The pressure on businesses to deliver immediate results has never been greater.

Quarterly earnings targets, investor expectations and digital performance metrics have created an environment where short term wins take precedence over long term strategy. But at what cost?

Not only is sustainable growth more responsible, it’s also more resilient. It’s the businesses that build for the long term, with purpose and integrity, that are better equipped to weather disruption, adapt to change and earn lasting customer loyalty.

Across multiple industries we’re seeing businesses with less stakeholders thrive because they’re nimble enough to take a long-term view. They’re building with clear intent, not just chasing growth.

And central to that is talent. Picking up the right people at the right time, with the right mindset. Because without the right team behind the strategy, sustainable growth simply doesn’t stick.

The dangers of short-termism

Short-termism may win quarterly headlines but regimented polices mean you lose the ability to adapt when the markets shift.

Look no further than food and drink giants that cut media or innovation budgets to hit short-term margins, only to be outpaced by disruptors such as Liquid Death or Vegan Fried Chicken whose long-term plans keep them relevant.

Never has it been as important to avoid short-termism than today, when consumer behaviour is changing as we speak. We are all glued to socials, and the number of people using AI is growing daily so this pace of change is only going to increase.

So, if this is pretty common knowledge, why do so many businesses cater to the short term?

Well, it’s partly structural: quarterly reporting cycles drive leadership to prioritise immediate gains. And simultaneously cultural too, who doesn’t get a bit of comfort with a visible win each month?

Yet according to a 2023 McKinsey report, businesses that focus on long-term value creation rather than quarterly results perform better on key financial metrics, including ROI, profitability and market value.

The market rewards vision as much as delivery. Independent, free-thinking businesses thrive because we reframe the conversation not as “what did we achieve this quarter?” but “what trajectory are we on?”

Sometimes leaders need to resist the immediate noise to shape the future.

Why look to the future then?

Continue reading at Business Age