When Leadership Goes Off-Brand: Lessons from SAP’s CTO Resignation

Leadership, especially at the CxO level, demands more than just strategic acumen—it requires complete alignment with the company’s values and culture. Recently, SAP’s CTO was forced to step down after an off-brand incident at a company event, a stark reminder that even those at the highest level must remain true to the brand's ethos. The swift and decisive action wasn’t just a punitive measure, but a clear message that the integrity of SAP’s culture is non-negotiable.

Why Leaders Must Embody Company Values

Leaders play a crucial role in setting the tone and culture of a company. They are the living embodiment of the brand’s core values, and when they deviate from those values, it puts the entire organisation at risk. In this case, #SAP had to make the hard choice of asking their CTO to resign, not only to address the individual’s behaviour but to protect the long-term reputation and trust the company has built with its customers, employees, and stakeholders.

Culture is the soul of any company. When leadership fails to uphold it, the damage is more than reputational; it risks shaking the internal trust that holds a company together. The SAP situation highlights a simple truth: no one is above the company’s culture, and protecting it often means making tough decisions.

The Consequences of Misaligned Leadership

This isn’t the first time we’ve seen a CxO forced to step down to maintain cultural integrity. Consider the case of McDonalds CEO Steve Easterbrook, who resigned after violating company policies by engaging in a consensual relationship with an employee. Despite his success in turning the company around, the board recognised that allowing him to stay would have compromised the company's values, undermining internal trust and external credibility.

Another well-known example is Travis Kalanick, co-founder and former CEO of Uber, who resigned following a string of scandals related to toxic workplace culture. Uber’s rapid success was overshadowed by reports of sexual harassment, discrimination, and unethical business practices under Kalanick’s leadership. The board realised that allowing these behaviours to continue unchecked would not only harm their reputation but potentially derail the company’s long-term success. These incidents serve as powerful examples of how failing to uphold values at the top can erode a company's foundation from within.

When Culture and Leadership Clash

Leadership missteps can erode company morale and open the door to further cultural damage. Employees look to their leaders as examples, and when those at the top fail to embody the company's principles, it creates confusion, demotivation, and a lack of trust. A company’s culture isn’t just what it says in the mission statement—it’s lived and demonstrated every day, especially by those in leadership. Failing to uphold these values at the CxO level sends a message that they don’t matter, ultimately leading to the implosion of internal cohesion and brand credibility.

At SAP, the decision to remove the CTO wasn’t just about enforcing policy—it was about protecting the lifeblood of the company. Every leader has the responsibility to maintain and enhance company culture, not dilute it. When they fail to meet this standard, even with a proven track record, companies must act to preserve their long-term sustainability.

The Larger Lesson for Businesses

The message is clear: a company's culture is its most valuable asset. It's what defines how employees work, how customers see the brand, and how the world perceives its ethics. Leaders at every level must not only live the values of the company but actively uphold them in all interactions. When leadership deviates from these core principles, it can create fractures that are difficult, if not impossible, to mend.

In the case of SAP’s CTO, stepping down wasn’t just a punishment—it was a strategic decision to safeguard the company’s core identity. As seen with other CxOs, such as Easterbrook and Kalanick, when leaders lose sight of the values that define the company, it’s a clear sign that they’re no longer fit to lead. The repercussions of keeping someone who goes off-brand can be severe, leading to lost trust, declining morale, and eventually, a collapse in the company’s internal culture.

Conclusion: Integrity Over Influence

Leaders must remember that influence comes not just from strategic decisions but from embodying the brand and company culture. SAP’s decision is a powerful reminder that no one, no matter how high-ranking, is above the values that define a company. Protecting the culture means holding everyone, especially those at the top, accountable. As companies grow, evolve, and navigate complex challenges, staying true to the core values is what will ensure long-term success, stability, and the trust of both employees and customers.

In a world where actions matter more than ever, ensuring that leaders stay on-brand isn’t just a good practice—it’s essential to survival.

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