Logitech Chief Executive Hanneke Faber stated, "Technology is most effective when its presence is unnoticed."

Listen to the episode or read the transcript below.

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Transcript:

Kristin Stoller: There’s too many screens, there’s too many devices. How do you solve for that?

Hanneke Faber: A portion of today's consumers is certainly weary of technology. I'm one of them. My belief is that technology is most effective when its presence is unnoticed.

Diane Brady: Hello everyone. We're glad you're here for leadership. Next, the show that explores the individuals and movements influencing tomorrow's business landscape. I'm Diane Brady, and this is Kristen Stoller.

Brady: And this week, Kristin, we are speaking to the CEO of Logitech, Hanneke Faber.

Stoller: Indeed, we conversed with her during our Most Powerful Women Summit held in Washington, D.C. And I believe my most cherished takeaway was the amusing piece of trivia she shared: the plural of mouse is indeed mice.

Brady: Indeed, we were discussing what connects to a person's computer. This is a rather established brand, and she's introduced significant advancements to it. I'm intrigued by their collaborations with Nvidia, with Apple, and other entities. And naturally, gaming.

Stoller: Indeed, when I consider it, I recall my time with Skype when I'd connect my small Logitech webcam to my computer via USB. The gaming industry today is quite fascinating, as they're producing mice and a variety of other items precisely engineered to enhance player speed and performance, which I find rather impressive.

Brady: Indeed, AI certainly has an effect. And fundamentally, this represents design thinking at its peak, which questions: How do people act? How do we engage with technology, and how do you subsequently craft an experience surrounding it—whether for entertainment or professional settings—a consideration for Logitech and Hanneke Faber.

Stoller: Yeah, it was a fascinating conversation. Let’s listen to it now.

Brady: Satellite imagery is revolutionizing sectors by supplying crucial information that enhances strategic choices, mitigates dangers, and elevates productivity. We're joined by Jason Girzadas, the chief executive of Deloitte US, who backs this broadcast. It's a pleasure to have you.

Jason Girzadas: Great to see you, Diane.

Brady: Earth observation—so what is it, and how can it help drive value for business?

Girzadas: The observation of Earth essentially involves gathering information on natural and human-made occurrences recorded by all orbiting satellites. There's been a significant surge in the quantity of satellites, with more than fifty percent now under commercial ownership, and this figure keeps increasing.

Stoller: Jason, I'm interested—could you share some emerging trends? And what makes this moment opportune for Discussing Earth observation?

Girzadas: I believe the understanding, especially within businesses, that this information is yielding novel perspectives, and it has now reached an economical stage in its evolution for numerous entities across various industries.

Brady: I’m curious, are there a couple of examples of ways to use this data that you’d want to share?

Girzadas: I believe some particularly promising fields are within agriculture, where Earth observation data can be employed to track crop stress and various weather patterns. Additionally, I see significant potential for highly intricate supply chains, especially those with operations in remote or challenging locations, whether in utilities or the oil and gas sector. This is creating an entirely new landscape for economical, insightful information that can drive innovation and establish cost advantages.

Brady: Fascinating stuff. Thanks, Jason.

Girzadas: Thank you.

Stoller: Hanneke, we're truly grateful to have you join us here in Washington, D.C., for The Coins2Day Most Powerful Women Summit. Your presence is greatly valued.

Faber: Thank you. Thanks for having me.

Stoller: Of course. So I want to start with what I find the most fun about you, which is that you were a competitive diver in the Netherlands, and then also in college at University of Houston, is that correct?

Faber: Go Cougs.

Brady: Seven-time champion in the scariest sport ever.

Stoller: Yes, Diane has a real fear of diving, just so you know. Could you elaborate on that? What prompted you to try it? What made you quit? What insights did you gain from the experience?

Faber: Yeah, I started as a gymnast, but at like age 11, I was 5’9″, and this is not good for gymnasts.

Brady: You kind of become obsolete at puberty in gymnastics.

