We respect and are proud of our culture and history because they are an important part of what made Henkel the outstanding company it is today. And then of course, you said yourself, you know, aggressive targets. Why havent other firms been as successful? If you make mistakes, recognize the mistakes and correct them and move forward to In 2021, the company released the Stan Smith Mylo, a vegan version of its iconic Stan McKinsey: On the topic of getting the team right, how do you recruit and retain the best peopleespecially in markets where the Henkel brand is not so well known? Everything here exudes tradition, dignity, and a spirit that seems to draw its strength from the stillness. Egon Zehnder: After a career devoted solely to IT, at the age of 42 you decided to change industries. Video from the interview will be available at cnbc.com/evolve. That's another tricky tightrope that you have to walk when it comes to speaking out against human rights. Visit our Press Room to find our press contacts, reports and publications. And who is Kasper Rrsted? in April. We already have very good people, but we are going to keep raising the bar in the future, as indeed we must. Doesnt the substance play a major role as well? Then we have a full range of HR development tools that can be applied according to the potential of the individual candidate. Kasper Rorsted: I would like to share a piece of advice my father gave me many years ago. Skip Over Breadcrumbs and Secondary Navigation, Kasper Rrsted, CEO of Adidas, is the Muma College of Business Thought Leader Series Do you feel thats important to do as a CEO? conversations that cover a wide range of topics. You dont find this very often in the IT business, where I worked before joining Henkel. Kasper Rorsted will join the adidas Group as a member of the Executive Board on August 1, 2016 in order to ensure a smooth transition at the helm of the Group together with Herbert Hainer. The company has pledged to make nine out of every 10 products sustainable by 2025. Making it clear to everyone that we dont want to discard company traditions, that we value them, but at the same time that we need to break new ground was a major challenge, not only for me, but for the entire Management Board. Germany. So I do think that it's very important that the industry takes the critique, you know, at heart. We cant afford to rest on our laurels here. The sportswear giant announced today that its supervisory board extended the appointment of the executive chief for another five years. and authors in business and industry for informal talks that cover a wide range of Last September the company organized its second global Rorsted. Kasper Rorsted. in the IT and computer industry. We conducted 670 workshops across the globe, which yielded around 6,000 initiatives for implementation. Kasper Rorsted: , am convinced that a visible and accessible leadership style is most e ective My door is open; , encourage colleagues to call me directly Our employees know who , am and what ,m doing , eat with employees in our canteens whenever , am traveling or here at headTuarters <ou cannot run a global company But it's a question of time. Nike has also made a lot of moves on this front. We now employ about 47,000 people from more than 120 nations, working in more than 75 countries; over 80 percent of our employees work outside Germany. Rorsted: So going back, I think it should be what the company should be doing rather than I. I think if I were to pick one out it is really in plastic waste. from the companys headquarters in Germany. But we need to focus on the future. Kasper Rorsted: The five big tasks of the Adidas CEO - ISPO.com And that's why a lot of the big companies are making steps ahead. Egon Zehnder: Kasper, when you were appointedChief Executive Officer of Henkel in 2008, you said that there would not be a revolution within the company under your leadership, but rapid evolution. Kasper Rorsted, who has been Adidas CEO since 2016, will step down sometime next year, and the search for his replacement has begun, the sports footwear and apparel brand said Monday. Do. at Henkel in 2005 as the executive vice president for human resources management, procurement, IT, and infrastructure services. In addition, the entire Henkel Management Board knows our top 300 or 400 people personally and knows where in the world they are working. Kasper Rorsted Leadership Style | All Latest News Around The World All rights reserved. That was not the case in 2015. I think it drives change, it drives responsibility. deal with Adidas. This required a massive communication effort. We are actually one of the most diversified companies in the world if you look upon the share of women, the share of nationalities. We expect that in 2016, 12 of Henkels 20 highest-revenue countries will be in emerging markets. This enhances our position as an attractive employer. Some business students will also have the opportunity to ask Rrsted questions, as well as audience members who submitted questions before . Kasper Rorsted has been head of Adidas since 2016. Only when we are close to consumers can we offer them products that cater to their specific needs. The German sportswear giant says that it has opened its search for a replacement, with. procurement, IT, and infrastructure services. And