For the exclusive use of A. Bennis, 2015. MH0005 0 0 7 7645065 Fra nk T. R othaermel M ichael Jano vec InterfaceRAISE (in 2010): Raising the Bar in Sustainability Consulting MR. JIM HARTZFELD walked into the Interface offices at 6:25 a.m. on Monday morning. Having just purchased a coffee and bagel from the local indie coffee shop, Octane, Mr. Hartzfeld was looking forward to catching up on e-mails and perhaps even glancing at the latest Fast Company magazine. This type of morning was rare for the Managing Director of InterfaceRAISE, the sustainability consulting arm of Interface, Inc. In fact, \"leisure\" had become a foreign term to Mr. Hartzfeld over the past five years. As Jim walked through the door into the building, he was greeted by John Wells, CEO and President of Interface Americas. \"What a great chance to catch up with John,\" Jim thought to himself, and invited him to his office. Once the two men were seated, Mr. Wells started to speak: Jim, as you are well aware, it appears that we've successfully weathered the downturn, and our business is gaining momentum. Dan [Hendrix, CEO of Interface, Inc., and John and Jim's boss] has been challenging all of us to come up with big ideas to double our businesses. I think InterfaceRAISE can do much more than that and can become a more powerful influence on Interface's brand, and therefore my business. At the same time, I think InterfaceRAISE can contribute significantly to our corporate goal, \"becoming restorative through the power of influence.\" I would like for you to grow to $5 million in five years. Can you do it? I know that we're in separate businesses and we normally compete for resources, but I think we should take advantage of this strong quarter and request additional funding for RAISE from Dan. It sounds unusual, but I'd be willing to help you do it. To get his buy-in, we'll need to show Dan a strong business plan detailing how much money you would need and how you would grow RAISE. Dan wants to look at all of our proposals on Friday, so bring me your plan no later than Thursday noon to brainstorm. Interface and Sustainability InterfaceRAISE's inception was closely intertwined with sustainability at Interface, Inc., a modular carpet and commercial broadloom company. In the summer of 1994, Jim Hartzfeld, a recent MBA graduate from Emory University and then a research associate at Interface, approached Ray Anderson, founder and CEO of Interface. Jim handed Mr. Anderson a handwritten letter from a sales manager in California that posed the question, \"Some customers want to know what Interface is doing for the environment. How should we answer?\"1 The letter continued, \"When it comes to the environment, some customers believe Interface just doesn't get it.\"2 Professor Frank T. Rothaermel and Michael Janovec (GT MBA 2011) prepared this case. It is developed for the purpose of class discussion. It is not intended to be used for any kind of endorsement, source of data, or depiction of efficient or inefficient management. We thank Mr. Jim Hartzfeld and Mr. John Wells for generously sharing their time and expertise. All opinions expressed and all errors and omissions are entirely those of the authors. Rothaermel and Janovec, 2013. This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting Reading this, Ray Anderson's first reaction was, \"Don't get what? Making carpet tiles demands so many petroleum-derived chemicals that we aren't just dependent on oil companies, we are like an extension of them. We haven't broken a single environmental rule. Not even bent one. We were legal, in compliance100 percent.\"3 As Anderson reflected further on this question, however, he knew he had to respond. After all, Interface had been built on responding to customer needs. He thought, \"If we don't answer the question [the] sales manager had relayed, we stand to lose other sales. How many? I have no idea. But I do know that telling our customers, 'we comply with all environmental laws' isn't going to cut it.\"4 To craft a proper response, one of Ray's lieutenants suggested that Interface organize a task force to determine what Interface was doing for the environment. Ray supported the idea and chose to put Jim Hartzfeld in charge, due to his marketing and technical background. Jim had recently joined Interface with over a decade of experience with the largest oil and chemical company in the world. Jim reflected on this assignment, saying: I got assigned to create this task force not knowing anything about the environment, so I turned it around on Ray. I said, \"If you're going to do any kind of change work or any kind of big process, you've got to create a vision from the top.\"5 Mr. Anderson reluctantly agreed to kick off the first meeting of the task force on August 31, 1994. In the days leading up to the event, he struggled with writing his speech: \"At the time, I hadn't given one thought about the environment; I was concerned with dollars and cents. How could I possibly speak passionately about a topic in which I was neither an expert nor cared a great deal about?\" Mr. Anderson's question was answered a few days later when a book by Paul Hawken, The Ecology of Commerce, appeared on his desk. As Ray Anderson read through the book that afternoon and later that night, he had an epiphany: While reading a section on how a deer population without any natural predators over-consumed to the point of decimation, it hit me like a spear in the chest. Titans of industry like me had been fueling the human species' overconsumption for the past one hundred years. We needed to do something to stop this. . . . Our civilization was chewing up resources faster than the earth could renew them. I stood indicted as a plunderer, a destroyer of the earth, a thief, stealing my own grandchildren's future. And I thought, My God, someday what I do here will be illegal. Someday they will send people like me to jail.6 Yet Mr. Anderson wondered what he could do. He was in the carpet business, and carpets needed huge amounts of petroleum-based products in their resource-intensive production process. Reading further, Mr. Anderson found Hawken's encouragement for people exactly like Anderson to act. Hawken argued that business people alone could reverse the trend of environmental degradation from industrialization. Individuals did not possess the collective power to do so. Governments were typically reactive rather than proactive and thus were unequipped to provide the transformational change. Thus, said Hawken, it was up to capitalist businesses, \"the only institution large enough, wealthy enough, and pervasive and powerful enough to lead humankind out of the mess we are making.\"7 After finishing the final page of Hawken's book at 3:00 a.m. that morning, Anderson began to write his keynote speech.8 On August 31, 1994, at about 10:15 a.m., Mr. Anderson walked up to the podium, paused, and took a deep breath. He was about to change the face of Interface forever. Mr. Anderson started by telling the story that he'd read a few days earlier about the reindeer population on St. Martin's Island that had vanished because their numbers exceeded the carrying capacity on the islanda vivid example of the consequences of overconsumption. 