Faber: Yes, but definitely at 5’9″. I found myself in a swimming pool, having seen the Olympics on television, and I impulsively dove off the board, imagining I was a Russian athlete. Unluckily, a dive team was practicing, and to make a long story short, they inquired if I wanted to join. Thus, I became a competitive diver. I competed in the World Championships at age 16, and fortunately, the U.S. Coach at those championships was also the coach at the University of Houston. He extended an invitation to attend Houston. This was prior to the internet's widespread use. Consequently, my parents and I consulted an atlas to locate Houston. We wondered, "Where is that?" It was situated in the orange region, signifying a warm climate. We thought, "Great, living in Holland, it's constantly raining." So, I enrolled at the University of Houston, and I'll always appreciate the opportunity to come to America and pursue my education here. My parents couldn't have financed my studies here, so the chance to participate in sports while receiving an education was an incredible prospect.

Brady: Higher education in the Netherlands is typically without cost. I often reflect on that from a—but before we conclude our discussion on diving, it's a discipline that heavily involves immersing oneself into uncharted territory. I'd appreciate exploring that aspect further. Beyond executing somersaults, what attributes do you believe are essential for an elite diver?

Faber: It's a blend of a certain recklessness and strict adherence to rules. Standing on a 10-meter diving board, 33 feet above the ground, inherently involves taking chances. I've found this has been quite beneficial in my professional life. When people express apprehension about delivering a major presentation or pitching an idea to the board, I often recall my experiences on that high platform, executing a reverse 2.5 somersault. That was genuinely frightening; this, comparatively, isn't nearly as daunting. Consequently, I consider it a valuable foundation. Then, naturally, there's the discipline involved, the required 10,000 hours of practice. Every morning at 6 AM, you're at the swimming pool, performing thousands of repetitions of the identical action. This diligent effort and discipline, coupled with the boldness to take risks and embrace ambitious thinking, form a rather effective mix for both personal and professional endeavors.

Brady: You possess a remarkable history, yet I'd be neglectful if we didn't begin with Logitech, and you could shed some light on your industry and what you believe is overlooked within it, as I associate you with being at the cutting edge of products for gaming, and so forth. Could you provide some insight into the scale of the enterprise?

Faber: Allow me to begin, in fact, with our objective. Our objective is to enhance human capabilities in both professional and recreational activities. We operate as a technology firm. Our focus is on creating technological items, yet our ultimate aim is to enhance human capabilities. Those specific words were selected with great consideration. Extend is a variation on the mouse. And the mouse constructed this dwelling. The company's inception was marked by the mouse. We stand as the foremost global manufacturer of computer mice. However, the focus is on enhancing human capabilities and what humans are capable of achieving, which we accomplish by boosting individual productivity and assisting people in improving their performance while gaming. Gaming accounts for one-third of our operations. We accomplish this by facilitating connections among individuals. As the foremost global provider in video conferencing solutions, we hold the leading position in the worldwide market. Just so you're aware, the meetings you conduct on Zoom are made possible through our hardware that's powered by software. Our daily motivation stems from enhancing human capabilities in both professional and recreational pursuits. Subsequently, we implement this approach with hardware that is both design-driven and powered by software. You might consider us primarily as the physical components: your mouse, your keyboard. However, our process begins with the design phase. Our organization employs 300 designers internally. I've previously been employed by large corporations; we employ considerably more in-house designers than massive organizations of that nature. And those creators are focused on grasping the needs of the people so that we can comprehend them from the outset and craft appealing items. Our hardware is developed with software capabilities in mind. Nowadays, it's packed with software and artificial intelligence, and our workforce includes a greater number of software engineers compared to hardware engineers. Consequently, I believe we end up with exceptional products that, once more, enhance human capabilities, and in the current era of AI, that's a highly appealing and stimulating field to operate within.

Stoller: I understand we intend to revisit AI and gaming shortly, but prior to that, I'm captivated by behavioral psychology and design psychology. Therefore, are there any unexpected discoveries regarding how you craft your mice or keyboards—any compelling insights into your design process informed by human behavior that you'd be willing to impart?

