You've been putting ocean plastics in your shoes since 2015, have a whole new set of ambitious announcements. What challenges are you looking forward to in the coming years? The Beauty Care Lighthouse is a unique venue where we host customers, business partners, or investors. Eisen: Do you think you're ahead of your competition on this? points from the prior year. So I think there's going to be a great demand for this product. McKinsey: Corporate social responsibility and sustainability are topics of growing importance. Our people are important to me and I hope that they realize it. Where do individual employees currently stand in terms of performance, and where do we see their potential? On 22 August 2022, it was announced that he would hand over his role as CEO 2022. The world around us is not getting any easier quite the opposite, in fact. 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. He also Adidas CEO Kasper Rorsted will remain at the helm. Sometimes its that easy: simply talk to people. That would have diluted their effectiveness from the very start. make certain that you correct the mistakes, he said. And we're a sports company. And who is Kasper Rrsted? Why do intrinsically good approaches get bogged down so quickly? who will ask questions to steer the discourse of the Q&A-style discussion. Do. And every year you're going to have you know, a new, I would say disruption, whatever we want to call it. 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. In fiscal 2011, Henkels EBIT rose to over two billion euros the highest level in the almost 140-year history of the company. My door is open; I encourage colleagues to call me directly. He also believes the company should stand up and address But in order to do this, they need to know and understand our strategy. Rrsted also talked about the war in Ukraine. And we use Parley for ocean plastic. t-shirts and cool sneakers., At a private breakfast with Executive Bulls donors, someone asked if he prefers people Adidas CEO Kasper Rorsted on How Kanye West's Politics Have - Yahoo In his youth he was a member of the Danish junior national handball team. I personally invested a great deal of time and effort in explaining to our people why we need to move ahead faster than before, where the journey will take us, and why this will leave the company even better and stronger in the future. Our global leadership team is aware that they will be assessed on the basis of their leadership conduct. If we succeed in sustainability or when we also succeed as a business, he said. been a declining trend for 20 years. 178 nationalities. The Dane is said to be a visionary but also a dynamic CEO. What were your reasons? Kasper Rorsted - The value driver - Egon Zehnder Rorsted: You know, it's hard to remember back then. This is only the beginning, but the impact plastic has on our global environment is so negative. The sportswear giant announced today that its supervisory board extended the appointment of the executive chief for another five years. fact, its founder Adi Dassler was the embodiment of an innovator. Leaders Series. announced that he is not running for re-election and is stepping down from that role procurement, IT, and infrastructure services. In these markets, a large number of companies are competing for a relatively small, although steadily growing, pool of candidates. Maersk Executive Leadership Team Kasper Rrsted Member of the Board of Directors, the Nomination Committee, and the ESG Committee. 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. The innovation you mentioned is a remarkable example of targeted customer-relationship management. Where do you see room for improvement? 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. In addition, the entire Henkel Management Board knows our top 300 or 400 people personally and knows where in the world they are working. This also gave us the courage to stick to our goals and decisions even when things got tough. He registered more Where do we see ourselves in five or ten years? 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. And do we have a successful relationship. 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. Adidas CEO stepping down next year | LinkedIn It drives transparency to ensure that you need to do what you're doing. So it's done through the strategy of the company, the conversations we have in the boardroom. We developed it ourselves in recent years, and it creates transparency for all managers. He has been at the helm of the global sportswear giant since 2016. time, you know, but when we get something wrong, I think we need to recognize were Kasper Rorsted: Large, international corporations tend to become complex organizations, which makes them inflexible. So successful that the Adidas supervisory board voted last year to extend his contract through July 2026. procurement, IT, and infrastructure services. Egon Zehnder: After a career devoted solely to IT, at the age of 42 you decided to change industries. When Ulrich Lehner retired as planned in 2008, Rorsted stepped into his shoes and was appointed CEO. 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. And I think and I don't mean this disrespectfully, but to European companies, maybe also due to regulation, has tended to be ahead. How do those determinations get made? Kasper Rorsted to succeed Herbert Hainer as CEO of adidas AG from the companys headquarters in Germany. The stock slumped as much as 6.9 euros, or 4.2% . Companies need to make a cultural shift to measuring performance based on employee output, not hours spent in the office. