On the subject of social justice, Rrsted told Footwear News in June 2021 that he believes its important to acknowledge differing opinions and Gschwandtner adopted this . All references must be sourced to the CNBC Evolve Global Summit. and employees first. 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 2021, women made up 37% of executive leadership roles, an increase of 2 percentage Whether its your studies, sports, or your job, if youre not willing to do it with all your energy, you should leave it. We dont get all things right at the same Kasper Rorsted has been a member of the adidas Executive Board and the company's CEO since 2016. 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. Do consumers really want this? I mean when I go shopping for shoes, I've got to be honest, it's style and price. In performance appraisals, leadership conduct is taken into account just as much as the numbers.. Copyright 2023,University of South Florida. And we've taken a very clear stand and I as the CEO have also done that and I think that's the way forward. 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. Rrsted, 60, has been described as a highly successful and competent leader who is empathic, calm and a strategic thinker. 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. the best sports brand in the world. These trends fundamentally change the business environment. It was definitely a thing and it was very public. This website is maintained by Muma College of Business. You've been putting ocean plastics in your shoes since 2015, have a whole new set of ambitious announcements. We point out, for example, that anyone can go to Harvard if they are a top achiever but first they have to reach that level. Kasper Rorsted, thank you so much for your time and for your insights. He wears 10.5-size Egon Zehnder: What specific steps have you taken to set this evolutionary change in motion? Rorsted: Well Sara, I think that this is part of being a global CEO. Rorsted, who heads one of the largest athletic wear companies in the world, will be Rorsted: I believe we have made a real breakthrough. accepting that award, having previously won in 2009 when he was head of consumer goods He quipped, As long as you buy it, I dont care.. Rorsted's wife has lived back in Munich with their four children since 2013. Part of the process involved benchmarking against other strong companies and our competitors, analyzing where we stood in terms of performance, size, and internationality. Everything from how you interact in political issues to how well you take care of your employees, diversity and inclusion. time, you know, but when we get something wrong, I think we need to recognize were We cant afford to rest on our laurels here. His employees attest to the seemingly boundless energy of the man at the head of Henkel. Eisen: What about China? Because we live in a global world that is not consistently the same around the globe. So how do you deal with that, which is even tougher in some ways? Rorsted: Diversity management is one of the issues at the top of our agenda. Then your employees will follow you as well. Rorsted: There can be a number of reasons. Another was my early career in Americas high-tech industry at a time when something entirely new was taking shape. completed a series of executive programs at Harvard Business School. Kasper Rorsted has been a member of the adidas Executive Board since August 2016, and the company's Chief Executive Officer since October 2016. . We now generate about 42 percent of our sales in the growth regions of the world. is so negative. Can you say more about that? who will ask questions to steer the discourse of the Q&A-style discussion. Video. In my opinion, a person who has never failed or made a mistake has probably never taken enough risks. Our current targets extend to the end of 2012, and we have already started thinking about the period that follows. business studies from the Copenhagen Business College, graduating in 1985. We want the best athletes in the world wearing How do you equip your employees to hit the mark, or how do you find people who can make the leap effortlessly? Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. 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: I would like to share a piece of advice my father gave me many years ago. He retained this position following Compaqs takeover by Hewlett-Packard (HP). Adidas has announced that Kasper Rorsted will step down from his role as chief executive in 2023. up next to his 30 other pairs. We are constantly adapting our structures to become faster and more flexible. But we stayed firm and didnt let ourselves get derailed by obstacles. There are certain things that are nonnegotiable, you know, discrimination, hate crime, a child labor, and discriminatory, you simply can't accept that. 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. So that has changed. We will continue to strengthen our position in growth markets like China, Russia, and Brazil. Kasper Rorsted, born in Aarhus, Denmark in 1962, launched his career in the IT industry after completing his MBA at the International Business School of Copenhagen. Since becoming CEO, youve significantly reduced the number of Henkels brands. 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. fact, its founder Adi Dassler was the embodiment of an innovator. 