Interface's Evergreen Services Agreement
Interface’s Evergreen Services Agreement
Northwood University
Problem Statement: Dan Hendrix, president and CEO of Interface, Inc. is challenged with deciding the future of Interface’s Evergreen Services Agreement (ESA) business model. This decision will impact Ray Anderson’s vision to create an environmentally stable enterprise.
Objectives/Goals: (Financials / Ecological) • Uphold ESA’s business model concept • Maintain ecological balance using the ESA’s seven goal plan to achieve a sustainable enterprise • Become Profitable – Increasing net income by 3% in 5 years
Analysis:
After using common troubleshooting diagrams and performing a root cause analysis, various reasons have been identified as to why the ESA might not be appealing to Interface customers. The problem is simple…ESA is not selling. This analysis breaks down potential reasons for ESA’s failure in pursuant to success. As per Anderson’s vision for a sustainable enterprise, unsuccessful methods were used to sell ESA. Analyzing ESA’s current financial status, the present visualization of ESA is a not an achievement. Placing emphasis on the idea of Hendrix standing outside of his superior’s door basically having to communicate to him that his idea is simply unsuccessful, we wanted to play the role of one of Hendrix’s advocates. What advice as advocates would we give to Hendrix before he had to walk into Anderson’s office? The analysis as to what counsel we would give is broken down into two main root causes, sustaining environmental principals and retrieving financial stability. • Sustaining Environmental Principals • Retrieving Financial Stability A fishbone diagram was used in both causes of analysis and was initiated to determine the main reasons that may have caused ESA’s failure to sell. Our analysis determined an overall breakdown between management and method (the process) in which the lease was pitched to potential customers. Interface
Northwood University
Problem Statement: Dan Hendrix, president and CEO of Interface, Inc. is challenged with deciding the future of Interface’s Evergreen Services Agreement (ESA) business model. This decision will impact Ray Anderson’s vision to create an environmentally stable enterprise.
Objectives/Goals: (Financials / Ecological) • Uphold ESA’s business model concept • Maintain ecological balance using the ESA’s seven goal plan to achieve a sustainable enterprise • Become Profitable – Increasing net income by 3% in 5 years
Analysis:
After using common troubleshooting diagrams and performing a root cause analysis, various reasons have been identified as to why the ESA might not be appealing to Interface customers. The problem is simple…ESA is not selling. This analysis breaks down potential reasons for ESA’s failure in pursuant to success. As per Anderson’s vision for a sustainable enterprise, unsuccessful methods were used to sell ESA. Analyzing ESA’s current financial status, the present visualization of ESA is a not an achievement. Placing emphasis on the idea of Hendrix standing outside of his superior’s door basically having to communicate to him that his idea is simply unsuccessful, we wanted to play the role of one of Hendrix’s advocates. What advice as advocates would we give to Hendrix before he had to walk into Anderson’s office? The analysis as to what counsel we would give is broken down into two main root causes, sustaining environmental principals and retrieving financial stability. • Sustaining Environmental Principals • Retrieving Financial Stability A fishbone diagram was used in both causes of analysis and was initiated to determine the main reasons that may have caused ESA’s failure to sell. Our analysis determined an overall breakdown between management and method (the process) in which the lease was pitched to potential customers. Interface
References: Quinn, J., Oliva, R., (2003). Interface’s Evergreen Services Agreement. Harvard Business School, 9-603-112.