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

Are You Building Leaders for Tomorrow?

The outlook for future leadership certainly seems bleak, judging from the current landscape managers describe nationwide:

• The 2015 Business and Human Capital Challenges report from the Society of Human Resource Management found that one of the top concerns among HR and business leaders was the development of the next generation of leaders.
• Workplace Trends’ Global Workforce Leadership survey in February and March said that leadership is the hardest skill to find in employees.
• A 2015 Gallup study of 2.5 million manager-led teams found that a mere 18 percent of current managers said their companies had the talent required for leadership.
• Not surprisingly, among the 1,000 employees surveyed by Workplace Trends, only 36 percent said leadership was a strength in their organization.

With the demand for leadership development on the rise, companies are scrambling for solutions that are effective and quick and require a minimal investment of time and money. Fortunately, there is good news.

That news? Leaders are made, not born. While no one is created with leadership in his or her bones, many people in business are ambitious, strong communicators from the start. So, it’s up to employers to determine who shows the motivation and tendency toward leadership -- and then develop it.

But how does an organization find these diamonds in the rough? The answer is, observe how employees communicate, and identify those who seem to be the most motivational team members These young leaders are usually hiding in plain sight. They solve problems creatively, take charge and plan strategies well, and are the people others go to when they have questions or need guidance.

Once these "A" players are found, organizations should cultivate their leadership skills and "grow them" within the company using the following simple techniques:

1. Use technology to educate.

Fires don’t start with roaring flames -- they need kindling, logs, access to air and, finally, a spark. Those who want to learn leadership skills will do so, given the right opportunity andtools. Give them their spark.

Many employers worry about the cost of professional development, which is understandable. Why would they invest time and money into employees who may leave at the drop of a hat? Good news: There are many free online resources employers can offer to their staff to develop their leadership skills. Examples include Coursera, Alison.com, Open Learn, andMindtools.com. MIT even offers an online version of Organizational Leadership and Change, a graduate level university course.

Other resources vary in cost, but may be worth a look. For example, career counselors help employees gain confidence and feel more inspired. They typically use processes and build action plans geared toward goal achievement.

Webinars are also great tools. Professional organizations like the American Management Association offer webinars that are interactive and offer step-by-step guides to learning new skills.

2. Encourage networking and engagement.

Great leaders keep their fingers on the pulse of the industry. A great method for keeping informed is regularly networking and engaging with colleagues.

Teach employees to create professional relationships and confidently initiate conversations. Expanding their networks builds crucial leadership skills like communication and makes them strong representatives for the company.

Refer them to tools like Let’s Lunch, so they can easily coordinate and meet with experts in their field who can help them achieve career success.

In addition to outside experts, focus on internal mentors. The 2016 Deloitte Millennial Survey found that 94 percent of 7,700 respondents surveyed said their mentors' advice was good, and 91 percent said their mentors showed a good level of interest in the their development. When managers can create a relationship with employees that makes the former feel less like a boss and more like a guide or a coach, they can have a great influence on employees.

Establish this dynamic to earn trust and respect. Employees are more apt to listen to and engage with leaders who develop a strong sense of camaraderie on the team. When those employees see an investment of time and energy from their employer, they will reciprocate and show an eagerness to grow in the company.

3. Suggest personal development techniques.

Personal development is a major part of any great leader’s life. Encourage employees to explore techniques in their personal lives to improve their awareness, develop their talents and build human capital while enhancing their quality of life.

There are various tools companies can use -- like exercise.  An April 2015 study from Leeds Metropolitan University found an increase in productivity and satisfaction and improved time management skills when employees exercised during business hours. Encourage exercise regimens and offer flexibility during business hours to provide employees with gym time.

Mindfulness practices are another tool. Yoga, tai chi and meditation are all great for building a sense of "present moment" awareness that helps with decision-making and productivity. There are several free and low cost online resources that can teach meditation, such as Headspace, Calm,Sattva and Buddhify.

These lifestyle choices can increase knowledge and effectively reduce stress and improve productivity. A less-stressed, more productive employee is more apt to learn and develop his or her leadership skills.

Heather R Huhman