Henkel

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Bob Simmons – Strategic Transformation

Case Summary:
Henkel was a German manufacturer of laundry products. Went public in 1985. In 2008 it was 14 Billion pounds in 125 countries. Majority in EMEA. Most of exe team were German. Organized into three major business units: Adhesive Technologies 48%(glue stick), Laundry and Home Care 30%, Cosmetics/Toiletries 22%. Industry leader in adhesives. Rorsted took over as CEO in 2008. Henkel was reporting comfortable growth and profits with 8% growth. Second half of 2008 global financial crisis and economic slowdown had negative effect on Henkel’s key markets. Shrinking demand and rising costs caused business untis to fall in second half of 2008. Rosted vowed to transform Henkel into a leaner, more performance driven company. “staying where we are is no longer an option. We either move up or move down: we either become relevant or we will be made irrelevant. “ This case illustrates the transformation of a CEO-led organization driven stretch goals, performance measurement and accountability. Kasper Rorsted become CEO of Henkel, the German personal care, laundry, and adhesive products manufacturer, in 2008, he was determined to transform the “good enough” corporate culture focused on to win in the fierce competition in the market. In history, Henkel is a comfortable, stable workplace. Many employees have never received a negative performance feedback. To overthrow a generally complacent attitude, Rorsted implementation of a multi-step change initiatives, aimed at establishing a “winning culture.” First, in November 2008, in 2012 he announced a series of ambitious financial goals. With the financial crisis to disrupt the global economy, he reiterated his commitment to these goals, sent a clear signal, Henkel employees and external stakeholders an excuse is no longer acceptable. Rorsted duties launch a new set of five values ​​replace the previous 10 values, these employees can recite the first memory an...
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