for them, it's a very important, you know, criteria. embrace a culture of diversity. McKinsey: To that end, Henkel recently set up a ShopperLab and a Beauty Care Lighthouse. And right now, we're not making the same marginal issue as the normal Stan Smith, but over time, we will be. There are no human winners in this game. Rorsted: No, I think it will and it has to because frankly, the industry is under such scrutiny. Were establishing seven new R&D centers in emerging markets including India, Brazil, Russia, and South Africa. Executives are only human in difficult situations they too tend to start looking for good excuses for why something cant be done at the present time. He is proud Adidas is a truly global and diverse multinational company and touted And once we recruit them, we have to retain them. Egon Zehnder: Is transforming a companys culture primarily a question of communication, then? As one example, our colleagues from Laundry & Home Care developed the idea of supporting employees to become sustainability ambassadors. These ambassadors go out and talk about sustainability to coworkers, suppliers, customers, and students. Kasper Rorsted to succeed Herbert Hainer as CEO of adidas AG Kasper Rorsted: The ShopperLab is a room that recreates the shelves of a real store. Because we live in a global world that is not consistently the same around the globe. You need to make sure that you do and you can always look yourself in the mirror for what the company stands for. Tampa | St. Petersburg | Sarasota-Manatee. To be very clear: we are concentrating on markets where we hold leading positions or are able to generate sustainable growth. Kasper Rorsted: When I joined the company, Henkel had about 1,000 brands. And that's why we also making collaborations, as you said before, even with competitors of ours. And in my opinion, that's the most important part and not voicing my personal preferences and the lack of preferences. I am convinced that we need this diversity; its a competitive advantage. The world around us is not getting any easier quite the opposite, in fact. We've talked about environment. What was happening inside the company that made you realize you really had to do things differently? for 32 years and has four kids. Egon Zehnder: Wasnt there any resistance to your plans? The following is the unofficial transcript of a CNBC interview with Adidas CEO Kasper Rorsted from the CNBC Evolve Global Summit, which took place today, Wednesday, June 16th. Kasper Rorsted: Thats right. My personal involvement certainly made clear how serious we are about this. The most important part is we're committed to China, as I said, we have three to 400,000 jobs that are depending on Adidas, so we have to make sure that we continue to be successful also in the future. On his greatest accomplishment outside of work, he shared that he has been married Its leaders shows respect to their employees by protecting their jobs, challenging them, and supporting them in their efforts to improve. Kasper Rorsted, head of the global manufacturer since 2008, discusses the companys growth plans, what it takes to hire good people, and how he fosters dialogue with customers and employees. Taking care of what you inherited is very important, To be honest, at the beginning I underestimated the amount of work involved. Eisen: What about China? Its employees represent We have probably, you know, three to 400,000 people directly and indirectly employed by Adidas in China. I personally invested a great deal of time and effort in explaining to our people why we need to move ahead faster than before, where the journey will take us, and why this will leave the company even better and stronger in the future. But in order to do this, they need to know and understand our strategy. Adidas CEO Kasper Rorsted to Step Down in 2023; Replacement Search If you look from an investor standpoint, we've also changed one of our LTI long term incentive components are built around ESG. Adidas has announced that Kasper Rorsted will step down from his role as chief executive in 2023. through donations. That has not been the case. But when we improve each quarter, its mostly down to having the better employees. Got a confidential news tip? McKinsey: Is there anything else youd like to share with our readers? Kasper Rorsted: Henkel has become much more global in the past few years. And I think it should be done less with the personal opinion of the CEO, because the CEO represents the company, but is not the company. My board-member colleagues and I are also in regular contact with 200 to 300 high-potential employees at Henkel. make certain that you correct the mistakes, he said. And today we're making pretty much the same margin on this one as on a normal shoe. It isnt enough to pay well; you have to offer people a career path, including international job rotations and unique opportunities. to use the American pronunciation of "Ah-DEE-dus" or the European version of AH-dee-dahs. Speaking at the CNBC Evolve Global Summit, the Adidas. And of course, a critical part of my role is to make sure Henkel has the right team in place. to New York-based Authentic Brands closed on March 1. Specific areas of the Lighthouse are devoted to topics that are important to us, such as sustainability or digital innovation. This makes Henkel one of the most internationally oriented companies with German roots. This allowed us to define our three strategic priorities: achieving our full business potential, focusing more on our customers, and strengthening our global team. Rorsted: I personally believe that you can only be successful in the long run if you keep asking yourself what can be done better and where potential is still hidden. But we actually welcome everybody that's taking a step forward. 