Principles and Practice of Management

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Principles and Practice of Management

Principles and Practice of Management CASE STUDY (20 Marks) With the aim of preparing Leo Apotheker, a board member and Deputy Chief Executive, as the next CEO, Henning Kagermann, SAP's executive board's Chairman and Chief Executive Officer (CEO), requested the supervisory board to appoint Leo as co CEO. In the past, the same pattern of leadership transition was adopted by SAP for grooming successors at SAP. Leo would work with Henning as co CEO at SAP for a year before taking over as sole CEO of the company.

Henning's contract with SAP expires in May Moreover, SAP had invested heavily to create trendsetting innovations in the areas of service oriented architecture (SOA), new solutions and business models for the midmarket, but it faced challenges from its nearest competitors like Oracle, which is moving fast ahead in SOA. For executing its strategy, SAP was looking forward to Leo, who was different from the previous bosses of SAP as he was neither a member of the founder's generation nor a geek. Leo had a strong sales background. The case facilitates discussion on the leadership transition at SAP and Leo's ability to rise to the occasion.

Answer the following question. Q1. Discuss the leadership transition at SAP and succession planning. Q2. Explain the cultural changes in the organization & opportunities for business growth.