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

Real Leaders Own Their Mistakes

Whether you’re a CEO, a manager, or a business owner, you’re the boss, and that means you’ve got a lot of responsibility riding on your shoulders. When you’re in position of authority, your customers, investors, and employees put a great deal of faith in your ability to make the right call. So you have to step up to the plate and deliver.

But sometimes, things go terribly wrong. And while it might be tempting to fall back on some lame excuse or blame someone else, that’s a big red flag that you’re not ready for prime time. If you want to make the big bucks, you’ve got to put on your big-boy pants and hold yourself accountable. Whining and pointing fingers won’t cut it.

Unfortunately, when it comes to the need for business leaders to own their mistakes, far too many bosses act as if they never got the memo.

For example, I’ve heard former Hewlett-Packard CEO Meg Whitman(she’s currently CEO of Hewlett Packard Enterprise and Chairman of HP Inc.) make plenty of thinly veiled excuses for four long years of write-downs, layoffs, and revenue declines before finally giving in to shareholder pressure and splitting the company in two.

Whitman blamed former CEO Leo Apotheker and his botched acquisition of Autonomy. Never mind that, as a board director, she approved every decision he made. She also blamed his predecessor, Mark Hurd (now co-CEO of Oracle) for his acquisition of EDS and R&D cuts.

And when Apotheker was running the show, I remember a couple of earnings calls where he lowered the company's revenue targets after having just raised them. Instead of holding himself accountable for lousy forecasts, he blamed everyone and everything from Hurd and the breakout success of Apple’s iPad to the earthquake and tsunami in Japan.    

In contrast, Hurd never pointed a finger at his predecessor, Carly Fiorina. He simply took the reins, did what had to be done, turned the company around, and led HP to market share gains across all core businesses and five straight years of profit and revenue growth, even though half his tenure coincided with the Great Recession. 

This lack of accountability epidemic is even worse in Washington. Whenever a politician opens his mouth you can expect blame to spew out. Speaking at a fundraiser in Atlanta a couple of years into his first term as President, Barack Obama blamed the sub-prime mortgage crisisand ensuing recession squarely on the Bush Administration:

“We got here after 10 years of an economic agenda in Washington that was pretty straightforward. You cut taxes for millionaires, you cut rules for special interests, and you cut working folks loose to fend for themselves. That was the philosophy of the last administration and their friends in Congress.”

That wasn’t the first time and it certainly wouldn’t be the last that Obama blamed America’s economic woes and chaos in the Middle Easton his predecessor, Republicans in Congress, anyone but himself. Frankly, it’s obscene for a sitting president – the most powerful man in the world – to shirk his responsibility and play a childish blame game.

Bush certainly had his issues, but blaming others for his failures was not one of them.

Not only can Obama, Apotheker, and Whitman learn about leadership accountability from Bush and Hurd, they can also learn about owning their mistakes from the National Football League.

Green Bay Packers head coach Mike McCarthy was recently taken to task for his decision to kick an extra point and send the Arizona Cardinals game into overtime (a fifty-fifty bet), instead of going for a two-point conversion, which the team had done successfully two thirds of the time this season. But like a true leader, McCarthy owned the decision and held only himself accountable.

A couple of weeks before, New York Giants head coach Tom Coughlinmade the rare decision to resign after three losing seasons, instead of putting the team’s management, players, and fans through the drama over whether he’d be fired or not. He left with integrity … and his head held high.

And sophomore wide receiver Odell Beckham Jr. posted an unconditional apology for his unsportsmanlike behavior against cornerback Josh Norman during a Carolina Panthers game. He could have blamed it on taunting by Norman and some pregame antics, but instead, he held only himself accountable.    

This is simple, folks. Everyone makes mistakes, but real leaders own them. Real leaders hold themselves, and only themselves, accountable. The buck really does stop with them. That’s the way it should be. That’s the only way to lead.

Steve Tobak

9 Intangible Assets Dominant Entrepreneurs Possess

Lose your degree. Years of experience can never fully convey your overall worth. There have to be more effective ways to display your value to a potential employer and to the business world at large.

Plain and simple, the resume is old and broken. It hasn’t had a major overhaul in nearly 380 years and it’s time to disrupt how job-seekers and hiring managers find the best candidates to fill positions. Our higher education system is a mess, and online schools continue to challenge the education model. Yet, we still use these same archaic methods for sourcing the right people by only scrutinizing education and years of experience through resumes. Blah!

Conversely, if you're an outlier with ridiculously high talent, unconventional education and little experience (or any combination thereof. For example, a 21-year-old self-taught hacker with no formal education and one year of "job experience."), this broken process makes it even more difficult for you to be discovered.

