How would you characterize that change? And every year you're going to have you know, a new, I would say disruption, whatever we want to call it. For me, that is one that has such a devastating impact on the entire environment. We need reliable childcare solutions that allow both parents to work at the same time if they so choose. Its employees represent In a 45-minute presentation, Rrsted talked about the companys strategy of becoming We designed it to help us further understand customer behavior in shopping environments. 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. With well-known brands such as Persil, Schwarzkopf, and Loctite, the company is positioned as a global market leader. Before joining Adidas, Rrsted was the CEO at Henkel from 2008 to 2016. Sign up for free newsletters and get more CNBC delivered to your inbox. So how do you deal with that, which is even tougher in some ways? accepting that award, having previously won in 2009 when he was head of consumer goods Of course, were against the war. Rrsted is the third guest of the series, following on the heels of Marc Randolph, 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. at Compaq and Oracle. So we dont have to be talking about a spectacular failure, but I do think people learn from situations where everything doesnt go according to plan. 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? Our employees know who I am and what Im doing. The surprising break came in 2004, when HP CEO Carly Fiorina, herself under enormous pressure, fired him by telephone during a family vacation. You did face a bit of a reckoning on the race issue at Adidas. Of course, very vocal on some of the racial issues around George Floyd. Is that your call? He is proud Adidas is a truly global and diverse multinational company and touted its laser-sharp focus on expanding the brand across the globe while putting its customers Because in the beginning, it will never be. Egon Zehnder: How did you master these challenges? In the Middle East, which is one of our growth regions, many women wear veils. Rorsted: I think there are different challenges at different stages. I thought working from home would have taught In 2011 Henkel reported sales of 15.6 billion and an EBIT of over 2 billion the highest in the companys history to date. Kasper Rorsted has been a member of the adidas Executive Board since August 2016, and the company's Chief Executive Officer since October 2016. . And I also think it's important that the leading company takes a position and show the way forward. Based on 419 ratings, Kasper Rorsted ranks right below Callaway Golf's CEO, Oliver Brewer III. Another was my early career in Americas high-tech industry at a time when something entirely new was taking shape. It was great fun., On being a digitally enabled company, he said, At the end of the day, we sell cool Video. 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. Kasper Rorsted: Large, international corporations tend to become complex organizations, which makes them inflexible. Our executive management team is already very international, but I see a clear need for improvement at other levels. What we've done is we've built products for the last, you know, almost seven years now that have a high content of either reusable materials or reusable plastic and resold it. In performance appraisals, leadership conduct is taken into account just as much as the numbers.. You need to make sure that you do and you can always look yourself in the mirror for what the company stands for. They visit schools and hold sustainability classes. in the IT and computer industry. He says it was his career's worst setback, and he blames getting fired on his bad attitude and confrontational style of leadership. Thank you for letting me in. Kasper Rorsted Leadership Style | All Latest News Around The World 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. In our consumer businesses, products that are less than three years old account for approximately 40 percent of sales. through donations. Speaking of super cool products, Stan Smith going 100% recycled. In that respect, too, we are leading the way among DAX-listed corporations: the share of women in management positions at Henkel is around 31 percent and has grown an average of one percentage point annually in recent years. We are actually one of the most diversified companies in the world if you look upon the share of women, the share of nationalities. The company has 62,285 employees worldwide, with 2,500 retail stores in over My father was a professor of economics and prized his intellectual freedom above all else. in the region with housing, food, clothes, and other basic needs. Kasper Rorsted. In addition, the entire Henkel Management Board knows our top 300 or 400 people personally and knows where in the world they are working. To be very clear: we are concentrating on markets where we hold leading positions or are able to generate sustainable growth. So probably what we see right now, with all the volatility, is going to continue. Join Facebook to start connecting and con And as a company that stands for something positive energy, sport, you know, team we really want to make sure that that problem is tackled to the utmost. Video from the interview will be available at cnbc.com/evolve. Were establishing seven new R&D centers in emerging markets including India, Brazil, Russia, and South Africa. Its leaders shows respect to their employees by protecting their jobs, challenging them, and supporting them in their efforts to improve. 