Model Shift


I did some consulting work at Steelcase in the 80’s (along with Herman-Miller and Haworth)….Western Michigan being a leading center for the Office Systems/Furniture industry.

Steelcase, the largest manufacturer had to make a dramatic shift in its business model beginning in the late 1990’s.

Some business can be successful with one business model others have to change –  Jim Hackett, the CEO stated: “I was trying to make the case that if we weren’t modern, we are going to be dead”

The new business model (integrate technology into its products) has been successful – 2012 sales $2.75B profit$56.7M. The change also resulted in major plant and personal disruptions. Businesses require difficult decisions. As in the case of Steelcase….the business model change positioned the company for longer-term growth.

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