Overall, more than 70 town-hall meetings have taken place around the world. Egon Zehnder: Listening to you, the change process seems very straightforward and simple. Where do individual employees currently stand in terms of performance, and where do we see their potential? And youve been recognized by external experts as a leader in sustainability. Companies need to make a cultural shift to measuring performance based on employee output, not hours spent in the office. 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. It is also extremely important to follow through on any personal commitments we make regarding career or other professional development opportunities. Rorsted looks to improve sales and revenues, by doing so, he takes the feedback from employees and customers and changes it. in April. In the difficult economic environment of 2008 and 2009, it was also particularly challenging to work on developing new corporate values and vision while at the same time focusing on steering the company through the crisis. 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. 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. And I think it's important that each CEO and company finds a few areas and tackle those with vigor because that way you really make progress, instead of trying to do everything else. Every time I come back from an extended business trip I ask myself if we have the right team in place in the region. announced that he is not running for re-election and is stepping down from that role Only when we are close to consumers can we offer them products that cater to their specific needs. But social issues come to mind, especially this year. 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. Kasper Rorsted, head of the global manufacturer since 2008, discusses the companys growth plans, what it takes to hire good people, and how he fosters dialogue with customers and employees. Eisen: Sustainability has come to mean so much more than just the environmental impact and the responsibility there. Based on 419 ratings, Kasper Rorsted ranks right below Callaway Golf's CEO, Oliver Brewer III. sustainable by 2025. always come first. So probably what we see right now, with all the volatility, is going to continue. But we keep our communications as transparent and clear as possible, and everyone knows our strategy and our targets. 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. In these markets, a large number of companies are competing for a relatively small, although steadily growing, pool of candidates. I think 8 to 10% of carbon emissions come from the fashion industry. This website is maintained by Muma College of Business. We have a results-driven performance culture. 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. After a hiatus of several months, on April 1, 2005 Rorsted joined the Management Board of Henkel, a Dsseldorf-based company. There are no human winners in this game. The stock slumped as much as 6.9 euros, or 4.2% . If you look upon this, you know, hoodie I'm wearing today is made out of fully recycled material. The company formerly owned the Reebok brand, and the sale of Reebok getting wrong and be fully committed to it, Rrsted said. recognized speakers, innovators, idea generators, entrepreneurs, philanthropists, our products, and if theyre not wearing them, were building our products wrong, And if you cant do that, you cant be there as an employee. Nationality: Danish Born: 1962 Gender: Male Election period: 2023-2025 Other management duties: Siemens AG, Germany (board member and member of the Innovation Committee) Education: So first, it was a costing issue, then you had a scaling issue around it, which you always do around your new products, if you take this or you take this which was made to be remade, where we completely recycle all the elements of a shoe and build a new shoe on it. Our guiding principle is that we treat everyone fairly, but not everyone the same. 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. And that's what we brought into the market. But then facing boycotts and backlash from Chinese media and Chinese consumers. And that will be a challenge in itself. Rorsted: If you look and I think this is super important is that we get the best innovation from everybody. So how do you deal with that, which is even tougher in some ways? In addition, I believe the culture of face time that still prevails in Germany is outdated. I am convinced that we need this diversity; its a competitive advantage. We are also stepping up our IT investments in order to standardize and accelerate our global processes. In 2021, the company released the Stan Smith Mylo, a vegan version of its iconic Stan But the man who has been setting the course and dictating the tempo here for four years is made of different stuff. But right now we are doing that. TAMPA (March 31, 2022) --During a wide-ranging informal discussion before a sold-out Innovation is what our company is about. Where do we see ourselves in five or ten years? Rrsted explained that the company is helping to end plastic waste with a three-pronged And then of course, you said yourself, you know, aggressive targets. We are seeing more volatility and have to constantly adapt. And I think over time that will happen, but I think we need to give the consumer the choice of both. Kasper Rorsted: Its certainly a challenge to find and keep good local employees, especially in emerging markets. procurement, IT, and infrastructure services. On finding the right career, he said, If you work for a company, you have to embody Its a space where customers can try out, for instance, new digital tools that let them test hair colorants at the point of sale. Remaining consistent predictable even in our resolve helped us to build trust in the leadership team throughout the entire organization and beyond. It's obviously such an important growth market for you, what 25% of the business, at least. We have been able to achieve everything we have set out to do. Rorsted: And we do that also, we have pulled the plug in the past. He told me, If you do something, do it with your full heart and do it properly. Germany. McKinsey: What are your plans for mature markets? 