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. The games played to manipulate earnings are enormous (and no surprise to those who understand likely outcome of pressure to meet short term goals is a desire to manipulate the figure rather than improve underlying results ).

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. It allows product quality issues to persist to the point of costly and reputation-sapping recalls, or market-share erosion. Best of Books Karen Martin short term benefit Ambiguity clarity


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How to Invest and Make Money Daily: 9 Key Ideas & Strategies

Strategy Driven

Nine investing options that can bring you both immediate and long term profit. Although this article is about short-term investment, you should still build a solid plan for a long-term perspective. There are periods when markets get choppy, and you may lose confidence.

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

Harvard Business

” 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.” We could shut them down – but the market space would not go away and another company’s products would fill it.

The Real Reasons Companies Are So Focused on the Short Term

Harvard Business

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 ).

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. Business Metrics Culture Impact Innovation Investment KPIs Leadership Long-Term Measuring Success ROI Short-Term Strategy

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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. But too often the weight of Wall Street opinion causes executives to focus on hitting short-term earnings targets rather than creating long-term value. The analysts also say that in the face of all this, both companies continued to make long-term investments and still delivered billions of dollars in profit.

Engage a Mentor with a Short-Term Project

Harvard Business Review

Under Rick’s guidance, his nephew prepared presentations, assisted in customer engagement projects, built a scheduling spreadsheet, suggested marketing recommendations, and formalized a development plan post-internship. That puts suitable mentors in short supply for young workers. Think really short, as in, less than a month — in essence, a micro-mentor.

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). Why this bull market is not dead (CNBC, August 25). Is Stock Market's 'Black Monday' Time to Buy? In March 2008, the bear market was already underway. Read our free report: Pandemonium in the Stock Market.

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. If you want to keep your rate of reinvention higher than the rate of market change, you have to be learning every single day. There is a saying – “ Fools rush in where angels fear to tread.

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. trillion in holdings, Fink in February sent a letter to the CEOs of all S&P 500 companies that essentially cut the Gordian knot of short-termism. Do away with the game of quarterly earnings guidance, and instead articulate to investors your “strategic framework for long-term value creation.”


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.'

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.

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.

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. One of those mistakes was assuming that Internet marketing would bring them immediate success and riches. This can cause a lot of errors when it comes to the marketing campaign as a whole.

What are the Best Sectors to Invest in the UK Stock Market Now 2020?

Strategy Driven

In simple terms, the stock market crash of March undermined and devalued a number of high-profile shares, without challenging their status or profitability in the long-term.

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. An agency may cover all aspects such as email marketing, SEO, content creation, and digital strategy under one roof. In the marketing world, it’s not enough to think about projects in isolation. Most companies strive to do better and be more productive.

What Blockchain Could Mean for Marketing

Harvard Business

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”).

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.

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. One of those mistakes was assuming that Internet marketing would bring them immediate success and riches. This can cause a lot of errors when it comes to the marketing campaign as a whole. Marketing & Sale

Winning Now, Winning Later: Playing the Infinite Game

Leading Blog

When he took over, Honeywell was plagued by short-termism. The problem was that he had to deliver something in the short-term to the investors for survival but had to set the company up for tomorrow too. Short- and long-term goals were more tightly intertwined than they appeared. He developed three principles of short- and long -term performance that forced them to consider the long- and short-term implication in every decision they made: 1.

A Refresher on Marketing ROI

Harvard Business

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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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. If you have a big sale or a can’t-be-missed offer, then a short email to potential customers in your database can often increase clicks. While lots of companies send out these e-mails, keeping it short and sweet can make them quite effective. A short list of the benefits of your site.

Global Companies Need to Adopt Agile Pricing in Emerging Markets

Harvard Business

Over the past 18 months, Sergey’s experience has been echoed in offices in Ukraine, South Africa, Turkey, Brazil, and many other emerging markets that have faced substantial currency depreciation due to the drop in commodity prices and the flow of capital to the U.S. of those in these markets said that currency volatility posed the greatest material risk to their pricing strategy during 2014 and 2015. Normally, MNCs raise prices in the emerging market, (e.g.,

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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.

Is Your Marketing in the Right Place but at the Wrong Time? - SPONSOR CONTENT FROM GOOGLE

Harvard Business

Time is running out on personalized marketing as a means of continually raising the return on investment of campaigns. And the technology now exists for marketers to test with high confidence when to communicate and in what order — and to do so in near real time. Bain & Company recently surveyed nearly 1,700 marketers globally , in partnership with Google, and found three areas of importance. How Leading Marketers Get Time on Their Side.

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Five Tips To Enable Your Start-Up For Long-Term Success

Strategy Driven

Getting caught up in the difficulties of the short-term running of a business can be detrimental to long-term success. Too often, owners or management are short-sighted, leading to quick failure. Business plans are key to long term success, particularly for start-ups.

How to Turn Your Hobby into a Business

Strategy Driven

Instead, do thorough market research to ensure your business idea isn’t making sense to you alone. But if you don’t have a clear way to monetize your product and/or service, you’ll never turn your hobby into a long-term, sustainable business.

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. On the other hand, companies that have a long-term focus and take good care of their customers and employees during a crisis win lasting loyalty.

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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? That goes for your short term and long term goals. Even if you have the know-how to run a great marketing campaign, purchasing the materials needed can drain your wallet.

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. When so much seems to be out of your control, what can you do to stay marketable and maintain your job?

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. When strategic intent is clear and concise, it provides the impetus for uncovering long-term opportunities. Great strategies guide short-term execution.

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. This is a short-term aggravation, and though it may thrash earnings for the quarter or the year, it is not a restructuring of the marketplace. Do you have the right people in place to minimize its impact or to lead you out of the short-term crisis?

Want To Outsource? Here’s How You Could Do It!

Strategy Driven

Taking the right approach to outsourcing your marketing team or your invoicing to an accounting service is important. If your social media marketing could use a boost, you know that choosing the right agency is the way to go.

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. So, if you are frustrated with the SEO aspect of your digital marketing then here are some sure-fire ways you’re going wrong. Pick two targets; one long-term and one short-term.

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. Proponents believe that dominant market share creates competitive advantage because ofmarketplace leverage and economies of scale. Their horizon is markets that do not exist.

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Inequality Isn’t Just Due to Market Forces — It’s Caused by Decisions the Boss Makes, Too

Harvard Business

In it, the authors, both sociologists, made a compelling argument that, to understand labor market outcomes like inequality, it wasn’t enough to look at the supply and demand for individuals’ skills. However, any discussion of firms and wage inequality must not be limited to discussion of market forces. Companies can be divided into two types , in terms of how they approach hiring and compensation: organizational oriented and market oriented.

Stop Making Sense

Leading Blog

Marketing strategist Michael Fanuele says to inspire and fuel passion, you will have to Stop Making Sense. L EADERSHIP is about moving people. And to do that, you need to be able to inspire. And that means arousing their emotions.

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. There are many different marketing strategies available to small businesses. You should aim to experiment with a variety of marketing techniques to find what works best for your business.

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

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.