Sales Culture

Culture DefinedWe define Culture as the combination of values, principles, and behaviors that, taken together, provide a NA Sales environment where we attract, develop and retain the best resulting in a highly motivated and innovative workforce that promotes CA’s Core Values and attainment of CA’s strategies and objectives.”

NA Sales CultureOur ValuesOur PrinciplesOur Beliefs

NA Sales CultureOur 9 ValuesOur 8 PrinciplesOur Beliefs

You can see real company values by who gets rewarded, promoted, or let go5

Real values are the behaviors and skills that we value in fellow employeesEthicalMoralWinningHigh PerformanceOne TeamTrust CommitmentSupportFamilyUnderstanding

Respect for PeopleYou are open, honest and ethical You assume positive intent in othersYou are quick to admit mistakesYou are non-political when you disagree with othersYou only say things about fellow employees you will say to their faces

Consistently Innovate and AdvanceYou remove roadblocksYou reward intelligent risk takingYou create new ideas that prove usefulYou challenge prevailing assumptions when warranted and suggest better approachesYou make wise decisions despite ambiguity

Inspire Customer LoyaltyYou are dedicated to outstanding qualityYou do the right thing for our customersYou seek to understand our strategy, market, and customersYou are broadly knowledgeable about business, technology and our customer’s needs

Create Amazing Team SpiritYou have fun and work hardYou deliver on promisesYou seek what is best for CA, rather than best for yourself or your functionYou make time to help your colleaguesYou share information openly and proactively

You identify root causes, and get beyond treating symptomsYou pursue issues to discover practical solutions to hard problemsYou think strategically, and can articulate what you are, and are not, trying to doYou smartly separate what must be done well now, and what can be improved laterJudgment11

You listen well, instead of reacting fast, so you can better understandYou are concise and articulate in speech and writingYou are known for candor and directnessYou treat people with respect independent of their status or disagreement with youYou maintain calm poise in stressful situationsCommunication12

You accomplish amazing amounts of important workYou demonstrate consistently strong performance so colleagues can rely upon youYou learn rapidly and eagerlyYou focus on great results rather than on processYou exhibit bias-to-action, and avoid analysis-paralysisImpact13

You tactfully say what you think even if it is controversialYou make tough decisions without excessive agonizingYou take smart risks even when the choice not to do so is openYou question actions inconsistent with our valuesCourage14

You inspire others with your thirst for excellenceYou care intensely about CA’s successYou celebrate winsYou are relentlessYou are the examplePassion15

“You question actions that are inconsistent with our values”Part of the Courage valueAkin to the honor code pledge:“I will not lie, nor cheat, nor steal, nor tolerate those who do.”All of us are responsible for value consistency16

Values reinforced in hiring, in 360° reviews, at comp reviews, in exits, and in promotions17

Principle 1. High Performance from EveryoneImagine if every person in CA NA Sales is someone you respect and learn from…

Like every company, we try to hire well and retain the bestPrinciple 1. High Performance from Everyone

But, unlike many companies, we practice “adequate performance gets a generous severance package.”Principle 1. High Performance from Everyone

We’re a team, not a familyWe’re like a pro sports team, not a kid’s recreational teamCoaches’ job at every level of CA to hire, develop and cut smartly, so we have starts in every position22Principle 1. High Performance from Everyone

Principle 1. High Performance from EveryoneThe Keeper Test Managers Use:“Which of my people, if they told me they were leaving in two months for a similar job at a peer company, would I fight hard to keep at CA?”23

The other people should get a generous severance now, so we can open a slot to try to find a star for that roleThe Keeper Test Managers Use:“Which of my people, if they told me they were leaving in two months for a similar job at a peer company, would I fight hard to keep at CA?”24Principle 1. High Performance from Everyone

Honesty AlwaysTo avoid surprises, you should periodically ask your manager: “If I told you I were leaving, how hard would you work to change my mind to stay at CA?”25Principle 1. High Performance from Everyone

What about Loyalty?What about Hard Workers?What about Brilliant Jerks?26Principle 1. High Performance from Everyone

