The Herman Miller Way

Herman Miller receives worldwide attention for its corporate culture and progressive management style. Through his best-selling books-Leadership is an Art and Leadership Jazz-former CEO Max DePree outlines the management philosophy that has developed at Herman Miller over the years and continues today. That philosophy is based on a fundamental belief in participative ownership: the belief that each individual has the right and the responsibility to contribute his or her own unique gifts and abilities to the corporate community. In 1950, Herman Miller instituted a formal program of participative management. As an important corollary, Herman Miller instituted an employee stock ownership program in 1983. Today, all Herman Miller employees with one month of service are entitled to own stock in the company. As of July 1999, about 16 percent of all outstanding shares in Herman Miller were held by employee-owners.

As a public company, one of Herman Miller's primary goals is to create economic value for its shareholders. To help achieve that objective, the company has implemented "Economic Value Added" (EVAâ). EVA is an internal measurement of operating and financial performance that is linked to incentive compensation for every employee. Under the terms of the EVA plan, focus is shifted from budget performance to long-term continuous improvements and the creation of economic value. EVA has proven to be a strong corollary to shareholder value.

Herman Miller is also well known for its social responsibility toward customers, employees, investors, and the community. The company is recognized for its environmental policies and practices aimed at eliminating waste, conserving natural resources, and protecting the environment. Herman Miller believes that being a good steward of the environment is more than just good business practice; it is the right thing to do.