注册 登录  
 加关注
   显示下一条  |  关闭
温馨提示!由于新浪微博认证机制调整,您的新浪微博帐号绑定已过期,请重新绑定!立即重新绑定新浪微博》  |  关闭

铁鸟腾空

摆事实 讲道理

 
 
 

日志

 
 
关于我

野夫怒见不平事,磨损胸中万古刀

文章分类
网易考拉推荐

Discrimination Against Chinese and Three-grade elimination in SAP  

2008-08-22 21:04:30|  分类: 默认分类 |  标签: |举报 |字号 订阅

  下载LOFTER 我的照片书  |

 

 

 The following is the translation of a blog from LIU Guohua, a famous reporter and blogger, part of the blog was published in several Chinese newspapers.

The orininal blog: http://blog.sina.com.cn/s/blog_59c322750100a92j.html?tj=1

 

******************************************

On the track of SAP Infightings: “Discrimination against Chinese” and “three-grade elimination” in SAP China

 

Preface

--The story started from “Fuck the Chinese customers ” by a senior manager of North Asia Hub of SAP.

This is the most awful discrimination against Chinese customers in SAP history and the most iniquitous handling of Chinese employees in SAP China. It is also the obvious “price discrimination” policy for Chinese software market and the information asymmetry action of “SAP software China auditing”.

All these facts made the symbolic event of conflicts between Chinese professional managers of foreign enterprises seeking development, advancement and proper treatment and those insolent and jaundiced foreign professional managers after these conflicts are the unavoidable small waves and ripples amidst the big waves of “China’s peaceful rise”. Only when the popping and unceasing small waves and ripples are handled properly can bigger waves be encountered.

Can SAP deal with these small waves and ripples? I believe that ━━

If Mark Gibbs and Geraldine McBride can’t reach an agreement and handle it well, maybe Mr. Léo Apotheker, the superior of Geraldine McBride, have a better strategic vision and capability to solve it.

If Geraldine McBride and Léo Apotheker can’t reach an agreement and handle it well, maybe Mr. Henning Kagermann, a senior of Geraldine McBride, have a better strategic vision and capability to solve it.

If Léo Apotheker and Henning Kagermann can’t reach an agreement and handle it well, then the conflict and partition between the moderates and extremists of SAP worldwide are inevitable.

A “made in Germany” SAP era may draws to a close.

 

Discrimination Against Chinese and Three-grade elimination in SAP

 

The following is the abuse against Chinese customers by a senior manager of SAP North Asia:

“ Fuck xxxx,fuck these people, what did they do in the past months? ……, we shouldn’t do business with these rubbish customers including xxxx, they owed our money, no credit, a lot of demandings ……”

These were the words by a senior manager in charge of key customer business in SAP North Asia. At the night of June 11th, when the Chinese customer side raised an objection against the business plan of SAP at the tele conference which was attended by Cai Jianming, the vice president of SAP China, and its sales team, the senior managers launched the volley of oaths.

The senior manager that let loose a torrent of abuse was assigned from a foreign division not long ago and was in charge of sales management of key customers of North Asia. According to the personnel of SAP, the manger could directly report to Mark Gibbs, the president and CEO of SAP North Asia and had a line management over the key customer business in Chinese and South Korean market. He don’t have work experience of international market (including Chinese market) and he has little understanding of Chinese market and Chinese customers. From this May, as the senior manager of SAP North Asia, he worked with Cai Jianming, vice president of SAP China, to deal with the “Chinese customers and business”.

It is learned that such a SAP senior manger that had hurled insults at customers went so far as to become a hero, maneuvered by some senior executives in SAP Asia Pacific and China, to realize the business miracle of SAP China in the second quarter.

According to an insider, the senior manger always used discriminative words to abuse Chinese customers before Chinese employees during its cooperation with personnel of SAP China. One of older staff said that his public insulting words and attitude showed his resentment and discrimination toward not only Chinese customers but also the Chinese employees. Such attitude for customers is rarely seen in the history of SAP China.