Principle 1. High Performance from EveryoneLoyalty is GoodLoyalty is good as a stabilizerPeople have been stars for us, and hit a bad patch, get a near term pass because we think they are likely to become stars for us againWe want the same: if CA hits a temporary bad patch, we want people to stick with usBut unlimited loyalty to a shrinking company or to an ineffective employee, is not what we are about27

Principle 1. High Performance from EveryoneHard Work – Not Directly Relevant It’s about effectiveness – not effort – even though effectiveness is harder to assess than effortWe don’t measure people by how many evenings or weekends they are in their cubeWe do try to measure people by how much, how quickly and how well they get work done – especially under deadline28

Brilliant JerksSome companies tolerate themFor us, the cost to teamwork is too highDiverse styles are fine – as long as the person embodies the 9 Values29Principle 1. High Performance from Everyone

Principle 1. High Performance from EveryoneWhy are we so manic on high performance?In procedural work, the best are 2x better than averageIn creative work, the best are 10x better than average, so huge premium on creating effective teams of the best30

Principle 1. High Performance from EveryoneWhy are we so manic on high performance?A Great Workplace is made up ofAmazing Colleagues31

Principle 2. We are Grounded and DecisiveOur strategies are grounded in reality

Principle 2. We are Grounded and DecisiveWe deal with FACTS not opinions

Principle 2. We are Grounded and DecisiveItems discussed can be executed uponThey’re not just theoretical

Principle 2. We are Grounded and DecisiveWe use data effectivelyWe draw conclusions No analysis paralysis

Principle 3. Everything we do is Pass-Fail because…The outcome trumps the taskWe are Goal Driven

Principle 3. Everything we do is Pass-Fail because…We are fanatical about goalsWe Keep Our Eye on the BallWe know how to block and tackle

Principle 3. Everything we do is Pass-Fail because…We never let circumstances compromise our commitment to our goalsWe don’t rationalize mistakes.Can Do!

Principle 4. We are Fast and Relentless, soWe have outrageous urgencyThe Impossible is Possible

Principle 4. We are Fast and Relentless, soWe NEVER quit on a deal The Impossible is Possible

Principle 4. We are Fast and Relentless, soWe anticipate obstacles and plan for themThe Impossible is Possible

Principle 4. We are Fast and Relentless, soWe prioritize our time to stay proactiveSuccess@30 is our mantraThe Impossible is Possible

Principle 5. We are CommittedWe are committed to something bigger than self; to fellow team members, to the team or function or area, to the Areas and the NAs.

Principle 5. We are CommittedLeaders emerge from any position

Principle 5. We are CommittedWe pull off the impossible

Principle 5. We are CommittedWe imagine and take on the unconventional

Principle 5. We are CommittedWe are creativeThere is always a better way

Principle 6. We are ResilientWe don’t require perfect circumstances for success

Principle 6. We are ResilientProblems are opportunities in disguiseProblems are opportunities to shine

Principle 6. We are ResilientChange creates energyResistance to change retards growth

Principle 6. We are ResilientChallenges are motivation

Principle 6. We are ResilientWe are undauntedSwaggerWe are LEGENDARY

Principle 7. We are Winners, whoThoughtfully pick battlegrounds…and then go all-in

Principle 7. We are Winners, whoHave high standards for deployment of finite resources

Principle 7. We are Winners, whoSet high standards of professionalism and demand compliance

Principle 7. We are Winners, whoDiscipline to strip-line

Principle 7. We are Winners, whoFanatical about organization charts and High Value Networking HVN is a daily HABIT

Principle 7. We are Winners, whoNot afraid to ask the tough questions

Principle 8. We are Strategic Partners We have business acumen

Principle 8. We are Strategic Partners Business Alignment templates are way of life

Principle 8. We are Strategic Partners We speak in our customer’s language

Principle 8. We are Strategic Partners We understand our customer’s business

Principle 8. We are Strategic Partners We articulate future end-state and business outcomes

Principle 8. We are Strategic Partners We are not afraid of financials and business metricsROI is KING

We believe that… Responsible PeopleThrive on FreedomAnd are Worthy of Freedom66

We believe that… The Responsible Person isSelf motivatingSelf awareSelf disciplinedSelf improvingActs like a leaderDoesn’t wait to be told what to doNever feels “that’s not my job”Picks up the trash lying on the floorBehaves like an owner67

