operating your business as if every customer is "right" can confuse your message and train your customers how to treat you and your staff. You may end up serving a select minority instead of a majority.

Instead of the philosophy that the customer is always right, take on the mindset that the customer is always honored. Customers should be treated with honor and respect, but sometimes they are just wrong. So, be clear on who your target is and serve that person well.

5. Chasing money instead of freedom 

When money is tight, it is a breeze to think that money and freedom are synonymous. This can lead business owners down the wrong path and often put a lid on their income. Chasing money can lead to an unlived life, getting us to chase the wrong things. Money should be a byproduct, not the focus.

Make choices in the long term, toward freedom. Train yourself out of a job, and your income will have no bounds. Focus on short-term monetary gains, and you will never have true freedom. Instead, focus on the strength and growth of your business, and you will have money. You will also experience freedom and finances through growth and proper training.

Avoiding these pitfalls will have you cruising toward success. So, move with proper purpose. You may need to reevaluate and adjust often, because being a few degrees off in the beginning leaves you open to the risk of being miles off in the end. But make the journey. And be blessed on your journey.

Zechariah Newman

5 Strategies for Entrepreneurs to Improve Sales

If you've just started a business, you need sales, right? Trouble is, you may not be sure how to put together a sales approach. And, the truth is, there is no magic formula for sending your sales through the roof. So, stop looking.

Also, stop buying the popular belief that sales is a profession where “you either have it, or you don’t.” As with any job, effective sales techniques, tactics and skills can be taught. With that in mind, here are five strategies for entrepreneurs looking to improve sales at their newly started businesses:

1. Understand when a "yes" is really a "no." 

When you run a startup, your most precious resource -- even more so than capital or product -- is time. Customers will often lead you to believe they’re interested in what you’re offering when they actually aren’t; and this can be a significant drain on your time. For example, many entrepreneurs spend a fair share of time at trade shows and events and collect dozens or even hundreds of business cards from potential customers.

The reality is, however, that many of these prospective customers offered their card as a way of excusing themselves from the conversation. The key is to decipher who is truly interested. When someone is, that person will likely ask a lot of questions. He or she wants more of your time and will inquire about your pricing, ways in which you deploy your product, etc.

2. Talk about the problem, not the solution.

Sounds counterintuitive, right? It won’t when you put this strategy into action: When it comes down to it, people are interested in their own problems, not your solutions. If you detail your product’s five most impressive features, the customer will fade in and out of focus waiting for you to finish. However, ask about customers' problems and they will be happy to tell you all about their issues. This will make them feel more invested in your solution and provide clues as to how you should be positioning your wares. Maybe it’s your ninth and tenth most impressive features that will actually benefit them.

3. If prospective customers don't reply, do it for them.

Say a client hasn't responded to your message. Rather than send a new email and change the wording to make it seem like a first communication, reply to your own. This accomplishes two things: It allows the recipient to view the content of your original email and glean the intended information. Second, it allows you to inquire directly about receipt of your initial correspondence. If recipients then respond that they did receive your first email and aren’t interested, you don’t need to waste any more of your valuable time selling them.

Some, though, will just bounce back and say they’re sorry and areinterested. If you don’t hear back at all, give it a few more days and reply to your email one more time -- this time asking directly if the recipient prefers you to end the contact. This direct approach has an extremely positive success rate with customers responding for two reasons: 1) They are interested and for whatever reason haven't been able to get back to you yet; or 2) They accept the out you've offered to stop contacting them. Either way, you know where you stand and can proceed accordingly.

4. Personalize your communications.

If you are taking the time to write a personalized message to a prospective client, make sure he or she knows it. Include private anecdotes, discuss how your product or service would benefit this person specifically or perhaps touch on personal experiences that can be applied to this person's business. Don’t ever let a customer assume an email is just an automated direct marketing outreach if it isn’t.

5. Don’t pit your sales team members against one other.

The best sales teams are the ones that work together. Competition can spur hard work, but individually that work often operates to the detriment of the team as a whole. There are direct and ancillary benefits to cultivating a positive dynamic within the team. Creating synergy within your sales force will lead to increased communication, peer teaching, information sharing as it pertains to customers and leads and, ultimately, sales. Whether your small business is just you and an employee handling sales, or if you have a more robust team in place, teamwork will always trump rivalry in the long run.

And so now you know the truth. Inflated sales aren’t a result of trickery or some mystical strategy, but rather a product of the details: investing a personal touch, working together, listening to the customer’s difficulties and utilizing your resources correctly with the right leads. Focus on doing the small things right and leave your competitors to wonder where your magic comes from.

Hampus Jakobsson

Good Communication Skills Will Help You Find Long-Term Success

Learning how to effectively communicate with others while choosing the right words can literally make or break your growth in the marketplace.

If you are a business owner, having the ability to communicate and point out small successes to your employees is a vital key for long-term success. If you are an employee, knowing how to become a more skilled communicator will increase your value to the company and marketplace.

Related: 7 Powerful Public Speaking Tips From One of the Most-Watched TED Talks Speakers

Let’s take a look at three ways why mastering the skill of communication can improve your business and increase your success rate.

1. Expand your reach in the marketplace

You can know everything there is to know about your business, services, mission statement and vision, but if you can’t express it with the right words out in the marketplace, chances are your growth will be very minimal.

Think of all the great business leaders in the world. I can almost guarantee that they are poised and excellent communicators. If they have an idea or plan, they know exactly how to effectively communicate that idea or plan to the world.

Expand your reach in the marketplace by mastering the skill of communication.

2. Leading and educating employees

Over the years, I have come across and realized that the best educators not only have exceptional communication skills, but they make sure their employees walk away with new skills and abilities.

Think of it this way: You can have the most crafted and thought-out job description, but if you can’t verbally express to your employees what your vision, goals and plan of attack is, your growth rate will be hindered.

3. The ability to motivate

One of the most valuable aspects of mastering the skill of communication is having the ability to inspire your employees. The best business owners out there know the importance of finding the time to inspire their employees and help them see past the roadblocks and setbacks that may be present in their lives.

Related: 7 Tips to Get Your Team to Actually Listen to You

The hustle and bustle of everyday life confronts everyone on different levels, such as when an employee is going through a divorce and may need some words of encouragement. The list goes on, but the bottom line is mastering the skill of communication vastly increases your ability to motivate employees.

When employees are motivated and inspired by your simple, heartfelt words, they are willing to go the extra mile and work even harder. Just like parents encourage and give words of empowerment to their children, the same applies to business leaders.

Improving the skill

Now that we have listed three ways as to why mastering the skill of communication is so important in determining business success, what are some ways you can improve your communication skills?

The first step is to take out a sheet of paper and list what you feel are your strengths, along with where you need to improve. Do you feel you can effectively go out in the marketplace and talk all day and night about your services, but your ability to motivate employees is lacking? Whatever it is, write it down. You can then start to develop a plan of action to increase your communication skills. Here are three ways to get started:

• Enrolling in a speaking class is a powerful way to improve communication skills. There are many classes throughout the country to help aid in communicating effectively.
• Putting a dictionary in the bathroom is another way to slowly but surely increase your vocabulary, which always will help with boosting your skills.
• Hiring a speech coach is another route you can look into. Working one on one with an expert can quickly speed up the process.

Do you know of any good practices to improve communication skills? Let us know in the comments section below.

Related: Public Speaking Tips to Maximize Your Reach and Revenue

Matt Mayberry