Our guiding principle is that we treat everyone fairly, but not everyone the same. And if we succeed in sustainability, or when, we also succeed as a business. Right now we have done a recent survey, 70% of our consumers prefer to buy sustainable products. And I think we are a learning organization. And I think the consumer says that we are resonating more and more, you know, a lot of our consumers are very young consumers. And I think we've made a tremendous amount of progress. 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. It is also extremely important to follow through on any personal commitments we make regarding career or other professional development opportunities. the best sports brand in the world. Leaders Series. This is the foundation, a process we conduct with all 9,000 managers worldwide. He is proud Adidas is a truly global and diverse multinational company and touted You were constantly understaffed. 3 talking about this. 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. Leaders with Lacqua: Kasper Rorsted Bloomberg Television 1.49M subscribers Subscribe 5.2K views 3 years ago Oct.30 -- Francine speaks with the Adidas CEO about the biggest challenges running a. By the way, I do the same: whenever I travel, I visit stores and talk to consumers. who will ask questions to steer the discourse of the Q&A-style discussion. Rorsted: I believe its important to be transparent and consistent. Members of the media can receive more information about CNBC and its programming on the NBCUniversal Media Village Web site at http://www.nbcumv.com/programming/cnbc. The most important part is we're committed to China, as I said, we have three to 400,000 jobs that are depending on Adidas, so we have to make sure that we continue to be successful also in the future. Specific areas of the Lighthouse are devoted to topics that are important to us, such as sustainability or digital innovation. In his early career, Rorstedt worked with Oracle, Digital Equipment Corporation, and Compaq. Tampa | St. Petersburg | Sarasota-Manatee. He has been at the helm of the global sportswear giant since 2016. But in order to do this, they need to know and understand our strategy. When we set a margin target of 14 percent for 2012, that was not just a vague aspiration we mean to achieve it. Kasper Rorsted: Henkel has become much more global in the past few years. Kasper Rorsted: Because Henkel is a global and diverse company, its crucial that we all have a common understanding of what strong leadership means. Rorsted: There can be a number of reasons. Kim Ross, a USF Muma College of Business alumna who sits on the colleges Executive Henkels roster of brands includes Persil detergent, Dial soap, Fa deodorant, and Loctite glue. He holds a degree in international And I think and I don't mean this disrespectfully, but to European companies, maybe also due to regulation, has tended to be ahead. would resume. Sometimes its that easy: simply talk to people. These trends fundamentally change the business environment. Egon Zehnder: After a career devoted solely to IT, at the age of 42 you decided to change industries. In addition, he is a self-confessed fan of soccer team Bayern Munich. American sports fans. Kasper Rorsted: I would like to share a piece of advice my father gave me many years ago. He quipped, As long as you buy it, I dont care.. I like to win, but I never try to just play it safe. Adidas CEO Kasper Rrsted, 60, leads one of the largest and oldest athletic wear companies in the world. Rorsted: So going back, I think it should be what the company should be doing rather than I. I think if I were to pick one out it is really in plastic waste. So I do think that it's very important that the industry takes the critique, you know, at heart. "Innovation is what our company is about. to New York-based Authentic Brands closed on March 1. Rorsted: Well Sara, I think that this is part of being a global CEO. announced that he is not running for re-election and is stepping down from that role The company also plans to reach climate neutrality by 2050, according to its 2020 We designed it to help us further understand customer behavior in shopping environments. And I have similar views about women in management positions. getting wrong and be fully committed to it, Rrsted said. 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. Part of the process involved benchmarking against other strong companies and our competitors, analyzing where we stood in terms of performance, size, and internationality. So when you use reused material, you can completely recycle it or this shoe, which is totally recyclable. For me, this is one that has such a devastating impact on the entire environment, 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? ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. at Compaq and Oracle. Kasper Rorsted: Large, international corporations tend to become complex organizations, which makes them inflexible. Eisen: Your industry, fashion, does not get high marks when it comes to sustainability and environmentally friendly practices. And I think that's where a lot of companies are struggling. A January 2020 profile by the German newspaper Bild offered some interesting tidbits into his routine. We needed everyone to understand the core messages. Q. 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. 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). What lessons have you learned that other companies can also learn from? Some business students will also have the opportunity to ask Rrsted questions, as well as audience members who submitted questions before . 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. And I immediately thought of you and Adidas. We want to hear from you. We put great emphasis on internal promotion and talent development. he said. How do these two concepts help generate consumer insights? I think we are a learning organization. You need to make sure that you do and you can always look yourself in the mirror for what the company stands for. Kasper Rorsted: Good to see you. Because we live in a global world that is not consistently the same around the globe. I think that the scrutiny on companies and CEOs are much greater today. Before I joined Henkel, I was told there was not much room for change. at Henkel in 2005 as the executive vice president for human resources management, All of our employees are individuals and we must always keep this in mind. Over time consumers will want it and I think you need the choice of both right now and that's what we're giving. 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. That was his second time We have just established a Digital Council to coordinate Henkels digital activities, develop a digital vision through 2020, and explore digital opportunities for our businesses. of Business Thought Leader Series. he said. And we've been very keen on setting aggressive targets. We already have very good people, but we are going to keep raising the bar in the future, as indeed we must. Rorsted: Making Henkel even better. Among its manufacturing innovations, Rrsted mentioned its Futurecraft STRUNG, the Diversity must play an important role in the company. He told me, If you do something, do it with your full heart and do it properly. 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. I dont want to be seen as an administrator, but as an architect. shoes. Adidas CEO Kasper Rorsted will remain at the helm. This enables us to keep things manageable and personal despite the size of the company. Because this would send a message to our people there that the customers arent very important after all. always come first. 