Rorsted: I think there are different challenges at different stages. Kasper Rorsted: How Adidas Profits from Runtastic - ISPO.com After all, in only a few years Rorsted has not only established a new corporate culture at Henkel, but also put the company on track for a promising future. He registered more Sponsors? They are making sneakers from recycled materials, making products that are So successful that the Adidas supervisory board voted last year to extend his contract through July 2026. Continuity and strong leadership . In recent years, the 137-year-old company has fared wellin large part by dramatically boosting its presence in emerging markets, which today account for 45 percent of its global revenues of 16.5 billion. This is only the beginning, but the impact plastic has on our global environment We are completely transparent with our people about where they stand. But I think that is normal in any company. And I've been very vocal on this topic since last summer. Eisen: We've been talking about so many different ESG issues. Is it going to be worth the higher cost? One example is our home market, Germany, where were making very high capital investments; with around 13 percent of sales, its our second-most-important market after the United States, and it will remain a cornerstone of our success. Eisen: Do you think you get credit from investors, consumers, employees, and whoever, whichever stakeholder you're doing this for? Good to see you. announced that he is not running for re-election and is stepping down from that role and making it an integral part of the Adidas business plan. Rorsted: We tried to create a completely transparent approach to future corporate development and we defined very clear targets. And I think the consumer says that we are resonating more and more, you know, a lot of our consumers are very young consumers. And once we recruit them, we have to retain them. You try to do the right thing, it happens most of the time and not always. During a Q&A session following his presentation, USF student-athletes asked Rrsted An Interview with the CEO of Henkel - McKinsey & Company If you look upon this, you know, hoodie I'm wearing today is made out of fully recycled material. At the same time, however, we will continue to invest in innovation. You are switching to an alternate language version of the Egon Zehnder website. As CEO, I believe that a primary task for me and the management board is to shape Henkels growth strategy and clearly communicate it to all employees. His employees attest to the seemingly boundless energy of the man at the head of Henkel. What does it take to become the leader of one of the biggest and best-known brand names in the world? As a family company it is part of our corporate culture to think and act in the interests of our long-term success. Kasper Rrsted, CEO of Adidas, is the Muma College of Business Thought Eisen: Do you think you're ahead of your competition on this? Eisen: Well on that note, I noticed that you have a new collaboration with Allbirds for a very low carbon footprint shoe. Adidas and CEO Kasper Rorsted are parting ways in an unexpected shakeup. I think that the scrutiny on companies and CEOs are much greater today. The stock slumped as much as 6.9 euros, or 4.2% . And I think there's a lot of goodness around it. and employees first. Rorsted: If you look and I think this is super important is that we get the best innovation from everybody. 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. And youve been recognized by external experts as a leader in sustainability. Before I joined Henkel, I was told there was not much room for change. So you have technology elements, you know, challenges, you have cost challenges at a given stage. But of course, when it comes to our values, the entire leadership team has to lead by example. Kasper Rorsted: Markets are reacting much faster than ever before. This is only the beginning, but the impact plastic has on our global environment is so negative. 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. American sports fans. Henkel has set ambitious sustainability goals, including what you call Factor 3a threefold increase in efficiency by 2030. Because this would send a message to our people there that the customers arent very important after all. he said. His. getting wrong and be fully committed to it, Rrsted said. Last year, they achieved a 69% share of sustainable Adidas products. In 2021, the German company had $23.6 billion in sales worldwide. its laser-sharp focus on expanding the brand across the globe while putting its customers Join Facebook to start connecting and con He told me, If you do something, do it with your full heart and do it properly. Our employees know who I am and what Im doing. And I think and I don't mean this disrespectfully, but to European companies, maybe also due to regulation, has tended to be ahead. shoes. Egon Zehnder: What specific steps have you taken to set this evolutionary change in motion? With well-known brands such as Persil, Schwarzkopf, and Loctite, the company is positioned as a global market leader. at Henkel in 2005 as the executive vice president for human resources management, Rorsted: Making Henkel even better. If I had failed I could always have returned to familiar ground, after all. Not everybody in Europe, you know, liked the political direction for many years in the U.S. You know, right now there's tension in China. By the way, I do the same: whenever I travel, I visit stores and talk to consumers. These trends fundamentally change the business environment. in April. So, I do think that we are getting the credit. You did face a bit of a reckoning on the race issue at Adidas. sustainable by 2025. in getting Rrsted as a featured speaker. We've talked about environment. For me, this is one that has such a devastating impact on the entire environment, Egon Zehnder: What is