Faber: It's essential to be in close proximity to the user, so I'll provide two brief illustrations. Within the realm of gaming, we collaborate extensively with professional gamers, as gaming has evolved beyond a mere pastime. It's now considered a sport. We engage with over 300 professional gamers and more than 40 gaming squads, and our involvement extends beyond sponsorship; we jointly create our products alongside them. Consequently, they now desire accelerated progress, prompting us to recently unveil a new super strike mouse that was engineered with professional gamers. I'll refrain from excessive technical detail, but it incorporates haptics, enabling a more immersive sensation and quicker aiming. The professional gamers with whom we collaborated on its development, upon our final unveiling of the completed item a few weeks prior, expressed their astonishment, saying, oh my god, this is almost like cheating.

Brady: So it’s like those suits that swimmers wear that make them too fast, right?

Faber: Yeah. Almost like cheating though, not quite.

Brady: Alright, so I need to break this down a bit, especially regarding Super Strike Haptics, what precisely are you accomplishing that leads them to exclaim, "Wow, this represents a significant advancement"?

Stoller: Does it vibrate?

Faber: This innovation substitutes the conventional switches found in mice with novel induction analog switches that incorporate haptic feedback. Consequently, these not only offer increased speed but also provide a tactile sensation, significantly enhancing in-game performance. This represents an enjoyable instance of maintaining a close connection with the user. Another illustration pertains to the professional segment of our operations. While this dates back several years, the situation remains consistent. During the COVID-19 pandemic, as widespread remote work commenced, we observed a notable pattern: men typically occupied home offices, while women were often situated in the kitchen.

Brady: Yeah, go figure.

Stoller: Making the sourdough.

Faber: Alternatively, people might be working in highly uncomfortable setups at their kitchen tables, leading to shoulder issues and various other ailments. Consequently, one of the items we created, stemming from that understanding of being in close proximity to our customers, is named the Casa Pop-Up Desk. This includes an ergonomic keyboard and mouse that can be folded shut like a book. It possesses an attractive appearance, yet it remains ergonomic for environments not typically designed for work. This serves as another illustration of an insight. And once more, all our designers and product specialists consistently begin by thoroughly comprehending the user's needs.

Brady: You were raised within the consumer goods industry. Let's revisit your Dutch heritage; the entrepreneurial spirit prevalent in the Netherlands has always impressed me. Figures like Paul Polman and Werner Vogels of Amazon come to mind, and I could list more. Could you share some insights from your upbringing regarding what has fostered the Netherlands' remarkable and often overlooked success in areas like food exports? I'm keen to understand more about the cultural aspects there.

Faber: Our nation is quite diminutive, a very small territory with a population of merely 17 million. It's a compact area. We converse in a minor tongue. Consequently, you're exposed to international television from a young age, encountering English in films and on broadcasts. Travel is also common, as it takes approximately thirty minutes to depart the country from any point within it. Therefore, despite not having a wealthy upbringing or similar, it's actually quite cosmopolitan simply due to our location. Furthermore, in educational settings, because our language is not widely spoken, and we are a people of commerce, every student acquires proficiency in at least four languages during secondary education. For those attending advanced secondary schools like the one I experienced, learning six languages is standard.

Brady: So what are your six languages?

Faber: Indeed, so Dutch, English, French, and German, and then you add Latin and Greek, which I considered pointless back then, but I eventually married a Greek-American, so.

Stoller: I'm going to return to the technology sector because I find your work exceptionally captivating. Furthermore, I'm considering the current period where many individuals seem to be experiencing exhaustion from technology and screens. I've observed Gen Alpha purchasing the flip phone I used at age 13. This leads me to question, from Logitech's perspective, how do you approach this phenomenon, given the pervasive feeling of having too many screens and too many gadgets?

Faber: A portion of today's consumers is certainly fatigued by technology. I'm included in that group. My belief is that technology excels when its presence is unnoticed. A prime illustration of this from another recent introduction is the solar-powered keyboard. My reasoning for this is that, while it's certainly innovative, it operates wirelessly and eliminates the need for charging. It can function for four months without any light. Even if you bring it into a room, it doesn't require direct sunlight to replenish its power. To me, this represents technology that—while you need a keyboard—is one you don't have to fret over, technology that doesn't interfere, and technology that remains functional. However, I agree with you; we do endeavor to create designs for that demographic too.

