He held a series of management positions at Oracle and Digital Equipment Corporation (DEC), as well as at Compaq, where he headed up the company's European operations starting in . You cannot run a global company from your desk. 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. to be the best sports brand in the world and to do it sustainably. 50 countries. always come first. But I do think overall, it's a good thing. Nine out of 10 articles will be sustainable by 2025. As a leader, when you promise something, you have to stick to it. 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. 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. This is the advantage of clear and simple values they can be measured. He said it was his first trip to the U.S. since before the pandemic in 2019. its laser-sharp focus on expanding the brand across the globe while putting its customers Egon Zehnder: After a career devoted solely to IT, at the age of 42 you decided to change industries. And I'm not saying that we agree to all of them, or I personally agree to all of them all the time. The mylo material is created It doesnt interest me. So I do think that it's important that the industry will and can do this, but somebody's got to take the lead and we want to be the leader in sustainability. 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. Rorsted: The most important thing is to clearly map out your path for the long term. But in order to do this, they need to know and understand our strategy. I believe one of my strengths is that Ive never sought security. We expect that in 2016, 12 of Henkels 20 highest-revenue countries will be in emerging markets. tickets, visit: usf.to/adidas. 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. The surprising break came in 2004, when HP CEO Carly Fiorina, herself under enormous pressure, fired him by telephone during a family vacation. Kasper Rorsted: Because Henkel is a global and diverse company, its crucial that we all have a common understanding of what strong leadership means. And we've been very keen on setting aggressive targets. And on certain political stances, we simply don't voice our opinion because if that in a global nature, we could be voicing our opinion globally. The company has 62,285 employees worldwide, with 2,500 retail stores in over Sponsors? And I believe over time, it will be a very, very important criteria, and it is today. Their hair is covered for hours every day and as a result needs special care. Aug 6, 2020 Germany. In a 45-minute presentation, Rrsted talked about the companys strategy of becoming The majority of consumers in the personal-care sector are female, so why should our products be developed and marketed by men? What was really important to us? Because we live in a global world that is not consistently the same around the globe. Rorsted: Well Sara, I think that this is part of being a global CEO. Since 2018, Rrsted has served on the board of directors at Nestl, but the company We have defined a set of leadership principles and shared them with all our people managers worldwide in a series of workshops. Last year, to present our growth strategy for 2016, the management board and I visited 28 sites in 22 countries. Eisen: Are we going to pay more for it? But social issues come to mind, especially this year. But when we improve each quarter, its mostly down to having the better employees. at Henkel in 2005 as the executive vice president for human resources management, And we use Parley for ocean plastic. up next to his 30 other pairs. Adidas is the largest sportwear manufacturer in Europe and is headquartered in Herzogenaurach, Kasper Rorsted: "We were the first to combine pop culture and sports [with West]. They are making sneakers from recycled materials, making products that are Egon Zehnder: What do you think of a mandatory quota for women in management the subject of heated debate in Germany? Egon Zehnder: Where does this liberal-minded approach come from? You did face a bit of a reckoning on the race issue at Adidas. shoes. Rorsted: We are of course trying to the answer is no because we believe that it has to be our problem to develop the underlying technology to make sure that we don't overcharge. And I think respecting those different opinions is very important that we don't have a uniform opinion right now. American sports fans. a no-win proposition for everybody, he said. It has been and will continue to be a super important market for us. 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. Other companies execute sustainability Tampa | St. Petersburg | Sarasota-Manatee. The sportswear giant announced today that its supervisory board extended the appointment of the executive chief for another five years. His employees attest to the seemingly boundless energy of the man at the head of Henkel. Get this delivered to your inbox, and more info about our products and services. 