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. 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. 50 countries. We are seeing more volatility and have to constantly adapt. The event is free and open to the public, but reservations are required. But there was also the fact that I found Henkel fascinating as a company. Adidas CEO Kasper Rorsted said consumers are looking at the fashion industry with more scrutiny, which will force the industry to change. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. We've talked about environment. To reserve humanitarian aid to refugees and childrens charities, as well as supporting employees What did you mean by that? He holds a degree in international All Rights Reserved. Adidas extends Rorsted tenure for five years - Just Style to use the American pronunciation of "Ah-DEE-dus" or the European version of AH-dee-dahs. How much progress have you made along this path? Overall, more than 70 town-hall meetings have taken place around the world. Keeping our eye on these strategic priorities, we were then able to set ambitious financial targets and reformulate the Henkel values. Kasper Rorsted: Markets are reacting much faster than ever before. We conducted 670 workshops across the globe, which yielded around 6,000 initiatives for implementation. And we see that as an integral part of our new strategy for 2025. Do. And youve been recognized by external experts as a leader in sustainability. All of our employees are individuals and we must always keep this in mind. 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. Brown shoes have Tampa | St. Petersburg | Sarasota-Manatee. Its leaders shows respect to their employees by protecting their jobs, challenging them, and supporting them in their efforts to improve. The company is active around the globe and currently employs about 47,000 people. The company employs We now generate about 42 percent of our sales in the growth regions of the world. At home, hes the type to remove his sneakers by the door, where he lines them And there are certain elements that are very closely related to sport. And I immediately thought of you and Adidas. We recently opened our Dragon Plant in Shanghaiits the worlds largest adhesives factory. Rorsted: I think it depends on which company you are. at Henkel in 2005 as the executive vice president for human resources management, 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. points from the prior year. 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. We need to help more women develop the skills they need for management positions. 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. In addition, I try not to pass the buck when things arent going well, but to shoulder the responsibility myself. In the future, we want fewer but larger manufacturing sites and a reduced number of global suppliers. Where do we want to go as a company? Rorsted: Of course I also talk about strategies, financials, and our brands those things make up the lions share of my job. Over time consumers will want it and I think you need the choice of both right now and that's what we're giving. And I think you'll see that also when we bring it out, it's coming out this year going into volume next year. of Business Thought Leader Series. But social issues come to mind, especially this year. But I think that's also part of being a CEO in these days. 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 that's why a lot of the big companies are making steps ahead. How do those determinations get made? Adidas CEO Kasper Rorsted to step down in 2023 - SportsPro You were constantly understaffed. So we have to place a higher priority on the recruitment and professional development of managers from Russia, the Middle East, and Asia. Then your employees will follow you as well. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. Nike has also made a lot of moves on this front. And I think and I don't mean this disrespectfully, but to European companies, maybe also due to regulation, has tended to be ahead. On 22 August 2022, it was announced that he would hand over his role as CEO 2022. Sometimes its that easy: simply talk to people. Kasper Rorsted: Thats right. 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? Weve increased our talent development efforts through collaboration with Harvard and other universities, for example. How different is it to be a CEO in 2021 than it was back then? And some employees accused you of being hypocritical, your head of HR left. But I do think the most important part is saying do we overall, in the long term align around the same values. Eisen: That's interesting. With the assistance of two Harvard Business School professors, in 2009 we asked ourselves what it would take to implement our goals and our strategy. Eisen: Well, that's why you are a great guest to talk about this subject. Gschwandtner adopted this . Based on 419 ratings, Kasper Rorsted ranks right below Callaway Golf's CEO, Oliver Brewer III. importance of Adidas taking the lead in sustainability in the retail industry. got to take the lead and we want to be the leader in sustainability.. On finding the right career, he said, If you work for a company, you have to embody But then facing boycotts and backlash from Chinese media and Chinese consumers. Video from the interview will be available at cnbc.com/evolve. McKinsey: You mentioned the role of your strong brands. He also Kasper Rorsted has been head of Adidas since 2016. We will continue to strengthen our position in growth markets like China, Russia, and Brazil. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. 62,000 worldwide, with 2,100 retail stores in over 50 countries. We need reliable childcare solutions that allow both parents to work at the same time if they so choose. Innovation is what our company is about. Get this delivered to your inbox, and more info about our products and services. All references must be sourced to the CNBC Evolve Global Summit. This required a massive communication effort. Rorsted: We tried to create a completely transparent approach to future corporate development and we defined very clear targets. been a declining trend for 20 years. and employees first. Kasper Rorsted - The value driver - Egon Zehnder Where do individual employees currently stand in terms of performance, and where do we see their potential? You did face a bit of a reckoning on the race issue at Adidas. Speaking of super cool products, Stan Smith going 100% recycled. It doesnt interest me. 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. Since 2018, Rrsted has served on the board of directors at Nestl, but the company His . When Ulrich Lehner retired as planned in 2008, Rorsted stepped into his shoes and was appointed CEO. We see faster decision making, faster information transfer. And that's why we also making collaborations, as you said before, even with competitors of ours. The network's 15 live hours a day of news programming in North America (weekdays from 5:00 a.m. - 8:00 p.m. And you need to support it, and I know we've said it before. 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. its laser-sharp focus on expanding the brand across the globe while putting its customers In countries where Henkel is hardly known, we prefer to target specific groupsfor example, through partnerships with individual professorships all over the world. Egon Zehnder: Where does this liberal-minded approach come from? 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. 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. business studies from the Copenhagen Business College, graduating in 1985. He eats cereal for dinner. Egon Zehnder: What is the biggest challenge you are facing today? 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 he's very keen also to push this innovation along with us. Rorsted. CNBC is the recognized world leader in business news, providing real-time financial market coverage, business content and general news consumed by more than 547 million people per month across all platforms. The Danish businessman has been at the helm of the global sportswear giant since 2016. By 2016, we expect this number to be 60 percent. His employees attest to the seemingly boundless energy of the man at the head of Henkel. That was not the case in 2015. Advisory Council, serves on the Nestl board alongside Rrsted and was instrumental Copyright 2023,University of South Florida. Sara Eisen: Welcome, Kasper, it's so great to have you at our Evolve conference. What was happening inside the company that made you realize you really had to do things differently? Egon Zehnder: What do you think of a mandatory quota for women in management the subject of heated debate in Germany? Continuity and strong leadership are important especially in these times, also in view of the new strategic cycle which will start in 2021." How do these two concepts help generate consumer insights? And we've been very keen on setting aggressive targets. It has certainly helped that we stuck to our course from the very beginning. He says it was his career's worst setback, and he blames getting fired on his bad attitude and confrontational style of leadership. 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? But the one that really has an impact on all of us is, you know, the plastic waste initiative that we put in place. If you make mistakes, recognize the mistakes and correct them and move forward to And I think respecting those different opinions is very important that we don't have a uniform opinion right now. If you look upon internally, there's a tremendous, I would say, enthusiasm and rallying around what we're doing right now. Experience as global CEO and board member in listed international companies in IT, consumer goods and chemicals. On the other hand, I welcome the public debate it has finally brought some progress in this area. at Henkel in 2005 as the executive vice president for human resources management, The company has also made a sustainability pledge, vowing to make 9 out of 10 products This enhances our position as an attractive employer. Another was my early career in Americas high-tech industry at a time when something entirely new was taking shape. It's obviously been popular for decades. What challenges are you looking forward to in the coming years? Discover job vacancies, find out how to apply to them, and learn more about careers at Maersk. They visit schools and hold sustainability classes. 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. 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. 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. 