In his final days as co-CEO of On, Marc Maurer gave participants of IMD’s Orchestrating Winning Performance a glimpse behind the scenes of the messy – and often uncomfortable – journey of...
Like many founding stories, it began with a single product idea. The challenge? Nobody had a clue how to design it.
Olivier Bernhard, a multiple Swiss Ironman champion and professional duathlete and triathlete, co-founded On after seeking a shoe to ease the pain of a chronic Achilles injury. He turned to an engineer friend from ETH Zurich who crafted a prototype for a cushioned landing – the foundation for what would become the company’s distinctive CloudTec technology.
When it came to turning the prototype into a product, however, the team made an unconventional choice: rather than selecting an experienced footwear designer, they chose someone who had never designed a shoe before. Why? Because they wanted something radically different.
This willingness to venture outside comfort zones and challenge what’s possible became embedded in On’s DNA. From its humble beginnings in a church community center, the startup has grown into a global sports powerhouse, employing over 3,500 people and projected to generate up to $3.3bn in revenue this year.
But how did On get there?
In his last public appearance before stepping down, Marc Maurer, Co-CEO of On, revealed the ingredients of the sportswear brand’s success at IMD’s Orchestrating Winning Performance program.
That first design decision set the tone, and the self-imposed “industry hiring ban” continued for years. Even today, mindset trumps experience, explains Maurer. The company’s ‘Explorer Spirit – defined by a strong belief that doing things differently and taking smart risks will continue to give On an advantage – is designed to encourage staff to embrace failure.
“If you’re not sure if you should do it, do it. If you fail, great,” explains Maurer, who joined as chief operating officer in 2013 and became co-CEO in 2021. “Only by taking risks will you continue to create outsized returns.”
The distinctive design was intentional, explains Maurer.
Being a Swiss brand with a small home market, On was forced to expand internationally early, entering Germany and Austria, and the US after just two years. This allowed it to create pockets of growth – a strategy it has continued to pursue as it grew by as much as 70% year-on-year.
The company also expanded into different product lines, adding apparel – which now makes up almost 10% of its business – as well as tennis footwear, and entered the direct-to-consumer (DTC) retail market in 2021.
The distinctive design was intentional, explains Maurer.
“The idea was that you had visible technology. We had to stand out. None of you would have brought that product. But people would walk into the store and get curious because it looked so weird. When people stepped into it, you had a conversion rate above 50%.”
Innovation remains a core capability. In 2024, it revealed a new LightSpray technology – an ultralight, one-piece upper sprayed onto the shoe by a robotic arm which means the shoe can be produced in just three minutes.
“The management team actively hired the first 500 employees and continues to invest considerable time in bringing the culture to life.”
As On expanded from a handful to thousands of employees globally, culture became crucial. “For On, the element that underpins it all is a culture of innovation and excellence,” Maurer says.
The management team actively hired the first 500 employees and continues to invest considerable time in bringing the culture to life. “80% of my speaking time is about culture,” explains Maurer. “It’s the same message again and again and again.”
On attracts and retains talent by creating a purpose-driven environment with freedom for individuals to thrive. With an average employee age of just 33, Gen Z workers are particularly drawn to purpose-driven organizations and actively push the company on sustainability and diversity.
Beyond risk-taking, Maurer credits the company’s success to culture and customer-centricity.
As companies grow, it’s easy to fall into the success trap and become complacent. To sustain success, On needs to stay close to customers and understand their needs, he says. They co-develop products with athletes, referred to as team members, providing health insurance, career advice, and, famously, support for pregnant athletes – a group often dropped by other brands.
On, which went public on the NYSE in 2021, must balance growth with operational capabilities and the impact on company valuation. “It’s a fine line,” Maurer reflects. “We use this picture: you’re the captain of a sailing boat. You need to sail super hard in the wind, just until it doesn’t capsize.”
This sparks a constant dialogue: How much growth can the company absorb? How much will customers accept? “We could put 80 stores in China this year. We’re growing over 100% in APAC. You have to find that line. We’re not a tech company. We produce shoes.”
The scale is staggering. In 2021, On added the same revenue as Nike – but while Nike did it off a $40bn base, On did it off $500m.
As Maurer prepares to hand over the reins, he believes On will remain a premium brand – one that will allow it to invest in new products that push the boundaries of sustainability.
“For this industry, the holy grail is circularity. The whole industry needs to be able to move to a product where you can reuse all the materials. You need to be able to take the product back and have chemical recycling facilities in place to make sure that it can be reused.”
The company, whose purpose is “igniting the human spirit through movement,” has a Right to Run initiative – part of the company’s broader sustainability efforts, ensuring that movement is accessible to all and supporting refugee camps through sports programs. Employees are encouraged to participate in volunteer days with these organizations, fostering a sense of purpose and impact.
The next chapter of On's story is just beginning – and if history is any guide, it won't be conventional.
Maurer has decided to depart On to embark on a new chapter at the end of June 2025. Asked if he would ever be a co-CEO again, his answer is a resounding yes.
“It’s very rewarding to do it with a partner. A team built this company; our job is to be successful,” he explains. “We’re very complementary, which is super important. Martin has different skills than I do, and we respect each other for that. My role was to make Martin successful, and his role was to make me successful.”
Even when they disagreed, they maintained respect. “It takes courage, and it’s uncomfortable.”
So what prompted the decision to leave? “The last 15 years were unbelievably beautiful and unbelievably intense. On is evolving as an organization, and I am evolving as an individual,” he reflects. After a dozen years, he examined what truly energizes and motivates him, and decided to move on to a next chapter, staying true to the explorer spirit they had built.
Maurer won’t disclose his next move, except that he plans to watch Oasis perform at Wembley and focus on recharging with family.
As for On, the company that started with a prototype in a church community center and dared to hire designers who’d never made shoes before continues to embody its founding principle: when you’re not sure if you should do something, do it anyway. The next chapter of On’s story is just beginning – and if history is any guide, it won’t be conventional.
This article is inspired by a keynote session at IMD’s signature Orchestrating Winning Performance program, which brings together executives from diverse sectors and geographies for a week of intense learning and sharing with IMD faculty and business experts.
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