the biggest challenge you are facing today? Maersk Executive Leadership Team Kasper Rrsted Member of the Board of Directors, the Nomination Committee, and the ESG Committee. We've talked about diversity and inclusion. But we stayed firm and didnt let ourselves get derailed by obstacles. He retained this position following Compaqs takeover by Hewlett-Packard (HP). That said, at Henkel we are also affected by the effects of the recession in Europe, and I expect Europe will continue to face an extremely challenging period over the next few years. Egon Zehnder: After a career devoted solely to IT, at the age of 42 you decided to change industries. What did you mean by that? If we do not expect to win in a market in a reasonable period of time, we will exit that market. Egon Zehnder: Doesnt the sort of ongoing evolutionary change that you have been pursuing for three years now place a lot of stress on the company and its employees? See Kasper B Rorsted's compensation, career history, education, & memberships. From 2001 to 2002, Read more Search In our consumer businesses, products that are less than three years old account for approximately 40 percent of sales. Kasper Rorsted is the personification of a new dynamic, at home in the transparency and modernity of the building that houses the Laundry & Home Care business sector and where our meeting takes place. Developing an employer brand takes time. see the end of plastic waste. Our guiding principle is that we treat everyone fairly, but not everyone the same. When I am asked how many employees are working on sustainability at Henkel, I always reply: 47,000. If you're a global company, you cannot have a political opinion about every political system in the world, in my opinion. Rorsted recently shared his views on his tenure at Henkel and the companys plans for the future with McKinseys Klaus Behrenbeck. My door is open; I encourage colleagues to call me directly. up next to his 30 other pairs. Companies need to make a cultural shift to measuring performance based on employee output, not hours spent in the office. Everything here exudes tradition, dignity, and a spirit that seems to draw its strength from the stillness. Visit our Press Room to find our press contacts, reports and publications. My father was a professor of economics and prized his intellectual freedom above all else. Every business decision contains an element of risk. So we believe that we have a leadership position in this, I don't see anybody having this kind of shoe or fully recyclable product coming out or, you know, with the relationship we have with Stella on fully recyclable hoodies. As an example, we aim to promote responsible use of our products. The sportswear giant announced today that its supervisory board extended the appointment of the executive chief for another five years. These challenges are familiar to Kasper Rorsted, who in April 2008 was named CEO of Henkel, the Dsseldorf-based manufacturer of home- and personal-care products and adhesive technologies. Then youll be successful. This advice has become my life motto. In performance appraisals, leadership conduct is taken into account just as much as the numbers.. conversations that cover a wide range of topics. Kasper Rorsted To Step Down From adidas CEO Position In 2023 But we keep our communications as transparent and clear as possible, and everyone knows our strategy and our targets. and authors in business and industry for informal talks that cover a wide range of I believe this is the most important challenge. Tough choices for consumer-goods companies, Reshaping retail: A conversation with Ahold CEO Dick Boer, Developing winning products for emerging markets, Perspectives on retail and consumer goods, Vice chairman of the management board (200708), Executive vice president of HR, purchasing, IT, and infrastructure services (200507), Senior vice president and general manager, Europe, Middle East, and Africa (EMEA) (200204), Vice president and general manager, EMEA (200102), Various management positions, including head of EMEA enterprise business group (19952001). Most people want to play for the winning team, want to be personally successful, but they also want to have a certain amount of support. Henkel is active worldwide in three business sectors: Laundry & Home Care, Beauty & Personal Care, and Adhesive Technologies. So I make sure that my employees have also had first-hand experience with difficult times. deal with Adidas. To reserve Siemens AG, Germany (board member and member of the Innovation Committee), International Business Studies, Copenhagen Business College, Denmark, Executive Program, Harvard Business School, USA. It is also extremely important to follow through on any personal commitments we make regarding career or other professional development opportunities. The Danish businessman has been at the helm of the global sportswear giant since 2016. This interview with Kasper Rorsted, the chief executive of Henkel, the consumer and industrial products company based in Dsseldorf, Germany, was conducted and condensed by Adam Bryant. I think it drives change, it drives responsibility. Copyright 2023,University of South Florida. recognized speakers, innovators, idea generators, entrepreneurs, philanthropists, 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. McKinsey: Is there anything else youd like to share with our readers? Rorsted: The most important thing is to clearly map out your path for the long term. Kasper Rorsted confirmed as CEO of adidas for more 5 years - World Footwear Over time consumers will want it and I think you need the choice of both right now and that's what we're giving. Adidas CEO Kasper Rrsted, 60, leads one of the largest and oldest athletic wear companies At the same time in the last 13 years, we've hardly had a normal year. Egon Zehnder: Of your 47,000 or so employees, more than 80 percent work outside