2 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting What happened on St. Martin's Island is a metaphor for the world. Look around and you'll see many of the same signs. World grain production has already peaked and is in decline. So is the world's fish catch. Forests are disappearing. Aquifers are dropping. Deserts are growing. Oil is getting more expensive and harder to find. Nobody can predict what the implications might be for our business or our civilization. But I do know that, like the reindeer, we are far exceeding the carrying capacity of this good earth. Unless somebody does something to arrest and reverse the tide, catastrophe will strike. Now what somebody am I talking about? The strongest institution in the world has to take the lead. That is not the church, it is not education, and it is not the government, either. It is business and industry. It's people just like us. Us! Every company has to face three ecological challenges honestly and head-on: 1. What we take from the earth; 2. What we make, and what collateral damage we do in the making of it (pollution of all kinds); 3. What we waste along the way (in all forms), from the wellhead to the landfill.9 Ray Anderson then posed a challenge to his stunned employees: \"What if Interface became the first industrial company in the world to achieve sustainability?\"10 He proposed that by achieving sustainability, the company could boost its brand image and as a result, its bottom line. He told the silent crowd of engineers and senior managers that he wanted them to put together a proposal of how long they expected it would take for Interface to achieve sustainability and how much it would cost. Then, he asked them to consider what was beyond sustainability: What would a \"restorative company\" look like? Anderson then left the podium.11 The reaction of the crowd and the industry in general was utter shock. Bob Shaw, owner of Shaw Industries, one of the world's largest carpet manufacturers told Ray, \"You're a dreamer. It's OK to be a dreamer and lose your money, but you're going to take your whole company down with you.\"12 Jim Hartzfeld recalled a speech that Mr. Anderson gave at a large company meeting: Before the meeting, I told him [Ray] that some of the guys thought he had lost his mind. He's got this vein that popped out of his forehead; he was not happy with that message. He opened his talk by saying, \"I hear some of you think I've gone around the bend. That's my job, to go around that corner and see what's on the other side.\"13 \"Mount Sustainability\" What did Ray Anderson see around that corner? Mr. Anderson set the goal for Interface to be entirely independent of oil by 2020. That included not using oil in raw materials or as energy to fuel its plants.14 At a 1997 sales meeting, Mr. Anderson described the journey to achieve Interface's newly found mission to develop the first sustainable industrial company as follows: \"I have a mental image of a mountain to climb. A mountain that's taller than Everest, and infinitely more difficult to scale. The name of the mountain is Sustainability.\"15 Mr. Anderson stated that at the peak of Mount Sustainability lay Interface's ultimate goal of MissionZero. MissionZero was the company's commitment to eliminate all negative impacts that Interface had on the environment by 2020. Not only did Ray Anderson want Interface to be completely sustainable, the company had to achieve it profitably; otherwise there would be no future for the business. As others had said, \"No margin, no mission.\" To reach this lofty goal, Mr. Anderson challenged his employees to join him in ascending the Seven Fronts of Mount Sustainability (Exhibits 1 and 2).16 The seven faces of the summit that Anderson set forth were: 3 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting 1 . Moving toward zero waste. 2 . Increasingly benign emissions, working up the supply chain. 3 . Increasing efficiency and using more renewable energy. 4 . Closed-loop recycling, copying nature's way of turning waste into food. 5 . Resource-efficient transportation, from commuting to logistics to plant sitting. 6 . Sensitivity hook-up, changing minds and getting [all stakeholders] on the same page, replacing confrontation with cooperation. 7 . Redesigning commerce, teaching a new Economics 101 that puts it all together and assesses accurate costs, sets real prices, and maximizes resource-efficiency.17 To scale Mount Sustainability, Interface focused attention across all of the seven fronts enumerated by Mr. Anderson. For example, focusing on waste (Front 1), Interface implemented the QUEST (Quality Utilizing Employees' Suggestions and Teamwork) program in 1995 to address waste reduction. Interface defined waste as any cost that does not add value to the customer. This program encouraged employees to identify, measure, and eliminate waste.18 To reduce waste, Interface employed revolutionary manufacturing techniques, sought out new manufacturing materials, and implemented the latest waste-reducing installation techniques. In addition to traditional, tangible forms of waste, Interface added any use of nonrenewable energy to its target list of waste to be eliminated. Through its QUEST program and other company-sponsored initiatives, Interface avoided $433 million in waste expenses between 1995 and 2009.19 In addition, the company reduced its reliance on wetprinting by shifting manufacturing to yarns that had already been colored in the extrusion process, resulting in reduced internal waste, toxic emissions, and energy consumption.20 Interface's Bentley Prince Street plant in California saved 28 tons of yarn in just the first two months of 2008, equating to about $168,000.21 Traditional carpet tile manufacturers sold tiles on the premise that companies could replace only worn tiles, rather than the entire carpet. However, an obvious problem with this approach had been matching slightly worn carpet tiles with the new replacements. When tiles did not match, most end users replaced more tiles and left worn ones only in hard-to-see areas, which negated the benefits of using tiles to reduce waste and save money. To solve this challenge, Interface's design consultant, David Oakey, applied a concept called biomimicry. He observed that in nature, no two patches of forest floor or grass are alike, yet they still blend together. Based on this premise, Mr. Oakey designed a radical new random carpet pattern and process named Entropy. In this product line, no two tiles are identical. Instead, shades and patterns vary slightly, allowing the tiles to blend with one another no matter their age or the direction in which they are installed. This innovation had the added benefit of reducing installation time since installers could place the tiles without regard to direction; at the same time, customers needed to replace only their worn tiles.22 Entropy became the largest selling product in Interface's history. Today, the multiple variations of the Entropy design principle account for roughly 40 percent of Interface's carpet tile sales.23 Another innovation designed to reduce installation waste was Interface's TacTiles. These small adhesive squares rest below the carpet tiles at the corners that secure four tiles together. Using TacTiles eliminated the need for glue, which typically contained volatile organic compounds (VOCs) associated with adverse health effects.24 Further, traditional glues often destroyed the floor underneath the carpet, resulting in thousands of dollars in damage upon removal. Using the TacTiles eliminated