CASE STUDIES
Herman Miller : Ownership Culture Done Right While stock options and collaboration are not unusual concepts in business these days , Herman Miller perfected these ideas and emerged as the leader in ownership culture . Learn how this furniture company turned employees into “ working stockholders ” and positioned itself for success .
CASE STUDIES
How a Design-Driven Culture Saved Airbnb On its surface , Airbnb is a typical start-up fueled by algorithms and data . But go a little deeper and you ’ ll discover the accommodations marketer that revolutionized tourism saved itself by approaching a big problem in a new way . What they learned about design thinking can help middle-market businesses in any industry .
In 2009 , Airbnb nearly folded amid stalled sales , leaving owners wondering if their once-promising start-up was doomed . In the past , problems were approached from a technical perspective , adjusting code and re-writing programs . Airbnb soon realized , however , that the solution should be designed around the customer ’ s experience instead . A look at Airbnb ’ s people-centered approach illustrates the essential components of an empathetic , design-driven culture .
Seek First to Understand
Airbnb executives quickly realized the answer to their sales problem wasn ’ t in their algorithms , but rather with the unappealing quality of the property photos . The founders met with each of the hosts , helped them take better photos , and watched as their sales doubled in the first week .
Empathize
At the core of design thinking is the act of putting the end user at the center of the equation and building your process around the customer journey . Airbnb now requires all of its employees to book a property in order to fully understand the traveler and the host .
Know When to Adapt
Airbnb had always used stars for their property ranking system , but a little design thinking got them to try hearts instead . Immediately , use of the ranking system increased exponentially .
Seize the Moment
Companies typically apply design thinking when they want to quickly bring a product or service to market . So Airbnb didn ’ t wait to develop a complicated plan of action . Despite the fact that the solution was neither technical nor easily duplicated , they immediately flew to the host homes , identified the problem , and designed a solution .
When well-executed , a culture of ownership breeds higher productivity , lower turnover , better hires , and bigger profits . Top executives at Herman Miller know this first-hand and credit employee ownership for their own success . The furniture company , with a net income of $ 98.1 million , offers its employees discounted stock purchasing , companywide stock options , 401 ( k ) stock contributions , and a generous profitsharing program , to name a few . In doing so , it nurtures a culture where the focus shifts away from budget and onto longterm improvements and economic value . In stark contrast to some of its competitors , employee-owners receive monthly updates on company performance and frequent reports on projected quarterly bonus payments . Additionally , employee -owners have a strong voice . In the 1980s , when lagging company sales threatened to shut the company down , employees designed the solution that turned it around . For the mid-sized business , a true ownership culture , like the one at Herman Miller , can fuel strategy by providing an environment where employees have a personal , financial stake in performance . Instead of an environment where rules guide individual behavior , employees in an ownership culture are influenced by values and the cumulative impact of their actions on the bottom line of the company . This owner mindset breeds intuitive selfregulation , cost-consciousness , and a firmer understanding of how personal performance affects overall company success .
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