Deadly Disease of Management: Emphasis on Short-term Profits

Deming Institute

One of Dr. Deming’s 7 deadly diseases is: Emphasis on short-term profits: short-term thinking. It is easy to focus on short term goals and use a somewhat simple short term figure to measure success.

Preview Thursday: Clarity First

Lead Change Blog

Ambiguity is a condition we sink into because it is automatic and it provides short-term benefits that manifest in a number of ways. The short-term benefits of ambiguous organizational behaviors come at enormous long-term cost.

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Beware of Short-term Management, Not the Short-term Investor

Harvard Business Review

Much has been made in recent years about the pernicious influence of short-term investors on corporate performance. I believe these arguments often miss a nuance: It is not the short-term investor but short-term management that is the problem. The short-term investor does not reduce the firm's long-term competitiveness and value;short-term management does. Indirectly though, these short-term traders can destroy value.

How Do You Calculate ROI?

Mills Scofield

The calculation defines gain in financial terms. Customer Value : delighting customers with meaningful solutions that meet real needs within the customers’ contexts and constraints; perhaps even creating new markets and industries.

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A Partial Defense of Our Obsession with Short-Term Earnings

Harvard Business Review

Here’s a conundrum: On the one hand, there’s a consensus among thoughtful business leaders that too many companies are sacrificing long-term growth on the altar of smooth, reliable short-term earnings. the capital markets are much stickier.

Thinking Long-Term in a Short-Term Economy

Harvard Business Review

Fact is, these were the terms used to describe the results produced by Exxon Mobil and Royal Dutch Shell after their second quarter earnings release. In fact one of the surest ways to increase stock prices in the short term is to announce a significant layoff.

Lessons from Companies That Put Purpose Ahead of Short-Term Profits

Harvard Business Review

” Paul Polman, the CEO of Unilever, announced that shareholders should sell if they did not agree with his decision to stop giving quarterly results and focus on the long-term creation of value that is “equitable, shared and sustainable.”

5 Ways to Improve Productivity in a Digital Marketing Environment

Strategy Driven

However, there are also solutions to make these everyday projects more profitable in the long term. In a digital marketing environment, there are many areas to consider throughout all client projects. In the marketing world, it’s not enough to think about projects in isolation.

Amid Stock Market Turmoil, Investors Cling to Hope. Why?

Coaching Tip

Two market professionals were interviewed: Both said the big decline in recent weeks represented a buying opportunity. Other market observers have also shrugged off the volatility. Why I'm throwing money at the stock market (Marketwatch, August 26).

Internet Marketing Failing? Let’s Take a Look at What You’re Doing Wrong

Strategy Driven

If we look at the most common elements that come into play when things aren’t going amazingly for any given business, it quite often has to do with poor Internet marketing. Many business owners are becoming cognizant of just how important Internet marketing is.

How CFOs Can Take the Long-Term View in a Short-Term Economy

Harvard Business Review

Investors are increasingly seeking firms with long-term growth strategies, rather than ones focused on managing short-term earnings to boost the stock price. For CEOs, creating and communicating long-term growth strategy is easier said than done.

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What’s wrong with waiting for an opportunity?

Rajesh Setty

Fifth and probably the most under-rated reason is that you get used to seeing short-term results for your efforts. When you pursue a big and bold opportunity, short-term results are limited and that probably will scare the hell out of you.

The Real Reasons Companies Are So Focused on the Short Term

Harvard Business Review

This has been a remarkable year for the markets. Some argue that profits are stagnant because of short-termism—that decades of focusing on current profits over long-run innovativeness has resulted, now, in companies that are hollowed out. Indeed, a study by Rachelle Sampson and Yuan Shi found that company short-termism is negatively correlated with innovativeness, measured as RQ ( “research quotient,” a measure of the return on R&D investments ).

Markets: Understand the Present to Forecast the Future (Part 2)

Coaching Tip

Alexandra Lienhard : So, as editor of the Financial Forecast and the Short-Term Update , what's the goal with the services you provide? He wanted to step back a bit from the day-to-day market commentary and incorporate the views of socionomics into what he was writing about. Let's give them not only the Elliott Wave Theorist and what I'm talking about socionoimcally and in the markets, but let's also give them your commentary in terms of stocks, bonds and everything else.'