Although Cai Jianming, the vice president of SAP China, had reported to the senior mangers of SAP China and North Asia that “if we show no respect to customer, how could we success in business”, however, there has been no response to such indignity. And Cai Jianming kept on talking to him that customers are our gods and customers’ suggestions for revision are totally based on their reality and needs and their suggestions are reasonable and justifiable.

The senior manger of SAP North Asia used insulting language in the internal audio conference to abuse a customer who was deciding to increase his purchase of SAP software. And the customer was considered to be one of the strategic customers of SAP China and had paid great amount of software licence fees in his ERP program.

Why did the senior manager of SAP discriminate against the customer?

What exactly offended the senior manger of SAP North Asia and cause him to use the insulting words against one of most important customers of SAP China before the employees? Ironically, it was just this Chinese customer that signed the biggest contract with SAP China Company in SAP China history, a purchase of ERP software valued at over 100 million yuan! It was just the huge deal that the senior mangers of SAP North Asia sought credit for from SAP headquarter. It was also the deal that Cai Jianming, vice president of SAP China, spared his last effort and suffered from the elimination of least fairness and basic business ethics.

Could everything be so coincidental?

After detailed investigation, close relations was found among the background of discriminative insults, the most radical business development strategy and the following “elimination” in SAP China this year.   

I pointed out clearly in my recently-published The Wrong Strategy of SAP and its Dilemma in China that after Mark Gibbs took control of SAP North Asia, he set the target of doubling the sales in China software market. That is to increase the 520 million software sales in 2007 to over 1 billion in 2008.   

To reach the strategic goal, Mark Gibbs divided the 1 billion yuan task into 4 quarters. The sales targets are 12%, 23%, 20% and 45% in the first, second, third and fourth quarters respectively. The basis and rationality of the task decomposition needs further observation and research. According to the introduction of a former experienced member last year, there was a normal practice of task decomposition percentage, 16% in the first quarter, 24% in the second quarter, 24% in the third quarter and 36% in the fourth quarter.   

After simple comparison of the two decomposition percentages, an obvious change is that Mark Gibbs cut a total of 9 percentage points of the first 3 quarters and moved the 9 percentage points to the fourth quarter. It means that sales target of SAP China in the fourth quarter is 450 million yuan, only 70 million yuan less than the actual sales of SAP China last year.  

At the beginning of the year, Mark Gibbs replaced Li Wenli to serve concurrently as the CEO of SAP China, and he launched the first reorganization of sales management teams of SAP China. Before that, the sales team of SAP China was composed of LE(large enterprises) and SME(small and medium enterprises) departments. LE was led by senior vice president Zhang Xuefen who was in charge of LE business management of all industries in Chinese market, and SME department was in charge of the software sales in small and medium enterprises.   

The reorganization by Mark Gibbs was actually a division that LE and SME was divided into 7 Groups by sectors and all the Groups were directly controlled by himself. The biggest of the 7 groups was Strategic Sector Group which was still managed by Zhang Xuefen. Under the leadership of Zhang Xuefen, Cai Jianming and other 2 managers directly report to Zhang Xuefen and Zhang Xuefen report directly to Mark Gibbs.   

It was described that the sales of Strategic Sector Group of Zhang Xuefen in the first quarter occupied 41% of SAP China’s target this year. In fact, the sales completed by Zhang Xuefen’s team in the first quarter surpassed the percentage.  

In the first division and reorganization this year, the title senior vice president of Zhang Xuefen didn’t change at all. However, his business scope changed from previous LE business in China into Strategic Sector Sales. In the division and reorganization, strategic sector was not the only group separated from the former LE department. Four other sector groups were formed after being isolated from LE. The four sector groups, together with strategic sector group, MEI and MED (divided from previous SME), made seven equivalent groups.   