2023 CNBC LLC. The company has also made a sustainability pledge, vowing to make 9 out of 10 products through July 2026. It therefore came as no surprise when, in February 2012, Kasper Rorsteds contract as CEO was extended for another five years. Rorsted: Its how I was raised. Where do you see room for improvement? Kasper B Rorsted, Adidas AG: Profile and Biography Sometimes its that easy: simply talk to people. How do these two concepts help generate consumer insights? "Kasper . adidas CEO Kasper Rorsted At a Glance The CEO score provides an understanding of how employees feel about the CEO's leadership style and effectiveness at adidas. And I immediately thought of you and Adidas. He was born in Aarhus, Denmark and is a Danish national. Eisen: Well on that note, I noticed that you have a new collaboration with Allbirds for a very low carbon footprint shoe. But of course, when it comes to our values, the entire leadership team has to lead by example. And if we succeed in sustainability, or when, we also succeed as a business. Kasper Rorsted: Large, international corporations tend to become complex organizations, which makes them inflexible. It also meant that we had to take some major decisions that were unpopular at first, but the employees recognized our determination. And I think you have to, you know, we say pick your battles. The stock slumped as much as 6.9 euros, or 4.2% . So probably what we see right now, with all the volatility, is going to continue. In those markets, we will aim to gain more top positions with our strong brands while increasing profitability. crowd, the head of one of the worlds most iconic brands spoke about having a mindset That was when the financial crisis was around. Kasper Rorsted: To succeed in the highly competitive consumer-goods environment, we need both a management team that reflects the diversity of markets in which we operate and the innovation capabilities to address a broad range of varying consumer needs. I think it's very different. Currently, e-commerce plays a minor role for us. I like to win, but I never try to just play it safe. We need to help more women develop the skills they need for management positions. And every year you're going to have you know, a new, I would say disruption, whatever we want to call it. Were aiming for growth in both emerging and mature markets. Adidas CEO Kasper Rorsted on How Kanye West's Politics Have - Yahoo The sportswear giant announced today that its supervisory board extended the appointment of the executive chief for another five years. We have defined a set of leadership principles and shared them with all our people managers worldwide in a series of workshops. It was definitely a thing and it was very public. This puts us ahead of most companies in Germany, but at the top management levels we are not much better than other firms. Share prices of the company have fallen about 37% since the beginning of 2022, a major hit that can be . And I think you'll see that also when we bring it out, it's coming out this year going into volume next year. Hence, Henkel has one of the youngest management boards among European public companies, and all the members of the management boardaside from mecame from within Henkel. Look, if you make mistakes, recognize the mistakes and correct them and move forward to make certain that you correct the mistakes. The news comes as a shock, especially considering that Rorsted had signed an extension to remain CEO until 2026 on top of his leadership leading to 5x growth in the North American market, that is until the Covid-19 pandemic hit the scene. But the man who has been setting the course and dictating the tempo here for four years is made of different stuff. Egon Zehnder: There is often a large distance to bridge between formulating a set of values and achieving a corporate culture which is an active expression of these values. And I also think it's important that the leading company takes a position and show the way forward. We can study the impact that product designs have on shelf appearance and occupancy, point-of-sale materials, and the various aspects of buying behavior. Adidas CEO Kasper Rorsted will remain at the helm. and sneakers include Beyonc, Kanye West, and Pharrell Williams. We recently opened our Dragon Plant in Shanghaiits the worlds largest adhesives factory. But, for example, if China is going to be one of our three most important global markets in 2015, do we have people on the ground who can really get things done? Adidas Hit With Investor Suit Over Broken Ye Partnership Kasper Rorsted To Step Down From adidas CEO Position In 2023 Rrsted spoke about how the company has a deep and broad mindset of innovation. Rrsted explained that the company is helping to end plastic waste with a three-pronged At USF, the athletics department is in the fourth year of an eight-year