Companies need to rethink their financial, business and operating models to thrive in today’s and tomorrow’s complex and dynamic business climate. Taking a unilateral short-term perspective in business and strategy is increasingly costly. Companies who are able to re-orient towards the long-term will be better positioned to grow and deliver better and more stable financial performance than their peers, both in the short and longer term.
Long-term vs. short-term performance
Our analysis identified three key patterns differentiating long-term oriented companies from those with a more short-term focus:
- Focus on long-term value creates superior and more stable financial performance.
- Long-term oriented companies outperform their peers over the short term.
- Long-term orientation is also an effective strategy in an economic downturn.
Five key actions for CEOs
With long-term orientation leading to more stable returns, increased short-term performance and increased organisational resilience, it's imperative that CEOs take action to position their companies for long-term value creation. To get started on – or increase the pace of – the journey in your organisation, we recommend considering the following steps:
- Assess your current ability to blend long-term value creation with a shorter-term results focus
- Start to create a long-term oriented environment within your company
- Measure the impact of your long-term oriented business programs and projects against the short- to medium term performance of your company and vice versa
- Bring stakeholder management to the core of your business
- Put more emphasis on long-term value creation in all investor communications and reporting
For more insight into how to best position your company for the long term, register to download the full report.
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