In fact, this division and reorganization made a structure transformation from two to seven. And Zhang Xuefen still assumed the half-level higher post to be in charge of strategic sector group. It was said that the purpose of this reorganization of structure was to “flatten management”.   After the first division of Mark Gibbs, the sales volume of SAP China in the first quarter was about 78 million yuan, 65% of the sales target in the first quarter. The figure was almost the same as that during Zimmer’s administration, almost no growth (there was another saying that the figure was 10 million less than that of the corresponding period of the last year). Although the sales of SAP China is almost the same as that of the same period last year, Timothy Cheung( native to Hong Kong, general manager of former GTS of IBM great China ), new managing director of SAP China company announced to media on July 10th that “based on the remarkable performance in the first quarter of 2008, we are expecting SAP China maintain its position as engine of growth for SAP ”.   

According to senior staff’s analysis, the major cause of “almost no growth” of SAP in the first quarter this year was that the ambition and morale of SAP sales teams were greatly affected by the “elimination”. Now it seems that “the first reorganization of Mark Gibbs” was only the prelude of “Mark Gibbs’ elimination” this year in SAP, but SAP China and SAP Asia Pacific had experienced a wave of “elimination”. Last year, the “elimination” started from Klaus Zimmer. However, Zimmer’s finial being eliminated in the last October showed a close relation with Geraldine McBride(the president and CEO of SAP Asia Pacific Japan.)’s taking over. The context will be elaborated later.   

There is a little more. The “elimination” last year of SAP China was under the support of Geraldine McBride and was “mainly operated” by Lee BoonLee, president and CEO of SAP great China. During the “elimination” initiated by Lee BoonLee, who is a native of Singapore and is quite familiar with the market of Hong Kong and Taiwan instead of Chinese mainland, over 20 middle and high level senior managers including Huang Xiaojian and Zhan Ge, two strategic vice presidents of SAP China, and Wang Shengnan, the vice president in charge of training, left SAP one by one. According to some old staff’s introduction, different from “Mark Gibbs’ elimination”, Lee BoonLee has a more than 18-year understanding of SAP and its management culture. He also paid a lot for the SAP old staff that had left. He was clear in his operation and even promoted some key members of sales management like Zhang Xuefen, the top contributor of SAP China.   

Compared with “Mark Gibbs’ elimination”, “Lee BoonLee’s elimination” had more moral virtues and formalities. However, it is certain that “Lee BoonLee’s elimination” and his final being eliminated only 8 months after taking over great China have the same impact on the psychology of old staff of SAP China. After all, this is the first blow to the steady and harmonious SAP Zimmer culture. Perhaps because of this factor, the first operation of “Mark Gibbs’ elimination” in the first quarter was relatively mild. An old SAP employee said, “In the first division, Gibbs keep Bruce stable for a while and only cut some “military power”. In the second division, he cut another. In the third division, Zhang Xuefen was completely cleaned out.

Before elaborating the partition and reorganization in the second quarter, I’d like to make clear the abuse of Chinese customers by a senior manager of SAP North Asia.

As already stated in the article, it was in the second quarter that the Chinese customer decided to increase the purchase of high-valued SAP software (ERP). According to information, since the SAP China in the first quarter didn’t reach the sales target set by Mark Gibbs, the senior managers and sales teams were shouldering great pressure in the market competition in the second quarter.   

It is said that Mark Gibbs used to have a low expectation toward the new purchase deal of the Chinese customer because it is the characteristic of the profession that software purchase usually starts at the end of a year. However, vice president Cai Jianming who was directly in charge of sales in oil and gas sectors made his mind to make a dash in the second quarter in a win-win approach with customers. He set an extremly high target for the sales in oil and gas sectors in the second quarter. The sales team, led by Cai, spared considerate effort in the actual work.   According to a reliable resource of information, the author got the personal comments of Cai Jianming he wrote in a Beijing UBC Coffee on July 7th. He wrote in the article Arrogance and Indignity from Discrimination, “at that time, many SAP colleagues didn’t understand why we (sales team in oil and gas sector) set such a high target. In fact a strong conviction is in my mind that we shall rehabilitate our name with our actual deeds and I do hope that our effort can win their (Mark Gibbs and some new senior managers of SAP North Asia) respect and trust and can change their indifference and prejudice toward Chinese customers.”   