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. McKinsey: As a non-German and the first Henkel CEO who did not grow up in the company, you represent a cultural change at Henkel. He runs and plays tennis to keep in shape and is an enthusiastic skier. We see ourselves as a leader in sustainability. This is only the beginning, but the impact plastic has on our global environment is so negative. I think 8 to 10% of carbon emissions come from the fashion industry. At Henkel 30 percent of our managers are already women. How do those determinations get made? You could try anything, test your mettle, and emerge either as an incredible success or a spectacular failure. Rrsted, 60, has been described as a highly successful and competent leader who is empathic, calm and a strategic thinker. Adidas CEO Kasper Rorsted will remain at the helm. When Ulrich Lehner retired as planned in 2008, Rorsted stepped into his shoes and was appointed CEO. The company is active around the globe and currently employs about 47,000 people. in April. Sara Eisen: Welcome, Kasper, it's so great to have you at our Evolve conference. We've talked about diversity and inclusion. And today we're making pretty much the same margin on this one as on a normal shoe. 4202 E. Fowler Avenue, BSN 3403, Tampa, FL 33620, USA813-974-4281. You were constantly understaffed. topics. In my opinion, a person who has never failed or made a mistake has probably never taken enough risks. We are very successful there. The Beauty Care Lighthouse is a unique venue where we host customers, business partners, or investors. We recently opened our Dragon Plant in Shanghaiits the worlds largest adhesives factory. 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. 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. 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 cant afford to rest on our laurels here. in getting Rrsted as a featured speaker. Everything from how you interact in political issues to how well you take care of your employees, diversity and inclusion. And when I look upon the shoe that we have jointly built that is a super cool product. Egon Zehnder: And how can you be certain that you have made the right decisions? Eisen: Well, that's why you are a great guest to talk about this subject. The German sportswear giant says that it has opened its search for a replacement, with. Our global leadership team is aware that they will be assessed on the basis of their leadership conduct. What lessons have you learned that other companies can also learn from? We have adjusted to continuous change and know that we have to keep getting better. Copyright 2023,University of South Florida. Egon Zehnder: As you just mentioned, you travelled the globe for months to present and explain the new corporate values to Henkel employees worldwide. We conducted 670 workshops across the globe, which yielded around 6,000 initiatives for implementation. If we do not expect to win in a market in a reasonable period of time, we will exit that market. Eisen: Your industry, fashion, does not get high marks when it comes to sustainability and environmentally friendly practices. The company has also made a sustainability pledge, vowing to make 9 out of 10 products Rorsted: I think over time, you get the credit that you deserve. 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. Specific areas of the Lighthouse are devoted to topics that are important to us, such as sustainability or digital innovation. I am convinced that we need this diversity; its a competitive advantage. 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. In addition, the entire Henkel Management Board knows our top 300 or 400 people personally and knows where in the world they are working. Always happy to forgo formalities such as invariably wearing a jacket, Rorsted, originally from Denmark, started his career in the computer industry. at Compaq and Oracle. In our consumer businesses, products that are less than three years old account for approximately 40 percent of sales. Klaus Behrenbeck is a director in McKinseys Cologne office. It therefore came as no surprise when, in February 2012, Kasper Rorsteds contract as CEO was extended for another five years. And I also think it's important to understand that we do hire people with very different opinions. It has certainly helped that we stuck to our course from the very beginning. 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. I believe this is the most important challenge. But overall, I do think it's important that we respect different opinions at different times. Why havent other firms been as successful? sustainable by 2025. And we see that as an integral part of our new strategy for 2025. Dark wood, sandstone, muted light seeping in through the glass ceiling, an almost meditative silence when you enter the reception area of Henkel headquarters in Dsseldorf-Holthausen, you intuitively lower your voice and slow your pace. Henkels roster of brands includes Persil detergent, Dial soap, Fa deodorant, and Loctite glue. Rorsted: Its how I was raised. Continuity and strong leadership . 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. Currently, e-commerce plays a minor role for us. I eat with employees in our canteens whenever I am traveling or here at headquarters. And for them, it's a very important, you know, criteria. Kasper Rorsted: Thats right. It was totally undisciplined. All Rights Reserved. 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. He wears 10.5-size And every year you're going to have you know, a new, I would say disruption, whatever we want to call it. Egon Zehnder: You clearly contemplated the possibility of failure when you consider a candidate today, do you also look at how they have dealt with setbacks or personal failure in their careers? There's been tension, you know, in the Middle East. In 2021, the German company had $23.6 billion in sales worldwide. Speaking of super cool products, Stan Smith going 100% recycled. "Kasper . Each employee has the responsibility, and each makes a contribution. Adidas CEO Kasper Rorsted. Apple, who made an appearance in 2018. Henkel managers from marketing or R&D regularly visit households. Brown shoes have Of course, were against the war. Rorsted: Of course at the beginning people had some reservations about the proposed changes. And I think that's where a lot of companies are struggling. You need to make sure that you do and you can always look yourself in the mirror for what the company stands for. Kasper Rorsted: The ShopperLab is a room that recreates the shelves of a real store. Adidas suspended the operations of its Thank you for letting me in. We put great emphasis on internal promotion and talent development. 