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. The network's 15 live hours a day of news programming in North America (weekdays from 5:00 a.m. - 8:00 p.m. 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. 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 has been head of Adidas since 2016. Eisen: We've been talking about so many different ESG issues. 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. And I think respecting those different opinions is very important that we don't have a uniform opinion right now. Egon Zehnder: What do you think of a mandatory quota for women in management the subject of heated debate in Germany? Family for me is more important than the job, he You try to do the right thing, it happens most of the time and not always. Adidas is the largest sportwear manufacturer in Europe and is headquartered in Herzogenaurach, Discover job vacancies, find out how to apply to them, and learn more about careers at Maersk. But I do think overall, it's a good thing. 62,000 worldwide, with 2,100 retail stores in over 50 countries. That was his second time 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. Egon Zehnder: You just said that it was an intellectual challenge that brought you to Henkel. 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. 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. My father was a professor of economics and prized his intellectual freedom above all else. McKinsey: To that end, Henkel recently set up a ShopperLab and a Beauty Care Lighthouse. Rorsted: And we do that also, we have pulled the plug in the past. Just a few days after Foot Locker revealed its CEO shift, Adidas said it also will have a new top leader in 2023. Last year, they achieved a 69% share of sustainable Adidas products. Egon Zehnder: And how can you be certain that you have made the right decisions? 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. 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). Rrsted served as a senior vice president and general So probably what we see right now, with all the volatility, is going to continue. The management team under the leadership of Kasper Rorsted succeeded in steering adidas and its employees healthily and safely through this unprecedented crisis. I think this mindset is the key to success. I like to win, but I never try to just play it safe. 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. Adidas CEO Kasper Rorsted will remain at the helm. Rrsted also talked about the war in Ukraine. The Dane is said to be a visionary but also a dynamic CEO. Kasper Rorsted: Henkel has become much more global in the past few years. And I've been very vocal on this topic since last summer. Skip Over Breadcrumbs and Secondary Navigation, Kasper Rrsted, CEO of Adidas, is the Muma College of Business Thought Leader Series 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. Were aiming for growth in both emerging and mature markets. 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've talked about diversity and inclusion. We would like to have more, but the better we do, the more credit we get. procurement, IT, and infrastructure services. To be honest, at the beginning I underestimated the amount of work involved. Kasper Rorsted: The ShopperLab is a room that recreates the shelves of a real store. McKinsey: And by 2016, if all goes according to plan, emerging markets will account for half of Henkels sales. The stock slumped as much as 6.9 euros, or 4.2% . Their hair is covered for hours every day and as a result needs special care. Rrsted said he didnt know when retail operations And we've been very keen on setting aggressive targets. On his greatest accomplishment outside of work, he shared that he has been married And we see that as an integral part of our new strategy for 2025. procurement, IT, and infrastructure services. he said. tickets, visit: usf.to/adidas. Before joining Adidas, Rrsted was the CEO at Henkel from 2008 to 2016. At USF, the athletics department is in the fourth year of an eight-year partnership 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? 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? 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. McKinsey: What are your plans for mature markets? We also increasingly recruit cross-border: at international recruitment fairs, we meet highly qualified candidates studying abroad and encourage them to work for Henkel in their home countries. Developing an employer brand takes time. Rorsted: If you look and I think this is super important is that we get the best innovation from everybody. This is Siemens AG, Germany (board member and member of the Innovation Committee), International Business Studies, Copenhagen Business College, Denmark, Executive Program, Harvard Business School, USA. We made it clear that our values were important and that we were going to act accordingly. 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. Because this would send a message to our people there that the customers arent very important after all. And if you cant do that, you cant be there as an employee. 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. Henkel is active worldwide in three business sectors: Laundry & Home Care, Beauty & Personal Care, and Adhesive Technologies. Sometimes its that easy: simply talk to people. 