Our desire is to increase employee freedom, rather than limit it, and thereby continue to attract and nourish innovative people, so we have a better chance of long-term continued success68

With the Right PeopleWe can expectResponsibility,Innovation and Self-Discipline from each person and therefore provide more Freedom69We believe that…

Is Freedom Absolute?Are all rules and processes bad?70

Freedom is not absolute.Like “free speech” there are some limited expectations to“freedom at work”71

Two Types of Necessary RulesPrevent irrevocable disasterE.g. Financials produced are wrongE.g. Hackers steal our customers’ informationMoral, ethical, legal issuesE.g. Dishonesty, harassment are intolerable72

Mostly, Though, Rapid Recovery is the Right ModelJust fix problems quicklyHigh performers make very few errorsWe’re in a creative-inventive market, not a safety-critical market like medicine or nuclear powerYou may have heard preventing error is cheaper than fixing itYes, in manufacturing or medicine, but…Not so in creative environments73

An example of Freedom and Responsibility74

Most companies have complex policies around what you can expense, how you travel, what gifts you can accept, etc.Plus they have whole departments to verify compliance with these policies.75

CA Policies for Expensing, Entertainment, Gifts and Travel:“Act in CA’s best interests”(5 words long)76

“Act in CA’s Best Interests”Generally Means…Expense only what you would otherwise not spend, and is worthwhile for work.Travel as you would if it were your own money.Disclose non-trivial vendor gifts.Take from CA only when it is inefficient to not take, and inconsequential.“taking” means, for example, printing personal documents at work or making personal calls on work phone: inconsequential and inefficient to avoid77

Freedom and ResponsibilityMany people say one can’t do it and scaleBut since going public in 2002, which is traditionally the beginning of the end for freedom, we’ve increased talent density and employee freedom substantially.78

Summary of Freedom and Responsibility:Minimize Rules.Inhibit Chaos With Ever More High Performance People.Flexibility Is More Important Than Efficiency In The Long Term.79

“If you want to build a ship, don’t drum up the people to gather wood, divide the work, and give orders. Instead teach them to yearn for the vast and endless sea.”-Antoine De Saint-Exupery,Author of The Little Prince*translation uses ‘people’ instead of ‘men’ to modernize80We believe that …

The best managers figure out how to get great outcomes by setting the appropriate context, rather than by trying to control their people81We believe in EmpowermentIt’s about Context, not Control

Context not ControlProvide the insight and understanding to enable sound decisionsContextStrategyMetricsAssumptionsObjectivesClearly-defined rolesKnowledge of the stakesTransparency around decision-making ControlTop-down decision-makingManagement approvalCommitteesPlanning and process valued more than results82

ExceptionsControl can be important in emergencyNo time to take long-term capacity-building viewControl can be important when someone is still learning their areaTakes time to pick up the necessary contextControl can be important when you have the wrong person in a roleTemporarily, no doubt83

Managers: When one of your talented people does something dumb, don’t blame them.Instead, ask yourself what context you failed to set.84

Managers: When you are tempted to “control” your people, ask yourself what context you could set instead.Are you articulate and inspiring enough about goals and strategies?85

Good ContextLink to company/functional goalsRelative priority (how important/how time sensitive)Critical (needs to happen now), or…Nice to have (when you can get to it)Level of precision and refinementNo errors (credit card handling, etc.), or…Pretty good/can correct errors (website), or…Rough (experimental)Key stakeholdersKey metrics/definitions of success86

Why Managing Through Context?High performance people will do better work if they understand the context87

Investing in ContextThis is why we are so open internally about strategies and results88

Highly Aligned, Loosely CoupledThree Models of Corporate TeamworkTightly-Coupled MonolithIndependent SilosHighly Aligned, Loosely Coupled89

Tightly-Coupled MonolithsSenior management reviews and approves nearly all tacticsLots of x-departmental buy-in meetingsKeeping other groups in agreement has equal priority with pleasing customersMavericks get exhausted trying to innovateHighly coordinated through centralization, but very slow, and slowness increases with size90