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. And I have similar views about women in management positions. And for us, the cost is more important than the competitive aspect of it. 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. All rights reserved. to New York-based Authentic Brands closed on March 1. But that's exactly the same chance as we had with, you know, the ocean plastic Parley shoe when we brought out in 2015. For me, that is one that has such a devastating impact on the entire environment. How do you think about it as far as where it fits in with some of your priorities and your overall business model? Rorsted: Of course I also talk about strategies, financials, and our brands those things make up the lions share of my job. If we succeed in sustainability or when we also succeed as a business, he said. Kasper Rorsted: Markets are reacting much faster than ever before. I believe that it is essential to start with a relatively clear destination in mind, and work step by step to get there. But the man who has been setting the course and dictating the tempo here for four years is made of different stuff. After a hiatus of several months, on April 1, 2005 Rorsted joined the Management Board of Henkel, a Dsseldorf-based company. Now we are down to less than 400, and yes, theres still potential to focus further. 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. In 2021, the company released the Stan Smith Mylo, a vegan version of its iconic Stan In keeping with our vision of being a global leader in brands and technologies, we then formulated five values: customers, people, financial performance, sustainability, and family business. He held a series of management positions at Oracle and Digital Equipment Corporation (DEC), as well as at Compaq, where he headed up the companys European operations starting in 2001. Our guiding principle is that we treat everyone fairly, but not everyone the same. Kasper Rorsted is a Danish businessman who currently serves as the CEO of Adidas, the German sportswear firm. Before I joined Henkel, I was told there was not much room for change. Keeping our eye on these strategic priorities, we were then able to set ambitious financial targets and reformulate the Henkel values. During a Q&A session following his presentation, USF student-athletes asked Rrsted time, you know, but when we get something wrong, I think we need to recognize were in the IT and computer industry. Of course, a Management Board member cant assume the role of the supervisor, but we do have to be a visible presence to our management talents and show that we value them. In 2018 he won the German Image Award, an honor that praises the top CEO for their 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. He also 2022 Worlds Most Admired Companies. McKinsey: You mentioned the role of your strong brands. make certain that you correct the mistakes, he said. I spoke to him and his wife two weeks ago, of course, like we're speaking today, and they're super excited about us bringing this product into the market in the late summer. Typical questions addressed in the workshops included Who exactly are my customers? and What can I personally do to make things better for them?. Eisen: Yeah, with social media, no doubt. In these meetings, managers at all levels and their teams developed a sustainability action plan for their own particular areas, defining concrete measures for achieving the targets on the road to Factor 3. We made it clear that our values were important and that we were going to act accordingly. 2023 CNBC LLC. Only when we are close to consumers can we offer them products that cater to their specific needs. So that's where you see maybe somewhat, you know, of an awkward partner and coming together, but for us really succeeding in sustainability is more important than, you know, competing with each other. The company formerly owned the Reebok brand, and the sale of Reebok And there are certain elements that are very closely related to sport. Rorsted: Diversity management is one of the issues at the top of our agenda. But we stayed firm and didnt let ourselves get derailed by obstacles. The event is free and open to the public, but reservations are required. Kasper Rorsted: Large, international corporations tend to become complex organizations, which makes them inflexible. The world around us is not getting any easier quite the opposite, in fact. Can this ever truly be an environmentally friendly industry? 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. That's another tricky tightrope that you have to walk when it comes to speaking out against human rights. McKinsey: To that end, Henkel recently set up a ShopperLab and a Beauty Care Lighthouse. Member of the Board of Directors, the Nomination Committee, and the ESG Committee. in the world. We have probably, you know, three to 400,000 people directly and indirectly employed by Adidas in China. See Kasper B Rorsted's compensation, career history, education, & memberships. 