Brady: I'm reminded of the film Minority Report, where you simply gesture at your refrigerator. This scenario, while not strictly post-hardware, involves hardware integrated into other systems. How does this envisioned future influence your perspective on your enterprise?

Faber: As I've previously stated, hardware is truly appealing once more during the AI era. Certainly, artificial intelligence is prevalent and will persist in its widespread presence. For our organization, artificial intelligence holds significant strategic importance. If you consider AI to be akin to an extension of the human mind, that supplementary brain requires input, data, and information to function more effectively. Our offerings, including cameras, headphones, mice, and keyboards, serve as the sensory inputs for artificial intelligence. We play an absolutely crucial part right now, and our daily efforts reveal that this enhances our product's intelligence. One of my preferred recent innovations is a device known as a site video conferencing camera. You place it in the center of the table, and it's akin to having Steven Spielberg direct your virtual meeting. So you're aware of the situation where approximately a dozen individuals are gathered in a single space, and then there's the display, correct? And the unfortunate individual, or the unfortunate individuals depicted, they're unable to discern the speaker. Their focus is solely on that lengthy table. This feature focuses on the individual currently addressing the group. When there are two individuals, it displays both of them on the screen. Leveraging AI, it understands that if you're interacting with your keyboard, you aren't speaking, and that this device is indeed a keyboard. When I'm opening a bag of crisps, it also understands not to direct its attention toward me. In today's AI-saturated landscape, we're thrilled to serve as the sensory input and operational interface for artificial intelligence, as robust hardware is essential for equipping AI with the necessary data and information to achieve genuine intelligence. This is beneficial, and it's enhancing our offerings with increased intelligence on a daily basis. From video calls to dual-function noise-canceling headphones, and everything in between. There's considerable potential within our offerings, and naturally, within the organization itself. During the conference, we discussed how we've developed over 1000 AI agents internally since January, which has significantly boosted our productivity.

Faber: We’ve created more than 1,000 AI agents since January. Most of them actually are rather mundane. So if I look at the 1,000s, maybe two or three are really going to be home runs inside the company. 200 probably are not useful.

Brady; Is there a particular agent that does something cool that’s maybe not obvious to us?

Brady: Mediocre employees, don’t have to pay them.

Faber: These are truly not beneficial. Consequently, we'll discard them. Then, we have 800 that provide additional productivity gains across various areas. Customer service directed at the public was a significant category. Marketing represents another major area. Naturally, coding is also a substantial factor, given that we are an engineering-focused organization. However, all these incremental advantages from 800 agents over nine months contribute to enhanced productivity. I'm enthusiastic about this development because it will enable us to expand more rapidly without increasing our workforce. And that, I believe, is the compelling aspect of this situation. We're striving for more efficient operations to achieve quicker growth, rather than aiming to significantly reduce our employee count.

Stoller: One of the things you’ve spoken about that I find so interesting is this idea of a forever mouse, a super mouse, that you’re gonna have that’s durable, and there could be a subscription service. Can you tell us more about that? And what do you mean when you say a forever mouse?

Faber: The concept of a perpetual mouse didn't resonate well with The Reddit user base. My intention wasn't literally a mouse that lasts forever, but rather emphasizing that resilience is paramount. This signifies superior craftsmanship, a core principle for us. We aim for products that don't fail after a fortnight, a common issue with some rivals. Therefore, longevity is essential. Furthermore, beyond its lasting nature, the capacity for repair and renewal, from an ecological perspective, is also a significant desire, particularly among Gen Z shoppers. Consequently, we've been allocating resources to interchangeable components and collaborating with iFixit to facilitate straightforward repairs when a mouse eventually ceases to function after a decade, thereby extending its usability.

Brady: And yet you want to build sales. So there’s the upgrade, the subscription.

Stoller: It was popular with me because I hate having to get new things. I hate when tech breaks.

Brady: You were raised in the realm of consumer goods. Let's revisit that period. What insights did you gain from working with products like shampoo, and with companies such as P&G, Unilever, that are relevant to your current venture? It seems to me that those two brands possess an exceptional understanding of their clientele, enabling them to segment their customer base with great precision. Could you share what key lessons you extracted from that experience?

