HR Strategy of Adidas Group

Parfentyev Mikhail,Reshetnikova Darya17.05.2012 1

Structure of presentationSlides

• Corporate profile………………………………2-7• Mission statement and group strategy……8-9• HR-planning……………………………………..10• Three-pillar HR strategy………………......11-20• Aspects of employee culture………………...21• Key Employee Statistics 2011……………….22• Adidas Group’s HR focus………….……..23-24• Conclusion…………………………………..25-26

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Corporate profile

All brands are renowned for their innovation and heritage and include household names such as:• adidas,• Reebok,• TaylorMade,• Rockport,• CCM,• Ashworth,• Five TenHeadquartered in Herzogenaurach, Germany, Group employs more than 46,000 people across the globe and generated sales of € 13.3 billion in 2011

Adidas group is one of the global leaders in the sporting goods industry, offering a broad range of footwear, apparel and hardware for sport and lifestyle

3

Adidas Group Enjoys Strongest Organic Growth In 5 Years

4

Sales Grow Across All Geographiesand In All Product Categories, 2011

5

Financial Highlights

6

7

Mission Statement

The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a

sporting lifestyle

Guiding Principles:1) strengthening brands and products improve the quality, look, feel and image2) socially and environmentally responsible • financially rewarding for employees and shareholders• match and exceed consumer expectations and to provide

them with the highest value3) consistently delivering outstanding financial results

8

Group Strategycreate a culture of innovation, challenging ourselves to break with

convention and embrace changepush the boundaries of products, services and processes to strengthen competitiveness and maximise the Group’s operational and financial performance

Strategic choices under six key strategic pillars

9

HR planningIn 2010 - SHINE, a Human Resources people strategy• to leverage existing best practices• create a single global standard for the field organizationThis ensures a set of broad and deep vertical retail and commercial skills to develop staff globally

10

In 2011, the implementation and execution of SHINE throughout our markets has progressed and we are more than halfway through completing the global roll-out

Three-pillarHuman Resources

strategy

1• Creating a working environment

that stimulates team spirit, passion, engagement and achievement

2• Expanding performance culture

based upon strong leadership

3• Being an “employer of choice”

11

The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle

1. Creating a working environmentengagement drives performance

12

Employee satisfaction

Commitment

Engagement (Group’s KPI)

Business performance

1. Creating a working environmentinternal communication activities to Drive employee engagement

13

2. Performance culture based upon strong leadership

Enabling employees to reach their personal best: Group Competency Model

Performance management: PEP

14

Success Drivers for Performance

15

2. Performance culture based upon strong leadership

Talent management

16

Workforce valuesBelievable

Inspiring

Creative

Conscientious

Sincere

Experienced

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2. Performance culture based upon strong leadership

• Succession management

• Performance-driven remuneration system

Global Salary Management SystemGlobal Bonus Program

• Additional compensation components

Long-Term Incentive Programs18

2. Performance culture based upon strong leadership

• Attractive work environmentWork-Life Integration

• Diverse workforce• Increasing proportion of women in

management positions• Diverse sports activities for employees

Company sports department

19

business plan Route 2015

specific initiatives and workstreams

innovative ways to incentivize and reward employees

T&D, building the skills and competencies

3. Being an “employer of choice”

20

“war for talent” - backbone of HR

program

• adidas Group is one of the leading employers for school leavers and students/graduates (2011)

• Employee Referral Program (2010-2012) increasing competition in the international labour market

Key Employee Statistics 2011

21

There is no end

for sports

Diversified

employees

Fair competition with

team spirit

Aspects of Employee Culture

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1 •Creating a working environment that stimulates team spirit, passion, engagement and achievement

2 •Expanding performance culture based upon strong leadership

3 •Being an “employer of choice”

23

Three-pillarHR strategy

Adidas Group’s HR focus

Adidas Group’s HR focus

Performance and commitment

Opportu-nities

Abilities

Motivation

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1•Creating a working environment

recruitment and

selection

T&D

performance management

Financial

Non-financial

Working conditions

Supportive

environment

Professional and

personal growth

Role of HR department in carrying out enterprise culture• HR department is like a driver• The essence of Adidas business culture and values is

fully reflected in HR strategy• The mission of the company is directly connected with

three-pillar HR strategyExample:

25

“Spirit of fair competition”

in Group strategy

Performance payment system & equal opportunities

for promotion every employee in

HR strategy

Conclusion

• Successful organizational performance depends on a close fit or alignment between business and human resource strategy (Allen and While, 2007)

• On the maturity stage it is worth to focus the development of HR strategy on creating working environment, employees’ performance and commitment

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Conclusion

Thank You For Attention!

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