this cost entirely.25 4 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting Another step in Interface's efforts to reduce the impact of its raw material stream was aimed at recycling, through its ReEntry 2.0 program that began in 1995. Under this program, Interface agreed to take back used carpet (even from competitors). At the Interface facility, the carpet fibers were separated from the backing and either sent to yarn suppliers, where they were reprocessed to make new nylon fibers, or to other industry partners that used post-consumer nylon. The vinyl carpet backing was recycled within the Interface facility to make GlassBacRE, Interface's recycled backing material. Progress Toward Sustainability Through 2009, Interface had diverted over 200 million pounds of materials from landfills by recycling it through its ReEntry 2.0 program. It had reduced its own manufacturing waste sent to landfills by 80 percent. It reduced its greenhouse gas emissions by 44 percent, and when you included offsets from its landfill gas project, net greenhouse gas emissions had fallen by 94 percent. The company's water usage had decreased by 80 percent from 1996 levels. Interface engineers were working diligently toward the goal of having all the energy required to operate its plants come from renewable sources by the end of 2020. Interface operated eight manufacturing facilities that ran on 100 percent renewable electricity.26 Through Mr. Anderson's vision and the efforts of countless associates, Interface became a leader in sustainability. Between 1996 and 2009, the company estimated that it had saved $433 million in waste costs due to its energy efficiency and waste elimination efforts (Exhibits 3 and 4). Moreover, Interface's business model forever changed the carpet industry. Speaking of sustainability as a business model, Mr. Anderson stated: Sustainability has given my company a competitive edge in more ways than one. It has proven to be the most powerful marketplace differentiator I have known in my long career. Our costs are down, our profits are up, and our products are the best they have ever been [see Exhibits 5 and 6]. Sustainable design has provided an unexpected wellspring of innovation, people are galvanized around a shared higher purpose, better people are applying, the best people are staying and working with a purpose, the goodwill in the marketplace generated by our focus on sustainability far exceeds that which any amount of advertising or marketing expenditure could have generatedthis company believes it has found a better way to a bigger and more legitimate profita better business model.27 How had the changes affected the company's bottom line? Interface reported that between 1996 and 2008 it increased sales by 66 percent and more than doubled earnings. The share price of Interface stock rose from $6.75 in 1994 to $15.00 by 1997 (Exhibit 7).28 Savings thus far had arisen primarily due to reduced energy and water usage (as opposed to raw material savings).29 In addition, Interface and Mr. Anderson had received numerous accolades (Exhibit 8). Interface, Inc. Company History Ray Anderson attended the Georgia Institute of Technology on a football scholarship, majoring in Industrial Engineering. One key lesson from Georgia Tech that stuck with him was the mantra of thenDean of Industrial Engineering, Frank Groseclose, which he shared frequently with his students during his lectures: \"There is always a better way.\"30 5 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting Upon graduating from Georgia Tech in 1956, Ray Anderson began his career as an engineer in the carpet and textile business. For the next 14 years, Mr. Anderson served in various positions at Callaway Mills and Milliken & Co.31 During his tenure at Milliken, Mr. Anderson, then a research manager, was sent to England to research the technology behind carpet tiles, also known as modular carpet. Here, he met with representatives from Carpets International (CI). Seeing the potential to apply this process to carpet tile manufacturing in the United States, Anderson returned to Milliken and presented his results. Mr. Milliken, however, balked at Anderson's proposal and tabled the project, citing fears of inflation and concern over the lack of demand for carpet tiles. Mr. Anderson knew, though, that carpet tiles would be a hit in the burgeoning office market. Unlike broadloom carpet, tiles allowed companies the flexibility to rearrange the office layout without the need to reinvest in new carpeting, thereby reducing expenses. Unable to convince management to employ the fusion-bonding process and enter the carpet-tile market, Ray Anderson resigned his position at Milliken. He then met with executives from CI to discuss the possibility of expanding their technology into the United States through a joint venture. In 1973, CI agreed to provide Anderson with $750,000 in seed money, and they founded Carpets International of Georgia, Inc. in West Point, Georgia. Over the next 20 years the company grew, from $800,000 in revenues in 1973 to revenues of over $582 million in 1991, via a series of mergers with companies such as Heuga Holdings B.V. and Stiehl.32 Innovation, coupled with an office building boom in the mid-1970s, further fueled Interface's rise during the first phase of its existence. Despite the company's early success and ascension in the marketplace, Interface was not immune to economic conditions. In 1991, Interface's sales shrank for the first time in company history, from $623 million in 1990 to $582 million in 1991, with a net income of $8.9 million. To boost Interface's earnings, Mr. Anderson began exploring new possible sources of revenue. Thus in 1992, the company founded Interface Service Management, Inc. to provide carpet cleaning and maintenance services.33 It wasn't until the summer of 1994, though, that Mr. Anderson found the change (sustainability) he was looking for. The Birth of InterfaceRAISE In 1994, an idea that had been brewing in Ray Anderson's mind came into focus with a single phone call. One of the top executives of the largest non-oil company in the worldMike Duke, CEO of Walmart's U.S. store division, and future CEO of Wal-Mart Stores, Inc.wanted to bring his management team to Interface. Ray's credibility as a corporate leader moving toward sustainability resulted in his invitation to speak at a Walmart offsite retreat in October 2004. Ray was such a hit that Mr. Duke wanted to see Interface in person.34 Jim Hartzfeld remembered, \"When the man who was maybe third on the pecking order of the Fortune 100 called, we thought maybe it was worth spending a little more time thinking about how we were implementing our sustainability model.\"35 Until that point, Interface had seen its share of visitors inquiring about its sustainability practices; however, while there were many common themes, there was little consistency in explaining what they did. Whoever happened to be in the factory at the time would explain the model from his or her perspective. Now that Messrs. Hartzfeld, Anderson, and the plant team had to give a day-long presentation to executives from one of the world's largest companies, everything changed. 