I’ve been obsessed with studying successful entrepreneurs and found that many have intangible qualities that wouldn’t, or couldn’t, be expressed on a standard resume. In addition, some entrepreneurs even had seemingly negative marks against them (by worldly standards at least) such as dropping out of college, not being able to hold a job, getting fired and unflattering social-media activity.

Here's a list of nine intangible assets that entrepreneurs possess:

1. Ingenuity

You ever hear the saying, being an entrepreneur is like building the bridge as you walk across it? This refers to those entrepreneurs who always answer “yes” when asked if they can do something (even if they have no clue and figure it out as they go). They are the first to volunteer for the seemingly undoable tasks. They do it with confidence, because they believe that they can accomplish anything they put their minds to, even if they have no idea what they are doing.

2. Stubbornness

I’m referring to good stubbornness. These are the “I won’t take no for an answer” people. These people love a challenge and will get back up even if they fall 100 times because they know they are one step closer to getting the result they want. Giving up is not an option.

Here’s a good example:

Kellee Khalil created Lover.ly, a visual search engine and cloud scrapbook for everything wedding-related. According to Business Insider, "One week before Kellee Khalil launched her wedding startup, she received a coffee invitation from a business strategist at a top bridal site. 'We have $70 million to buy competitors just so we can shut them down,' Khalil was told."

Unfazed by the message, and maybe even in spite of it, she has gone on to to build a wedding-site juggernaut where users now view more than 40 million images each month and have “loved and bundled” more than 400 million wedding details.

3. Cool under pressure

This is a tough skill to effectively measure on a person’s resume or LinkedIn profile.

Too many people are brilliant but can’t hang in the real world. They collapse under the first sign of adversity. Others can handle a decent amount of pressure before they crumble, but true A players thrive under pressure. It brings out the best in them. These are the entrepreneurs who seem to pull off the impossible.

4. Their network and peers

It sounds strange, but a person’s peers show a lot about who they are. People typically like to hang around others with the same interests and motivation levels. The saying goes that “you are the sum of five of your closest friends.”

It is the reason Entrepreneur’s Organization is so effective, and partly why LinkedIn exists.

5. Perseverance

Frederick Hutson did four years in the state penitentiary. That alone would dissuade most individuals from even thinking about starting a company, let alone attempt to disrupt an industry as big as the state prison system itself. He has since created a company, called Pigeon.ly, that provides inmates and their families with discounted phone calls and photo sharing.

The company boasts of supporting 2 million minutes per month on phone calls and a quarter-million photo shares. Pigeon.ly was recently accepted into Silicon Valley’s most prestigious accelerator, Y Combinator, and appears to have a very bright future.

Related: The 10 Qualities of Exceptional People

6. Vision

Vision is an undeniably key trait for successful entrepreneurs. Sometimes vision can be the result of having such extensive knowledge of an industry, technology or market that the entrepreneur almost seemingly knows what the world wants. Noah Kagan's vision with SumoMe, and its explosive growth is a perfect example. 

The other type of entrepreneurs' vision, that marks greats such as Steve Jobs and Elon Musk, is to bend the world to their vision.

7. Blind optimism

Justin Barr sold his company, Tapit, for $23 million. He was so blindly optimistic that he slept in his office and pulled all-nighters while working his butt off. He explains, “I just felt something, and went for it.” It didn’t matter what anyone else was doing in the space, he built a product he “knew” was going to be successful. He contributes his “blind optimism” towards his company’s success and ultimate acquisition. 

8. Opportunistic

I recently read about the publicity stunt Tucker Max and Ryan Holidaywere able to orchestrate during one of Tucker’s book launches. Long story short, Tucker was denied the opportunity to make a sizable donation to Planned Parenthood, but despite this, he was able to leverage the controversy into millions of new page views, website traffic and tens of thousands of social-media shares.

The pair saw an opportunity, and leveraged it to the hilt.

9. Execution

Career Sushi has more than 10,000 internships available with companies nationwide including Warner Music Group, Billboard, FunnyorDie.com, Gary Sanchez Productions, Lionsgate Entertainment, Michael Stars and Draftfcb. It is the brainchild of Shara Senderoff, a film industry executive and producer who was determined to fix what she saw as a broken process for hiring interns.

Here’s what she had to say in an interview, “My mindset from a very early age has always been 'to figure everything out and no matter what, find a solution.' I was born a problem-solver. I believe my 'find a solution' attitude has allowed me to set an example to those around me. I've learned to execute, execute and execute again and I don't think I'd have become the leader I am today if I didn't approach everything I do with the belief that I can always be better.”

