The business model of Interface.
All business has an impact on our planet, so it is up to the business leaders to take appropriate action and find how they can positively impact society, people, and our planet. It was the year 1996 when businesses started to become more aware of their environmental impact and made conscious changes to reduce their footprint. One of them was , the outdoor clothing brand that made a memorable leap forward by becoming one of the first to exclusively use organic cotton. Some companies started gradually shifting their focus towards people, planet and profit while others turned their business around for good completely.
How Interface’s tile revolutionized flooring.
This is where Interface comes in, a global manufacturer of commercial and residential flooring, founded in 1973 by Ray C. Anderson in LaGrange, Georgia, US. What made them stand out was their innovative product design, the “free-lay” tile. It was the first of its kind and transformed the industry’s flooring solutions because the installation did not require the use of any glue. Fueled by the success of this innovation, the company found other opportunities to expand its product line and entered other related yet diverse industries, including fabrics for office furniture and specialty chemical production.
The company’s business model reflected how their focus was the third of the three P’s, profit, as there was no notable focus on people, nor the planet.
Interface’s Business Model canvas.
“More happiness with less stuff, all made sustainably.”
— Ray C. Anderson.
From chemicals to change.
Fast forward to the 90s, and we see how Interface has grown and managed to increase its net income significantly. By ’92, the company had grown to $594 million in sales and a net income exceeding $12.3 million, an increase of 37% in a year’s time. This was made possible because of chemical production. Their antimicrobial chemical, Intersept, was being used in various product categories.
By this time, however, their business model was looking rather pale, as it was negatively impacting both environment and society, through the introduction of toxins and waste, their high consumption of water and energy. Even though they provided many jobs, their production process relied on intense labor and made it impossible for Interface to offer a healthy working environment. Something had to change, and it did.
Inspired by Paul Hawken’s book, The Ecology of Commerce-, Anderson decided to go for change. The book sent him, and Interface, on a daring path to become a sustainable and regenerative business. After this, Anderson, nor the company, would ever be the same again.
When asked by a customer how sustainability played into Interface’s strategy, Anderson realized that simply ‘following regulatory guidelines’ is not always enough. He knew the unflattering numbers, namely that 4 billion pounds of carpet ended up in landfills each year in the US alone and Ray knew that simply following the rules would end up costing the environment and society a lot. That is why in 1995, Interface introduced a framework designed to track and measure the company’s sustainability progress and as a result, in 1996the EcoMetrics program was born. This program provided the company with just the right insights into their business to start making a positive shift.
Next, Ray took on the challenge of introducing QUEST: Quality Utilizing Employees’ Suggestions and Teamwork, an initiative to encourage employees to play an active role in eliminating waste from the company’s production chain. By sharing Ray’s vision and engaging employees across all levels, Interface was able to make a lasting, positive impact on people and planet.
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Pioneering the Eco-revolution
Interface continued to make strides in reducing their footprint: in the second half of the 90s, Interface redesigned their business model. They managed to reduce their contribution to landfill waste by 92%, their greenhouse emissions by 96%, their water usage by 89%, their energy usage by 46% and their carbon footprint by 69%. They did not stop there. Interface recognized that they should go beyond just reducing the impact of their factories on the planet and that they should shift toward a model that will not only eliminate the negative impact, but also generate a positive impact. Mission Zero was born: a clear path for Interface to make a positive impact on people, planet, and profit. By measuring the direct impact of the business and making their reports public, Interface is setting themselves up for success. The story of Interface clearly shows us that making a sustainable change is all about business model innovation, which can only be reliably achieved by validation and experimentation.
Their renewed business model led Interface to partner with Biomimicry 3.8 on a pilot project called Factory as a Forest: an exciting initiative that takes a closer look at how a factory can create the same positive impact as a natural ecosystem. This pilot explores the necessary standards for companies that aim to offer the same services as nature, including water filtration and carbon sequestration.
To do so, Interface introduced a new Key Partner to their business model: NetWorks, an initiative that aims at having the local economy support and restore the local ecosystem of seas and beaches.
Check out it’s business model canvas:
Download our Impact playbook, your key partner in making a positive impact.
Beyond carbon neutral.
Interface even takes their vision a step further. With their Carbon Neutral Floors program, they support projects that go beyond removing carbon offsetting and that have positive social impacts to boot. These groundbreaking, life-changing projects include efforts to supply clean, safe drinking water and cookstoves to rural communities in Africa and Latin America. Offsets also play an important role in funding the actions (reforestation) and technologies (solar/wind generation) that are needed to address climate change and the human health challenges associated with excess carbon.
With Mission Zero, Interface has inspired many other companies to follow their lead, increasing positive impacts at a scale well beyond their own achievements. Throughout their journey, and as Interface started publicly sharing their sustainability progress, others built their own programs and initiatives inspired by Interface. Moreover, as Mission Zero progressed, Interface started mentoring others, hosting business leaders from companies like Walmart and Mars, encouraging them to set up their own sustainability agendas.
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Interface’s journey from compliance to global impact.
There are many possible starting points for companies that have the ambition to make a positive impact on our planet and the people on it. Some companies like Patagonia jump right at it to make a positive impact on the world. Other companies explore different opportunities before making the shift. Whatever you do, know that it is never too late to start working towards a positive impact.
For Interface, it took one cunning question from a customer to understand that ‘following regulations’ does not always mean doing right by the people or the planet. Therefore, after finding out how a positive shift can impact the world for the better, Ray stood up and shifted the Interface business model towards a positive impact on the world by reducing the use of natural resources, waste materials, and their overall footprint. Placing recognition on their success, Times magazine named Interface among the 100 most influential companies in 2023, the first in its industry, being a fully carbon-neutral enterprise, including its supply chains.
Success stories like these and making a positive impact on the world, are always inspiring, but inspiration alone will not get you there. We help you find the right tools to write your own success story. Let’s begin with the three most interesting takeaways from the business model of Interface.
Three learnings from Interface.
- Be unreasonable. Don’t settle for incremental goals. If you want to transform something, set a seemingly unachievable goal.
- A change in mindset can change everything. Embracing the need for change with heart and mind is crucial. From the outset, be open and willing to see that there is always the possibility for a different approach and a better way.
- Measure (your impact), the right way. Knowing how close you are to — or how far from — achieving your goals, gets you into the right mindset to make the right shift.
Ready to shift to a positive impact? Meet Niki.
She places positive impact on people, planet, and profit.
Originally published at https://www.businessmodelsinc.com.
