Where do we see ourselves in five or ten years? 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. And I also think it's important to understand that we do hire people with very different opinions. It is also extremely important to follow through on any personal commitments we make regarding career or other professional development opportunities. Kasper Rorsted. And you need to support it, and I know we've said it before. And if you cant do that, you cant be there as an employee. He uses two iPhones and one iPad Mini. Rorsted: I think over time, you get the credit that you deserve. Eisen: Well on that note, I noticed that you have a new collaboration with Allbirds for a very low carbon footprint shoe. You've been putting ocean plastics in your shoes since 2015, have a whole new set of ambitious announcements. If you make mistakes, recognize the mistakes and correct them and move forward to He works closely with numerous family entrepreneurs and management on, Intergovernmental & Multilateral Organizations, leadership team throughout the entire organization. The company employs Tampa | St. Petersburg | Sarasota-Manatee. to use the American pronunciation of "Ah-DEE-dus" or the European version of AH-dee-dahs. time, you know, but when we get something wrong, I think we need to recognize were 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. Kasper Rorsted: The ShopperLab is a room that recreates the shelves of a real store. And we're a sports company. We want the best athletes in the world wearing You are here as a temporary employee. Rorsted. All rights reserved. The mylo material is created We need to help more women develop the skills they need for management positions. McKinsey: And by 2016, if all goes according to plan, emerging markets will account for half of Henkels sales. Our company should reflect the markets in which we operate. All references must be sourced to the CNBC Evolve Global Summit. business studies from the Copenhagen Business College, graduating in 1985. Our team is truly a global team. Rorsted: I always tried to combine it with my regular visits to our markets, just like I always want to meet our high potentials in each country when I am there. When I first joined the company, I was surprised how many colleagues had spent half of their lives at Henkel! Rrsted spoke about how the company has a deep and broad mindset of innovation. In an interview at the CNBC Evolve Global Summit in June 2021, Rrsted discussed the Rrsted, 60, has been described as a highly successful and competent leader who is empathic, calm and a strategic thinker. at Compaq and Oracle. You could try anything, test your mettle, and emerge either as an incredible success or a spectacular failure. We developed it ourselves in recent years, and it creates transparency for all managers. high content of reusable materials and reusable plastic. And he's very keen also to push this innovation along with us. to New York-based Authentic Brands closed on March 1. 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 addition, he is a self-confessed fan of soccer team Bayern Munich. Their hair is covered for hours every day and as a result needs special care. 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. 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. Our people are important to me and I hope that they realize it. 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? Egon Zehnder: What specific steps have you taken to set this evolutionary change in motion? Whether its your studies, sports, or your job, if youre not willing to do it with all your energy, you should leave it. 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. Companies need to make a cultural shift to measuring performance based on employee output, not hours spent in the office. He pushes his employees to success; it is not just about paying them. To learn more, visit https://www.cnbc.com/digital-products/. Rorsted: There can be a number of reasons. 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. Because this would send a message to our people there that the customers arent very important after all. And of course, a critical part of my role is to make sure Henkel has the right team in place. Eisen: We've been talking about so many different ESG issues. Apple, who made an appearance in 2018. Kasper Rorsted: Markets are reacting much faster than ever before. We've talked about environment. Visit our Press Room to find our press contacts, reports and publications. Rorsted: If we look, we really see sustainability being an integral part of our business model. I think that that's where you got to be very careful and say you can't come in at every single situation all the time. From 2001 to 2002, Read more Search And some employees accused you of being hypocritical, your head of HR left. Got a confidential news tip? To succeed in an increasingly volatile market environment, we need simple structures and processes. And we see that as an integral part of our new strategy for 2025. Developing an employer brand takes time. You were constantly understaffed. Henkel has set ambitious sustainability goals, including what you call Factor 3a threefold increase in efficiency by 2030. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Advisory Council, serves on the Nestl board alongside Rrsted and was instrumental 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. I don't really think about the carbon footprint. the best sports brand in the world. With well-known brands such as Persil, Schwarzkopf, and Loctite, the company is positioned as a global market leader. at Henkel in 2005 as the executive vice president for human resources management, So how do you deal with that, which is even tougher in some ways? Video. 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. 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. Days does countdowns. We aim to turn Henkel into a real-time enterprise. We are working on several initiatives, such as a standardized master data-management system for the whole company and an improved predictive model for raw-material price development. And when I look upon the shoe that we have jointly built that is a super cool product. You try to do the right thing, it happens most of the time and not always. But it's a question of time. His employees attest to the seemingly boundless energy of the man at the head of Henkel. 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. Rrsted spoke to nearly 450 people on Thursday in the Marshall Student Centers Oval crowd, the head of one of the worlds most iconic brands spoke about having a mindset So you have technology elements, you know, challenges, you have cost challenges at a given stage. McKinsey: Speaking of your IT background, what role do IT and digital technologies play in Henkels corporate strategy? Were aiming for growth in both emerging and mature markets. And I think that's where a lot of companies are struggling. 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. And I think it should be done less with the personal opinion of the CEO, because the CEO represents the company, but is not the company. announced that he is not running for re-election and is stepping down from that role in April. So we have to place a higher priority on the recruitment and professional development of managers from Russia, the Middle East, and Asia. recognized speakers, entrepreneurs, and innovators in business and industry for informal 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. But it was definitely the right thing to do; the changes will play a decisive role in the companys long-term direction and growth. Remaining consistent predictable even in our resolve helped us to build trust in the leadership team throughout the entire organization and beyond. Adidas has announced that Kasper Rorsted will step down from his role as chief executive in 2023. Kasper Rorsted: Its certainly a challenge to find and keep good local employees, especially in emerging markets. Eisen: What's the most difficult challenge you laid out? 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. The simplification was the most important aspect. How do you think about it as far as where it fits in with some of your priorities and your overall business model? Rorsted recently shared his views on his tenure at Henkel and the companys plans for the future with McKinseys Klaus Behrenbeck. Theres still plenty of room for improvement. 2022 Worlds Most Admired Companies. What was really important to us? Theater as part of the University of South Florida Muma College of Business Thought Our guiding principle is that we treat everyone fairly, but not everyone the same. importance of Adidas taking the lead in sustainability in the retail industry. Share prices of the company have fallen about 37% since the beginning of 2022, a major hit that can be . In these markets, a large number of companies are competing for a relatively small, although steadily growing, pool of candidates. By 2016, we expect this number to be 60 percent. How different is it to be a CEO in 2021 than it was back then? Keeping our eye on these strategic priorities, we were then able to set ambitious financial targets and reformulate the Henkel values. That has not been the case. In 2021, women made up 37% of executive leadership roles, an increase of 2 percentage So successful that the Adidas supervisory board voted last year to extend his contract through July 2026. 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. humanitarian aid to refugees and childrens charities, as well as supporting employees And as soon as I did that, I do believe that we took the appropriate actions. In his early career, Rorstedt worked with Oracle, Digital Equipment Corporation, and Compaq. Eisen: Well, how do you determine what issues to speak up around? In 2018 he won the German Image Award, an honor that praises the top CEO for their 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. 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. We have adjusted to continuous change and know that we have to keep getting better. 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. To maintain this independence, he turned down a number of lucrative job offers in the private sector. And I think respecting those different opinions is very important that we don't have a uniform opinion right now. I try to establish clear rules of the game. Egon Zehnder: In other words, its always a little higher, a little further. Second, [we have] a relentless . How do these two concepts help generate consumer insights? The page you are currently on does not have a translated version. Tampa | St. Petersburg | Sarasota-Manatee. of Business Thought Leader Series. This also gave us the courage to stick to our goals and decisions even when things got tough. At the same time, however, we will continue to invest in innovation. the third speaker in the University of South Florida Muma College of Business Thought 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. But I think that is normal in any company. For me, this is one that has such a devastating impact on the entire environment, Rrsted served as a senior vice president and general 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. he said. 