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries. In 2021, the German company had $23.6 billion in sales worldwide. And I think we've made a tremendous amount of progress. The company made Forbes 2022 list of Americas Best Large Employers and Fortunes Protecting workers' jobs. CNBC Transcript: Adidas CEO Kasper Rorsted Speaks with Sara Eisen from I think it drives change, it drives responsibility. The management team under the leadership of Kasper Rorsted succeeded in steering adidas and its employees healthily and safely through this unprecedented crisis. He held a series of management positions at Oracle and Digital Equipment Corporation (DEC), as well as at Compaq, where he headed up the companys European operations starting in 2001. 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? Among its manufacturing innovations, Rrsted mentioned its Futurecraft STRUNG, the And that's where the industry has to go. Nike has also made a lot of moves on this front. Not only on diversity, which I have been vocal on I would say since 2004. In the future, we want fewer but larger manufacturing sites and a reduced number of global suppliers. "Kasper . Henkel managers from marketing or R&D regularly visit households. Kasper Rrsted has been CEO of Adidas since 2016. Its employees represent Speaking at the CNBC Evolve Global Summit, the Adidas. world, then that is an issue, he said. you better.. and sneakers include Beyonc, Kanye West, and Pharrell Williams. recognized speakers, entrepreneurs, and innovators in business and industry for informal the issues as they are happening. We are seeing more volatility and have to constantly adapt. 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 also plans to reach climate neutrality by 2050. Im very honored to run this company. All references must be sourced to the CNBC Evolve Global Summit. We are also stepping up our IT investments in order to standardize and accelerate our global processes. In addition, I believe the culture of face time that still prevails in Germany is outdated. Then youll be successful. This advice has become my life motto. shoes that feature a 3D-printed midsole. always come first. Rorsted: Making Henkel even better. 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. 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. And also being able to build products that are competitive in the way they do. So successful that the Adidas supervisory board voted last year to extend his contract Rorsted looks to improve sales and revenues, by doing so, he takes the feedback from employees and customers and changes it. By the way, I do the same: whenever I travel, I visit stores and talk to consumers. Kasper Rorsted Wiki/Biography Kasper Rorsted is a Danish manager who has been the CEO of German sportswear firm Adidas since 2016. All rights reserved. And I have similar views about women in management positions. Coming out, obviously against hate, and in support of Black Lives Matter. But this you know, Stan Smith, and our relationship with him is 50 years old, strong as ever. to New York-based Authentic Brands closed on March 1. Rrsted started We've talked about diversity and inclusion. Adidas CEO Kasper Rorsted says consumers will force fashion - CNBC 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. Kasper Rrsted was 42 years old when he was fired from Hewlett-Packard in 2004. We do not allow anyone to hide behind good business results but fail on their leadership responsibility. The simplification was the most important aspect. It was great fun., On being a digitally enabled company, he said, At the end of the day, we sell cool Rrsted said he didnt know when retail operations Because in the beginning, it will never be. I mean when I go shopping for shoes, I've got to be honest, it's style and price. Leader Series. It was a very can-do attitude. Got a confidential news tip? But of course, when it comes to our values, the entire leadership team has to lead by example. Because we live in a global world that is not consistently the same around the globe. Typical questions addressed in the workshops included Who exactly are my customers? and What can I personally do to make things better for them?. And I've been very vocal on this topic since last summer. So when you use reused material, you can completely recycle it or this shoe, which is totally recyclable. team we really want to make sure that that problem is tackled to the utmost.. Adidas CEO Kasper Rorsted to Step Down in 2023; Replacement Search If you dont do that, you cant do anything for your employees professional development or give them useful feedback. conversations that cover a wide range of topics. For more information about NBCUniversal, please visit http://www.NBCUniversal.com. Rrsted said for the past seven years, the company has produced products with an increasingly Our executive management team is already very international, but I see a clear need for improvement at other levels. Discover job vacancies, find out how to apply to them, and learn more about careers at Maersk. We also went out and was very public about it. Rorsted: I believe its important to be transparent and consistent. American sports fans. This is the foundation, a process we conduct with all 9,000 managers worldwide. I believe that it is essential to start with a relatively clear destination in mind, and work step by step to get there. You cannot run a global company from your desk. Kasper Rorsted, thank you so much for your time and for your insights. And I think there's a lot of goodness around it. We redefined our vision and values, simplifying them to make them easy to remember and more applicable on a global level. Weve increased our talent development efforts through collaboration with Harvard and other universities, for example. 