Why We Need a 'GAAP' for Business Operations

Posted by Chuck Richards on Mar 17, 2016 12:00:00 AM

GAAPWe have to solve the transfer problem by bringing transparency and trust to the operational side of business. The financial world solved a similar problem in 1930 to help lift the world out of the Great Depression when they established GAAP (Generally Accepted Accounting Principles ), essentially a set of standards to bring transparency and trust. Before GAAP financial numbers were ad hoc at best, just like operational performance is today. If the marketplace has equal ability to look backward at financial performance, and forward at operational performance, capital will flow, owners will be able to sell, and investors able to buy. The world needs GAAP for the operational side of the business engine.

Click here to read Chuck's full article on LinkedIn Pulse.


Topics: business value, operational value

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