'Get the strategy and the team right': An interview with the CEO of 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). and sneakers include Beyonc, Kanye West, and Pharrell Williams. Then youll be successful. This advice has become my life motto. In 2021, the German company had $23.6 billion in sales worldwide. TAMPA (March 31, 2022) --During a wide-ranging informal discussion before a sold-out What does it take to become the leader of one of the biggest and best-known brand names in the world? Eisen: We've been talking about so many different ESG issues. Egon Zehnder: What specific steps have you taken to set this evolutionary change in motion? Our guiding principle is that we treat everyone fairly, but not everyone the same. Rorsted: There can be a number of reasons. Kasper Rorsted, thank you so much for your time and for your insights. We would like to have more, but the better we do, the more credit we get. Rorsted: Well Sara, I think that this is part of being a global CEO. His. For me, I have the greatest job in the world. Born February 24, 1962, in Aarhus, Denmark, Earned a degree in economics from Copenhagen Business School, Participated in executive programs at Harvard Business School, Serves on the boards of international media conglomerate Bertelsmann and Denmark-based industrial company Danfoss. So they're putting the burden on our side and of course, we're putting a lot of effort into new technologies, new manufacturing, you know, ways to make sure that we over time get the cost down. Get the strategy and the team right: An interview with the CEO of Henkel. Last September the company organized its second global see the end of plastic waste. Can you say more about that? Join Facebook to start connecting and con We made it clear that our values were important and that we were going to act accordingly. Apple, who made an appearance in 2018. Its interesting that you are talking about people. Adidas CEO Kasper Rorsted to Step Down in 2023; Replacement Search But on Black Lives Matter. Family for me is more important than the job, he McKinsey: Is there anything else youd like to share with our readers? 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. As an example, we aim to promote responsible use of our products. Nevertheless, digital and social media have a great influence on how consumers see our products, so were focusing on using the Internet and social media to engage customers. 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. You are switching to an alternate language version of the Egon Zehnder website. 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. The simplification was the most important aspect. Rrsted spoke about how the company has a deep and broad mindset of innovation. After a hiatus of several months, on April 1, 2005 Rorsted joined the Management Board of Henkel, a Dsseldorf-based company. manager at Hewlett-Packard from 2002 to 2004, and in various management positions Eisen: Yeah, with social media, no doubt. Eisen: Do you think you're ahead of your competition on this? Adidas CEO Kasper Rorsted says consumers will force fashion - CNBC The majority of consumers in the personal-care sector are female, so why should our products be developed and marketed by men? At the same time in the last 13 years, we've hardly had a normal year. What do you like about the product? In performance appraisals, leadership conduct is taken into account just as much as the numbers.. Of course, were against the war. Kasper Rorsted: Many companies have sustainability strategies and targets, but sustainability can only become an integral part of peoples daily work if all employees understand the underlying principles. Data is a real-time snapshot *Data is delayed at least 15 minutes. performance, management successes and innovative solutions. He said it was his first trip to the U.S. since before the pandemic in 2019. 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. An Interview with the CEO of Henkel - McKinsey & Company Henkels roster of brands includes Persil detergent, Dial soap, Fa deodorant, and Loctite glue. Kasper Rorsted: I would like to share a piece of advice my father gave me many years ago. at Compaq and Oracle. crowd, the head of one of the worlds most iconic brands spoke about having a mindset Adidas CEO Kasper Rrsted, 60, leads one of the largest and oldest athletic wear companies in the world. Rrsted said for the past seven years, the company has produced products with an increasingly We are very successful there. Kasper Rrsted was 42 years old when he was fired from Hewlett-Packard in 2004. We are also stepping up our IT investments in order to standardize and accelerate our global processes. We cant afford to rest on our laurels here. He was born in Aarhus, Denmark and is a Danish national. Kasper Rorsted Will 'Hand Over the CEO Position' at Adidas in 2023 I think this mindset is the key to success. Our company should reflect the markets in which we operate. This allowed us to define our three strategic priorities: achieving our full business potential, focusing more on our customers, and strengthening our global team. And we're a sports company. In my opinion, a person who has never failed or made a mistake has probably never taken enough risks. On the subject of social justice, Rrsted told Footwear News in June 2021 that he believes its important to acknowledge differing opinions and Klaus Behrenbeck is a director in McKinseys Cologne office. Rorsted's wife has lived back in Munich with their four children since 2013. Rorsted: You know, I spent a lot of time listening to make sure that I really understood the situation at the appropriate level. So when you use reused material, you can completely recycle it or this shoe, which is totally recyclable. McKinsey: And by 2016, if all goes according to plan, emerging markets will account for half of Henkels sales. But of course, when it comes to our values, the entire leadership team has to lead by example. 