However, to his disappointment, the effort of Cai and his team to “change their indifference and prejudice toward Chinese customers” didn’t make a tiny difference. The attitude and words of some senior mangers of SAP North Asia toward Chinese customers became more unscrupulous. On basis of that, the filthy language against Chinese customers was poured out at an internal audio conference. This is also the worst and most shocking incident of indifference and prejudice toward Chinese customers by some senior managers of SAP North Asia that I have ever known.    At that time, the sales team led by Cai was negotiating with the ERP program group of the Chinese customer on the issue of business plan. As is known that the program for Chinese customers has a wide application scope and complex implementation process, and user numbers, technological terms and commercial terms require a procedure of confirmation from both sides. On the audio conference at the night of June 11th, Cai reported the development of ERP program to the senior manager of SAP North Asia and added that the customer had put forward some suggestions of revision. Upon hearing it, the senior manager broke out in curses, “Fuck xx,fuck these people, what did they do in the past months?……,we shouldn’t do business with these rubbish customers including xx, they owed our money, no credit, a lot of demandings……”

It was said that Cai was very angry at those insulting words and answered, “then, we don’t’ need to do business in China.”    

Those are the basic verified fact of “insulting the Chinese customer” that the author got from reliable resources. And the author is now working on the further investigation of the detail and relevant influences .   

Now it is certain that the senior manager of SAP North Asia had used the insulting words as “Fuck” before the Chinese sales teams after hearing that the Chinese customers put forward some reasonable suggestions of revision of business plans. This is an accurate and reliable fact! Actually, it is this lack of basic respect, ethics, intellect and extremely undiminished discrimination by the senior manager of SAP North Asia that impregnate unprecedented depression and humiliation to many old staff of SAP including vice presidents of Zhang, Cai and Wang.   

An old staff told the author, “ we feel a pain of heartbreak to see before our eyes that the management and culture of SAP are undergoing substantial changes. The discrimination against either Chinese customers or employees is growing dramatically.” Cai Jianming also wrote in his personal comment that the Chinese staff have great commitment to their work. They always work overtime and sacrifice their weekend if necessary. However their efforts are paid back with suspicion and distrust instead of praise and recognition. Once, Cai was accompanying the Sinopec customers in another city to attend the ERP Kick-off Meeting of three relevant units under Sinopec. When Mark Gibbs knew that Cai was out on a business trip, he leveled a reproach against him with picky questions.

In fact, under the circumstance of such discrimination and harassment by the new senior manager in the company, Cai Jianming and its teams still endured the humiliation, maintained the relations with Chinese customers, carried forward the responsibility, integrity and loyalty and cooperated with ERP program group intensively and patiently to advance the business development.   

Cai and his team finally touched the customer, the Chinese customer.  

On June 30, Cai finally accomplished the biggest ERP contract in history in SAP China. The contract brings back about 27% of the whole-year software sales of SAP China, or 50% of the second quarter this year.  

On the same day, Cai Jianming also signed another contract valued equivalent to the huge software contract of Sinopec. In the entire second quarter, Cai Jianming completed a sale more than half of the second quarter sales of SAP China.   

In fact, it is because of the effort and contribution of “Cai Jianming and his team” that SAP China that suffered twice from “reorganization” consecutively finally fulfilled the sales target of the first half of this year.   

“Mr. Cai actually saved Mark Gibbs. Without his contribution in the second quarter, Mark Gibbs will be eliminated sooner or later.” The former vice president of SAP China, a famous ERP expert, believed that SAP has transformed from an enterprise, previously led by steady management style of Germany engineer and stressing on long-term value, into an enterprise, led by “pure sale” concept and stressing on aggressive “exploiting” and short-term interest.    When hearing that Cai Jianming made the biggest deal in the history of SAP China, Mark Gibbs, at 10 pm of June 30, wrote in the congratulatory letters, “Personal thanks and hearty congratulations for the biggest quarter and the biggest dealever. Full respect and thanks.”    Before signing the contract, senior managers of SAP North Asia also heaped great praises on the effort of Cai Jianming on ERP program of Chinese customers, “Jack,you will make a legend, you will make history! You will be a hero!”  

