Case Study - InterfaceRAISE & Wal-Mart
Mentoring the world's largest retailer
The challenge
As the world's largest retailer, Wal-Mart were conscious of their responsibility to ensure that the way which they operate both preserves and restores environmental resources.
To do this they had to create strategies to both embrace sustainability and change their corporate culture. They hoped that by using their size and influence to shift the industrial world towards new ways of thinking they could play their part in transforming the way that businesses operate.
Setting targets
In October 2005 Wal-Mart CEO, Lee Scott, issued a challenge to his company and its business partners by setting out clear environmental goals for the future. These were:
- To be supplied by 100 percent renewable energy
- To create zero waste
- To sell products that sustain resources and the environment
Like other forward-thinking business leaders, Scott was putting his faith in the concept of sustainability. He declared: "Sustainability is a critical part of our business. We encourage our suppliers to incorporate sustainability into their culture and business practices because those who don't run the risk of being left behind."
Scott knew that to achieve these goals he would have to completely overhaul how Wal-Mart conducted its business, and how it impacted on customers, communities and the environment.
The journey
As Wal-Mart became increasingly aware of the impact their operations were having on the world around them they looked at ways to use their strength and employee talent to meet these challenges and deliver business values.
In their search for a mentor to help them achieve their aims they turned to Ray Anderson, founder of Interface Inc, and Jim Hartzfeld, founder of InterfaceRAISE. The pair had repeatedly shared their passion and vision for sustainability with Wal-Mart, and also had the first-hand experience of making sustainable business work. They were seen as the perfect mentors.
Wal-Mart's interest in sustainable business practice really began in 2004 when a small group of executives first became enthused about the idea and spent a year researching and planning potential strategies.
As part of the learning process, InterfaceRAISE staff hosted two groups of Wal-Mart executives for a Cultural Immersion at their flagship manufacturing facility. This included mini-lectures and time for one-on-one discussion with the Interface management team and experts. The Cultural Immersion is now a core product of the InterfaceRAISE executive education offering and was defined and named by the Wal-Mart executive during their visits.
A key outcome of the Cultural Immersion experience is the realisation that this journey is as much about people as recycling and energy use. The Wal-Mart team were quick to pick up on this.
Where they are now
Wal-Mart's sustainability journey is well underway and it's clear that they have an unwavering commitment to achieving their goals. Since their pledges were made public, the news is spreading throughout their global network - to suppliers, the press and consumers.
And they have a clear vision of where their priorities lie in the future.
At a supplier summit in January 2006, Lee Scott and his executives each spoke about sustainability, both from a personal and business perspective. Scott asked, "What if we used our size and resources to make this country and this earth an even better place for all of us? What if the very things that many people criticise us for - our size and reach - became a trusted friend and ally to all, just as it did for us during the Katrina crisis?"
This was an important point to make and there is no doubt that Wal-Mart has the potential to influence enormous change, especially considering their size:
- 1.8 million staff worldwide
- 3,800 facilities in the United States and more than 2,600 facilities worldwide
- 138 million customers worldwide each week
- $312.4 billion in sales in 2005
One of their biggest opportunities lies in challenging their massive supplier network to help them achieve their aggressive goals of delivering new value to customers. And they are excited about the possibilities.
Andy Ruben, Vice President for Corporate Strategy and Sustainability at Wal-Mart, believes: "When we talk to our suppliers about sustainability, we're not asking for last year's environmental report. We want to see change in their businesses, not in papers or reports. Suppliers will be the ones to create innovative ways to meet the global challenge of sustainability. We can't tell them how to do it; we can only encourage them to do it. They get to decide how."
InterfaceRAISE's Jim Hartzfeld, who has been involved with Wal-Mart throughout their journey sees the company's potential to be a major change agent, especially among suppliers. "Inspiration from the most senior people in the organisation is key. In a recent internal meeting, Lee Scott repeatedly reported to his associates that '...never in his career at Wal-Mart has he seen an issue create as much energy, passion and momentum throughout the company.'
Other companies should be viewing this as an exciting challenge, one where innovation and collaboration can improve their business. That is the approach taken by both Wal-Mart and Interface. Our journeys are unique to our different business capacities but share the same mission: to do well by doing good."