GROWTH. TRANSFER. LEGACY
By Robert Krist
The subject of our July blog is near and dear to our hearts - taking the long-term view to strategy. Being Strategist’s, we are always pushing the benefits of long-term thinking in leading and managing a business to current and prospective clients. So naturally we get excited and want to share when we come across content that supports the benefits of long-term thinking. We took this month’s blog title from the recently published book, Go Long: Why Long-Term Thinking is Your Best Short-Term Strategy (Wharton Digital Press, May 2018), The book profiles six leading businesses that resisted short-term pressures and put their organizations on a path to long-term success.
Recent research has provided factual foundation that a long-term approach can lead to superior business performance:
Which leads to the ongoing question--if Owners and CEOs know they should be managing for the long-term, why do so many get stuck on managing the short-term?
The Authors of Go Long attributed a greater focus on short-termism to the following:
In talking to investors, the Authors did not find evidence that investors favored the short-term over the long-term. The Authors agree the financial markets are playing a role in short-termism, though they feel Owners and CEOs are playing a larger role.
For Management teams to be successful in finding the right balance between short- and long-term thinking the Authors suggest the following actions:
The above suggested actions sound straight forward, but for most organizations they represent significant behavior changes, and will also require a long-term lens. Although challenging, the rewards waiting for the organizations that successfully manage for the long-term cannot be ignored.
We are always interested in learning from you our readers, so please share with us your thoughts and experiences.
“The three big ideas at Amazon are long-term thinking, customer obsession, and a willingness to invent.” Jeff Bezos
Dick Albu is the founder and president of Albu consulting LLC, a strategy management consulting firm focused on engaging and energizing leadership teams of middle market private and family businesses. With offices in Stamford, CT, the firm is dedicated to helping its clients formulate robust business strategies and follow through on execution of key strategic initiatives. Dick Albu can be reached at 203-321-2147 or RAlbu@albuconsulting.com. Rob Krist, Managing Director can be reached at RKrist@albuconsulting.com. Please visit Albu Consulting’s website for more information at www.albuconsulting.com.