Faber: Indeed. At times, I need to confirm it's real. I'm now like a Tech CEO from Silicon Valley. Just two years back, I was vending ice cream and mayonnaise.

Brady: A basic human need, I might add.

Faber: Certainly, and I found that aspect quite appealing as well. My professional journey commenced at Procter and Gamble, which proved to be an exceptional training ground. During a significant portion of my tenure, A.G. Lafley held the position of CEO. His core philosophy was that the consumer reigns supreme, a principle that has remained with me. It's imperative to pay attention to your users and your customers.

Brady: Design thinking, too, is what he’s known for.

Faber: Certainly, design thinking too. However, I'd contend that at Logitech, we've elevated that significantly, which is wonderful. But if you fail to satisfy the consumer, you won't be able to please any of your other interested parties, such as shareholders.

Stoller: One very smart woman today that I was speaking with on one of my panels here at the conference had this great quote about, we should be celebrating all of our failures, especially in the tech industry, because it means we’re innovating. And I’m wondering if there’s a story you could share with us of either a big failure and what you learned, or a pivot you had to make, and any really pivotal moment for you that stands out.

Faber: I believe that at Logitech, upon my arrival, we were experiencing the tail end of a significant surge in business that stemmed from the COVID pandemic. During the period when everyone was confined to their residences, the professional aspect of our enterprise experienced a significant surge in activity, and recreational gaming became widespread. When I took over, we experienced numerous quarters of downturn. The initial priority was to steer the business back toward expansion, a goal we've now achieved, and we're currently on a very positive trajectory, experiencing substantial growth. However, when examining our approach, I believe one area where we've recognized an error is that the firm had declared it would pursue a strategy involving multiple brands. This is beneficial for certain businesses, yet the Logitech name stands out as an excellent brand. And our leadership group concluded that this approach wasn't effective, as it led to a dispersion of our assets. The Logitech brand is an excellent brand with considerable strength. It's recognized globally. When I hail a taxi in Shanghai, the driver is familiar with Logitech, and this recognition extends to places like Kazakhstan and Belgium. It's quite wonderful, and it resonates with the 16-year-old gamer, as well as the Chief Information Officer, given our substantial B2B operations and our leading position in the video conferencing market. I believe one of the errors we committed was attempting to operate as a company with multiple brands. We've made that adjustment. Our complete concentration is on the Logitech brand, and once more, that brand has substantial capacity, allowing us to introduce new ideas and strengthen it.

Brady: I consider gamers, and a common image surfaces. I'll describe it as favorable, given that my children are gamers. However, what have you uncovered? Are there any minor anecdotes from your findings regarding how individuals employ technology, even in various global regions, that have struck you as noteworthy?

Faber: Before becoming part of Logitech, I hadn't grasped the immense scale of the gaming industry. A significant majority of the U.S. Population, specifically two out of every three individuals, engages in gaming activities. It's not exclusively men; the split is nearly even, with about half being male and half being female. When considering gaming as a leisure activity, it consumes more time than both film and television programming put together. This is quite significant. This phenomenon isn't confined solely to the United States. You see, China stands as the globe's foremost market for gaming, in point of fact. It's quite substantial in size. I believe that within this, an overlooked aspect, one that I wasn't particularly conscious of, is actually simulation, and particularly racing, which constitutes a highly enjoyable segment of gaming, wherein you're simulating the experience of being in Formula One or NASCAR or any other game. And that's a really enjoyable one because it's also social. The demographic we're aiming for is what we refer to as "kidults." It's either the father or the mother who experiences a touch of guilt on weekends, feeling they haven't dedicated sufficient moments to their children and also wishing to engage in gaming themselves. However, possessing a racing simulator at your residence, complete with a steering wheel, allows for shared play with your children, engaging in races side-by-side, presenting a modern interpretation of a board game. I'm quite fond of that area. We've recently introduced a multitude of innovative offerings in collaboration with McLaren, who are performing exceptionally well in Formula One, and this represents a significant expansion sector for our company.