Independent SilosEach group executes on their objectives with little coordinationWork that requires coordination suffersAlienation and suspicion between departmentsOnly works well when areas are independentE.g. GE: aircraft engines and Universal Studios91

The NA Sales ChoiceTightly-Coupled MonolithIndependent SilosHighly Aligned, Loosely Coupled92

Highly Aligned, Loosely CoupledHighly AlignedStrategy and goals are clear, specific, broadly understoodTeam interactions are on strategy and goals rather than tacticsRequires large investment in management time to be transparent and articulate and perceptive and openLoosely CoupledMinimal cross-functional meetings except to get aligned on goals and strategyTrust between groups on tactics without previewing/approving each one – groups can move fastLeaders reaching out proactively for ad-hoc coordination and perspective as appropriateOccasional post-mortems on tactics necessary to increase alignment93

Highly-Aligned Loosely Coupled teamwork effectiveness is dependent on high performance people and good contextGoal is to be Big and Fast and Flexible94

We believe that …Pay Top of Market is Core to High Performance CultureOne outstanding employee gets more done and costs less than two adequate employeesWe endeavor to have only outstanding employees95

Three Tests for Top of Market for a Person What could person get elsewhere?What would we pay for replacement?What would we pay to keep person?If they had a bigger offer elsewhere96

Employee SuccessIt’s pretty ingrained in our society that the size of one’s raise is the indicator of how well one did the prior year – but at CA there are other factors too – namely, the outside marketIn our model, employee success is big factor in comp because it influences market valueIn particular, how much we would pay to keep the personBut employee success is not the only factor in comp, so the linkage of prior year performance to raise size is weak97

Good For Each Employee To Understand Their Market ValueIt’s a healthy idea, not a traitorous idea, to understand what other firms would pay you, by interviewing and talking to peers at other companiesTalk with your manager about what you findMinor exception: interviewing with groups that directly compete with CA, because their motive is in part confidential information 98

In some time periods, in some groups, there will be lots of opportunity and growth at CASome people, through both luck and talent, will have extraordinary career growth99Promotions & Development

Baseball Analogy: Minors to MajorsVery talented people usually get to move up, but only true for the very talentedSome luck in terms of what positions open up and what the competition isSome people move to other teams to get the opportunity they wantGreat teams keep their best talentSome minor league player keep playing even though they don’t move up because they love the game100

CA Doesn’t Have to be For LifeIn some times, in some groups, there may not be enough growth opportunity for everyoneIn which case we should celebrate someone leaving for a bigger job that we didn’t have available to offer themIf that is what the person prefers101

Two Necessary Conditions for PromotionJob has to be big enoughWe might have an incredible manager of something, but we don’t need a director of it because the job isn’t big enoughIf the incredible manager left, we would replace with manager, not with directorPerson has to be a superstar in current roleCould get the next level job here if applying from outside and we knew their talents wellCould get the next level job at peer firm that knew their talents well102

TimingIf manager would promote employee to keep them if employee were thinking of leaving, manager should promote now, and not waitBoth tests still have to be passedJob big enoughSuperstar in current role103

DevelopmentWe develop people by giving them the opportunity to develop themselves, by surrounding them with stunning colleagues and giving them big challenges to work onMediocre colleagues or unchallenging work is what kills progress of a person’s skills104

Individuals should manage their own career paths, and not rely on a corporation for planning their careersLike retirement planning – safer as individual responsibility105

Individual’s economic security is based upon their skills and reputationWe try hard to consistently provide opportunity to grow both106

Why is culture important?What is our culture trying to support?107

Culture is How a Firm OperatesWhat practices give CA the best chance of continuous success for many generations of technology and people?108

Continuous Success = Continuous growth in revenue, profits and reputation109

Need a culture that supports rapid innovation and excellent execution110Both are required for continuous growthThere is tension between these two goals; between creativity and discipline

Need a culture that supports effective teamwork of high-performance people111High performance people and effective teamwork can be in tension also – stars have strong opinions

Need a culture that avoids the rigidity, politics, mediocrity, and complacency that infects most organizations as they grow112

This slide deck is our current best thinking about maximizing our likelihood of continuous success113

Our culture is a work in progressEvery year we try to refine our culture further as we learn more114

Sales Culture

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