Business Lessons From A Radical Industrialist

In 1994, Interface founder and chairman Ray Anderson set an audacious goal for his commercial carpet company: to take nothingfrom the earth that can't be replaced by the earth. Now, Anderson leads the way forward and challenges all of industry to share that goal. The Interface story is a compelling one: in 1994, making carpets was a toxic, petroleum-based process, releasing immense amounts of air and water pollution and creating tons of waste. Fifteen years after Anderson's call for change, Interface has: —cut greenhouse gas emissions by 82%—cut fossil fuel consumption by 60%—cut waste by 66%—cut water use by 75%—invented and patented new machines, materials, and manufacturing processes—increased sales by 66%, doubled earnings, and raised profit margins With practical ideas and measurable outcomes that every business can use, Anderson shows that profit and sustainability are not mutually exclusive; businesses can improve their bottom lines and do right by the earth. Ray Anderson is featured in the film, So Right, So Smart, which takes a behind-the-scenes look at how his leadership transformed Interface into a company with a sustainable business practices that made it more profitable than it was before.

“America’s greenest CEO” and the hero from the award-winning documentary The Corporation makes the urgent, compelling case that sustainable business pays. His story is now legend. In 1994, after reading The Ecology of Commerce by Paul Hawken, Ray Anderson felt a “spear in the chest”: the founder of Interface, Inc., a billion-dollar carpeting manufacturer, realized that his company was plundering the environment and he needed to steer it on a new course. Since then, Interface has cut its greenhouse gas emissions by 82%, and the goal is to reach zero environmental footprint by 2020. Thoughtful and winning, Confessions of a Radical Industrialist shows how Anderson revolutionized his company, in the process bringing costs down, improving quality, making it one of Fortune’s “100 Best Companies to Work For” — and driving up profits. *The publisher has aimed for sustainability in all aspects of this book’s production, from the inks and glues to the trim size. The interior paper is 100% post-consumer recycled, certified by the Forest Stewardship Council, and ancient-forest friendly. Instead of a jacket, the cover boards are wrapped in 100% recycled paper stock coated in a biodegradable varnish – and these are just two examples among many.

In 1994, Interface founder and chairman Ray Anderson set an audacious goal for his commercial carpet company: to take nothing from the earth that can't be replaced by the earth. Now, in the most inspiring business book of our time, Anderson leads the way forward and challenges all of industry to share that goal. The Interface story is a compelling one: In 1994, making carpets was a toxic, petroleum-based process, releasing immense amounts of air and water pollution and creating tons of waste. Fifteen years after Anderson's "spear in the chest" revelation, Interface has: -Cut greenhouse gas emissions by 82% -Cut fossil fuel consumption by 60% -Cut waste by 66% -Cut water use by 75% -Invented and patented new machines, materials, and manufacturing processes -Increased sales by 66%, doubled earnings, and raised profit margins With practical ideas and measurable outcomes that every business can use, Anderson shows that profit and sustainability are not mutually exclusive; businesses can improve their bottom lines and do right by the earth.

If the defining goal of modern-day business can be isolated to just one item, it would be the search for competitive advantage. And, as everyone in business knows, it's a lot harder than it used to be. On the one hand, competition is more intense than ever--technological innovation, consumer expectations, government deregulation, all combine to create more opportunities for new competitors to change the basic rules of the game. On the other hand, most of the old reliable sources of competitive advantage are drying up: the hallowed strategies employed by GM, IBM, and AT&T to maintain their seemingly unassailable positions of dominance in the 1960s and 70s are as obsolete as the calvary charge. So in this volatile, unstable environment, where can competitive advantage be found? As David Nadler and Michael Tushman show, the last remaining source of truly sustainable competitive advantage lies in "organizational capabilities": the unique ways each organization structures its work and motivates its people to achieve clearly articulated strategic objectives. For too long, too many managers have thought about "organization" merely in terms of rearranging the boxes and lines on an organizational chart--but as Competing by Design clearly illustrates, organizational strength is found far beyond one-dimensional diagrams. Managers must, argue Nadler and Tushman, understand the concepts and learn the skills involved in designing their organization to exploit their inherent strengths. All the reengineering, restructuring, and downsizing in the world will merely destabilize a company if the change doesn't address the fundamental patterns of performance--and if the change doesn't recognize the unique core competencies of that company. In this landmark volume, the authors draw upon specific cases to illustrate the design process in practice as they provide a set of powerful, yet simple tools, for using strategic organization design to gain competitive advantage. They present a design process, explore key decisions managers face, and list the guiding principles for incorporating the design function as a continuing and integral process in organizations that are looking to the future. In 1918, Henry Ford's Dearborn assembly plant was the model of the new assembly-line technology. Today, the assembly plant is an aging relic, but, incredibly, the organizational architecture it spawned lives on in steep hierarchies, centralized bureaucracies, and narrowly defined jobs. As companies are coming to realize they can't compete successfully in the 21st century with organizations based on 19th century ideas, Competing by Design shows clearly and persuasively why--and, most importantly how--to harness the power of organizational architecture to unleash the competitive strengths embedded in each organization.