6 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting Jim Hartzfeld, Ray Anderson, and Dr. Mike Bertolucci, President of Interface Research Cor oration, p started reflecting about their model from its origins, asking questions such as, \"What is it that we have learned? What have we learned on the human front? On the technical front? On the operations front? On the financial front? What would the case study look like, and how would we present it to Mike [Duke at Walmart]?\"36 Mr. Duke's visit was so successful that Interface began to consider the idea of creating a formalized group to reflect more thoroughly on what Interface had learned from its sustainability efforts. The hope was to develop the skills to help other companies accelerate their sustainability journeysnot as a clever strategy to sell more carpet, but as a viable, separate business unit. That idea was built on an earlier business called, \"One World Learning,\" an experiential learning company. The concept solidified into a real project when Doug McMillon, then CEO of Sam's Club, decided to bring another Walmart executive team to Interface a few months later for the same experiencethe \"Sustainability Cultural Immersion,\" as it was nicknamed by Walmart executive Andy Ruben. Walmart's reaction was so enthusiastic that it drove home the realization that in order to live up to Ray Anderson's vision of truly changing how the world does business, Interface would have to get serious about sharing its sustainability business model. Thus was born InterfaceRAISE, a sustainability consultancy, and Jim Hartzfeld was appointed as Managing Director. Interface founder Ray Anderson explained, \"we chose to call it 'RAISE' because its job was to help other companies: Reshape corporate culture and raise awareness; Measure progress toward sustainability and raise standards; Uncover new opportunities and raise expectations; and Inspire process and product innovation to raise profits.\"37 As of spring 2010, InterfaceRAISE had less than $1 million in annual revenues, and one part-time and three full-time employees. As a core part of its resource strategy and external positioning, it had tapped over 20 \"peer experts\" for its projects from other Interface businesses. Many of those peers had over a decade of practice applying the concepts of sustainability in their Interface responsibilities, be it leading manufacturing, technology, marketing, sales, or other functions within the company. InterfaceRAISE's customers ranged in size from $30 million to $400 billion in revenues, and hailed from a wide variety of industries. SERVICES OFFERED InterfaceRAISE provided sustainability-strategy consulting services that enabled businesses to transform the way their organizations viewed and implemented sustainability. The firm adopted a three-pronged, integrated approach, targeting sustainability from: Leadership (vision), which asks, \"Who are we becoming, and how do we get there?\" 38 Culture (identity), which asks, \"Who are we and how do we demonstrate it?\"39 Application (action), which asks, \"What do we produce and how does it affect the world?\"40 7 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting To achieve a transformative approach to sustainability, InterfaceRAISE worked with clients to understand and then determine their needs. The firm then partnered with its clients to develop solutions catered to their individual business strategy. Some examples of education and engagement services included: Speeches: Clients could engage over 27 executives from the Interface Speakers Bureau to discuss how their firm could implement triple-bottom-line growth through sustainability. Workshops: The firm offered half-day workshops with both informational and interactive components \"to provoke dialogue about emerging opportunities and risks for businesses.\"41 Sustainability immersion: Held at Interface facilities in the United States or Europe, these 1.5- to 2-day events were designed to immerse a leadership team in \"an enlightening dialogue around the facets of a successful sustainability strategy.\"42 Along with educational services, InterfaceRAISE also offered strategic services such as: Coaching/mentoring: An InterfaceRAISE sustainability expert worked with clients to \"inspire solutions to the challenges and opportunities of adopting a sustainability strategy.\" Current-state assessment: These quick, high-level reviews included internal and external business analysis, and featured discussion with senior leaders \"to identify risks and opportunities for further consideration.\" Sustainability Strategy 1.0: This interactive strategy session with a client's senior leaders featured internal and external analysis, and resulted in a sustainability strategy that leveraged the company's current strengths. Sustainability Strategy 2.0: A follow-on to the Strategy 1.0 session, Strategy 2.0 identified the top priorities in a company's sustainability strategy, and culminated in a facilitated meeting with senior leaders to envision the next level of success.43 Interface, Inc. after the 2008 Financial Crisis Like the rest of the industry, Interface was significantly affected by the worldwide financial crisis and the 2008 recession. The company reported a net loss of $10.8 million in 2007, down from a net income of $10 million in 2006, due to the cooling off of the construction boom.44 In 2008, the company posted a net loss of $40.9 million on sales of $1.1 billion. (See Exhibits 9 and 10.) Interface's international diversification, however, helped it to weather the recession. Interface operated in three U.S. locations and also had manufacturing facilities in the Netherlands, the United Kingdom (UK), Australia, and Thailand. Interface had used its worldwide manufacturing facilities to gain a foothold in emerging markets such as the BRIC countries (Brazil, Russia, India, and China). These new markets accounted for approximately 40 percent of the company's sales. Interface, like most carpet manufacturers, received its largest share of revenues domestically: U.S. carpet sales comprised 47 percent of the company's revenues ($507 million), followed by 14 percent in the UK ($147 million). Meanwhile, the company's 2007 divestiture of its fabric business placed an even greater focus on the modular carpet business. In 2008, modular carpet tiles accounted for 87 percent ($946.8 million) of Interface's total revenue. The company's Bentley Prince Street broadloom carpet made up the remaining 13 percent of revenues ($135.5 million).45 8 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting Over the last two decades, the price of oil has trended upward. Interface believed that eventually the price of oil would reach a point where Interfacegiven its focus on dematerialization and increasing recycled contentwould reach a break-even point, after which recycled materials would cost less than virgin materials.46 As a result of this and other factors, the company returned to profitability in the second quarter of 2009, with a net income of $3.8 million on $211.3 million in revenues.47 At the end of 2009, Interface reported an annual net income of $10.9 million on sales of $859.9 million. However, sales year over year had dropped by $222.5 million (21 percent) from 2008. As of this writing, the stock stood at $12.68. (See Exhibits 7, 9, and 10.) Interface was mindful of perceived value as well as cost savings. In a survey performed by Floor Focus magazine, Interface was recently rated as the \"Best Overall Business Experience\" for the fifth straight year. In this survey, Interface products ranked