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. His presentation is scheduled for March 31 at the Oval Theater in USFs Marshall Student Rrsted said collegiate partnerships such as the one with USF help the company reach Kasper Rorsted: Henkel has become much more global in the past few years. Rorsted: Communication may not be everything, but without communication it all comes to nothing. stores and e-commerce site in Russia. 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. week of inclusion. conversations that cover a wide range of topics. Companies need to make a cultural shift to measuring performance based on employee output, not hours spent in the office. And in my opinion, that's the most important part and not voicing my personal preferences and the lack of preferences. As a leader, when you promise something, you have to stick to it. Egon Zehnder: Listening to you, the change process seems very straightforward and simple. Eisen: Do you think you get credit from investors, consumers, employees, and whoever, whichever stakeholder you're doing this for? in the region with housing, food, clothes, and other basic needs. Kasper Rorsted confirmed as CEO of adidas for more 5 years - World Footwear He registered more And every year you're going to have you know, a new, I would say disruption, whatever we want to call it. Rorsted: If we look, we really see sustainability being an integral part of our business model. You cannot run a global company from your desk. Kasper Rorsted adidas CEO Rating | Comparably Kanye West Declares Adidas CEO Kasper Rorsted As Dead 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. Kasper Rorsted: How Adidas Profits from Runtastic - ISPO.com Henkel has set ambitious sustainability goals, including what you call Factor 3a threefold increase in efficiency by 2030. There were no rules. procurement, IT, and infrastructure services. That was his second time 4202 E. Fowler Avenue, BSN 3403, Tampa, FL 33620, USA813-974-4281. Kasper Rorsted: Mature markets will remain important for us. final paper OB.docx - Kasper Rorsted drives Adidas to From 2001 to 2002, Read more Search In his early career, Rorstedt worked with Oracle, Digital Equipment Corporation, and Compaq. One of the techniques we use is an eye-tracking system that analyzes eye movement and translates it into heat maps, showing patterns of shopper behavior. Once they have been addressed, a quota becomes useless. empathic, calm and a strategic thinker. This was an intensive effort to ensure that each and every one of our people knows where the journey is taking us and what contribution they can make. announced that he is not running for re-election and is stepping down from that role 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. For me, that is one that has such a devastating impact on the entire environment. A Division of NBCUniversal. And I also think it's important that the leading company takes a position and show the way forward. That taught me a lesson: if you just administrate, you sink; if you take an active role in shaping things, you have the best chance of survival. Right now we have done a recent survey, 70% of our consumers prefer to buy sustainable products. 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 I think it's so fundamental for companies to really help innovate and find solutions that address the environment, not to be disrupted for the future. Our people are important to me and I hope that they realize it. He quipped, As long as you buy it, I dont care.. The world around us is not getting any easier quite the opposite, in fact. and making it an integral part of the Adidas business plan. a controlled lab environment. Kasper Rorsted: The five big tasks of the Adidas CEO - ISPO.com If the internal processes dont align, if we arent offering our young people the right development opportunities regardless of their gender, then a quota wont fix the problem. In 2021, women made up 37% of executive leadership roles, an increase of 2 percentage We put great emphasis on internal promotion and talent development. a no-win proposition for everybody, he said. But I think that is normal in any 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. We already have very good people, but we are going to keep raising the bar in the future, as indeed we must. And when we looked upon Allbirds, you know, they've done been doing a great job on certain elements of innovation, we can bring the footwear expertise into it, which they probably had to a lesser extent. Adidas CEO Kasper Rorsted will remain at the helm. recognized speakers, entrepreneurs, and innovators in business and industry for informal So that has changed. For me, I have the greatest job in the world., On his favorite job, aside from his current one, he said he loved working at Compaq.

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