Knowledge | Posted by Zarni Kyaw
What’s a CEO to do when staff morale is low?
Some might dish out free lunches or provide an all-expenses paid trip to Disneyland.
Adidas CEO Bjørn Gulden did something much more drastic.
“Some people think I’m crazy,” Gulden told The Wall Street Journal, adding that he thinks it’s better for leaders to be more open when coming out of a crisis.
When he took Adidas’ helm in January 2023, the German sportswear giant was still reeling from its 2022 breakup with West, who now goes by Ye, after he made antisemitic remarks online.
Some 142 people lost their jobs and Adidas was stuck with $320 million worth of unsold Yeezy shoes, as the company—and consumers—distanced themselves from the rapper .
In a statement at that time, the company said it “does not tolerate antisemitism and any other sort of hate speech.”
It added: “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”
But this did not end internal problems at Adidas. A year after the scandal, Adidas’ employees continued to complain about a perceived lack of transparency at the firm, Gulden told the Journal.
This meant Gulden faced the challenge of improving staff motivation while increasing sales—and giving out his phone number seems to have done the trick.
Ref: Adidas CEO gave out his number to 60,000 employees to boost morale after that Kanye West crisis: ‘Some people think I’m crazy’ (fortune)