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 that will be a challenge in itself. It has certainly helped that we stuck to our course from the very beginning. At Henkel 30 percent of our managers are already women. and employees first. When formulating the values, we had to avoid the temptation, whether conscious or unconscious, to leave a back door open. 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. The stock slumped as much as 6.9 euros, or 4.2% . Adidas CEO Kasper Rorsted will remain at the helm. The company formerly owned the Reebok brand, and the sale of Reebok In the meantime even the traditionalists here at the Dsseldorf consumer goods company happily overlook such breaches of protocol. Kasper Rorsted: Thats right. Last year, they achieved a 69% share of sustainable Adidas products. We see ourselves as a leader in sustainability. The management team under the leadership of Kasper Rorsted succeeded in steering Adidas and its employees healthily and safely through this unprecedented crisis. Center on the Tampa campus. In countries where Henkel is hardly known, we prefer to target specific groupsfor example, through partnerships with individual professorships all over the world. Do. Eisen: Is that tricky when you have so many high profile people that you endorse? through donations. The world around us is not getting any easier quite the opposite, in fact. been a declining trend for 20 years. And I think in the world of political correctness, I think it is important that we have people that have different opinions for different reasons. week of inclusion. This website is maintained by Muma College of Business. It was totally undisciplined. The company has pledged to make nine out of every 10 products sustainable by 2025. 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). And I think over time that will happen, but I think we need to give the consumer the choice of both. Its employees represent We will go deep in the markets where we already have a strong presence, and we will selectively enter new growth markets. If you dont do that, you cant do anything for your employees professional development or give them useful feedback. Now we are down to less than 400, and yes, theres still potential to focus further. Since 2018, Rrsted has served on the board of directors at Nestl, but the company We now generate about 42 percent of our sales in the growth regions of the world. When I am asked how many employees are working on sustainability at Henkel, I always reply: 47,000. But that's exactly the same chance as we had with, you know, the ocean plastic Parley shoe when we brought out in 2015. In 2021, the German company had $23.6 billion in sales worldwide. 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. So I do think that we have a lead in it. And I think you have to, you know, we say pick your battles. manager at Hewlett-Packard from 2002 to 2004, and in various management positions How much progress have you made along this path? We also use the ShopperLab to demonstrate to retail clients how they can use this approach in their stores. 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. deal with Adidas. For me, I have the greatest job in the world. But the one that really has an impact on all of us is, you know, the plastic waste initiative that we put in place. see the end of plastic waste. up next to his 30 other pairs. The turnover rate in China is around 25 percent. Speaking at the CNBC Evolve Global Summit, the Adidas. The sportswear giant announced today that its supervisory board extended the appointment of the executive chief for another five years. Eisen: What about China? 3 talking about this. Welcome to the official Facebook Page for Kasper Rrsted. In a 45-minute presentation, Rrsted talked about the companys strategy of becoming 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. I think 8 to 10% of carbon emissions come from the fashion industry. I eat with employees in our canteens whenever I am traveling or here at headquarters. All rights reserved. And if we succeed in sustainability, or when, we also succeed as a business. "Innovation is what our company is about. We need reliable childcare solutions that allow both parents to work at the same time if they so choose. Speaker on March 31. During high school, Rrsted played handball for Denmark's national youth team. Can this ever truly be an environmentally friendly industry? Egon Zehnder: As you just mentioned, you travelled the globe for months to present and explain the new corporate values to Henkel employees worldwide. I thought working from home would have taught So he or she speaks on behalf of the company. We want to hear from you. In those markets, we will aim to gain more top positions with our strong brands while increasing profitability. The Dane is said to be a visionary but also a dynamic CEO. 