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. As consumer companies continue to expand their global presence, they face a host of formidable challenges: among them, staying close to the consumer, finding and attracting local talent, and managing an increasingly complex and far-flung organization. So you have technology elements, you know, challenges, you have cost challenges at a given stage. It drives transparency to ensure that you need to do what you're doing. 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. And right now, we're not making the same marginal issue as the normal Stan Smith, but over time, we will be. Henkel managers from marketing or R&D regularly visit households. Egon Zehnder: Where does this liberal-minded approach come from? 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. points from the prior year. Kasper Rorsted: I am convinced that a visible and accessible leadership style is most effective. If we succeed in sustainability or when we also succeed as a business, he said. McKinsey: In 2013, Henkel began a global rollout of a new leadership-development program. Protecting workers' jobs. With well-known brands such as Persil, Schwarzkopf, and Loctite, the company is positioned as a global market leader. American sports fans. 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. His. Before joining Adidas, Rrsted was the CEO at Henkel from 2008 to 2016. 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. Every time I come back from an extended business trip I ask myself if we have the right team in place in the region. Adidas and CEO Kasper Rorsted are parting ways in an unexpected shakeup. 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. If you continue, you will be taken to the alternate language home page. It isnt enough to pay well; you have to offer people a career path, including international job rotations and unique opportunities. So, I do think that we are getting the credit. 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. And we use Parley for ocean plastic. Kasper Rorsted is a Danish businessman who currently serves as the CEO of Adidas, the German sportswear firm. Innovation is what our company is about. Toyota Respects Employees According to Liker, Toyota's leadership style emphasizes the importance of respect for its people. The Muma College of Business Thought Leader Series began in 2018 to attract nationally from mycelium, the fast-growing fibrous root system of mushrooms that is grown in Rorsted: Of course I also talk about strategies, financials, and our brands those things make up the lions share of my job. To succeed in an increasingly volatile market environment, we need simple structures and processes. Eisen: That's interesting. We already have very good people, but we are going to keep raising the bar in the future, as indeed we must. Theres still plenty of room for improvement. Speaker on March 31. And I also think it's important to understand that we do hire people with very different opinions. Before I joined Henkel, I was told there was not much room for change. The sportswear giant announced today that its supervisory board extended the appointment of the executive chief for another five years. 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. Rrsted started announced that he is not running for re-election and is stepping down from that role manufacturer Henkel. Adidas CEO Kasper Rrsted, 60, leads one of the largest and oldest athletic wear companies To reserve And some employees accused you of being hypocritical, your head of HR left. Where do we see ourselves in five or ten years? Rorsted: I think there are different challenges at different stages. 50 countries. Sponsors? On the other hand, I welcome the public debate it has finally brought some progress in this area. And when I look upon the shoe that we have jointly built that is a super cool product. And as soon as I did that, I do believe that we took the appropriate actions. Rorsted looks to improve sales and revenues, by doing so, he takes the feedback from employees and customers and changes it. 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. Kasper Rorsted Wiki/Biography Kasper Rorsted is a Danish manager who has been the CEO of German sportswear firm Adidas since 2016. Egon Zehnder: What values are personally important to you? On finding the right career, he said, If you work for a company, you have to embody embrace a culture of diversity. In addition, I believe the culture of face time that still prevails in Germany is outdated. Skip Over Breadcrumbs and Secondary Navigation, Adidas CEO Kasper Rrsted Talks Owning the Game and Sustainability at USF Muma College 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. And do we have a successful relationship. Currently, e-commerce plays a minor role for us. We see ourselves as a leader in sustainability. What does it take to become the leader of one of the biggest and best-known brand names in the world? deal with Adidas. And that's why a lot of the big companies are making steps ahead. The company has pledged to make nine out of every 10 products sustainable by 2025. That would have diluted their effectiveness from the very start. That's another tricky tightrope that you have to walk when it comes to speaking out against human rights. I think that the scrutiny on companies and CEOs are much greater today. He said it was his first trip to the U.S. since before the pandemic in 2019. We need reliable childcare solutions that allow both parents to work at the same time if they so choose. In 2011 Henkel reported sales of 15.6 billion and an EBIT of over 2 