second (modular tiles) and third (Bentley Prince broadloom carpet) in terms of service and design. The two product lines (modular tiles and broadloom) were ranked first and second in quality, first and third in terms of performance, and first and fourth in terms of value.48 The Sustainability-Consulting Industry As indicated earlier, InterfaceRAISE does business as a sustainability consultant. In 2008, there were 118 distinct types of consulting services spanning 98 industries in the United States. Collectively, the consulting industry generated over $330 billion in revenue during 2008. Of this, nearly half of the industry's revenue ($158 billion) was generated in North America,49 with management consulting (the largest area) accounting for approximately $100 billion of that amount.50 The management-consulting industry employed over 1.1 million people across 190,000 firms51 and was projected to grow by 5.3 percent annually through 2011.52 The sustainability-consulting industry, a subsector of management consulting, boasted revenues of $16.8 billion in 2009, employing an estimated 122,922 people across 58,814 firms.53 Sustainability-sector revenues grew year over year by 7.7 percent, outpacing the industry as a whole. Historically, growth in the management- and sustainability-consulting industry has been propelled by business fads and changes in philosophies that create interest for a few years and then fade away.54 The 2008 recession led to a renewed interest in sustainability, as companies looked for ways to reduce costs via environmental initiatives. According to Forrester Research, the green-IT consulting industry (a subsector of sustainability consulting) alone could grow to $4.8 billion by 2013.55 Firm size within the management-consulting industry varied. At the top of the industry were large management-consulting firms, ranging from generalist consulting firms with a wide breadth of expertise to firms with a more specialized focus. These companies often charged clients from $300,000 to $1 million in monthly fees, billing consultants at $5,000 a day. This resulted in annual firm revenues in the billions of dollars.56 Many of these larger firms, such as Accenture, Deloitte, Boston Consulting Group, McKinsey, PricewaterhouseCoopers, and A.T. Kearney, had created divisions focusing on sustainability-consulting practices. Similarly, IBM had developed a consulting practice to help companies implement green data centers, while CH2M HILL had created a green building and carbon footprint division.57 9 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting The next level of management consultants was comprised of middle-market firms such as InterfaceRAISE and Blu Skye. These firms employed from two or more employees to hundreds of consultants. Clients typically were located within the Fortune 1000 and had incomes of $30 million to $40 billion. Consulting engagements ranged from one-day educational seminars for corporate-level executives to full-scale sustainability-practice implementation.58 At the lowest level in terms of size were small consulting firms owned by a sole proprietor. Many of these firms were started by executives and environmental engineers displaced by the recession of 2008, who then started their own sustainability-consulting practices. These consultants typically worked with smaller firms on a project-by-project basis. InterfaceRAISE's COMPETITORS Three of Interface AISE's main competitors were large-scale consulting firms Accenture and A.T. R Kearney, and mid-sized Blu Skye. Accenture. Accenture was a publicly traded global management and technology-consulting company. It employed over 181,000 people with over 4,500 senior executives, operating in more than 200 cities and 52 countries across the globe, and earning revenues of $21.58 billion in 2009. The firm's clients included 96 of the Fortune Global 100 and 75 percent of the Fortune Global 500. Client retention was high: 99 of the firm's top 100 clients had worked with Accenture for at least five years. Accenture offered clients end-to-end sustainability consulting. The firm aimed to create: \"An organization-wide understanding of the value of sustainability, coupled with a willingness to change; A mindset of sustainability consciousness that permeates the enterprise; A visible commitment of all employees to 'live' the organization's strategy for sustainability.\"59 Accenture offered consulting in numerous categories related to sustainability: strategy; talent; organization and learning; supply chain; intelligent cities; smart buildings; carbon data and analytics services; clean energy; climate and energy management; stakeholder management services; sustainable infrastructure; and carbon markets and financial trading. A.T. Kearney. Tom Kearney revolutionized the consulting industry by approaching a firm's problems with \"a general survey perspective, examining all aspects of the company to develop more comprehensive solutions.\"60 Implementing this model from its founding in 1926 through the present, A.T. Kearney grew to more than 170 officers in 26 countries. The firm's sustainability group employed over 90 professionals in A.T. Kearney's global markets. The company offered clients three levels of service to meet their needs: Corporate sustainability strategy: This strategy provided clients with \"a holistic approachfrom measuring and mitigating the future forces that affect a company's strategy, portfolio, and operations, to assessing the company's impact on the environments and communities it touches.\"61 Product and service optimization: This methodology helped \"clients understand the sustainability impact of their offering, and helped in developing new, revised, or enhanced products and services.\"62 10 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting Sustainable value chain: A.T. Kearney evaluated where and how materials were sourced, where and how products were manufactured, and where and how the company distributed. Based on these a nalyses, Kearney sought to reduce carbon footprints within the distribution channel and to help firms adopt environmentally friendly materials and process chemicals. Blu Skye. Blu Skye was a middle-market firm with 44 employees that focused on sustainability strategies. The firm was founded in 2004 when Jib Ellison, co-founder of the management consulting firm Trium Group, took a one-year sabbatical. During this time, Mr. Ellison met Lee Scott, then the CEO and chairman of Walmart.63 Walmart had a public relations nightmare on its hands. It had just received the results of a McKinsey & Company study that showed \"between 2 and 8 percent of consumers had stopped shopping at Walmart because of the company's [environmental] practices.\"64 Mr. Scott told Mr. Ellison that he was looking for a way to use sustainability to bring back lost customers. Ellison replied, \"With all due respect, there's an entirely different way you should be thinking about this. Sustainability is an offensive strategy that is consistent with Walmart's culture and business model.\" After subsequent talks regarding how Walmart could implement sustainability practices, Scott hired Ellison as a consultant to the firm.