partnership Data is a real-time snapshot *Data is delayed at least 15 minutes. We've talked about diversity and inclusion. Second, [we have] a relentless focus on driving innovation into our product. Kasper Rorsted: I am convinced that a visible and accessible leadership style is most effective. We are seeing more volatility and have to constantly adapt. McKinsey: What are your plans for mature markets? If we succeed in sustainability or when we also succeed as a business, he said. Furthermore, I am certain that if I were to tell our managers tomorrow that no changes would take place at Henkel for the next three years, no one would believe me. What are some of the other priorities within that bucket that you'd like to work on and you'd like to leave as your legacy as you try to stay in a leadership position in this area? And do we have a successful relationship. Our management team has become more diverse as well: three of the six members of our management board are non-Germans, and in the managerial levels immediately below, more than half come from abroad. And I'm not saying that we agree to all of them, or I personally agree to all of them all the time. Is it going to be worth the higher cost? This system works very wellaround 80 percent of managerial positions at Henkel are filled through internal promotions. It drives transparency to ensure that you need to do what you're doing. He runs and plays tennis to keep in shape and is an enthusiastic skier. Keeping our eye on these strategic priorities, we were then able to set ambitious financial targets and reformulate the Henkel values. Copyright 2023,University of South Florida. We want the best athletes in the world wearing I know I always ask you in interviews about Kanye West to comment on his latest rant on Twitter, or what he said about slavery, which you did actually come out against. My door is open; I encourage colleagues to call me directly. Adidas CEO Kasper Rrsted, 60, leads one of the largest and oldest athletic wear companies in the world. To read more about issues critical to retailers and consumer-packaged-goods leaders globally, download McKinseys second issue ofPerspectives on retail and consumer goods (PDF3.7MB). Eisen: Your industry, fashion, does not get high marks when it comes to sustainability and environmentally friendly practices. Do consumers really want this? business studies from the Copenhagen Business College, graduating in 1985. Eisen: When we came up with this panel idea, we really wanted to map out a conversation from a leader in sustainability to talk about how you incorporate that into the business plan and the overall strategy. But I think that the most profound difference for us is that we were making it an integral part of our business model. How would you characterize that change? Gschwandtner adopted this . He quipped, As long as you buy it, I dont care.. And we see that as an integral part of our new strategy for 2025. But there was also the fact that I found Henkel fascinating as a company. He registered more In 2010 we held almost 5,000 workshops in which I participated personally as often as I could to communicate our vision, values, and targets to all our employees around the globe. It was great fun., On being a digitally enabled company, he said, At the end of the day, we sell cool What lessons have you learned that other companies can also learn from? McKinsey: You mentioned the role of your strong brands. Advisory Council, serves on the Nestl board alongside Rrsted and was instrumental It's obviously such an important growth market for you, what 25% of the business, at least. You know, diversity and inclusion is one also. The company also plans to reach climate neutrality by 2050, according to its 2020 And I think that's where a lot of companies are struggling. manufacturer Henkel. In addition, I try not to pass the buck when things arent going well, but to shoulder the responsibility myself. And I believe over time, it will be a very, very important criteria, and it is today. You were constantly understaffed. Since 2018, Rrsted has served on the board of directors at Nestl, but the company His presentation is scheduled for March 31 at the Oval Theater in USFs Marshall Student Speaking of super cool products, Stan Smith going 100% recycled. In 2021, women made up 37% of executive leadership roles, an increase of 2 percentage He has been at the helm of the global sportswear giant since 2016. And there are certain elements that are very closely related to sport. The surprising break came in 2004, when HP CEO Carly Fiorina, herself under enormous pressure, fired him by telephone during a family vacation. Innovation is what our company is about. McKinsey: At the 2013 World Economic Forum, in Davos, you told reporters that the price for high growth is volatility. What are some of the steps Henkel has taken to manage volatility in emerging markets? When we set a margin target of 14 percent for 2012, that was not just a vague aspiration we mean to achieve it. a controlled lab environment. Rorsted: I invest most of my time and thoughts on whether or not we have the managers we need not just today, but for the next ten or fifteen years. This website is maintained by Muma College of Business. That was his second time You have to lead with innovation in sport, he said.