“Compared between those words of flourish and the result today, we can see how hypocritical they are.” Cai Jianming wrote in his “personal comments”, “all those words are just their lines and we are only their manipulative toys for discrimination. So they think it scorn to care about the feelings of Chinese employees and Chinese customers. Due to their haughtiness, when they make any decision, they don’t think it necessary to consider the possible consequence because they think they have a control of every thing.”   

Cai Jianming’s comments have its causes.   

Only 4 days after Mark Gibbs sent the congratulatory letters at 10 pm on June 30, at the noontime of July 4, Mark Gibbs “entrusted” Zhang Liesheng, the managing director of SAP China, made an appointment with Cai Jianming at a hotel. What deserves to be mentioned is that during the one-hour conversation that Cai was not noticed of any content, 55 minutes from the beginning was full of contented chat and Zhang was just trying to know about Zimmer, Li Wenli and some former SAP old staff. In the final 5 minutes, Zhang suddenly said to Cai, “ it’s getting late and I have something to tell you. The company will have a reorganization and Paul Chan will be the new-appointed vice president in charge of oil and gas sector sales. You will need to report to him.”   

It is learned that Zhang just left without giving any explanation of the SAP reorganization and Cai’s degradation. The appointment came to the end at a sudden.   

Three days later, on July 7, SAP China held a three-day “Sales Convention of The Third Quarter” in Jiuhua Mountain. In the second day of conference, July 8, Zhang Liesheng officially announced the change of personnel━━ 4 newly-appointed vice presidents (Paul Chan, Andy He, Kennard Leung, Desmond Jiang) and the degradation of two vice presidents, Zhang Xuefen and Cai Jianming. According to “Zhang, Cai and Wang”, just like the “notice in the last 5 minute” 3 days ago, this announcement also didn’t give any reasons for the degradation. The following series of “farcical” disputes and conflicts are detailed in the article the Strategic Mistake Of SAP And Dilemma In China. It is noticeable that Mark Gibbs didn’t show up but asked his assistant to attend the conference. According to one of the SAP staff in the conference, it was interesting that, after hearing the challenging speech by “Zhang, Cai and Wang”, Zhang Liesheng was in bewilderment at first and then lower his head to check his cell phone.   

It has been proved by many facts that the “degradation” and following “immediate dismissal” handling to Cai Jianming, a hero who have just made a miracle and history for SAP, by Mark Gibbs and Zhang Liesheng was totally not a normal change of personnel but a Cain of contrived, organized and designated “elimination” aiming at old key staff of SAP. Wang Wen, the former vice president of SAP China, was also “eliminated” due to his “fair words”, which further showed the nature of this “personnel change”.   

A former senior manager of SAP China said that it was totally unreasonable and it was just a new-round political conflicts. Compared with “Gibbs elimination”, the tactics and approaches of this “political elimination” were more awful.   

And the case of Zhang Xuefen more clearly showed the difference of approaches between “Gibbs elimination” and “Li’s elimination”.   

At the beginning of April, senior vice president Zhang Xuefen who had been “partially weakened” in the first “division and reorganization” at the beginning of this year suffered from another “division”, which was also the second “division and reorganization” in the context of “Gibbs elimination” this year.   

At this time, on the basis of “two to seven” management flattening, there came a “seven to nine” division. This “division” mainly focuses on handling of “the strategic sector group of Zhang Xuefen”. Zhang’s “big group” was split into 3 “sector groups”, which join with the former 6 “non-strategic sector groups” to be “9 groups”. The “9 groups” report directly to Mark Gibbs. (Zhang Liesheng who joined the groups in May took part in the business management of SAP China after the second division). After the second division and reorganization, Zhang Xuefen was appointed as the vice president in charge of steel and chemical industry and was kept abreast with other 8 groups.