Why Stock Market Investors Should Expect the Unexpected

Coaching Tip

Read our forecast for a market rally in the wake of Brexit. Investors who jump on "sure things" in the stock market usually lick their wounds with regret. The decision of British voters to leave the European Union appeared to represent low-hanging fruit to short sellers. Even professional investors thought the stock market pain would persist. The July Elliott Wave Financial Forecast says: The coming month could be a big one for the stock market.

STIR again!

Rajesh Setty

STIR = Short-term Invisible Results. Most people understand short-term and results. So, what you will see are “short-term invisible results” (STIR). A series of such short-term invisible results is what will lead to real long-term results. The formula is: Long-Term Results = STIR + STIR + STIR + ….+ The visible long-term result is a published book. planning for marketing.

When Not To Wait For Your Job To Improve

The Idolbuster

This is about bringing shareholders a short term return, which is ok with me. From a business standpoint however, I think anything that prioritizes the short term over the long term is poor strategy. Late in Q1, the VP of marketing rather sheepishly told everyone to drop what we were doing, and find out what we could do to help make the quarter. The company was telling us what was most important to them, and it wasn’t long term value creation.

Internet Marketing Failing? Let’s Take a Look at What You’re Doing Wrong

Strategy Driven

If we look at the most common elements that come into play when things aren’t going amazingly for any given business, it quite often has to do with poor Internet marketing. Many business owners are becoming cognizant of just how important Internet marketing is. Marketing & Sales

Sales And Marketing Out Of Alignment? You're Not Alone

Six Disciplines

According to a new report by Forrester Research , only 8% of B2B (business-to-business) companies surveyed by Forrester Research said they have tight alignment between sales and marketing. The greatest obstacles to achieving tighter alignment between sales and marketing? 58% said long-term thinking by marketing vs. short-term thinking by sales. 46% said different goals and measurements between marketing and sales.

5 Marketing Emails That Work

Strategy Driven

Bearing in mind how cynical people are about marketing emails, how do you create one that actually converts to a click or sale? Short term promotions. While lots of companies send out these e-mails, keeping it short and sweet can make them quite effective.

How to Hold onto Your Customers in a Crisis

Leading Blog

I’ve observed companies panicking and doing anything they can to manage short-term cash—and destroying hard-earned relationships at lightning speed. They are letting short-term financial objectives become the North Star in an effort to keep the lights on.

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Master Your Motivation

Lead Change Blog

Traditional “motivators” such as fear, guilt, or the promise of a reward provide low-quality, short-term energy. If you enjoyed this video, you may also enjoy the upcoming webinar with Bonnie Marcus as she discusses how to stay marketable in this new virtual working world.

Infinite Leadership: Lessons From Nature

Lead Change Blog

In it, he suggests that business leaders should stop focusing on short-term (finite) gains and instead focus on the long-term (infinite) game of the business. When at school, I clearly remember learning about Japanese theory management and how, in Japan, people were more concerned with the long-term outcomes of what they did rather than the immediate short-term benefits. Public companies are measured by their 90 day success on the stock market.

First Look: Leadership Books for June 2020

Leading Blog

Rather than dispensing simplistic rules, he mentors readers in the development of a mental toolkit for approaching challenges based on how startup markets evolve in real life. Winning Now, Winning Later : How Companies Can Win in the Short Term While Investing for the Long Term by David Cote.

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7 Reasons Why You Should Hire a Small Business Marketing Consultant

Strategy Driven

It’s suggested that businesses spend 8% of their revenue on marketing costs. If you’re not seeing the fruits of your labor, it’s time to rethink your marketing strategy. And who better to help you do that than a small business marketing consultant?

Actionable Steps To Improve Your Business’ s Financial Position

Strategy Driven

2: Assess your marketing tactics. For any business to make a profit, marketing has to be key. However, you don’t want to waste money with your marketing efforts. Firstly, analyze your marketing tactics. For those marketing tactics that are working, keep using them.

Why Strategy Withstands the Test of Time

In the CEO Afterlife

Coke isn’t wasting time assessing non-beverage markets or searching for food acquisitions. The proof is in the numbers; Coke’s profit and market cap consistently outpaces their beverage and food rival, PepsiCo. . Great strategies create long-term stability.

Simple Methods to Grow Your Small Business

Strategy Driven

Use a variety of marketing techniques. Marketing plays a key role in business success. When done correctly, marketing campaigns have the power to advertise your products and services to a global audience, drive traffic to your site, and establish you as an authority in your industry.