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 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. Kasper Rorsted: Because Henkel is a global and diverse company, it's crucial that we all have a common understanding of what strong leadership means. Rrsted wore a grey hoodie, jeans, and the beta version of the companys 4D running Brown shoes have As a leader, when you promise something, you have to stick to it. It also plans to reach climate neutrality by 2050. He has been at the helm of the global sportswear giant since 2016. I try to establish clear rules of the game. When asked what he sees as his lasting legacy as CEO of Adidas, he said he wants to We don't get all things right at the same time, you know, but when we get something wrong, I think we need to recognize we're getting wrong and be fully committed to it. Then your employees will follow you as well. If you continue, you will be taken to the alternate language home page. 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. Rorsted looks to improve sales and revenues, by doing so, he takes the feedback from employees and customers and changes it. He quipped, As long as you buy it, I dont care.. Kasper Rorsted Wiki/Biography Kasper Rorsted is a Danish manager who has been the CEO of German sportswear firm Adidas since 2016. We have been able to achieve everything we have set out to do. 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). In the future, we want fewer but larger manufacturing sites and a reduced number of global suppliers. It therefore came as no surprise when, in February 2012, Kasper Rorsteds contract as CEO was extended for another five years. 62,000 worldwide, with 2,100 retail stores in over 50 countries. He holds a degree in international We made it clear that our values were important and that we were going to act accordingly. Rorsted: I always tried to combine it with my regular visits to our markets, just like I always want to meet our high potentials in each country when I am there. 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. of innovation, being committed to sustainability, and leading a company where people How do you think about it as far as where it fits in with some of your priorities and your overall business model? annual report. the co-founder of Netflix, who spoke in 2019, and Steve Wozniak, the co-founder of Rorsted: If we look, we really see sustainability being an integral part of our business model. adidas - Supervisory Board extends contract of Kasper Rorsted as CEO of We know who is performing particularly well in a country and might be ready for the next steps. TAMPA (March 31, 2022) --During a wide-ranging informal discussion before a sold-out You know, we said what we're going to do and we executed that extremely diligently since last summer when we following the Floyd killing in Minneapolis. Tampa | St. Petersburg | Sarasota-Manatee. is so negative. 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. Got a confidential news tip? So in summary, those are my key tasks as CEO: get the strategy and the team right. Kasper Rorsted: Henkel has become much more global in the past few years. Only when we are close to consumers can we offer them products that cater to their specific needs. We meet customer needs from one end of the supply chain to the other. 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. Copyright 2023,University of South Florida. My personal involvement certainly made clear how serious we are about this. Kasper Rorsted: Its certainly a challenge to find and keep good local employees, especially in emerging markets. Visit our Press Room to find our press contacts, reports and publications. Not only on diversity, which I have been vocal on I would say since 2004. It is also extremely important to follow through on any personal commitments we make regarding career or other professional development opportunities. The simplification was the most important aspect. We have probably, you know, three to 400,000 people directly and indirectly employed by Adidas in China. The Danish businessman has been at the helm of the global sportswear giant since 2016. And I've been very vocal on this topic since last summer. Its a space where customers can try out, for instance, new digital tools that let them test hair colorants at the point of sale. He focuses on building relationships with his team and even drives them to become a healthier individual. But social issues come to mind, especially this year. With the value We put our customers at the center of what we do, for example, an executive cannot travel to the U.S. for a workshop and come back without having seen a single customer. Kasper Rorsted - The value driver - Egon Zehnder Egon Zehnder: Is transforming a companys culture primarily a question of communication, then? Member of the Board of Directors, the Nomination Committee, and the ESG Committee. Our global leadership team is aware that they will be assessed on the basis of their leadership conduct. This website is maintained by Muma College of Business. He always wanted to be able to speak his mind freely and not be under obligation to adjust his thinking to those paying his salary. Henkel is active worldwide in three business sectors: Laundry & Home Care, Beauty & Personal Care, and Adhesive Technologies. 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. been a declining trend for 20 years. see the end of plastic waste. Kasper Rrsted, Adidas AG: Making Europe Fit for the Future - CorD His. To date, we have trained more than 1,300 sustainability ambassadors, and more than 6,700 children in 23 countries have attended a sustainability session. He travels 170 days a year. Egon Zehnder: What values are personally important to you? He is also a person who notices footwear. Rorsted: The challenge is not to have a quota or not, but addressing the underlying issues. in the world. On finding the right career, he said, If you work for a company, you have to embody Is it the recycled polyester going fully there by 2024? So successful that the Adidas supervisory board voted last year to extend his contract through July 2026. fact, its founder Adi Dassler was the embodiment of an innovator. Kasper Rorsted Will 'Hand Over the CEO Position' at Adidas in 2023 He runs and plays tennis to keep in shape and is an enthusiastic skier. 