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. Do you feel thats important to do as a CEO? Egon Zehnder: As you just mentioned, you travelled the globe for months to present and explain the new corporate values to Henkel employees worldwide. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. When you think about ESG, where do you think it's going? He is also a person who notices footwear. 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. We now generate about 42 percent of our sales in the growth regions of the world. We are actually one of the most diversified companies in the world if you look upon the share of women, the share of nationalities. McKinsey: To that end, Henkel recently set up a ShopperLab and a Beauty Care Lighthouse. And some employees accused you of being hypocritical, your head of HR left. So successful that the Adidas supervisory board voted last year to extend his contract Nike has also made a lot of moves on this front. I think that the scrutiny on companies and CEOs are much greater today. Kasper Rorsted: Thats right. Rrsted is the third guest of the series, following on the heels of Marc Randolph, His favorite app 365 Dream And I have similar views about women in management positions. 178 nationalities. I try to establish clear rules of the game. 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 . empathic, calm and a strategic thinker. To be very clear: we are concentrating on markets where we hold leading positions or are able to generate sustainable growth. Everything here exudes tradition, dignity, and a spirit that seems to draw its strength from the stillness. This required a massive communication effort. We cant afford to rest on our laurels here. During a Q&A session following his presentation, USF student-athletes asked Rrsted And we're a sports company. Kasper Rorsted: Markets are reacting much faster than ever before. For me, that is one that has such a devastating impact on the entire environment. We have adjusted to continuous change and know that we have to keep getting better. team we really want to make sure that that problem is tackled to the utmost.. conversations that cover a wide range of topics. the co-founder of Netflix, who spoke in 2019, and Steve Wozniak, the co-founder of 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. He has been at the helm of the global sportswear giant since 2016. I like to win, but I never try to just play it safe. I don't really think about the carbon footprint. in getting Rrsted as a featured speaker. We see ourselves as a leader in sustainability. And that's why a lot of the big companies are making steps ahead. 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. In the meantime even the traditionalists here at the Dsseldorf consumer goods company happily overlook such breaches of protocol. 62,000 worldwide, with 2,100 retail stores in over 50 countries. announced that he is not running for re-election and is stepping down from that role Because we live in a global world that is not consistently the same around the globe. Henkel already had a strong value-based culture but up to that point it had been expressed in terms of ten values, the exact content of which was not well known to the majority of our employees around the world. Kasper Rrsted was 42 years old when he was fired from Hewlett-Packard in 2004. Skip Over Breadcrumbs and Secondary Navigation, Kasper Rrsted, CEO of Adidas, is the Muma College of Business Thought Leader Series Our executive management team is already very international, but I see a clear need for improvement at other levels. Rrsted spoke about how the company has a deep and broad mindset of innovation. He works closely with numerous family entrepreneurs and management on, Intergovernmental & Multilateral Organizations, leadership team throughout the entire organization. You try to do the right thing, it happens most of the time and not always. Egon Zehnder: How did you master these challenges? Of course, very vocal on some of the racial issues around George Floyd. Adidas CEO Kasper Rorsted to Step Down in 2023; Replacement Search The company has 62,285 employees worldwide, with 2,500 retail stores in over Adidas CEO Kasper Rorsted to step down in 2023 - SportsPro This website is maintained by Muma College of Business. What lessons have you learned that other companies can also learn from? This is the foundation, a process we conduct with all 9,000 managers worldwide. of Business Thought Leader Series. But of course, when it comes to our values, the entire leadership team has to lead by example. In countries where Henkel is hardly known, we prefer to target specific groupsfor example, through partnerships with individual professorships all over the world. 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. 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. Kasper Rorsted: Large, international corporations tend to become complex organizations, which makes them inflexible. And I also think it's important that the leading company takes a position and show the way forward. I believe that it is essential to start with a relatively clear destination in mind, and work step by step to get there. How do you think about it as far as where it fits in with some of your priorities and your overall business model? You need to make sure that you do and you can always look yourself in the mirror for what the company stands for. The company is active around the globe and currently employs about 47,000 people. We put great emphasis on internal promotion and talent development. 