Ideas
Andrew S. Winston

Book: The Big Pivot ... Radical Practical Strategies for a Hotter, Scarcer and More Open World

Burgess COMMENTARY

Peter Burgess

Page 11 Using new tools to put numbers on benefits that are hard to value. Putting a number on intangibles—those things that create value but we don’t measure well—can help companies make smarter investment decisions. Companies ranging from Johnson & Johnson and IKEA to Diversey and 3M are finding ways to modify their return on investment (ROI) calculations to drive investments in efficiency and renewable energy. And estimating the value that nature provides a business—as Puma and Dow have done—can help companies better understand, for example, our dependency on clean water or on having an atmosphere to dump carbon into. These exercises will help companies prepare for the day when these so-called externalities quickly become internal costs (or benefits). Valuation gaps (page 81) .. What is not measured The purpose of the company (page 111) The Johnson and Johnson credo: Our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services .... customers, then employees and then communities. Onlyafter this does the last sections read ...'our final responsibility is to stockholders who should realize a fair return. Jack Welch ... deciding which is a result and which is a strategy. Peter Burgess (in the 1960s) ... fix the factory, fix the product and the financial performance numbers will fix themselves Peter Burgess (in the 1960s) ... show me a company with weak accounting, and I will show you a weak company. Peter Burgess (in the 1980s) ... numbers are very powerful. That is why numbers should be used with great care. Peter Burgess (in the 1970s) ... management information is best when a small amount of data can reliably assist in making the right decision.