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: Rorsted: And we do that also, we have pulled the plug in the past. But when we improve each quarter, its mostly down to having the better employees. And if we succeed in sustainability, or when, we also succeed as a business. The turnover rate in China is around 25 percent. When asked what he sees as his lasting legacy as CEO of Adidas, he said he wants to McKinsey: To that end, Henkel recently set up a ShopperLab and a Beauty Care Lighthouse. My board-member colleagues and I are also in regular contact with 200 to 300 high-potential employees at Henkel. 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. Eisen: Are we going to pay more for it? Continuity and strong leadership . 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. 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. Then your employees will follow you as well. So he or she speaks on behalf of the company. 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. The company is active around the globe and currently employs about 47,000 people. 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. One of our values at Henkel is, We put our customers at the center of what we do. We have to understand their needs and wishes and enter into a dialogue with them. On the subject of social justice, Rrsted told Footwear News in June 2021 that he believes its important to acknowledge differing opinions and But I do think the most important part is saying do we overall, in the long term align around the same values. So you have technology elements, you know, challenges, you have cost challenges at a given stage. Brown shoes have 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. Kasper Rorsted: When I joined the company, Henkel had about 1,000 brands. 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. Now we are down to less than 400, and yes, theres still potential to focus further. 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. Each employee has the responsibility, and each makes a contribution. After a hiatus of several months, on April 1, 2005 Rorsted joined the Management Board of Henkel, a Dsseldorf-based company. deal with Adidas. 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? Rrsted spoke about how the company has a deep and broad mindset of innovation. Speaking of super cool products, Stan Smith going 100% recycled. Kasper Rorsted is a Danish businessman who currently serves as the CEO of Adidas, the German sportswear firm. 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. But we actually welcome everybody that's taking a step forward. In keeping with our vision of being a global leader in brands and technologies, we then formulated five values: customers, people, financial performance, sustainability, and family business. Eisen: Is that tricky when you have so many high profile people that you endorse? Rorsted will leave the global apparel and footwear giant next year despite a contract renewal in 2020 that would have kept . sustainable by 2025. We see ourselves as a leader in sustainability. 'Get the strategy and the team right': An interview with the CEO of would resume. 4202 E. Fowler Avenue, BSN 3403, Tampa, FL 33620, USA813-974-4281. accepting that award, having previously won in 2009 when he was head of consumer goods Global Business and Financial News, Stock Quotes, and Market Data and Analysis. through donations. 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 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. If we dont have a team that is a mirror of the 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. Rorsted: No, I think it will and it has to because frankly, the industry is under such scrutiny. Rorsted's wife has lived back in Munich with their four children since 2013. Kasper Rorsted: How Adidas Profits from Runtastic - ISPO.com Strong competencies in digital transformation, leadership development, sustainability, and global business trends. Experience as global CEO and board member in listed international companies in IT, consumer goods and chemicals. Since 2018, Rrsted has served on the board of directors at Nestl, but the company see the end of plastic waste. what they stand for. 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. Egon Zehnder: What do you think of a mandatory quota for women in management the subject of heated debate in Germany? McKinsey: On the topic of getting the team right, how do you recruit and retain the best peopleespecially in markets where the Henkel brand is not so well known? he said. Adidas CEO Kasper Rorsted will remain at the helm. So we have to place a higher priority on the recruitment and professional development of managers from Russia, the Middle East, and Asia. The network's 15 live hours a day of news programming in North America (weekdays from 5:00 a.m. - 8:00 p.m. Tampa | St. Petersburg | Sarasota-Manatee. The German sportswear giant says that it has opened its search for a replacement, with. For me, I have the greatest job in the world. Eisen: We've been talking about so many different ESG issues. 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. Is it going to be worth the higher cost? Keeping our eye on these strategic priorities, we were then able to set ambitious financial targets and reformulate the Henkel values. 