\"65 To manage his relationship with Walmart, Scott formed a team of environmental consultants and created Blu Skye. The company then leveraged its environmental expertise and relationship with Walmart to gain engagements with many top firms and organizations, including: Sony Pictures, The American Dairy Association, The University of Arkansas, Hilton, Waste Management, Mars Incorporated, Microsoft, and Burt's Bees. Blu Skye offered a three-phase approach to sustainability: Education and development: Blu Skye sought to help firms educate executives and employees on how to incorporate sustainability into daily functions. This was accomplished through activities ranging from day-long seminars to lengthy engagements aimed at gaining employee buy-in.66 Strategic development: The firm sought to quantify \"sustainability impacts and the key activities that drive them.\"67 Blu Skye also assessed the client's current practices compared with the client's industry and competition. Finally, it helped firms determine \"the right action at a given time . . . and how to balance short-term quick wins against longer term, more game-changing efforts.\"68 Strategic implementation: Blu Skye involved itself in all aspects of implementation, from coaching and program management to working with corporate-level executives to gain stakeholder engagement that would create \"sustainable value networks.\"69 The firm also helped clients implement \"whole system change\"transforming the supply chain, to reinforce a sustainable strategy while benefiting society.70 Walmart and Sustainability Walmart's interest in sustainability began in an un likely place: Rob Walton (son of Walmart founder Sam Walton), Rob's son Ben, musician Stone Gossard (member of Pearl Jam), and Peter Seligmann (CEO of Conservation International), sat on the bow of Rob's yacht. As they reflected on the manta rays and sharks they had seen while scuba-diving off the coast of Coco Island, Costa Rica, Seligmann and Walton discussed Walton's generous $21 million grant to Conservation International (CI). Seligmann 11 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting then pitched an even bigger idea to Walton. He recalls saying, \"Rob, we greatly appreciate your generosity towards CI, but whatever money your foundation could contribute to CI would pale in comparison to what Walmart could do. Your company could be a driver of change.\"71 As they discussed the possibilities, Walton admitted to Seligmann that he was intrigued, but cautioned, \"I took myself out of an operational role at Walmart years ago. I have to be really careful about mixing personal interests with the business.\"72 However, he agreed to introduce Seligmann to Walmart's CEO, Lee Scott. In June 2004, Rob Walton, Lee Scott, Peter Seligmann, Glenn Prickett (also from CI), and Seligmann's friend Jib Ellison met at Walmart headquarters in Bentonville, Arkansas, to discuss sustainability. The timing could not have been more fortuitous. Walmart had just been fined millions of dollars for violating air and water pollution laws,73 and a recent McKinsey study had revealed that 2 to 8 percent of Walmart's customers had left because of Walmart's environmental practices.74 The company needed to respond. It was at this meeting that Jib Ellison suggested that sustainability was consistent with Walmart's culture. After talking all day, Mr. Scott told his guests that he wanted to review the company's options with his executive team and thanked them for their time. When Lee Scott met with his executive team to discuss sustainability at Walmart, Mike Duke, head of U.S. Stores at Walmart, mentioned that the team ought to speak with a fellow Georgia Tech alumnus, Ray Anderson. Mr. Duke described to the team Interface's transformation into a leader in corporate sustainability. The team agreed to hold a sustainability summit on October 24, 2004, and invited Ray Anderson and Jib Ellison as speakers. At the summit, Mr. Anderson realized that Interface could best help Walmart by helping the 60,000some companies in Walmart's supply chain reinvent themselves to meet the sustainability standards that were sure to come.\"75 The executive's reaction to Anderson's speech was so enthusiastic that he invited two Walmart groups to LaGrange, Georgia, for a walkthrough of Interface's flagship manufacturing facility.76 After the first large-scale consulting event, the Interface team sat down to discuss what its role with Walmart would be. The team decided that they could have more impact in their relationship with Walmart as peers exploring sustainability, rather than as a paid contractor. Jim Hartzfeld stated, \"We realized we didn't want to be a supplier to Walmart. If our mission was to become restorative through the power of influence, there is no billing level that we [could] achieve in the short term that ha[d] more power to fulfill our mission statement than influencing the biggest non-oil company in the world.\"77 It was at that time that Walmart officially hired Jib Ellison and Blu Skye to serve as sustainability consultants to the firm. In October 2005, Lee Scott laid out the goals of the plan that Walmart had developed with Blu Skye: \"(1) to be supplied 100 percent by renewable energy; (2) to create zero waste; and (3) to sell products that sustain our resources and environment.\"78 Although Walmart did not set a targeted date for these three goals, the company had made tremendous strides. Working with Blu Skye, Walmart implemented many green innovations, including one involving laundry detergent. Walmart approached detergent suppliers and asked them to remove the water from detergent to create concentrated detergents. After accepting Walmart's request, suppliers were able to shrink the packaging of detergents by 50 percent,79 thereby saving 125 pounds of cardboard and reducing water usage by 430 million gallons.80 12 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting This dedication to sustainability was passed on from Lee Scott to Mike Duke, Walmart's current [2011] CEO, who described Walmart's vision of sustainability as follows: \"We want to be like a camper and leave the campsite better than we found it. What we've discovered is that sustainability is good business. It's good for value creation and therefore good for shareholders.\"81 Under Mr. Duke's tutelage, Walmart had pledged to \"reduce greenhouse gas emissions by 20 million metric tons across its vast network of suppliers by 2015.\"82 Walmart had also required suppliers to change labels to show the product's sustainability index and carbon footprint.83 Decision Time When John Wells left his office, Mr. Hartzfeld sat down and took a swig of coffee as a multitude of thoughts raced through his mind: How was he going to position his consulting startup for growth over the next five years? It was certainly a question he posed to himself quite often. What was InterfaceRAISE's core competence? How should he leverage this into profitable growth? How much money would he need, and when? How would he invest it to get to his goal of $5 million in revenues in five years? Would InterfaceRAISE's growth plan be at odds with or support the strategies of the parent company? Would it be best for InterfaceRAISE to continue to operate under its parent company's umbrella? Were there other avenues, beyond fee-for-service consulting, in which InterfaceRAISE could contribute to Interface's vision, \"to become restorative through the power of influence\"? Mr. Hartzfeld knew that this would be a long weekbut he was excited about the possibilities. This was the moment he had been waiting for. After years of bootstrapping, finally the moment had arrived where he could position InterfaceRAISE for profitable growth. Jim went to work. . . . 