Page 192 - (DK) The Business Book

190

YOU CAN’T GROW

LONG-TERM IF

YOU CAN’T EAT

SHORT-TERM

BALANCING LONG- VERSUS SHORT-TERMISM

IN CONTEXT
If a company only If a company only
FOCUS thinks short-term... thinks long-term...
Managing objectives

KEY DATES
1938 US author F. Scott
Fitzgerald writes that
...about immediate issues ...about new products,
“intelligence is the ability with customers, wages, new markets, innovation,
to hold two opposed ideas in suppliers, and staff... and growth...
the mind at the same time,
and still retain the ability
to function.”
1994 US business experts
...it becomes outdated
James Collins and Jerry and creates no new ...it runs out of capital
Porras publish Built To opportunities for growth. to fund investment.
Last: Successful Habits of
Visionary Companies.

2009 In The Opposable Mind, Successful companies
Canadian business professor have to balance short-term
Roger Martin claims that and long-term thinking.
great business leaders are able
to use “integrative thinking” to
creatively resolve the tension
in opposing ideas and models. successful business has to a company’s sole focus is on new
balance two different time prospects, it will soon become
A orizons: short-term and unprofitable. As Jack Welch, CEO of
h
long-term. In the short term, a GE, said: “You can’t grow long-term
company needs cash to pay its wages if you can’t eat short-term. Anybody
and bills. But if it focuses too much on can manage short. Anybody can
the immedate present, it risks manage long. Balancing those two
missing opportunities. Conversely, if things is what management is.”