My co-founder and I believe the traditional model of judging a person's professional worth is broken. That is exactly why we created Intangibly, and feel that this is arguably the most important factor. 

I leave you with this great Jobs quote:

Here's to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They're not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can't do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world are the ones who do.

Andrew Medal

8 ways humor can boost your career and make you more successful

During the boss’s last weekly staff meeting, everyone was texting just below the conference table.

He thought the sudden cheer by two employees meant he’d said something clever (when it was really a score in a Brazilian soccer game).

There’s a reason why motivational speakers start with a joke or a humorous anecdote — it captures the audience’s attention, lightens the mood, sets positive expectations and motivates everyone to be more productive.

In a study from the Journal of Applied Psychology, just one use of humor among work teams resulted in improved performance not just immediately, but up to two years later. Levity also improves recall. It is often the shortest pipeline to the memory banks.

How much bantering you should try depends on your corporate culture. But even in the stuffiest boardroom, there is an appreciation of well-timed lightheartedness.  An upbeat atmosphere encourages innovation and smart risks, which lead to greater productivity.

Here are some tips on applying “intelligent humor” to your job:

1. Test the waters. 

Try a lighthearted comment or your own brand of wit at your next appropriate opportunity. It may go completely over someone’s head—but it may also elicit an equally funny response or facilitate creativity, as you create a fertile, safe ground for thinking out of the proverbial box.

2. Build trust, camaraderie, and honesty. 

When you use humor effectively, you project that there is a real person behind the routine, professional business façade. A manager who infuses laughter among the team engenders an open and honest work environment.

3. Share the spotlight. 

You don’t want to be known as the only employee with the “witty gene,” so let others shine, too. The goal is to be more productive, not engage in one-upmanship joke-a-thon.

4. Put others at ease. 

An occasional self-deprecating joke or amusing anecdote can shift a dicey dynamic in most any meeting. There are few better ways to break the tension barrier. Knowing that a coworker has the ability to be lighthearted establishes a fertile ground for better problem solving.

5. Manage your manager. 

Perhaps you have a tough boss, where you feel you can’t be yourself. Many employees are surprised to see that they can break through the façade of their most difficult managers by adding levity to the equation. In fact, I have seen entire dynamics change between boss and employee. Granted, it is hard to bravely take the first step, but it's well worth it.

6. Don’t make a joke at another’s expense. 

It’s sometimes easy to take a potshot at a co-worker, but a good rule of thumb is that if you think your joke might be at someone else’s expense, then it probably is. A clever, lighthearted comment will often boost morale. Just be sure that in your zeal to entertain others, your humor doesn’t alienate.

7. Lessen the stress. 

If you can see the lighter side of situations at the office, you will make the workplace more relaxing and create a better sense of calm around you. We all want to be around upbeat colleagues.

8. Increase your odds at the interview. 

Job interviews require you to be professional, but that shouldn’t exclude the use of some clever levity. Most hiring managers are drawn to job candidates who know how to put others at ease with a knack of humor; it’s usually associated with a high degree of emotional intelligence.

It may take awhile to develop a comfortable way to use levity in your job, but it’s a worthy pursuit. The goal isn’t to be voted funniest employee, or force yourself to be someone you're not. By being aware of the benefits of adding some wittiness to your “brand,” you’ll likely accelerate your success at your job and in your career.

Lynn Taylor

Are You a Manager or a Leader?

Over the past 15 years of building my real estate business, I've come to learn there's a huge difference between managers and leaders. Too often these words are used interchangeably. I've seen managers who are, in fact, leaders and so-called business leaders who are really nothing more than managers. 

The nuances in meaning are slight, but the business results produced by the two are drastically different. If you search online for the definition of a manager, Google defines it as "a person responsible for controlling or administering all or part of a company or similar organization."

A leader is simply someone who leads.

A manager controls. A leader leads.

It has been my experience that the companies that make a dent in the universe are the ones that are led not controlled by people. 

Are you a manager or a leader? Here are four simple ways to find out:

Related: Managers Can Be True Leaders Not Just Taskmasters

1. Being open to new ideas.

I will admit that there have been times in my career when I have actually caught myself saying, "That's the way it's always been done" to someone. When I do, I know I am trying to control not lead.

When employees or customers challenge the status quo of the way your organization does things, this is an opportune time to let them lead.

Your employees and customers have great ideas, ones that can make your company better. Instead of always saying or thinking, "We do it this way because that's the way we've always done it," challenge yourself to stop controlling the situation and let someone else have a stab at making the company better.

