CEO Agenda offers distinctive insights into how leaders suppose and lead and what retains them busy in a world of fixed change. We glance into the lives, minds and agendas of CEOs on the world’s most iconic corporations.
Based in 1891 as a lightweight bulb producer, Philips has remodeled itself right into a health-tech chief within the twenty first century. Its early work in lighting laid the muse for the event of X-ray tubes, which grew to become the cornerstone of its well being care enterprise.
The 134-year-old know-how firm confronted maybe probably the most vital disaster in its historical past following the 2021 U.S. recall of Philips respiration gadgets, together with CPAP and BiPAP machines, owing to potential well being dangers. Roy Jakobs, who joined Philips in 2010, grew to become CEO of the Dutch firm in 2022, across the time of the disaster. Since then, he has helped convey the corporate into stabilization. Whereas annual income has remained regular—reaching $19.5 billion in 2024—the corporate’s share worth has risen a complete of 81% since Jakobs took over. Although at the moment the corporate’s share worth stays beneath its 25-year common, Jakobs is dedicated to driving a long-term turnaround.
Alongside the recall, one in every of Jakobs’s first main actions as CEO was asserting a restructuring plan that reduce 10,000 jobs—round 13% of the workforce—a transfer geared toward serving to the corporate soak up settlement payouts.
Rising affected person expectations—together with applied sciences like distant robotics, digital well being platforms, and AI-driven machine studying—are quickly reworking well being care. In response, Jakobs is driving steady innovation at Philips by enhancing hospital affected person monitoring by way of IntelliVue bedside, wearable, and transport displays—seamlessly built-in with the Philips Affected person Info Middle iX for real-time information entry—and advancing Azurion image-guided remedy platforms to assist minimally invasive procedures.
210 Philips rank on Fortune 500 Europe
“Explaining the why is very important,” he says. “It’s not about where you do innovation. It’s about the impact.” He emphasizes how essential it’s for corporations to remain related in an ever-changing market, and to take action actually and with integrity.
From boardrooms to soccer sidelines (he’s an avid sports activities fanatic), Jakobs brings a grounded but international mindset formed by his (and Philips’s) Dutch heritage. Whether or not it’s planning his calendar round household occasions or sparking innovation throughout continents, Jakobs exemplifies what it means to steer with intent.
This interview has been edited for size and readability.
All the way down to enterprise
Fortune: Stroll us by way of your profession journey.
I began working at Shell, the place I ran a number of operations. Then I used to be at Elsevier. Once I joined, it was nonetheless a majority print-based enterprise within the sciences, and it moved very quickly.
That triggered why Philips invited me over in 2010, when lighting began to digitize quickly and LED lighting was launched. A significant transformation from analog to digital gentle was beginning, and Philips needed to steer. I really feel I can contribute to the heritage of robust international corporations in-built a small nation, particularly in key fields like power, science, and well being care.
How does the Dutch enterprise fashion differ from that of different multinationals?
You could suppose globally. There’s an outward perspective in the way you interact with the world, respecting variations but in addition alternatives. That’s what the Dutch have been doing—going out, touring the world, and grabbing alternatives.
The Dutch can be very direct. I like readability as a private management fashion. There may be worth in talking out, respectfully. There may be additionally part of Dutchness that’s consensus-driven—it’s essential to take many stakeholders into consideration if you wish to do enterprise. That’s a power. We additionally suppose broadly—about sufferers, individuals, society, and sustainability. However on the similar time, in case you’re too consensus-driven, it might probably make you slower. That’s one thing to be conscious of.
You’ve led a serious restructuring and vital repositioning of the enterprise. What have you ever realized from the expertise?
You could be grounded within the actuality you face, and in case you restructure respectfully and with the precise intent, you’ll achieve assist.
I needed to considerably scale back headcount. In the identical interval, we drove our [employee] engagement rating up by 12 factors—due to how we did it. We have been respectful and clear about why we did it and what we needed to realize, which was an easier, leaner group and to get Philips successful once more.
It’s all about the way you keep related and the way you do it along with the viewers you serve. Explaining the why is essential. It’s not about the place you do innovation—it’s in regards to the influence.
