Question

What should be longterm focus of management for the issue?

Answer 1

To be successful in business, you need to focus on both the short and the long term. You give short term focus to issue that are concrete, immediate and predictable. Quarterly reports place focus on the short term for example. Long term focus relates to issue that are more vague, uncertain and perhaps visionary. Long term vision gives your company direction.

Many business exhibit short termism, the tendency to focus on the short term and ignore the long term. The plague of short termism in business is seductive because it deals with practical concerns rather than big picture issues that do not appear to have a direct effect on the bottom line or short term profitability.

Short termism can undermine your company 's success.If your internal reports focus on tracking revenue targets achieved over a 90 days period for example you may miss key indicators that are only apparent when you take a longer view.

Unless someone keeps an eye on the on the longer term, no one has a reason to look up and, therefore will not see the bigger picture or recognize important changes in the business and global environment. This lack of awareness makes your company vulnerable and likely to be taken by surprise.

The solution is to balance your long and short term focus. Doing so is essential for your business's financial success and it's sustainability