The world that created modern industry, pioneered in the West, is in decline. It is being transformed by a global green shift, creating new industries based on clean energy, clean water and clean food – all produced in a safe, clean and sustainable way, in abundance, at low (and diminishing) cost and without making further inroads into nature. This twenty-first century world is being driven by newly emerging industrial giants like China and India – just as the twentieth-century infrastructure of oil, automobiles and highways was created by the United States. It is China and India that are feeling the worst effects of industrializing along conventional ‘business as usual’ lines, and which have the greatest incentive to drive their own green shift. But the old world order based on a linear economy and fossil fuels is resisting bitterly, and will not give up without a fight. John A. Mathews explains how these trends and counter-trends are creating a new world order where an industrial system based on the Ceres (Circular Economy and Renewable Energy System) is seeking to take over from the world of fossil fuels, and provide scope for Gaia to become her wild self again. The outcome of this struggle is far from determined. It is the central issue to be resolved in the twenty-first century.

A financial system is only as strong as the governing practices and institutions of its participants. The challenge to build efficient and accountable financial institutions that promote confidence is a problem that private financial sector executives and policymakers confront together. In this context, Financial Sector Governance takes a clinical approach to addressing the challenges in emerging and developed markets in each industry: capital markets, private banks, state-owned banks, asset management companies, public pension funds, and mutual funds. It also explores the linkages between public and private sector governance, and the policy implications for strengthening both sides. Financial Sector Governance emerges from the fourth annual Financial Markets and Development conference, organized by the World Bank, the International Monetary Fund and the Brookings Institution, during which participants from the public and private financial sectors of emerging and developed markets contribute to an expanding dialogue addressing key policy concerns.

From the early years of fur trading to today's Silicon Valley empires, America has proved to be an extraordinarily fertile land for the creation of enormous fortunes. Each generation has produced one or two phenomenally successful leaders, often in new industries that caught contemporaries by surprise, and each of these new fortunes reconfirmed the power of fanatically single-minded visionaries. John Jacob Astor and Cornelius Vanderbilt were the first American moguls; John D. Rockefeller, Andrew Carnegie, and J. P. Morgan were kingpins of the Gilded Age; David Sarnoff, Walt Disney, Ray Kroc, and Sam Walton were masters of mass culture. Today Oprah Winfrey, Andy Grove, and Bill Gates are giants of the Information Age. America has again and again been the land of dizzying mountains of wealth. Here, in a wittily told and deeply insightful history, is a complete set of portraits of America's greatest generators of wealth. Only such a collective study allows us to appreciate what makes the great entrepreneurs really tick. As H. W. Brands shows, these men and women are driven, they are focused, they deeply identify with the businesses they create, and they possess the charisma necessary to persuade other talented people to join them. They do it partly for the money, but mostly for the thrill of creation. The stories told here -- including how Nike got its start as a business-school project for Phil Knight; how Robert Woodruff almost refused to take control of Coca-Cola to spite his father; how Thomas Watson saved himself from prison by rescuing Dayton, Ohio, from a flood; how Jay Gould nearly cornered the gold market; how H. L. Hunt went from gambling at cards to gambling with oil leases -- make for a narrative that is always lively and revealing and often astonishing. An observer in 1850, studying John Jacob Astor, would not have predicted the rise of Henry Ford and the auto industry. Nor would a student of Ford in 1950 have anticipated the takeoff of direct marketing that made Mary Kay Ash a trusted guide for millions of American women. Full of surprising insights, written with H. W. Brands's trademark flair, the stories in Masters of Enterprise are must reading for all students of American business history.

Revised edition, includes new foreword by Paul Hawken and and several new chapters by John A. Lanier.