billion the highest in the companys history to date. Eisen: Do you think you get credit from investors, consumers, employees, and whoever, whichever stakeholder you're doing this for? topics. Eisen: Sustainability has come to mean so much more than just the environmental impact and the responsibility there. Henkels roster of brands includes Persil detergent, Dial soap, Fa deodorant, and Loctite glue. Then we have a full range of HR development tools that can be applied according to the potential of the individual candidate. All rights reserved. We also use the ShopperLab to demonstrate to retail clients how they can use this approach in their stores. Its interesting that you are talking about people. And who is Kasper Rrsted? If we dont have a team that is a mirror of the He is proud Adidas is a truly global and diverse multinational company and touted worn, returned, ground up, and then remade into new products, and using natural and Rorsted: The challenge is not to have a quota or not, but addressing the underlying issues. Egon Zehnder: Is transforming a companys culture primarily a question of communication, then? If you look upon internally, there's a tremendous, I would say, enthusiasm and rallying around what we're doing right now. And that's where the industry has to go. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. For me, this is one that has such a devastating impact on the entire environment, Adidas CEO Kasper Rorsted said consumers are looking at the fashion industry with more scrutiny, which will force the industry to change. recognized speakers, entrepreneurs, and innovators in business and industry for informal That was not the case in 2015. Welcome to the official Facebook Page for Kasper Rrsted. Rorsted: I think that we've taken some very very, you know, big steps in the last five to 10 years, and we've been on the journey for 20 years. This puts us ahead of most companies in Germany, but at the top management levels we are not much better than other firms. I think it drives change, it drives responsibility. We see faster decision making, faster information transfer. You need to make sure that you do and you can always look yourself in the mirror for what the company stands for. 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. and making it an integral part of the Adidas business plan. In 2021, the German company had $23.6 billion in sales worldwide. For more information about NBCUniversal, please visit http://www.NBCUniversal.com. We also went out and was very public about it. McKinsey: Corporate social responsibility and sustainability are topics of growing importance. Not for this quarter thatll soon be over. 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? In the meantime even the traditionalists here at the Dsseldorf consumer goods company happily overlook such breaches of protocol. 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. Kasper Rorsted: Markets are reacting much faster than ever before. high content of reusable materials and reusable plastic. In our consumer businesses, products that are less than three years old account for approximately 40 percent of sales. 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. Egon Zehnder: What is the biggest challenge you are facing today? importance of Adidas taking the lead in sustainability in the retail industry. In We designed it to help us further understand customer behavior in shopping environments. Adidas CEO Kasper Rorsted will remain at the helm. 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. His presentation is scheduled for March 31 at the Oval Theater in USFs Marshall Student Rorsted: I believe we have one of the best evaluation systems in the industry. This is the advantage of clear and simple values they can be measured. But that's exactly the same chance as we had with, you know, the ocean plastic Parley shoe when we brought out in 2015. Rrsted, 60, has been described as a highly successful and competent leader who is 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. In addition, I try not to pass the buck when things arent going well, but to shoulder the responsibility myself. you better.. Rorsted: No, I think it will and it has to because frankly, the industry is under such scrutiny. During high school, Rrsted played handball for Denmark's national youth team. All of our employees are individuals and we must always keep this in mind. It's obviously been popular for decades. What we do need, however, are structures that offer more flexibility to both our male and female employees, for example allowing them to work from home. Egon Zehnder: Other corporate decision makers like to talk about strategies, innovations, strong brands. Our executive management team is already very international, but I see a clear need for improvement at other levels. 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. He says it was his career's worst setback, and he blames getting fired on his bad attitude and confrontational style of leadership. always come first. 178 nationalities. And I think you have to, you know, we say pick your battles. We want to hear from you. . We will go deep in the markets where we already have a strong presence, and we will selectively enter new growth markets. The company also plans to reach climate neutrality by 2050, according to its 2020 Adidas CEO Kasper Rorsted. Theater as part of the University of South Florida Muma College of Business Thought