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We focus on four strategic priorities: We will outperform our competition as a globalized company with simplified operations and a highly inspired team.
Our strategy is built on the foundation of our corporate values and will drive our successful development in the coming years in order to achieve our long-term vision for Henkel: to become a global leader in brands and technologies. In order to steer the focus of the entire organization toward our strategy and ensure its successful implementation, we have defined four strategic priorities.
Click on the areas of our strategy cube to find out more about our priorities:
We will outperform our competition
as a globalized company
with simplified operations
and a highly inspired team.
We want to leverage the full potential in our product categories to gain market shares and thus to outperform our competition.
This will be done by:
To capture the potential for accelerated growth and increased profitability in our categories, we have segmented them into three clusters:
Core, growth and value
In our core categories, we will continue to invest in strengthening and expanding our leading positions. In our growth categories, investments will fuel disproportionately high growth of existing and new segments. In our value categories, investments will be tailored to maximize our profit potential.
Strengthening our brands
We will continue to focus on our top brands such as Persil, Schwarzkopf or Loctite while further consolidating our brand portfolio. By 2016, our top 10 brands are expected to generate approximately 60 percent of total sales (2012: 44 percent). To achieve this, we will expand our global brands and support our top brands with strong innovations and focused marketing investments.
Innovation and customer focus
A consistent innovation process, driving trendbased innovations that are developed to meet the individual needs of our customers and consumers, will help us to reinforce our innovation leadership. By capitalizing on sustainability and on trends such as accessible luxury or convenience, we will ensure that our products remain highly attractive and relevant for our customers
The strategic priority “Globalize” describes our differentiated regional strategies to grasp growth opportunities around the world.
Leverage strength in mature markets and expand in emerging markets
In mature markets, we will leverage our strengths and generate profitable growth by increasing our brand investments and maintaining our cost focus. By 2016, we aim to gain more top positions in these markets with our strong brands, while increasing profitability.
In emerging markets, we will expand our existing category positions and accelerate growth in countries where we already have a strong presence. We will also selectively enter new growth markets where we do not have a foothold yet.
Speed and efficiency
We are strengthening our global presence continuously.
“Simplify” is the strategic priority which summarizes our ongoing improvement of global processes. We will continuously drive our operational excellence by making our processes faster and more standardized, focusing on cost-efficiency as well as end-to-end optimization.
Extending shared services: new hubs, more business processes
We will extend our existing shared services by increasing the number of processes handled in shared service centers.
Integrated IT platform
In addition to shared services, a stronger focus on information technology (IT) will be critical to increasing the efficiency of our business processes. We will leverage an integrated global process platform supported by significant additional IT investments. Out of 2,200 existing processes, around 800 have been identified as global standard processes to be deployed in all regions and businesses.
Increased efficiency: driving value generation
We aim to increase our efficiency by sourcing via global hubs, expanding e-sourcing and reducing the number of suppliers globally by around 40 percent by 2016. We will improve our structural costs and optimize our global manufacturing footprint on an ongoing basis.
“Inspire” is the strategic priority which describes our clear commitment to strengthen our global team. We will focus on three areas: Leadership, Talents & Performance, and Diversity.
Developing strong leaders
As part of our focus on developing strong leaders, we have defined new leadership principles which will provide guidance on how to manage the complexity of leadership roles and inspire our global teams. With the new Leadership Development series, for example, a mandatory training program for all people managers, we support them from their first operational leadership tasks up to advanced, strategically relevant leadership responsibilities.
Talents & Performance
To attract and retain talents globally, we will strengthen our employer brand and continue to concentrate on making Henkel a highly attractive employer. This includes competitive compensation and reward programs that are strongly linked to performance, as well as attractive career development opportunities in different businesses, offering international experience and participation in challenging projects.
Managing diversity as a competitive asset
As a diverse employee base with different cultural and professional backgrounds provides a competitive advantage, we promote diversity by actively managing the dimensions of nationality, age, and gender. We strive to increase the international composition of our teams, leverage the experience of our senior colleagues and systematically support female career development, while at the same time providing the right infrastructure in terms of flexible working models. In 2012, we reinforced the importance of flexible work arrangements for both employees and the company. All Board Members and our top management have demonstrated their strong commitment to flexible working and a culture of performance orientation at Henkel by signing our “Charter of Work-Life Flexibility.”
The basis for our strategy was a detailed analysis of major long-term market trends. We identified three megatrends which will affect our different businesses over the next years: consolidation, emerging markets and speed.
bn € sales
bn € Sales in
% annual growth in
earnings per share
We have defined ambitious financial targets for our company. These financial targets are based on organic growth, including continuous portfolio optimization, i.e. small and mid-sized acquisitions as well as divestment or discontinuation of nonstrategic activities. Potential major acquisitions or divestments are not built into our financial targets.