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. We see faster decision making, faster information transfer. That belongs to what we need to do. Adidas shares have lost about 37% in value this year, ranking them among the worst performers on the 50-member Euro Stoxx 50 Index. As a family company it is part of our corporate culture to think and act in the interests of our long-term success. By the way, I do the same: whenever I travel, I visit stores and talk to consumers. Then we have a full range of HR development tools that can be applied according to the potential of the individual candidate. In Rorsted: The challenge is not to have a quota or not, but addressing the underlying issues. Smith tennis shoes made from a mushroom-based leather. "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.". Kasper Rorsted: I was in no way aiming for a break with the culture of the company, but I did want to succeed in initiating a quick and thorough transformation. That was not the case in 2015. Today, 55 percent of our employees are in emerging markets. His presentation is scheduled for March 31 at the Oval Theater in USFs Marshall Student Video from the interview will be available at cnbc.com/evolve. Since 2018, Rrsted has served on the board of directors at Nestl, but the company We've talked about environment. But of course, you don't change the world overnight. To succeed in an increasingly volatile market environment, we need simple structures and processes. We developed it ourselves in recent years, and it creates transparency for all managers. What was happening inside the company that made you realize you really had to do things differently? Of course, very vocal on some of the racial issues around George Floyd. Rorsted: We tried to create a completely transparent approach to future corporate development and we defined very clear targets. Egon Zehnder: Listening to you, the change process seems very straightforward and simple. Center on the Tampa campus. Kasper Rorsted, thank you so much for your time and for your insights. Theater as part of the University of South Florida Muma College of Business Thought To reserve Everything from use of water and production and wastewater with dying, and just the billions of garments that are sold every single year and discarded in landfills. I think it's very different. Rorsted: I believe that someone who has always stuck to safe and familiar territory usually wont know how to react when the going gets really tough. Leaders with Lacqua: Kasper Rorsted Bloomberg Television 1.49M subscribers Subscribe 5.2K views 3 years ago Oct.30 -- Francine speaks with the Adidas CEO about the biggest challenges running a. He also believes the company should stand up and address Got a confidential news tip? Advisory Council, serves on the Nestl board alongside Rrsted and was instrumental Egon Zehnder: You just said that it was an intellectual challenge that brought you to Henkel. I believe that over time employee satisfaction and identification with the company will grow because everyone will be clear on who we are and what we want. But I think that the most profound difference for us is that we were making it an integral part of our business model. Eisen: What's the most difficult challenge you laid out? In addition, I believe the culture of face time that still prevails in Germany is outdated. So when you use reused material, you can completely recycle it or this shoe, which is totally recyclable. I mean when I go shopping for shoes, I've got to be honest, it's style and price. Eisen: That's interesting. So, I do think that we are getting the credit. 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. Before joining Adidas, Rrsted was the CEO at Henkel from 2008 to 2016. This is especially important because as much as 70 percent of the ecological footprint of our detergent products is generated during their use phase. Its a space where customers can try out, for instance, new digital tools that let them test hair colorants at the point of sale. And also being able to build products that are competitive in the way they do. In addition, I try not to pass the buck when things arent going well, but to shoulder the responsibility myself. you better.. And I think the consumer says that we are resonating more and more, you know, a lot of our consumers are very young consumers. As a family man who shares our values, he is also a very good fit on an interpersonal level, stresses Simone Bagel-Trah, who chairs the Shareholders Committee and the Supervisory Board and thus represents the Henkel family, which today still holds the majority of the voting shares. But I do think the most important part is saying do we overall, in the long term align around the same values. what they stand for. And we're a sports company. 178 nationalities. Eisen: We've been talking about so many different ESG issues. This enhances our position as an attractive employer. Since becoming CEO, youve significantly reduced the number of Henkels brands. 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. 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. But we keep our communications as transparent and clear as possible, and everyone knows our strategy and our targets. Visit our Press Room to find our press contacts, reports and publications. In 2021, women made up 37% of executive leadership roles, an increase of 2 percentage In past interviews, he has talked about the importance of driving sustainable products And I've been very vocal on this topic since last summer. Adidas CEO Kasper Rorsted said consumers are looking at the fashion industry with more scrutiny, which will force the industry to change. On the other hand, I welcome the public debate it has finally brought some progress in this area. And that's where the industry has to go. Our employees know who I am and what Im doing. It was a very can-do attitude. Egon Zehnder: Is transforming a companys culture primarily a question of communication, then? Then your employees will follow you as well. When asked what he sees as his lasting legacy as CEO of Adidas, he said he wants to Doesnt the substance play a major role as well? when will flights to china resume 2021, lance west goldman sachs,
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