“There’s an outward perspective in how you engage with the world, respecting differences but also opportunities. That’s what the Dutch have been doing—going out, traveling the world, and grabbing opportunities.”
Roy Jakobs
Philips is understood for consumer-facing innovation—how have you ever approached its communication technique?
As a client model, you might have a large attain with billions of customers. In well being care, sufferers are extra centered on getting the perfect care than on the model itself.
I’ve been refocusing the corporate on driving in the direction of delivering higher and extra care—as a result of the problem in well being care is just getting larger as a result of rising hole between demand and provide. I additionally interact with the federal government and related stakeholders on the payer aspect. We’ve been in well being look after 100 years and are generally known as a trusted associate. Whereas client branding differs from B2B, our legacy and ongoing actions proceed to construct our presence.
With challenges in China and international commerce, the place is your focus as CEO, and the way do you navigate these tensions?
The system is below strain as authorities funding shifts to power and protection, so we have to grow to be extra environment friendly attributable to lowered well being care assist.
There are massive variations globally—nations just like the U.S. spend 20% of GDP and wish effectivity, whereas others like Indonesia are nonetheless build up. China has been challenged since COVID as a result of its economic system has not been again in full pressure. The nation is strengthening, however it’s nonetheless not again to the place it was. The U.S. nonetheless has robust well being care demand and is searching for options.
Tariffs are additionally one thing we’re coping with. COVID made us conscious of constraints, particularly if in case you have a too lengthy or too diversified provide chain. Since COVID we began to regionalize extra. You could be native.
How do you suppose we are able to tackle the productiveness hole between Europe and the U.S.?
Philips is a giant European firm. We drive many actions in different components of the world.
You could have monetary capital streams that assist gifted startups, particularly in tech. It’s simpler to entry capital within the U.S. than in Europe. We have to [fix] that.
If you wish to stay aggressive, it’s essential to have an power value that’s aggressive globally. Europe is dear due to its heavy reliance on outdoors sources, together with Russia. We have to strengthen our power infrastructure.
We’ve been advocating for acceptable AI regulation that helps however doesn’t overburden it.
Being productive
What’s your morning routine that units you up for the day?
I stand up early, play sports activities if I can. I wish to be not solely a CEO, but in addition a father and good husband, so cautious planning is important.
I plan my time, particularly when touring, so I could be current. I carve out time for my sons’ soccer matches and ensure to point out up when it issues. A giant a part of staying linked, whether or not with clients, stakeholders, or household, is evident communication.
Espresso or tea?
I studied in Italy, so I begin with a cappuccino after which shift to common espresso or espresso. I additionally love tea.
Inform us a bit about your sports activities pursuits?
I like sports activities for a lot of causes. I get power out of it, and I additionally just like the social side of sports activities. I play soccer, tennis, and in addition run. I wish to study from sports activities, with the workforce.
I additionally suppose [sports] is essential, particularly since we’re a well being care firm. So [we should] lead by instance. There’s worth in being match for the power that we’d like for the day by day grind.
I’m fairly versatile. Operating a worldwide enterprise implies that generally I must be early for China or Asia, or late for the U.S. Work and private [life] are intertwined.
I admire spending time with my household on Friday nights, particularly cooking dinner collectively.
Getting private
What apps or strategies do you employ to be extra productive?
I exploit my iPad as my pocket book, and that works for me.
Jakobs joins colleagues for an early morning recreation of soccer in Shanghai.
Courtesy of Royal Philips
Who’s in your private board?
I’ve a broad community of individuals whom I can get inspiration from. Some are mates, my skilled coach, my sister. Generally individuals assume {that a} CEO is aware of all the things, however I’m the primary to confess if I don’t. That’s why I’ve a workforce.
As a client, what’s your favourite firm and why?
Apple. I really like the mix of design and the person focus.
What’s your favourite delicacies to both cook dinner or eat?
Italian. I really like consuming and cooking. Dwelling in Bologna, I realized to understand Italian delicacies. Easy recipes yield magnificent outcomes—we should always do the identical in enterprise.
CEO Agenda offers distinctive insights into how leaders suppose and lead, and what retains them busy in a world of fixed change. We glance into the lives, minds and agendas of CEOs on the world’s most iconic corporations. Dive into our different CEO Agenda profiles.