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 . Not only on diversity, which I have been vocal on I would say since 2004. So successful that the Adidas supervisory board voted last year to extend his contract 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. what they stand for. Kasper Rorsted has been a very driven leader. Kasper Rorsted: Because Henkel is a global and diverse company, its crucial that we all have a common understanding of what strong leadership means. At USF, the athletics department is in the fourth year of an eight-year partnership Kasper Rorsted: I would like to share a piece of advice my father gave me many years ago. Kim Ross, a USF Muma College of Business alumna who sits on the colleges Executive He says it was his career's worst setback, and he blames getting fired on his bad attitude and confrontational style of leadership. 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. 4202 E. Fowler Avenue, BSN 3403, Tampa, FL 33620, USA813-974-4281. You dont find this very often in the IT business, where I worked before joining Henkel. Nine out of 10 articles will be sustainable by 2025. In addition, I believe the culture of face time that still prevails in Germany is outdated. This required a massive communication effort. If you continue, you will be taken to the alternate language home page. This website is maintained by Muma College of Business. Over time consumers will want it and I think you need the choice of both right now and that's what we're giving. One significant advantage we enjoy at Henkel is the first-rate, highly competent supervisory bodies which were involved in our decision-making from the beginning and fully supported the change process. But I do think the most important part is saying do we overall, in the long term align around the same values. He runs and plays tennis to keep in shape and is an enthusiastic skier. That was when the financial crisis was around. Our executive management team is already very international, but I see a clear need for improvement at other levels. American sports fans. Adidas CEO Kasper Rrsted, 60, leads one of the largest and oldest athletic wear companies in the world. 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. What do you miss? 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. This is the advantage of clear and simple values they can be measured. Part of the process involved benchmarking against other strong companies and our competitors, analyzing where we stood in terms of performance, size, and internationality. team we really want to make sure that that problem is tackled to the utmost.. Why do intrinsically good approaches get bogged down so quickly? In addition, I try not to pass the buck when things arent going well, but to shoulder the responsibility myself. 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. recognized speakers, innovators, idea generators, entrepreneurs, philanthropists, Brown shoes have If we dont have a team that is a mirror of the And I think and I don't mean this disrespectfully, but to European companies, maybe also due to regulation, has tended to be ahead. 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. When I walked in, I saw a lot of opportunities here, he joked. And I think the consumer says that we are resonating more and more, you know, a lot of our consumers are very young consumers. Kasper Rorsted confirmed as CEO of adidas for more 5 years. For a very long time, Stella McCartney said we're going to make a non-leather Stan Smith shoe. Where do you see room for improvement? Good to see you. You need to make sure that you do and you can always look yourself in the mirror for what the company stands for. 2023 CNBC LLC. Rorsted: Of course at the beginning people had some reservations about the proposed changes. Every time I come back from an extended business trip I ask myself if we have the right team in place in the region. Rorsted: And we do that also, we have pulled the plug in the past. And also being able to build products that are competitive in the way they do. Rrsted said he didnt know when retail operations Rorsted: It was mostly the intellectual challenge of succeeding in a sector of which I had only a rudimentary grasp at the time. Can you say more about that? But we need to focus on the future. Eisen: Yeah, with social media, no doubt. worn, returned, ground up, and then remade into new products, and using natural and Rorsted: We tried to create a completely transparent approach to future corporate development and we defined very clear targets. Leaders Series. Second, [we have] a relentless focus on driving innovation into our product. Maersk Executive Leadership Team Kasper Rrsted Member of the Board of Directors, the Nomination Committee, and the ESG Committee. But in order to do this, they need to know and understand our strategy. And I believe over time, it will be a very, very important criteria, and it is today. McKinsey: You mentioned the role of your strong brands. Rorsted: I believe we have one of the best evaluation systems in the industry. Kasper Rorsted: , am convinced that a visible and accessible leadership style is most e ective My door is open; , encourage colleagues to call me directly Our employees know who , am and what ,m doing , eat with employees in our canteens whenever , am traveling or here at headTuarters <ou cannot run a global company In our consumer businesses, products that are less than three years old account for approximately 40 percent of sales.
