Gil: This question's been troubling me too. We have found that a surprising number of companies -- our clients, our competitors' clients, and companies working on their own -- fail to implement measures that have clear benefits and handsome returns investment.
It's an odd and disturbing observation. We tend to think of businesses as economically rational organizations, designed to make decisions that maximize profit. But organizations are rarely purely rational. How could they be, composed, as they are, or individual people who are themselves only partly rational, only some of the time?
Enough philosophy. Why does money get left on the table, again and again?
We see many reasons, including:
- Habit ("we've always done it this way")
- Turf ("it's not my department" -- or the variant: "my department would have to make the investment, but Joe's department would get the payoff"
- Misapplied capital hurdle rates
- Analytical tools that fail to capture full costs and benefits
- The persistent assumption that "we can't afford it" -- even if the ROI is hefty -- because "environment costs money"
Next month I'll share the best of your responses, and discuss how to break the implementation logjam.
* * * * *
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Gil Friend, systems ecologist and business strategist, is president and CEO of Natural Logic, Inc. -- offering advisory services and tools that help companies and communities prosper by embedding the laws of nature at the heart of enterprise. Sign up online to receive his monthly column via email. Read Gil's blog here.


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