As Herman Miller developed the Mirra chair, it was faced with many significant challenges.

The company sought to maintain focus on their triple-bottom-line philosophy by delivering an industry leading design using a new production process that would promote their commitment to sustainability. Deciding between PVC, which violated their Environment for Design strategy, or TPU, a more expensive and untested sustainable alternative for the chairs arm pads, was a challenge that would impact both deliverables. Based on Herman Millers historic commitment to innovative environmental processes and the ambitious goals of implementing the cradle-to-cradle protocol throughout the development and production of the Mirra chair, they should use TPU as the material for the arm pads. The DfE team saw the decision to use TPU as a critical step towards ensuring the successful roll out of the Mirra and achieving the deliverables set by the C2C protocol. The material chemistry and safety of inputs were key components of the C2C protocol adopted to evaluate the design, production, and recyclability of the Mirra chair. PVC clearly violated the principles of the newly adopted protocol based on toxic emissions released during manufacturing and when burned. Both the development engineers and the supply chain team advocated using the PVC material in the arm pads of the Mirra chair. The performance of this key feature of the chair was tested and strong (durability, scratch resistance, comfort). It was an inexpensive material with established supply chains in place that would ensure timely deliveries meet deadlines. Forgoing the switch to the TPU material would not significantly change the DfE overall assessment score. The DfE team recognized the risks associated with using the TPU material in relation to the publics perception of other Herman Miller products that still used PVC. They knew it would be challenging and costly to make changes in the production process once a decision was made on the roll out material. Despite these challenges, Herman Miller found many valuable answers to the PVC problem as it implemented the C2C protocol and undertook its strategic initiatives. A closer look at the implementation process will reveal how Herman Miller answered the question, and an analysis of Herman Millers strategic initiatives will reveal why.

When Herman Miller implemented the Cradle-to Cradle protocols they had already established a culture of environmental stewardship that began with the founding of the company. As an industry leader in environmental initiatives, Herman Miller also recognized that it could significantly impact all levels of the market through continually innovating with a focus on economic and environmental goals. The establishment of the Design for Environment guidelines were synergistic to the C2C protocol and gave them the unique ability to implement this strategy into a company culture that could work through the many challenges it would pose. The implementation of the cradle-to-cradle protocol also holistically merges with Herman Millers ambitious sustainability goals, which include producing zero pounds of waste by the year 2020. [1] With the commitment from senior leadership to establish a product that would meet Herman Millers globally renowned design expectations and achieve eco-effectiveness it was now time to implement a strategy that would realize the principals of the cradle-to-cradle protocol. Herman Millers first critical move in recognizing a successful implementation of the ambitious C2C protocol was getting key stakeholders in the company to buy-into the process. This lead to several years of Herman Miller product developers, engineers, supply chain managers and the Environmental Affairs department working with MBDC to ensure the proper development of the C2C process, critical in establishing an effective operation. The next critical step in Herman Millers plan to implement the C2C protocol was to establish a dedicated Design for Environment team that combined the supply chain and engineering expertise needed to make the project a success. This dedicated team set about the implementation process by training employees involved in the process, leading to a successful rollout. The C2C protocol involved a dramatic change from an operations perspective. Engineers, supply chain managers, manufacturing associates, and design consultants would have to recognize the implications of this change. To achieve this, Herman Millers training included underlying principles of the C2C protocol as well as hands on applications. Another important aspect of the implementation was that the C2C protocol was being introduced on a product from beginning to end that was being developed for the first time. This would have posed challenges but also allowed Herman Miller to build the system from the molecular chemical level up, as is required by the C2C process. It was part of the implementation process to analyze materials as prototypes were