13 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting EXHIBIT 1 Typical Company of the 20th Century s Waste Emissions al M Na tur $ Market Values People Raw M Produ cts Taxes $ Investments $ Dividends $ Wages $ Laws ls Employees Inorganic Customers Capital ateria Organic $ Processes Suppliers Earth's Lithosphere tor era cin r In ll o d an ate r L to ial ste Wa Earth's Biosphere Community Source: Anderson, R. C. (2009), Confessions of a Radical Industrialist (New York: St. Martin's Press), Appendix C, Fig. 1. 14 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting EXHIBIT 2 Prototypical Company of the 21st Century ria l M ate ra l Na tu cts du Pro $ Suppliers Market Values People Capital Prod ucts T es ycle Servic al c ica echn ity Sensitiv lvement Invo Employees Wages $ Laws Taxes $ Investments $ Dividants $ Investmen ts terials hnic Raw Ma le l Cyc $ Processes Tec Cy al tur Na Solor Energy cle Cy al le tab os mp Co tur Na s cle Earth's Biosphere Community Earth's Lithosphere Sustainability Link Source: Anderson, R. C. (2009), Confessions of a Radical Industrialist (New York: St. Martin's Press), Appendix C, Fig. 2. 15 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting EXHIBIT 3 Cumulative Cost Avoided from Waste Elimination Activities (QUEST Program) ($ in millions) $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Anderson, R. C. (2009), Confessions of a Radical Industrialist (New York: St. Martin's Press), p. 60. EXHIBIT 4 Energy Consumption Profile (2008) Propane 1% Brown Electricity 3% Renewable 28% Fuel Oil 1% Natural Gas 67% Source: Anderson, R. C. (2009), Confessions of a Radical Industrialist (New York: St. Martin's Press), p. 108. 16 This document is authorized for use only by Asmae Bennis in 2015. 2007 2008 For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting EXHIBIT 5 Interface, Inc. (Consolidated) Sales from Continuing Operations ($ in millions) $1,200 $1,000 $800 $600 $400 $200 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Anderson, R. C. (2009), Confessions of a Radical Industrialist (New York: St. Martin's Press), p. 85. EXHIBIT 6 Interface, Inc. (Consolidated) Income from Continuing Operations ($ in millions) $140 $120 $100 $80 $60 $40 $20 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Anderson, R. C. (2009), Confessions of a Radical Industrialist (New York: St. Martin's Press), p. 108. 17 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting EXHIBIT 7 Interface, Inc. (IFSIA) Stock Price vs. Dow Jones Industrial Average (DJIA) (past five years) 100% 50% 0% 250% IFSIA 9.48 2005 2006 Apr Jul Oct 2007 Apr Volume 104,880 ^DJI 10,397.29 Jul Oct 2008 Apr Jul Oct 2009 Apr Jul Oct 2010 Apr Jul 1.50M 1M 0.50M 1D 1990 5D 1M 3M 6M YTD 1Y 1995 2000 2Y 5Y Max From: Aug 22 2005 To: Aug 23 2010 2005 2010 Source: http://finance.yahoo.com/echarts? s=IFSIA#chart2:symbol=ifsia;range=5y;compare=^dji;indicator=volume;charttype =line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined. 18 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting EXHIBIT 8 Interface, Inc. Accolades Year Recognition 2005 Global Mindchange Award for Business Responsibility 2005 Best 50 Corporate Citizens List (Ranked 8th), Corporate Knights Magazine 2006 Business Ethics Best Corporate Citizens List (Ranked 24th) 2006 Alliance for Sustainability Award 2006 Business Achievement Award for Cool Blue technology, The Environmental Business Journal 2006 Top 10 Green Company of 2006, Portfolio 21 Magazine 2007 Ray Anderson named in list of the \"Heroes of the Environment,\" Time Magazine 2007 Ray Anderson named a Top 20 Hero, Elle Magazine 2008 Georgia 100 (Ranked 8th), The Atlanta Journal Constitution 2008 One of the World's Top Sustainable Stocks, Sustainablebusiness.com 2009 2009 Honor Roll, The Centers for Companies that Care Source: www.interfaceglobal.com/Company/Awards/InterfaceFLOR-2009-Highlights.aspx. 19 This document is authorized for use only by Asmae Bennis in 2015. 218,322 Selling, general and administrative expenses ,652 1 6,096 576 Bond retirement expenses 20 This document is authorized for use only by Asmae Bennis in 2015. (1,206) 11,764 $ (40,873) (846) (39,667) $ 10,918 $ (10,812) (1,124) (9,688) (68,660) 58,972 5,582 3 94,554 27 7 34,110 129,391 1,873 246,258 377,522 703,751 $1,081,273 2007 2006 $ 9,992 9,992 (31) 10,023 18,816 28,839 1,319 42,204 72,362 3,260 20,712 1,723 241,538 339,595 736,247 $1,075,842 Source: www.sec.gov/Archives/edgar/data/715787/000095014402003002/g74140e10-k405.txt. Net income (loss) attributable to Interface, Inc. Net income attributable to noncontrolling interest in subsidiary Net income (loss) Cumulative effect of a change in accounting principle, net of tax (5,154) (34,513) 12,673 Income (loss) from continuing operations (909) 3,040 4 9,352 Income tax expense Loss from discontinued operations, net of tax 8,527 22,025 Income from continuing operations before tax Other expense 34,297 Interest expense 31,480 41,659 (5,926) 62,994 Income from litigation settlements Operating income 10,975 7,627 Restructuring charges 61,213 258,198 Impairment of goodwill 283,017 Gross profit on sales Loss on disposal of subsidiaries 10,299 7 576,871 372,045 $1,082,344 $859,888 Cost of sales 2008 Net sales 2009 EXHIBIT 9 Interface, Inc. 2001-2009 Income Statements (in thousands) $ 1,240 1,240 (16,726) 17,966 17,561 35,527 933 45,541 82,001 222,696 304,697 681,069 $985,766 2005 Fiscal Year $ (55,402) (55,402) (61,842) 6,440 ,044 4 10,484 ,366 2 1,869 46,023 60,742 204,619 265,361 16,297 6 $881,658 2004 $ (33,257) (33,257) (14,847) (18,410) (10,215) (28,625) ,280 1 42,820 15,475 6,196 231,306 252,977 70,532 6 $923,509 2003 $ (87,664) (87,664) (55,380) (14,525) (17,759) (9,905) (27,664) 98 7 42,022 5,156 1 23,449 225,569 264,174 59,910 6 $924,084 2002 $ (36,287) 36,287) ( (10,366) (25,921) 11,546) ( (37,467) 490 35,887 1,090) ( 54,577 259,039 312,526 746,320 $1,058,846 2001 For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting 375,955 78,489 47,875 $706,035 387,973 162,269 44,210 80,519 52,268 $727,239 Total current assets Property and equipment, net Deferred tax asset Goodwill Other assets TOTAL ASSETS 53,516 142,471 60,942 161,874 416,429 29,640 125,789 178,625 $ 82,375 2007 This document is authorized for use only by Asmae Bennis in 2015. 