Case 22 Teaching Note
Herman Miller Inc.: The Reinvention and Renewal of an Iconic Manufacturer of Office Furniture
Overview
Furniture manufacturer, Herman Miller Inc.’s, penchant for reinvention and renewal since its inception in the 1920s had resulted in accolades not usually bestowed on firms in mature industries. HMI made Fortune’s “Most Admired Companies” and “The 100 Best Companies to Work For” lists and also FastCompany’s “Most Innovative Companies” list in 2008 and 2010.
The recession that began in late 2007 had taken its toll on the U.S. economy and the office furniture industry that Herman Miller Inc. (HMI) competed in. HMI had managed to weather these turbulent times better than its rivals, but its sales and profits had suffered nevertheless. In the fiscal year ended in 2008, HMI had earned $152.3 million on sales of just over $2 billion. As the recession progressed, its 2010 sales and earnings had fallen to $1.3 billion and $28 million, respectively. In response to its declining sales and earnings, HMI instituted pay cuts of 10 percent and suspended its 401(k) contributions in 2009. The …show more content…
case is an exceptionally good case to assign as a part of your module on implementing and executing strategy. It can be assigned at any time following your lecture and coverage of the material in Chapter 10. You’ll find the Herman Miller case to be a very good vehicle for exposing students to effective strategy execution and how core values and a strategy-supportive corporate culture can be deeply planted. The case also discusses the company’s approach to developing cross-functional teams, structuring executive compensation, empowering employees, and compensating employees. The impact of the lingering economic slowdown on the company’s financial performance also provides the opportunity to press class members for their recommendations on what actions are needed at Herman Miller to improve the company’s revenue growth and
Herman Miller Inc.: The Reinvention and Renewal of an Iconic Manufacturer of Office Furniture
Overview
Furniture manufacturer, Herman Miller Inc.’s, penchant for reinvention and renewal since its inception in the 1920s had resulted in accolades not usually bestowed on firms in mature industries. HMI made Fortune’s “Most Admired Companies” and “The 100 Best Companies to Work For” lists and also FastCompany’s “Most Innovative Companies” list in 2008 and 2010.
The recession that began in late 2007 had taken its toll on the U.S. economy and the office furniture industry that Herman Miller Inc. (HMI) competed in. HMI had managed to weather these turbulent times better than its rivals, but its sales and profits had suffered nevertheless. In the fiscal year ended in 2008, HMI had earned $152.3 million on sales of just over $2 billion. As the recession progressed, its 2010 sales and earnings had fallen to $1.3 billion and $28 million, respectively. In response to its declining sales and earnings, HMI instituted pay cuts of 10 percent and suspended its 401(k) contributions in 2009. The …show more content…
case is an exceptionally good case to assign as a part of your module on implementing and executing strategy. It can be assigned at any time following your lecture and coverage of the material in Chapter 10. You’ll find the Herman Miller case to be a very good vehicle for exposing students to effective strategy execution and how core values and a strategy-supportive corporate culture can be deeply planted. The case also discusses the company’s approach to developing cross-functional teams, structuring executive compensation, empowering employees, and compensating employees. The impact of the lingering economic slowdown on the company’s financial performance also provides the opportunity to press class members for their recommendations on what actions are needed at Herman Miller to improve the company’s revenue growth and