Stoller: Regarding future expansion, where do you anticipate the most significant potential? Are there any upcoming product launches or exciting developments on the horizon?

Faber: Our offerings are substantial. Approximately one-third of our operations involve video conferencing, and as every organization reassesses its work methods post-COVID, with increased reliance on platforms like Zoom, Teams, or Google, this represents a significant area for our expansion. Innovations in this field are continuous and thrilling. Furthermore, for office environments, the return to physical workspaces is also a prominent trend. Consequently, we recently introduced an environmental sensor designed for offices, enabling workplace services to ascertain room availability. Primarily, it confirms occupancy and suggests whether a room is needed. Secondly, it monitors temperature, CO2 levels, and the overall healthiness of the atmosphere. This product, named the Spot, was recently recognized as Time Invention of the Year.

Stoller: Wow, congrats.

Faber: That's excellent. So that covers the professional environment. Then we have gaming, which is, naturally, a significant overarching trend, and as the leading global equipment supplier, this is substantial for our company and represents a major area for expansion. Following that is our core business, which we refer to as the personal workspace: the input devices, the typing tools, and the video conferencing cameras you utilize at home and in your office. Given that everyone, following the pandemic, is operating from multiple locations, not solely at home or in the office. I'm certain you individuals are prime illustrations of this—in coffee shops, during flights, on public transport. For our organization to equip individuals with the instruments to accomplish tasks in ways that are comfortable, ergonomic, efficient, and precise is truly paramount. Therefore, we have three primary segments: what we term B2B, personal workspace, and gaming. Each of these presents considerable prospects for advancement. Consequently, this is a stimulating sector to be involved in.

Brady: It's difficult to name many sectors, such as technology, gaming, and others, where you don't need to gain your staff's confidence. You're interacting with creative professionals. You're interacting with software developers. I'm aware you're a member of the board at Tapestry, so I'm certain you've acquired considerable knowledge about leadership through that experience. However, what methods have you discovered for both establishing your authority as a leader and connecting with these individuals, whom I consider challenging to persuade? This is because they possess specialized knowledge, and you are entering their domain. Please provide an overview of your approach to accomplishing tasks and fostering collective progress.

Faber: Therefore, I believe it's a blend. I'd characterize it as a leadership approach, focusing on achieving success through ethical conduct. Achieving success, as we discussed, means I aim to triumph, and we'll adopt ambitious strategies and embrace calculated risks. Our objective is to double the company's scale within the coming years. That's one aspect, and it generates enthusiasm. And how can individuals participate by acting ethically? It all comes down to core principles. One significant factor in my decision to join Logitech was their exceptionally robust values. For its entire 44-year history, culminating this month, their foremost principle has been equality and environmental stewardship. This isn't a recent development or a fleeting trend; it's deeply ingrained in the company's DNA, and it's become particularly crucial for employees over the past year. Numerous individuals inquire, "Does this remain our guiding principle?" And unequivocally, it does, and this isn't about philanthropy. Equality is paramount for us because we operate as a worldwide enterprise, reaching 150 nations. Having varied teams is essential for our success. This diversity encompasses nationality, ethnicity, gender, and numerous other dimensions.

Brady: Does it matter being Swiss-based?

Faber: Good time to be Swiss.

Brady: What does that mean? Neutral?

Faber: We jest about our Swiss identity, and we have dual headquarters, one in Switzerland and one in Silicon Valley, and we're listed on both NASDAQ and the SMI. However, that pairing is a robust one, as Switzerland offers neutrality. We collaborate with all parties in video conferencing. We're thoroughly integrated with Microsoft Teams, with Zoom, and with Google. Consequently, we're compatible with all platforms. We also work with Apple. Thus, we maintain neutrality in that regard. Furthermore, the Swiss are known for their precision. They possess a very long-term perspective on matters. Their presence spans a considerable duration. All these attributes are beneficial. When you merge that with the energy and inventiveness of Silicon Valley, you achieve a rather powerful blend, and that's fundamentally what this organization represents. Therefore, that's an invigorating aspect.

Stoller: Well, thank you so much for joining us. Great words to end on.

Faber: Wonderful, thank you for having me.

Brady: Thank You.