2023 CNBC LLC. Of course, were against the war. through July 2026. Kasper Rorsted: When I joined the company, Henkel had about 1,000 brands. This is why we held workshops on our sustainability strategy for 2030. And I'm not saying that we agree to all of them, or I personally agree to all of them all the time. Typical questions addressed in the workshops included Who exactly are my customers? and What can I personally do to make things better for them?. Adidas CEO Kasper Rorsted. Data is a real-time snapshot *Data is delayed at least 15 minutes. So that has changed. tickets, visit: usf.to/adidas. How would you characterize that change? Kasper Rorsted: Its certainly a challenge to find and keep good local employees, especially in emerging markets. All references must be sourced to the CNBC Evolve Global Summit. We have adjusted to continuous change and know that we have to keep getting better. And for us, the cost is more important than the competitive aspect of it. accepting that award, having previously won in 2009 when he was head of consumer goods Get this delivered to your inbox, and more info about our products and services. But we need to focus on the future. Eisen: What's the most difficult challenge you laid out? 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. So probably what we see right now, with all the volatility, is going to continue. Just a few days after Foot Locker revealed its CEO shift, Adidas said it also will have a new top leader in 2023. I thought working from home would have taught points from the prior year. conversations that cover a wide range of topics. Do consumers really want this? 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. When I walked in, I saw a lot of opportunities here, he joked. For me, I have the greatest job in the world. Rorsted: I think there are different challenges at different stages. Theater as part of the University of South Florida Muma College of Business Thought 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. 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. At home, hes the type to remove his sneakers by the door, where he lines them Protecting workers' jobs. Rrsted started 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. There are no human winners in this game. Speed is the challenge, and the key question is, how can we as a global company simplify our operations with a strong IT focus? And we will continue centralizing functions in shared-service centers. the third speaker in the University of South Florida Muma College of Business Thought in April. I think this mindset is the key to success. 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. Rorsted looks to improve sales and revenues, by doing so, he takes the feedback from employees and customers and changes it. Kanye West Gives Adidas CEO Kasper Rorsted The Pete Davidson Treatment By Also Declaring Him Dead On Instagram Armon SadlerContributing WriterInstagramTwitter September 1, 2022 Kanye Westhas. Rrsted served as a senior vice president and general 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. . Henkel has set ambitious sustainability goals, including what you call Factor 3a threefold increase in efficiency by 2030. But then facing boycotts and backlash from Chinese media and Chinese consumers. He was born in Aarhus, Denmark and is a Danish national. In my opinion, a person who has never failed or made a mistake has probably never taken enough risks. McKinsey: You mentioned the role of your strong brands. We want the best athletes in the world wearing We see ourselves as a leader in sustainability. And right now, we're not making the same marginal issue as the normal Stan Smith, but over time, we will be. 62,000 worldwide, with 2,100 retail stores in over 50 countries. 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. Nike has also made a lot of moves on this front. Rorsted: You know, I think I have the Stan Smith shoe here, which is made out of mushroom leather. 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. When you think about ESG, where do you think it's going? So he or she speaks on behalf of the company. Companies need to make a cultural shift to measuring performance based on employee output, not hours spent in the office. industrys first fully data-driven shoe that combines athlete data and 3D printing. If you dont do that, you cant do anything for your employees professional development or give them useful feedback. Coming out, obviously against hate, and in support of Black Lives Matter. My personal involvement certainly made clear how serious we are about this. I believe that it is essential to start with a relatively clear destination in mind, and work step by step to get there. 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. Kasper Rorsted confirmed as CEO of adidas for more 5 years. Germany. At the same time, however, we will continue to invest in innovation. worn, returned, ground up, and then remade into new products, and using natural and 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. And we use Parley for ocean plastic. 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. Will you continue to do that? 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. Innovation is what our company is about. When asked what he sees as his lasting legacy as CEO of Adidas, he said he wants to If you look upon internally, there's a tremendous, I would say, enthusiasm and rallying around what we're doing right now. Considered independent. manager at Hewlett-Packard from 2002 to 2004, and in various management positions This puts us ahead of most companies in Germany, but at the top management levels we are not much better than other firms. 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. 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. What did you mean by that? It isnt enough to pay well; you have to offer people a career path, including international job rotations and unique opportunities. Were aiming for growth in both emerging and mature markets. This system works very wellaround 80 percent of managerial positions at Henkel are filled through internal promotions. Strong competencies in digital transformation, leadership development, sustainability, and global business trends. But we actually welcome everybody that's taking a step forward. 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. And youve been recognized by external experts as a leader in sustainability. We have a results-driven performance culture. Other companies execute sustainability Gschwandtner adopted this . But the man who has been setting the course and dictating the tempo here for four years is made of different stuff. at Henkel in 2005 as the executive vice president for human resources management, 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. We are actually one of the most diversified companies in the world if you look upon the share of women, the share of nationalities. stores and e-commerce site in Russia. 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. team we really want to make sure that that problem is tackled to the utmost.. But I do think overall, it's a good thing. topics. strategy. Its employees represent Kasper Rrsted was 42 years old when he was fired from Hewlett-Packard in 2004. The company formerly owned the Reebok brand, and the sale of Reebok And I also think it's important to understand that we do hire people with very different opinions. a controlled lab environment. Skip Over Breadcrumbs and Secondary Navigation, Kasper Rrsted, CEO of Adidas, is the Muma College of Business Thought Leader Series in the world. We've talked about diversity and inclusion. Video. 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. The management team under the leadership of Kasper Rorsted succeeded in steering adidas and its employees healthily and safely through this unprecedented crisis. He retained this position following Compaqs takeover by Hewlett-Packard (HP). Its leaders shows respect to their employees by protecting their jobs, challenging them, and supporting them in their efforts to improve.