Envision, Strategize, Transform: Desso’s Journey to Sustainability (A and B)

In 2007, Desso, a mid-size European carpet maker, was spun-off by its parent company Armstrong World Industries, amid the latter finalising its Chapter 11 proceedings (to gain protection from its creditors in the US). Armstrong's constrained financial position, coupled with carpet flooring not being Armstrong's core business, significantly restricted investments in equipment, marketing and product and process innovation at Desso. The company's financial results reflected this situation with small negative operating profit for several years up to 2006. In April 2007, Desso was acquired by a group of external managers, backed by a Dutch Private Equity firm NPM Capital. This case is about the journey that Desso has taken over the following five years to become a leader in sustainable design and manufacturing of flooring solutions and turning its performance around in the process. This initiative has been spearheaded by Desso's former CEO, Stef Kranendijk. The appointment of a new CEO in 2012 marks the start of a new stage in the journey, with sustainability in general and the concept of circular economy as reflected in Cradle to Cradle(R) (C2C) approach gaining ever-wider recognition over the recent years. With ever greater adoption of sustainability issues in the industry, what might Desso's strategic priorities be overall, and in relation to further implementation of Cradle to Cradle(R)?