January 25th, 2011

The State of the Business Address

Every January, following the release of the company’s fourth-quarter 2010 earnings, our chairman and chief addresses the financial analysts who follow the company to provide an assessment of the state of the business.  Earlier today, Chairman and CEO Bill Weldon did just that.  You can listen to a replay of the earnings call – including Bill’s remarks – but I thought it would be of interest to share a few things covered during this wide-ranging discussion for those checking out JNJBTW.  As he finished the call, Bill made the following points:

“Whether we encounter periods of slow economic growth, a product issue, or a market challenge, this commitment [to Our Credo Operating Model and our people] is the reason we can manage through the turbulent times, continue investing, and stay well-positioned for sustainable growth.

As I wrap-up, let me re-cap some of the critical points I hope you will take away today.

Johnson & Johnson is built on a strong foundation, driven by its Credo and operating model, and we are emerging stronger from recent challenges.

Our overall business is performing well, led by our Medical Devices & Diagnostics and Pharmaceuticals businesses.

We have made changes to address our supply chain issues and continue to build the Consumer business with science-based innovations that will lead the market as the business and economy recovers.

Our innovations are moving into the marketplace, launching successfully, addressing critical unmet needs in incredible ways, and thus building market share.

Our presence in promising, new growth areas and across our global footprint gives us outstanding market opportunities.

And our people are some of the most respected and talented leaders in the health care industry.

We are fortunate to compete in one of the most important and rewarding industries in the world. I am confident that we are putting the supply chain problems of 2010 behind us, and we have the products, pipelines, global presence and talented people to expand our market leadership and bring innovative solutions to health care.”

7 Responses to “The State of the Business Address”

  1. Jai Sehgal says

    As someone who retired from J&J after spending 19 wonderful years there, I must say that I am disappointed in the manner in which we have moved away from Credo values. It all boils down to a shortage of “competent management” at the Operating companies, with a thorough commitment to the company and caring for its employees. People pay lip service to the Credo and that has brought down the fantastic J&J brand name.
    These days when folks learn that I used to work for J&J, they ask one question. “What happened to that company”? Maybe Roger Fine ought to be brought back from retirement to take his Credo lectures back on the road.
    I am sure that J&J will rebound eventually, but unless it takes care of its loyal employees and hold accountable those in authority for failure, cost over-runs, missing deadline, compromising on quality, and employee morale, it will be a “long, long slog”.

  2. Jai Sehgal says

    I had posted a comment about a week ago expressing my concern about a moving away from Credo values that has come about. The comment was polite, did not name names and addressed an issue that many retirees and current employees are concerned about.

    The comment was not published. Is it that you are only looking for positive comments and are unwilling to consider any criticism?

  3. Renee says


    You echo the sentiments of many. I can’t wait to see what Bill Weldon’s compensation is this year. Very sad situation.


  4. Andy Chen says

    Now that some time has passed, we now know, among other things, Mr. Weldon’s 2011 compensation (deserved or not), that the FDA does not feel we can run McNeil’s plants, and that we still continue to be sloppy (i.e., typo on the bottom of page 53 of the Proxy Statement in the last column on the right).

    For something going to all shareholders and in light of past problems, you’d think someone would be more careful. This is exactly what happened with the Sudafed label instructions resulting in yet another one of those 20 (?) recalls.

    We will not improve nor regain our good name until changes happen on high. It will be an interesting Annual Meeting on 4/28.

Leave a Reply

All comments will be reviewed before posting. Since this blog is about Johnson & Johnson, comments that don’t directly relate to the Company or to topics covered on this blog won’t be posted. Please see our comments policy for details.