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. And he's very keen also to push this innovation along with us. Adidas is the largest sportwear manufacturer in Europe and is headquartered in Herzogenaurach, worn, returned, ground up, and then remade into new products, and using natural and We have already accomplished a great deal, but we are aiming even higher. I eat with employees in our canteens whenever I am traveling or here at headquarters. Good to see you. When you think about ESG, where do you think it's going? Egon Zehnder: What values are personally important to you? We are completely transparent with our people about where they stand. We've talked about environment. He was born in Aarhus, Denmark and is a Danish national. Adidas Extends CEO Kasper Rorsted's Contract for Five Years This is the advantage of clear and simple values they can be measured. business studies from the Copenhagen Business College, graduating in 1985. In addition, he is a self-confessed fan of soccer team Bayern Munich. Second, [we have] a relentless focus on driving innovation into our product. This website is maintained by Muma College of Business. I don't really think about the carbon footprint. McKinsey: One of your newest product lines is Gliss Restore & Refresh, developed specifically for Middle Eastern women who wear veils. Its interesting that you are talking about people. 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. 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. In 2021, the company released the Stan Smith Mylo, a vegan version of its iconic Stan Kasper Rrsted | Board of Directors | Maersk he said. Does that put you in a tricky position with these people who obviously speak for themselves and not for Adidas, but you are paying a lot of money, and couldn't pull the plug if they say something truly offensive? its laser-sharp focus on expanding the brand across the globe while putting its customers We need reliable childcare solutions that allow both parents to work at the same time if they so choose. Kasper B Rorsted, Adidas AG: Profile and Biography 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. He eats cereal for dinner. We have defined a set of leadership principles and shared them with all our people managers worldwide in a series of workshops. Kasper Rorsted: Because Henkel is a global and diverse company, it's crucial that we all have a common understanding of what strong leadership means. 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. Rrsted started Rorsted: The most important thing is to clearly map out your path for the long term. And I believe over time, it will be a very, very important criteria, and it is today. This is why we held workshops on our sustainability strategy for 2030. We want to hear from you. 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. 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. 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. Not for this quarter thatll soon be over. In the Middle East, which is one of our growth regions, many women wear veils. Kasper Rrsted, Adidas AG: Making Europe Fit for the Future - CorD Kasper Rorsted: I am convinced that a visible and accessible leadership style is most effective. 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. getting wrong and be fully committed to it, Rrsted said. Our company should reflect the markets in which we operate. But on Black Lives Matter. I believe this is the most important challenge. announced that he is not running for re-election and is stepping down from that role Sign up for free newsletters and get more CNBC delivered to your inbox. Innovation is what our company is about. Egon Zehnder: Wasnt there any resistance to your plans? But the man who has been setting the course and dictating the tempo here for four years is made of different stuff. And if you cant do that, you cant be there as an employee. I believe one of my strengths is that Ive never sought security. During high school, Rrsted played handball for Denmark's national youth team. Every business decision contains an element of risk. We put very aggressive targets in place for sustainability. And I think you'll see that also when we bring it out, it's coming out this year going into volume next year. At USF, the athletics department is in the fourth year of an eight-year partnership Before I joined Henkel, I was told there was not much room for change. Furthermore, I am certain that if I were to tell our managers tomorrow that no changes would take place at Henkel for the next three years, no one would believe me. Speed is the challenge, and the key question is, how can we as a global company simplify our operations with a strong IT focus? But we stayed firm and didnt let ourselves get derailed by obstacles. The page you are currently on does not have a translated version. Diversity must play an important role in the company. This creative atmosphere helps us engage and interact with our customers more deeply. At the same time, I also want to say that, you know, things take time also for companies. And I think that's where a lot of companies are struggling. He pushes his employees to success; it is not just about paying them. Adidas suspended the operations of its 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. Copyright 2023,University of South Florida. But I think that is normal in any company. Doesnt the substance play a major role as well? There were no rules. In those markets, we will aim to gain more top positions with our strong brands while increasing profitability. With this new facility, were expanding our production capacity in one of our fastest-growing emerging markets. In an interview at the CNBC Evolve Global Summit in June 2021, Rrsted discussed the Specific areas of the Lighthouse are devoted to topics that are important to us, such as sustainability or digital innovation. His. 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. I think 8 to 10% of carbon emissions come from the fashion industry.