Christian Klein: The Unexpected Rise of an Insider at SAP

For Christian Klein, the youthful head of Europe's most valuable company, SAP, May was a month full of highlights. At the Sapphire event in Madrid, which counted over 6,000 participants, he showcased not only his skills as a keynote speaker but also as a golfer on stage, shining in a putting contest against Paul McGinley, the 2014 Ryder Cup captain. This playful success symbolizes Klein's journey so far as CEO of SAP. After a series of initial difficulties and organizational restructuring, the latest milestone of his company marks the peak of a turbulent start. SAP managed to assert itself as Europe's most valuable company against the struggling pharmaceutical giant Novo Nordisk and the weakening luxury goods sector, even though Novo Nordisk regained the lead in June. SAP's remarkable rise is attributed to the company's record sales and profits. The strategic focus on cloud computing coincided with a global AI boom, driving demand for SAP's enterprise software. Klein, with a deep understanding of the company through his 30-year career, has led SAP to new heights. His early days in the role were viewed skeptically by many. Following the departure of Bill McDermott, Klein's American predecessor at ServiceNow, SAP faced harsh criticism. McDermott's acquisition strategy, particularly the purchase of Qualtrics, was criticized even by Oracle under Mark Hurd's leadership. At 45, Klein has the advantage of insider knowledge and used his long connection to SAP to drive change. The challenges were enormous: The COVID-19 pandemic forced him to make a difficult but necessary adjustment to profit forecasts, which temporarily led to a loss in stock value. Additionally, SAP announced a reduction of 10,000 jobs, which drew criticism from within but also paved the path for an AI-driven future. Klein's tenacity and vision, compared to Microsoft's Satya Nadella in his early days, enabled him to stay the course despite resistance and shape SAP into an industry giant. The high expectations he sets for himself and his team drive him to look beyond Europe's success and seek competition with the giants of the US tech industry. Klein's remarkable success not only brings him personal recognition, including a record salary, but also the assurance that SAP's transformation strategy has borne fruit. The next act in his technology world scenario is eagerly anticipated.