280,184 Senior notes 7,506 38,872 488,598 7,029 42,502 481,058 Deferred income taxes Other Total liabilities 287,588 154,632 151,343 Total current liabilities 534,116 38,852 7,413 310,000 177,851 220 14,586 Current portion of long-term debt 120,388 $57,243 $835,232 102,592 $52,040 42,999 Liabilities of businesses held for sale 101,143 Accounts payable Accrued expenses Current liabilities $35,614 30,492 30,528 LIABILITIES AND SHAREHOLDERS' EQUITY 128,923 112,249 Inventories Prepaid expenses and other current assets 160,717 144,783 129,833 $ 71,757 2008 $115,363 2009 Cash and cash equivalents Accounts receivable, net Current ASSETS EXHIBIT 10 Interface, Inc. 2001-2009 Balance Sheets (in thousands) 40,827 135,610 65,841 134,631 551,431 186,956 112,293 143,025 $109,157 2006 648,440 63,839 2,058 411,365 171,178 22,934 98,702 $49,542 $928,340 40,980 193,705 69,043 185,643 349,619 26,690 130,209 141,408 $ 51,312 2005 662,505 40,864 23,534 458,000 140,107 4,214 85,581 $50,312 $838,990 Fiscal Year Ended 34,181 205,913 67,448 194,702 367,554 65,544 137,618 142,228 $ 22,164 2004 671,489 45,987 26,790 460,000 138,712 5,390 86,856 $46,466 $869,798 37,697 224,129 62,045 211,457 358,946 24,062 143,885 174,366 $ 16,633 2003 672,083 4,165 32,462 445,000 190,456 128,104 $62,352 $894,274 45,699 210,529 27,502 213,059 366,721 60,445 134,656 137,486 $ 34,134 2002 634,432 20,520 445,000 168,912 6,933 106,143 $55,836 $863,510 793 63,783 251,874 260,327 378,770 48,658 168,249 161,070 $ 2001 (Continued) 647,839 26,474 453,327 168,038 1,667 100,566 $65,805 $954,754 For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting 21 $727,239 246,181 $706,035 217,437 $835,232 301,116 6,974 294,142 (29,533) (15,159) 332,650 6,184 2007 6,066 2006 $928,340 279,900 5,506 274,394 (60,021) 5,217 $838,990 176,485 4,409 172,076 (66,129) (1,443) 234,314 5,334 2005 Fiscal Year Ended 323,132 Source: www.sec.gov/Archives/edgar/data/715787/000095014402003002/g74140e10-k405.txt. TOTAL LIABILITIES & EQUITY Total shareholders' equity 7,941 209,496 9,080 237,101 Total shareholders' equity - Interface, Inc. Noncontrolling interest in subsidiary (70,980) (57,243) Accumulated other comprehensive income (65,616) Unrealized gain on hedges, net of tax (55,332) Retained earnings (deficit) 6,316 339,776 6,328 343,348 2008 2009 Additional paid-in capital Common stock Commitments and contingencies EXHIBIT 10 (continued) $869,798 198,309 4,131 194,178 (37,764) (2,683) 229,382 5,243 2004 $894,274 222,191 3,458 218,733 (62,105) 52,719 222,984 5,135 2003 $863,510 229,078 4,907 224,171 3,154 (91,830) 85,976 221,751 5,120 2002 $954,754 306,915 4,440 302,475 (98,037) 175,940 219,490 5,082 2001 For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting 22 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting Endnotes 1. Anderson, R. C. (2009), Confessions of a Radical Industrialist (New York: St. Martin's Press), p. 9. 2.Ibid. 3. Ibid. 4. Ibid. 5. Interview with Jim Hartzfeld, March 31, 2010. 6. Anderson, R. C. (2009), Confessions of a Radical Industrialist, pp. 10-16. 7. Ibid., p. 14. 8. Ibid., pp. 10-16. 9. Ibid., pp. 16, 39. 10. Ray Anderson Reflects on Interface's Journey to the Top of Mount Sustainability, www.interfaceglobal.com/ getdoc/7004276e-0f10-4c64-b08c-b7889a717b2b/Ray-Reflects.aspx. 11. Anderson, R. C. (2009), Confessions of a Radical Industrialist, pp. 10-34. 12. Interview with Jim Hartzfeld, March 31, 2010. 13. Ibid. 14. Anderson, R. C. (2009), Confessions of a Radical Industrialist, p. 18. 15. Ray Anderson Reflects on Interface's Journey to the Top of Mount Sustainability, www.interfaceglobal.com/ getdoc/7004276e-0f10-4c64-b08c-b7889a717b2b/Ray-Reflects.aspx. 16. www.interfaceglobal.com/Sustainability/Our-Journey/7-Fronts-of-Sustainability.aspx. 17. Anderson, R. C. (2009), Confessions of a Radical Industrialist, p. 41. 18. www.interfaceglobal.com/Sustainability/Sustainability-in-Action/Waste.aspx. 19. http://gmj.gallup.com/content/123464/business-sustainability.aspx#1. 20. www.cdf.org/issue_journal/interfaces_chairman_ray_c._anderson_on_sustainable_design-2.html. 21. Anderson, R. C. (2009), Confessions of a Radical Industrialist, pp. 48-49. 22. www.forumforthefuture.org.uk/greenfutures/articles/60891. 23. www.cdf.org/issue_journal/interfaces_chairman_ray_c._anderson_on_sustainable_design-2.html. 24. www.epa.gov/iaq/voc.html#Health Effects. 25. www.cdf.org/issue_journal/interfaces_chairman_ray_c._anderson_on_sustainable_design-2.html. 26. www.interfaceglobal.com/Sustainability/Progress-to-Zero.aspx. 27. Anderson, R. C. (2009), Confessions of a Radical Industrialist, p. 167. 28. Ibid., p. 45. 29. http://gmj.gallup.com/content/123464/business-sustainability.aspx#1. 30. Anderson, R. C. (2009), Confessions of a Radical Industrialist, p. 20. 31. http://11thhouraction.com/ideasandexperts/rayanderson. 23 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting 32. www.fundinguniverse.com/company-histories/Interface-Inc-Company-History.html. 33. Ibid. 34. Interview with Jim Hartzfeld, March 31, 2010. 35. Ibid. 36. Ibid. 37. Anderson, R. C. (2009), Confessions of a Radical Industrialist, pp. 16, 39. 38. http://interfaceraise.com/what-we-do/approach-and-methods/. 39. Ibid. 40. Ibid. 41. http://interfaceraise.com/what-we-do/services/. 42. Ibid. 43. Ibid. 44. Interface, Inc. (February 15) Hoover's Company Records, 13798; retrieved February 16, 2010, from Hoover's Company Records. (Document ID: 168173361). 45. Ibid. 46. http://gmj.gallup.com/content/123464/business-sustainability.aspx#1. 47. http://finance.yahoo.com/q/ks?s=IFSIA. 48. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjE2NjF8Q2hpbGRJRD0tMXxUeXBlPTM =&t=1. 49. \"Consulting trends,\" Plunkett Research, Ltd., 2010, www.plunkettresearch.com/Industries/Consulting/ ConsultingTrends/tabid/178/Default.aspx. 50. \"Management consulting services,\" Encyclopedia of American Industries, Online Edition, Gale, 2010. Reproduced in Business and Company Resource Center (Farmington Hills, MI: Gale Group) 2010, http:// galenet.galegroup.com/servlet/BCRC. 51. Ibid. 52. \"Consulting industry overview,\" Plunkett Research Industry Almanac 2009, www.plunkettresearch.com/ Industries/Consulting/ConsultingStatistics/tabid/177/Default.aspx. 53. \"Environmental consulting,\" IBISWorld Industry Reports 2010, www.ibisworld.com/industry/default. aspx?indid=1427. 54. \"Management consulting services.\" 55. www.sustainablelifemedia.com/content/story/greenIT/green_it_consulting_to_hit_4.8_billion_by_2013. 56. \"Consulting industry overview.\" 57. \"Emerging careers: Sustainability consulting,\" www.triplepundit.com/2008/08/ emerging-careers-sustainability-consulting/. 58. Interview with Jim Hartzfeld, March 31, 2010. 24 This document is authorized for use only by Asmae Bennis in 2015. For the exclusive use of A. Bennis, 2015. InterfaceRAISE: Raising the Bar in Sustainability Consulting 59. www.accenture.com/NR/rdonlyres/1BA9D0DA-EF2C-4C32-BE50-7E77952152D4/0/Accenture_Driving_ Value_from_Integrated_Sustainability.pdf. 60. www.atkearney.com/index.php/About-us/history.html. 61. www.atkearney.com/index.php/Our-expertise/sustainability-corporate-sustainability-strategy.html. 62. www.atkearney.com/index.php/Our-expertise/sustainability-product-and-service-optimization.html. 63. \"Who you gonna call to help you go green?\" Corporate Board Member, First Quarter 2009, www.boardmember. com/MagazineArticle_Details.aspx?id=3056. 64. Plambeck, E. L., and L. Denend (2008), \"The greening of Walmart,\" Stanford's Social Innovation Review, Spring, www.ssireview.org/articles/entry/the_greening_of_wal_mart/. 65. \"Who you gonna call to help you go green?\" 66. www.bluskye.com/methods.php. 67. Ibid. 68. Ibid. 69. Ibid. 70. Ibid. 71. \"The Green Machine,\" Fortune, July 31, 2006. 72. Ibid. 73. Ibid. 74. Ibid. 75. Anderson, R. C. (2009), Confessions of a Radical Industrialist, p. 168. 76. Ibid. 77. Interview with Jim Hartzfeld, March 31, 2010. 78. Plambeck, E. L., and L. Denend (2008), \"The greening of Walmart.\" 79. \"Will big business save the earth?\" The New York Times, December 6, 2009. 80. Mike Duke, CEO of Walmart, Georgia Tech speech, April 1, 2010. 81. Ibid. 82. \"Walmart vows greenhouse gas emissions cut by 2015,\" The Washington Post, February 26, 2010. 83. \"The greenest big companies in America,\" Newsweek, September 28, 2009. 25 This document is authorized for use only by Asmae Bennis in 2015