And there are certain elements that are very closely related to sport. 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. This is only the beginning, but the impact plastic has on our global environment He also It was totally undisciplined. So he or she speaks on behalf of the company. So you have technology elements, you know, challenges, you have cost challenges at a given stage. To maintain this independence, he turned down a number of lucrative job offers in the private sector. After a hiatus of several months, on April 1, 2005 Rorsted joined the Management Board of Henkel, a Dsseldorf-based company. I do think that its important that the industry will and can do this, but somebodys Eisen: We've been talking about so many different ESG issues. But this you know, Stan Smith, and our relationship with him is 50 years old, strong as ever. This is the advantage of clear and simple values they can be measured. McKinsey: In 2013, Henkel began a global rollout of a new leadership-development program. Diversity must play an important role in the company. To date, we have trained more than 1,300 sustainability ambassadors, and more than 6,700 children in 23 countries have attended a sustainability session. Its interesting that you are talking about people. The turnover rate in China is around 25 percent. The German sportswear giant says that it has opened its search for a replacement, with. in the IT and computer industry. Rorsted: Well Sara, I think that this is part of being a global CEO. And I think that's where a lot of companies are struggling. I think we are a learning organization. Rrsted said for the past seven years, the company has produced products with an increasingly So it's done through the strategy of the company, the conversations we have in the boardroom. 50 countries. So I do think that it's very important that the industry takes the critique, you know, at heart. Got a confidential news tip? 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. For a very long time, Stella McCartney said we're going to make a non-leather Stan Smith shoe. Kasper Rrsted - Facebook Adidas CEO Kasper Rorsted said consumers are looking at the fashion industry with more scrutiny, which will force the industry to change. You need to make sure that you do and you can always look yourself in the mirror for what the company stands for. Skip Over Breadcrumbs and Secondary Navigation, Kasper Rrsted, CEO of Adidas, is the Muma College of Business Thought Leader Series Its a space where customers can try out, for instance, new digital tools that let them test hair colorants at the point of sale. And we see that as an integral part of our new strategy for 2025. Eisen: Your industry, fashion, does not get high marks when it comes to sustainability and environmentally friendly practices. And I think we are a learning organization. We've talked about diversity and inclusion. This is why we held workshops on our sustainability strategy for 2030. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Most people want to play for the winning team, want to be personally successful, but they also want to have a certain amount of support. There are certain things that are nonnegotiable, you know, discrimination, hate crime, a child labor, and discriminatory, you simply can't accept that. Our company should reflect the markets in which we operate. high content of reusable materials and reusable plastic. From 2001 to 2002, Read more Search McKinsey: At the 2013 World Economic Forum, in Davos, you told reporters that the price for high growth is volatility. What are some of the steps Henkel has taken to manage volatility in emerging markets? 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. 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. And we've been very keen on setting aggressive targets. Rrsted, 60, has been described as a highly successful and competent leader who is This website is maintained by Muma College of Business. Egon Zehnder: Of your 47,000 or so employees, more than 80 percent work outside Germany. It's obviously been popular for decades. I dont want to be seen as an administrator, but as an architect. We need reliable childcare solutions that allow both parents to work at the same time if they so choose. procurement, IT, and infrastructure services. 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 we stayed firm and didnt let ourselves get derailed by obstacles. Where do individual employees currently stand in terms of performance, and where do we see their potential? Some high-profile Adidas brand ambassadors who wear the iconic three-striped hoodies In fiscal 2011, Henkels EBIT rose to over two billion euros the highest level in the almost 140-year history of the company. And of course, a critical part of my role is to make sure Henkel has the right team in place. Rrsted started We want to hear from you. Adidas AG was sued by investors who claim the German sports giant knew about risks of its partnership with the rapper known as Ye long before his anti-Semitic comments were made public. . Rorsted, who heads one of the largest athletic wear companies in the world, will be I think that the scrutiny on companies and CEOs are much greater today. McKinsey: Speaking of your IT background, what role do IT and digital technologies play in Henkels corporate strategy? 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. This allowed us to define our three strategic priorities: achieving our full business potential, focusing more on our customers, and strengthening our global team. The company has also made a sustainability pledge, vowing to make 9 out of 10 products 2022 Worlds Most Admired Companies. 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. Rorsted: Thank you very much and great to be here. By 2016, we expect this number to be 60 percent. Not for this quarter thatll soon be over. His favorite app 365 Dream And I think over time that will happen, but I think we need to give the consumer the choice of both. Not only on diversity, which I have been vocal on I would say since 2004. make certain that you correct the mistakes, he said. 10 Things You Didn't Know About Kasper Rorsted - Money Inc What challenges are you looking forward to in the coming years? 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. McKinsey: One of your newest product lines is Gliss Restore & Refresh, developed specifically for Middle Eastern women who wear veils. To be very clear: we are concentrating on markets where we hold leading positions or are able to generate sustainable growth. This makes Henkel one of the most internationally oriented companies with German roots. Before joining Adidas, Rrsted was the CEO at Henkel from 2008 to 2016. And I think you have to, you know, we say pick your battles. And when I look upon the shoe that we have jointly built that is a super cool product. strategy. Our people are important to me and I hope that they realize it. But in fast-growing emerging markets, you cannot expect the same stable conditions that we are used to in mature marketsjust think of the political unrest in the Middle East, for example. Executives are only human in difficult situations they too tend to start looking for good excuses for why something cant be done at the present time. Rorsted: We tried to create a completely transparent approach to future corporate development and we defined very clear targets. at Henkel in 2005 as the executive vice president for human resources management, Over time consumers will want it and I think you need the choice of both right now and that's what we're giving. He eats cereal for dinner. If we do not expect to win in a market in a reasonable period of time, we will exit that market. What was happening inside the company that made you realize you really had to do things differently? Today, 55 percent of our employees are in emerging markets. 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. If you make mistakes, recognize the mistakes and correct them and move forward to And I think there's a lot of goodness around it. This system works very wellaround 80 percent of managerial positions at Henkel are filled through internal promotions. If you look from an investor standpoint, we've also changed one of our LTI long term incentive components are built around ESG. But in order to do this, they need to know and understand our strategy. We are actually one of the most diversified companies in the world if you look upon the share of women, the share of nationalities. 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. 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. 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. To be honest, at the beginning I underestimated the amount of work involved. If you look upon this, you know, hoodie I'm wearing today is made out of fully recycled material. 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. The stock slumped as much as 6.9 euros, or 4.2% . And I believe over time, it will be a very, very important criteria, and it is today. I think 8 to 10% of carbon emissions come from the fashion industry. It doesnt interest me. 'Get the strategy and the team right': An interview with the CEO of Egon Zehnder: How did you master these challenges? Adidas Extends CEO Kasper Rorsted's Contract for Five Years 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. 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.