What Not to Do When Business Sours

In the CEO Afterlife

In terms of rectification, you have to look at the issue in the context of whether the problem is a short-term blip or the beginning of a long-term shift to your business or industry.

What Blockchain Could Mean for Marketing

Harvard Business Review

A higher “Volume” of data has led to more efficient decision-making in numerous instances, such as in programmatic marketing and in banking. In the field of data-driven marketing, an answer to addressing this limitation lies in blockchain technology. Once a transaction is entered in the database and the accounts are updated, the records cannot be altered, because they’re linked to every transaction record that came before them (hence the term “chain”).

Here’s Why Your SEO Strategy Isn’t Working

Strategy Driven

In modern business, there is one thing that can either make or break your business: marketing. More specifically, digital marketing. It’s a big issue and one you want to prevent from Day One of your digital marketing exploits – or at least very early in your campaigns.

Is Business a Combination of Sport and War?

In the CEO Afterlife

As for sport, the game of market share was an easy way to track success. With only 100% available to the players of the market share game, you knew whether your play(s) made you a winner or a loser. The delusion is that market share is the “be all and end all” of business success.

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How you treat your Employees will determine the FATE of your company

Brigette Hyacinth

These companies are just focusing on the short term. And if I was in the job market, an interview question I would definitely ask would be, “how did your company handle the pandemic?”. Consider the long term impacts.

Why leaders need a long-term vision

Lead on Purpose

What drives your daily activities—your long-term vision or making the numbers this quarter? If you’re a board member, do you incentivize your executives to make a long-term contribution for the company or to keep the shareholders happy this quarter? George discusses important topics including insisting on the long term, managing expectations and creating lasting value. Leadership Product Management / Marketing Purpose customers expectatons future value vision

Restoring the Soul of Business

Leading Blog

Making these types of connections helps you take the data one step further, determining if it’s going to have a short-term or long-term impact, if it’s suggesting the end of a trend or the beginning of a new one.” D ATA without soul is harmful.

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Preview Thursday: Benefit Corporation Law and Governance: Pursuing Profit with Purpose

Lead Change Blog

Yet the introduction of the “benefit corporation” gives leaders an opportunity to remake our business culture, and perhaps save the planet from our very human short-term bias.

Four Top Tips for Growing a New Business

Strategy Driven

However, if you want your business to succeed, then you need to ensure that you develop both short term and long-term strategies to generate new business and expand your customer base.

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How HR Can Help Managers To Become Better Leaders

Tanveer Naseer

You aren’t likely to be affected by any team bias or prejudice, and probably find it easy to remain objective about the organization’s short-term and long-term needs. The best leaders, on the other hand, use strategic skills to achieve both short-term and long-term goals.

Is Social Accountability Changing Leadership?

Lead Change Blog

No longer is it acceptable for CEO’s to focus on short-term gain to line their pockets. Rather, business leaders need to take a longer term approach, which means no longer being driven by the 90-day reporting cycles of the world’s stock markets. In the short term, that is,” he is quoted as saying. Business stakeholders—customers, investors, and team members—are now demanding more from the businesses they “work” with.

Should Marketing or R&D Have More Power?

Harvard Business Review

R&D and marketing typically come at product development from different angles, and R&D’s “things” approach is often at odds with marketing’s “people” focus. You need marketing’s input. The New Marketing Organization. A Method for Better Marketing Decisions.

A Refresher on Marketing ROI

Harvard Business Review

Companies spend a lot on marketing communications. And more fundamentally, does marketing actually work? Marketing ROI analysis can help answer those questions. I talked with Jill Avery, a senior lecturer at Harvard Business School and coauthor of HBR’s Go To Market Tools , about this concept and what it tells leaders about their spending on marketing. What is Marketing ROI, and How Do Companies Use It? Juan Díaz-Faes for HBR.

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How to Win in Africa

Leading Blog

They say business leaders tend to “underestimate Africa’s size and potential as a market, and overestimate the challenges of doing business there.”. Africa is the next growth market. I N THE WESTERN WORLD, we often do not have an accurate picture of Africa as a growing marketplace.

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What Data-Obsessed Marketers Don’t Understand

Harvard Business Review

Big data has become the X factor of modern marketing, the hero of every marketer’s story. You may be thinking that data will magically turn bush-league marketing into a winning “Moneyball” performance. The goal is to help marketers find balance.

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