developed related to the components of the C2C protocol. The use of the Design for Environments scorecard allowed Herman Miller to create a process that was S.M.A.R.T. (Specific. Measureable. Attainable. Relevant. Timely). A significant challenge this process revealed was the need to replace standard materials with materials that would meet the C2C protocol and Herman Millers design expectations. As the development phase continued throughout the implementation process, the manufacturing team had to design and begin the process of building the production line prior to establishing final product specifications. At this point, the DfE team would have already accessed all the materials going into the developed product, although this could cause costly delays as adjustments were needed. Herman Miller did have the benefit of modeling the production line for the Mirra chair based on that of the Aeron chair, although it ended up being a shorter and simpler process. Herman Miller was also in the process of implementing the Herman Miller Production System, based on the Toyota Production System, which seemed to line up strategically and philosophically with the C2C protocol. As part of the implementation process, Herman Miller spent a considerable amount of time and money working on supply chain management as it established its DfE materials database and materials assessments. A significant challenge was encountered when working with suppliers to cooperate with material assessments that it would ultimately need to meet C2C protocol standards. Although according to the C2C consulting firm McDonough Braungart Design Chemistry: Engaging the supply chain in such an effort has become a source of valuable information for Herman Miller. It has first of all made the company a much better manager of the materials it uses to assemble furniture. Data such as this make Herman Miller a more effective and positive participant in the materials market. Gathering information on suppliers revealed that the company was simply using too many materials to produce too many different kinds of products. This allows more control over the lifecycle impact of materials, builds a coherent, value-based supply chain, and creates the possibility of a wider, more positive impact on the environment. In fact, by connecting with large businesses that use the same product ingredients, Herman Miller hopes to create a market that will influence a still wider

spectrum of raw material suppliers.[2] Thus, the implementation of the C2C protocol had a positive impact on the entire Herman Miller operation. Full C2C implementation required Herman Miller to develop a strategy that closed the loop by recycling the material from the Mirra chairs at the end of their useful lives. First, they needed to work out the logistics of getting the product back. Herman Miller could take the chairs back themselves, ask retailers to collect them, or work with a third party in the collections process. Herman Miller currently works with a partner in its rePurpose recycling program. According to Herman Miller The rePurpose program provides you tangible business results in addition to being a socially responsible solution for disposing unwanted corporate assets. [1] Herman Millers environmental goal is clearly a high strategic priority. The fact that their VP of Supply Chain Management, responsible for cutting costs, was assigned to the steering committee of the Design for Environment team illustrates how highly Herman Miller values environmental sustainability. Herman Miller recognizes the competitive advantage of being an early adopter. Innovatively looking forward provides time to develop materials, technologies, and processes that position their company as an industry leader. Because environmental standards vary, supply chain operations can be optimized across facilities by adopting standards that meet or exceed the strictest regulations. In a study of sustainability initiatives of 30 large corporations, research shows that sustainability is a mother lode of organizational and technological innovations that yield both bottomline and topline returns. [3] Sustainability through the C2C protocol lowers costs by reducing the inputs used in production. Other operational advantages of Herman Millers C2C strategic decision include employee pride instilled in the company. Employee passion for the environment is part of the culture of the company. By choosing to use TPU over PVC and following through with the C2C protocol, the company energizes the passion of its employees, which leads to more productive human resources. Herman Millers commitment to company values is positive from a marketing perspective. Herman Miller could capitalize on the positive press that the C2C

protocol was already getting and on the negative press about PVC. In addition, the Mirra would get a lot of green press positively influencing consumer perception and increasing sales of the new Mirra chair. Herman Miller serves a moral purpose in everything that it does. The Mirra chair strengthened the companys existing corporate strategy. They stayed committed to their triple bottom line philosophy and to their values. Herman Miller continues to set the industry standard by staying well ahead of continuously tighter environmental regulations. Their decisions positively influenced the progressive culture at Herman Miller that attracts forward thinking employees. Their decision to use TPU and to implement the C2C protocol brought Herman Miller a few steps closer to reaching their Perfect Vision initiative.

[1] Herman Miller website, www.hermanmiller.com, April 2012 [2] William McDonough website, www.mcdonough.com/writings/anatomy_transformation.htm, April 2012 [3] Harvard Business Review, Why Sustainability is now the key driver of innovation. Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami, September 2009