2. Viewing the competiton to learn from it.

"Our competitors are awful," a manager might say. If you're  thinking or saying that the competitors are awful, you're a manager. Managers like to control things and one thing they can't control in business is the competition.

A leader, on the other hand sees that competition can make a company stronger.  Leaders pay attention to what the competition is doing right and what rivals are doing wrong, so that they can learn new and better ways to build their own business. 

Leaders realize that the competition is not awful. It's just different. When explaining their company's value proposition, leaders can eloquently detail how the competition's value proposition differs from their own, without saying anything negative about the other company. 

Related: A Rigid Mind Blocks Success. Try These 5 Strategies for Fearless Leadership. 

3. Embracing the input of staff.

Managers don't ask others for their opinion because by doing so, control is lost. Leaders love using technology like the online-polling tool Survey Monkey so they can poll team members for ideas and advice about everything.

I learned this the hard way. I used to control and manage everything in my business from the planning of events to the training and marketing. When you start to see low attendance at your events and training or find that few are embracing your new ideas, it's time to start asking for help.

I survey members of my team about everything, including what training to offer, how the marketing should look and when and where to host events. By doing this, I get a consensus about what's important to them.

When people are engaged in the decision-making process, they are more likely to embrace whatever organizational endeavors the leader is working on. Even if you have some staffers who don't agree with the final decision, they appreciate having been asked their opinion, which means they're more likely to embrace the initiative even if they don't agree with it.

4. Not needing the final word.

Managers like control and one of the ways they retain it is by analyzing most decision-making processes with an assumption that they are right most of the time. 

Leaders approach things from a different viewpoint, one in which the assumption is that they don't have all the answers and the best way to find the best answers is through collaboration with others on the team.

Related: Are You a Great Leader or a Competent Manager?

Stacey Alcorn

How to Improve as a Manager

Principal Skinner on The Simpsons once asked himself if he had fallen behind the times — wondering why he couldn’t seem to understand his kids. And then, he ultimately concluded that the children were all wrong — that they needed to change.

Chances are, if you’re a manager, you’ve felt this way — like you weren’t on the same page with your direct reports, peers and even your supervisors. You want everyone else to change, but chances are that if issues keep popping up, it might be time to look in the mirror.

If you feel like your career is falling apart, don’t be afraid to turn a critical eye on yourself. You might be underperforming as a manager. Rest assured, however, you are not alone: you can improve as a manager, no matter how long you’ve been at it. After all, you’re always learning, and management roles require patience, practice and dedication. Mistakes are often the best way to learn.

If you find yourself struggling in your leadership position, take a step back and breathe. The following tips can reposition you toward success:

STEP 1: TALK TO YOUR DIRECT REPORTS

Not sure whether the blame lies with you? Talk to your immediate stakeholders: your team. An open, honest conversation can help illuminate your blind spots and improve as a manager.

It’s likely that you already receive a performance review from your own manager, but it’s equally important to maintain a 360 degree view of how your team members perceive you. Ask your direct reports to provide constructive, 1:1 feedback. If privacy and openness are concerns, administer an anonymous survey.

STEP 2: IDENTIFY AREAS FOR IMPROVEMENT

You probably receive constructive feedback on your annual reviews. However, if there is a problem, you shouldn’t wait until then to solve it.

When you realize that something is wrong with what you’re doing, it’s common for emotions to take over. You may feel defensive, helpless or down. Especially if you’re a high achiever, you may even feel like you should give up your role and move on to greener pastures.

Don’t.

You’re human, which means that A) you’re just as vulnerable as anyone else and B) you’re talented enough to self-direct your own course.

Start with three qualities, personal characteristics, or situations that are causing the pain points that you’re experiencing. Attack these, and measure progress and change over time. By focusing on three goals, you will be able to develop a manageable, sustainable process to improve as a manager.

STEP 3: WORK WITH A MENTOR

No matter how badly you think you’re failing, you’re not alone. Others have been where you are before, and you should seek out their guidance. The transition to management is a challenging rite of passage, and the best way to learn is from others who have been just like you — in the very same role.

Reach out to a mentor: someone in a senior role, either within or outside of your organization. In fact, you may want to reach out to multiple mentors. Choose wisely, and don’t be afraid to share what you’re struggling with.

FINAL THOUGHTS: REFLECT

You should always be learning, and that starts with reflection and critical self-assessment. Even the most experienced managers will encounter new challenges and roadblocks. An open mind and positive attitude will help ensure that you’re always on a path to success. At the end of the day, all problems are solvable. Don’t give up. 

Ritika Puri.