Interface Esa Case Study

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Interface’s Evergreen Services Agreement
Case Study

Problem Statement:
As president and CEO of Interface, Dan Hendrix is facing strong adversity revolutionizing the floor covering industry with company chairman, Ray Anderson’s Evergreen Services Agreement (ESA). ESA represents a totally new process in the purchasing, maintenance and disposal of carpeting in commercial style environments. Customers have been reluctant to sign over total control of their facilities flooring in exchange for a monthly fee.

Ray Anderson’s goals:
The ESA model is designed to revolutionize the floor covering industry by transitioning from selling carpets to long-term leasing of floor covering services. • Create a company that can grow and prosper without doing harm to the earth. •Re-brand Interface by introducing a lasting environmentally sustainable enterprise. •Improve the bottom line

Dan Hendrix’s goals:
Resolve the dilemma that ESA presented that prevented customers from closing the deal. •Determine if the ESA model was still a viable option for Interface (based on it
General notes:
If we do more analysis on Anderson’s goals we may be able to show that the above listed goals could/are being met without ESA being successful and we cannot worry about Hendrix’s goals because ESA is needed to reach Anderson’s goal. Here is an example:

Background Data:
ESA started in 1995 and so did the QUEST program. The QUEST program had 7 steps to turn Interface into a zero-waste company. • Step 1: Reduce Waste
• Step 2: Limit toxic emissions from smokestacks. • Step 3: Switch to renewable energy.
• Step 4: Close the loop (Use old carpet to make new carpet. Don’t use raw materials to make new carpet). • Step 5: Resource efficiency transportation (change the packaging material to be lighter and cost less to ship). • Step 6: Sensitivity hookup (educate customers to be eco-friendly). •...
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