 

To Be Continued...

Posted by Allen Shore at 1:41 AM 0 comments Links to this post  

Friday, August 15, 2008

WhistleBlower Retaliation ( Leagh Warren Event )

 

Background

Mark Gibbs joined SAP on Q4 of 2007 as the president of SAP North Asia Hub. Shortly after his on board, he recruited Leigh Warren, an ex-subordinate of Mark in Oracle, as the COO of SAP NAH, which is an important position responsible for the sales operation. In fact, Leigh has been second chair in SAP NAH since then. Leigh is very active in his new position, internally and externally. But the strange thing is that technically Leigh is "not" an SAP employee, but a "consultant". Why? The answer shew up quickly. Almost immediately after Leigh took his new role as COO, he mandated all the sales to enroll in a very expensive training conducted by a company called Alcuin. If you search for "Alcuin" and "Leigh Warren" in google, you will find Leigh is the partner of Alcuin. This will obviousely be a conflict of interest if Leigh is an SAP employee. But the question is whether it really makes any difference if Leigh techically is a "consultant", according to the principle of "Substance over Form". On the contrary, this intentional arrangement casts more doubts on the behaviour of Leigh Warren and Mark Gibbs.

On July 8, after some arguments about the new organization changes in the Q3 Sales Rally meeting for SAP China, Gordon Wang, VP of SAP China, a local Chinese staff, asked Leigh Warren to explain his role and his relationship with Alcuin during a 3-people conversation (another participant was Jennifer Ng, HR director of SAP APJ). Then in the evening of the same day, Gordon's email was blocked and he was forbidden from entering SAP's office. The second day, Gordon got fired.

There are two things need to be noticed. First, Gordon himself was not affected by the organization changes. Second, the actions taken by SAP China were extraordinary this time, compared with other termination of employment caused by much more serious activities. For example, in 2007, the VP of Alliance of SAP China, a Malaysian, asked for a bribery from a local partner and was caught by policemen just during the negotiation with that partner in SAP Beijing office. Even then, the guy stayed in SAP for 1 more month.

 

Current Situation

Gordon recently reported to the office of Compliance Inspections and Examinations ("OCIE") of SEC of the United States, asking for an inspection for both Non-compliance and Whistle Blower Retaliation of SAP.

 

Analysis

Apart from the event itself, the following 2 risks deserve an evaluation for investors and financial analysts.

First, this event may not be confined only to SAP China. SAP global Chief Compliance Office has already envolved in this event. But unfortunately, after more than 4 weeks investigation, they gave the conclusion: "...we have not uncovered any information that would lead to a conclusion that Leigh had a financial interest in the training services vendor, Alcuin.", while the facts seem so easy to approach. And at the same time, Leigh Warren faded out of SAP China's operation. So not only SAP China but also SAP global may be considered culpable in the Relaliation.

Second, it is not sure whether the report only includes this non-compliance event. And as far as the OCIE starts the inspection of non-compliance, will any other more serious issues be revealed? Will it open the Pandora's box? Anyway, it is widely condemned by SAP's local competitors that SAP China's success in the state-owned companies, such as State Grid, is not purely because of its product.

 

Again, this is just a beginning...

  评论这张
 
阅读(1566)| 评论(0)
推荐 转载

历史上的今天

评论

<#--最新日志,群博日志--> <#--推荐日志--> <#--引用记录--> <#--博主推荐--> <#--随机阅读--> <#--首页推荐--> <#--历史上的今天--> <#--被推荐日志--> <#--上一篇,下一篇--> <#-- 热度 --> <#-- 网易新闻广告 --> <#--右边模块结构--> <#--评论模块结构--> <#--引用模块结构--> <#--博主发起的投票-->
 
 
 
 
 
 
 
 
 
 
 
 
 
 

页脚

网易公司版权所有 ©1997-2017