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. 178 nationalities. Egon Zehnder: Where does this liberal-minded approach come from? Aug 6, 2020 Germany. time, you know, but when we get something wrong, I think we need to recognize were What were your reasons? than 800 patents with most innovations inspired by an athletes needs. To give another example, in our Laundry & Home Care Business, we have a global consumer-insights program that includes visits to local households by our team. And youve been recognized by external experts as a leader in sustainability. And for them, it's a very important, you know, criteria. t-shirts and cool sneakers., At a private breakfast with Executive Bulls donors, someone asked if he prefers people Egon Zehnder: What specific steps have you taken to set this evolutionary change in motion? Rorsted: You know, it's hard to remember back then. Rorsted: Its how I was raised. It was totally undisciplined. That's another tricky tightrope that you have to walk when it comes to speaking out against human rights. 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. You were the CEO of the consumer giant Henkel, what, 13 years ago? And then of course, you said yourself, you know, aggressive targets. Over time consumers will want it and I think you need the choice of both right now and that's what we're giving. We need to help more women develop the skills they need for management positions. Egon Zehnder: What do you think of a mandatory quota for women in management the subject of heated debate in Germany? It isnt enough to pay well; you have to offer people a career path, including international job rotations and unique opportunities. What do you miss? got to take the lead and we want to be the leader in sustainability.. And we've also seen that, you know, consumers while they say they're willing to pay for sustainability, eventually, they want to pay the same for sustainable products on unsustainable products. Continuity and strong leadership . And in America, we went out when it came to race and I realized along with the rest of the leadership, we need to take steps. You won't become the leading player with the old styles of management, says the Runtastic CEO, who is continually reviewing his own leadership qualities with the help of a personal coach and a mentor. Was it a kind of one-man roadshow? Where do we see ourselves in five or ten years? 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. It was definitely a thing and it was very public. Eisen: Well, how do you determine what issues to speak up around? Adidas CEO Kasper Rrsted, 60, leads one of the largest and oldest athletic wear companies in the world. So I do think that it's very important that the industry takes the critique, you know, at heart. Egon Zehnder: Wasnt there any resistance to your plans? Eisen: Well, that's why you are a great guest to talk about this subject. Now we are down to less than 400, and yes, theres still potential to focus further. The mylo material is created And if you cant do that, you cant be there as an employee. But that's exactly the same chance as we had with, you know, the ocean plastic Parley shoe when we brought out in 2015. Egon Zehnder: Other corporate decision makers like to talk about strategies, innovations, strong brands. Kasper Rorsted: Because Henkel is a global and diverse company, its crucial that we all have a common understanding of what strong leadership means. He pushes his employees to success; it is not just about paying them. Rorsted: Well Sara, I think that this is part of being a global CEO. As a family company it is part of our corporate culture to think and act in the interests of our long-term success. Do consumers really want this? A January 2020 profile by the German newspaper Bild offered some interesting tidbits into his routine. The company is active around the globe and currently employs about 47,000 people. Developing an employer brand takes time. Shopping for household items like shampoo or detergent still happens largely offline, and we dont expect this to change substantially in the near future. It doesnt interest me. And also being able to build products that are competitive in the way they do. completed a series of executive programs at Harvard Business School. I think that part of the reason is social media is bringing a transparency and also a news flow out that was never there before. He will be the first Thursday's Thought Leader Series speaker since 2019. . 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? This website is maintained by Muma College of Business. His favorite app 365 Dream 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. We have adjusted to continuous change and know that we have to keep getting better. Is it going to be worth the higher cost? This is only the beginning, but the impact plastic has on our global environment is so negative. But I think a lot of the challenges lies around innovation, and getting the right, you know, costing into place that it actually makes it a competitive offer. I am convinced that we need this diversity; its a competitive advantage. The Supervisory Board of adidas AG has extended the appointment of Chief Executive Officer Kasper Rorsted by another five years until the 31st of July 2026.