Germany. Each employee has the responsibility, and each makes a contribution. We have already accomplished a great deal, but we are aiming even higher. Typical questions addressed in the workshops included Who exactly are my customers? and What can I personally do to make things better for them?. On the Persil website, for instance, consumers can learn about reducing the water temperature in their washing machines and saving money at the same time, without compromising the superior performance of Persil. And if you cant do that, you cant be there as an employee. Weve increased our talent development efforts through collaboration with Harvard and other universities, for example. For more information about NBCUniversal, please visit http://www.NBCUniversal.com. How much progress have you made along this path? It also plans to reach climate neutrality by 2050. Video. shoes that feature a 3D-printed midsole. In past interviews, he has talked about the importance of driving sustainable products Egon Zehnder: Is transforming a companys culture primarily a question of communication, then? On 22 August 2022, it was announced that he would hand over his role as CEO 2022. We dont get all things right at the same Rorsted, who heads one of the largest athletic wear companies in the world, will be Kasper Rrsted - Facebook And that's what we brought into the market. Adidas CEO Kasper Rorsted will remain at the helm. Thats why I spend around 170 days per year abroad, meeting employeesfrom top executives to young high-potential individualsas well as customers and business partners. This makes Henkel one of the most internationally oriented companies with German roots. Speaker on March 31. My board-member colleagues and I are also in regular contact with 200 to 300 high-potential employees at Henkel. We put great emphasis on internal promotion and talent development. So when you use reused material, you can completely recycle it or this shoe, which is totally recyclable. Was it a kind of one-man roadshow? you better.. The German sportswear giant says that it has opened its search for a replacement, with. Adidas AG was sued by investors who claim the German sports giant knew about risks of its partnership with the rapper known as Ye long before his anti-Semitic comments were made public. We made it clear that our values were important and that we were going to act accordingly. Overall, more than 70 town-hall meetings have taken place around the world. Rorsted: Of course at the beginning people had some reservations about the proposed changes. Members of the media can receive more information about CNBC and its programming on the NBCUniversal Media Village Web site at http://www.nbcumv.com/programming/cnbc. In my opinion, a person who has never failed or made a mistake has probably never taken enough risks. He also believes the company should stand up and address Of course, were against the war. But in fast-growing emerging markets, you cannot expect the same stable conditions that we are used to in mature marketsjust think of the political unrest in the Middle East, for example. We also went out and was very public about it. through donations. Speaking of super cool products, Stan Smith going 100% recycled. You are here as a temporary employee. The innovation you mentioned is a remarkable example of targeted customer-relationship management. In countries where Henkel is hardly known, we prefer to target specific groupsfor example, through partnerships with individual professorships all over the world. Rorsted: You know, it's hard to remember back then. Kasper Rorsted: When I joined the company, Henkel had about 1,000 brands. And then of course, you said yourself, you know, aggressive targets. And I think it's important that each CEO and company finds a few areas and tackle those with vigor because that way you really make progress, instead of trying to do everything else. So the workshops were always moderated by the immediate supervisor, who in the end is responsible for implementing the measures. We would like to have more, but the better we do, the more credit we get. Kim Ross, a USF Muma College of Business alumna who sits on the colleges Executive Just a few days after Foot Locker revealed its CEO shift, Adidas said it also will have a new top leader in 2023. And we will continue centralizing functions in shared-service centers. Before joining Adidas, Rrsted was the CEO at Henkel from 2008 to 2016. You have to lead with innovation in sport, he said. Theres still plenty of room for improvement. He leads the company forward in good times and in bad, achieving one goal after another. than 800 patents with most innovations inspired by an athletes needs. Rrsted also talked about the war in Ukraine. You were constantly understaffed. Discover job vacancies, find out how to apply to them, and learn more about careers at Maersk. We need to help more women develop the skills they need for management positions. he said. Among its manufacturing innovations, Rrsted mentioned its Futurecraft STRUNG, the Keeping our eye on these strategic priorities, we were then able to set ambitious financial targets and reformulate the Henkel values. It was great fun., On being a digitally enabled company, he said, At the end of the day, we sell cool To learn more about their needs and wishes, as well as their particular hair structure, our Beauty Care team did a survey in Saudi Arabia, Tunisia, and the United Arab Emirates, and the new hair-care line was developed on the basis of the survey results. Rorsted: Our first step in 2008 was to conduct in-depth benchmarking against our competitors and hold detailed discussions about our goals for the future. But we actually welcome everybody that's taking a step forward. in April. It was totally undisciplined. You were the CEO of the consumer giant Henkel, what, 13 years ago?
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