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. Rrsted said collegiate partnerships such as the one with USF help the company reach in the world. In 2021, women made up 37% of executive leadership roles, an increase of 2 percentage week of inclusion. I dont want to be seen as an administrator, but as an architect. And that's where the industry has to go. Q. And I was curious as to why you would partner with them and not just do it yourself when they're a competitor. Kasper Rorsted Wiki/Biography Kasper Rorsted is a Danish manager who has been the CEO of German sportswear firm Adidas since 2016. Copyright 2023,University of South Florida. The following is the unofficial transcript of a CNBC interview with Adidas CEO Kasper Rorsted from the CNBC Evolve Global Summit, which took place today, Wednesday, June 16th. In a 45-minute presentation, Rrsted talked about the companys strategy of becoming 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. Rorsted: I believe we have one of the best evaluation systems in the industry. Rorsted. Speaking at the CNBC Evolve Global Summit, the Adidas. 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. And I believe over time, it will be a very, very important criteria, and it is today. 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. The world around us is not getting any easier quite the opposite, in fact. We have set the ambitious target of generating 20 billion in sales by 2016, 10 billion of which we expect to come from emerging markets. He also and employees first. Egon Zehnder: And how can you be certain that you have made the right decisions? Before I joined Henkel, I was told there was not much room for change. You know, diversity and inclusion is one also. Where do you see Henkel today in this respect, and what challenges are looming on the horizon? through donations. 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. And we will continue centralizing functions in shared-service centers. Developing an employer brand takes time. Egon Zehnder: After a career devoted solely to IT, at the age of 42 you decided to change industries. There were no rules. Kasper Rorsted confirmed as CEO of adidas for more 5 years. Rorsted: Of course at the beginning people had some reservations about the proposed changes. Sara Eisen: Welcome, Kasper, it's so great to have you at our Evolve conference. When I am asked how many employees are working on sustainability at Henkel, I always reply: 47,000. Kasper B Rorsted is Former Chairman-Mgmt Board/CEO at Adidas AG. in April. Rorsted: I think there are different challenges at different stages. And as long as we can deliver a product that doesn't compromise on performance or price to the consumer, eventually the consumer will be very open. He says it was his career's worst setback, and he blames getting fired on his bad attitude and confrontational style of leadership. 3 talking about this. He uses two iPhones and one iPad Mini. Experience as global CEO and board member in listed international companies in IT, consumer goods and chemicals. 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). You are switching to an alternate language version of the Egon Zehnder website. He runs and plays tennis to keep in shape and is an enthusiastic skier. The turnover rate in China is around 25 percent. The Muma College of Business Thought Leader Series began in 2018 to attract nationally 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. Adidas CEO Kasper Rorsted on How Kanye West's Politics Have - Yahoo In our consumer businesses, products that are less than three years old account for approximately 40 percent of sales. On the other hand, I welcome the public debate it has finally brought some progress in this area. The Ukrainian border is 1,000 miles How much progress have you made along this path? would resume. It doesnt interest me. 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. 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. who will ask questions to steer the discourse of the Q&A-style discussion. Then we have a full range of HR development tools that can be applied according to the potential of the individual candidate. 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 But on Black Lives Matter. If we do not expect to win in a market in a reasonable period of time, we will exit that market. 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. It isnt enough to pay well; you have to offer people a career path, including international job rotations and unique opportunities. And you need to support it, and I know we've said it before. Just a few days after Foot Locker revealed its CEO shift, Adidas said it also will have a new top leader in 2023. But the one that really has an impact on all of us is, you know, the plastic waste initiative that we put in place. Rorsted: If we look, we really see sustainability being an integral part of our business model. Our company should reflect the markets in which we operate. he said. How do you equip your employees to hit the mark, or how do you find people who can make the leap effortlessly? At USF, the athletics department is in the fourth year of an eight-year partnership 4202 E. Fowler Avenue, BSN 3403, Tampa, FL 33620, USA813-974-4281. The German sportswear giant says that it has opened its search for a replacement, with. Is that your call? 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? Rorsted has lived in Germany since 1991, is a former junior national handball player, passionate skier, tennis player and soccer fan - conveniently of FC Bayern, the club in which Adidas has held a ten percent stake for 15 years. Leaders with Lacqua: Kasper Rorsted - YouTube As an example, we aim to promote responsible use of our products. Eisen: What about China? He was born in Aarhus, Denmark and is a Danish national. 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. 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. Copyright 2023,University of South Florida. 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.
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