Körber, Hans-Joachim 1946–

International Directory of Business Biographies, (2005) by Janet Stamatel

Hans-Joachim Körber 1946–

Chairman and chief executive officer, Metro Group

Nationality: German.

Born: July 9, 1946, in Brunswick, Germany.

Education: Technical University of Berlin, master brewer; PhD.

Career: R. A. Oetker Headquarters, 1974–1980, senior controller for the beverages division; Söhnlein Rheingold, 1980–1985, manager of finance, accounting, controlling, information technology, purchasing, and personnel; Metro SB-Großmärkte GmbH & Company, 1985–1991, manager of finance, accounting, controlling, logistics, and information technology; Metro International Management, 1991–1996, member of the general directorate; Metro AG, 1996–1999, member of the management board; Metro AG, 1999–2000, spokesman of the management board; Metro Group, 2001–, chairman and chief executive officer.

Address: Metro AG, Corporate Communications, Metro-Straße 1, 40235 Düsseldorf, Germany; http://www.metrogroup.de.

■ In 2001 Hans-Joachim Körber became the CEO of Metro Group of Germany, the fifth-largest global food retailer with over two thousand stores worldwide and $48.5 billion in sales. In his many years of experience at Metro, Körber improved the management style, business strategies, and corporate image of the company to maintain profits in the face of competition from powerful international discount companies, such as Wal-Mart.

EARLY CAREER AS A MASTER BREWER

Hans-Joachim Körber was born in Brunswick, Germany, on July 9, 1946. He attended the Technical University of Berlin, where he studied brewing technology and earned a degree as a master brewer. He later continued his education and earned a PhD in business management. Körber's early business experience was in the beverage industry. From 1974 to 1980 he worked as a senior controller for the beverages division of R. A. Oetker Headquarters in Bielefeld, Germany. From 1980 to 1985 he worked as part of the management team of Söhnlein Rheingold, a wine company in Wiesbaden, Germany. He was responsible for finance and accounting, controlling, information technology, purchasing, and personnel.

Körber first became involved with the company that would eventually become the Metro Group in 1985, when he became a member of the management team for Metro SB-Großmärkte GmbH & Company, a cash-and-carry, self-service wholesale trade company. Körber was in charge of finance and accounting, controlling, logistics, and information technology for six years. In 1991 he joined the general directorate of Metro International Management in Baar, Switzerland. In this role, Körber expanded his responsibilities to include international cash-and-carry activities in six countries.

BECOMES METRO LEADER

In 1996 Metro AG was formed after a merger of the independent retail companies Asko Deutsche Kaufhaus, Kaufhof Holding, and Deutsche SB-Kauf. When the new company was listed on the stock exchange in 1996, it was among the 20 largest companies listed in Germany. That same year Körber became part of the management board for Metro, located in Düsseldorf, Germany. In 1999 Körber became the spokesperson of the management board, and his responsibilities were expanded to include corporate development, corporate communications, and investor relations. After a power struggle with the board in 2000, Körber became the chairman and chief executive officer of the company in 2001.

When Körber took control of Metro, the company had a mixed reputation. It originally had 16 business lines, including food hypermarkets, computer stores, shoe shops, and a textile business; however, only the cash-and-carry and electricalgoods outlets were generating profits. Additionally, the company was facing fierce competition from large discounters, particularly the U.S.-based company Wal-Mart. In 1999 Metro lost its position as Europe's largest retailer when the French companies Carrefour and Promode merged.

INTRODUCED NEW MANAGEMENT STYLE

Körber also introduced a new management style to Metro. Germany had a tradition of managing by consensus, which Körber believed was a problem because it introduced uncertainty into the market. In contrast, Körber introduced a management approach similar to the Anglo-Saxon capitalist model, with incentives such as stock options for managers and merit pay for shop employees. He also utilized new management tools, such as benchmarking and economic value added, that had not been used before in the company.

Additionally, Körber introduced a more sophisticated form of financial management than had been used previously in the company. He focused finances on capital intensity and cash. He moved the company from German accounting practices to international accounting standards, which included quarterly reporting. He also adopted a comprehensive corporate-governance code.