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Workplace Engagement InsightsLatest Employee Engagement NewsWorkplace EngagementHow Can Business Leaders Break the Cycle of Short Term Thinking?

How Can Business Leaders Break the Cycle of Short Term Thinking?

WestJet-employee-engagement

I recently wrote a short article on short term thinking and the problems it inevitably creates. In that article, I mentioned Mark Wiseman’s panel discussion with the Institute of Corporate Directors (ICD) about short termism.

We now have access to the full report Mark Wiseman referred to – and I highly recommend reading it. Click here to read the report, “Where Boards Fall Short”.

Here are some sobering statistics from the article:

  • Only 34% of directors surveyed agreed the boards they served on fully understood their companies’ strategies.
  • 47% (the most frequent response) of C-suite executives identified the company’s board as responsible for their organization’s overemphasis on short term results and under-emphasis on long term value.
  • 50% of sitting directors agreed that regularly communicating the company’s long term strategy and performance would be an effective way to alleviate the pressure to maximize short term returns

How Can Business Leaders Break the Cycle of Short Term Thinking?I encourage you to read the full article; and as you do so, think about your role as a director or as the CFO of a business. 

Are we letting the industry analysts, the brokers, and the earnings expectations drive short term thinking? Does the cycle need to be broken? How can we break the cycle? What can we do as directors to make sure that our company doesn’t become a victim of an activist shareholder? 

You will find some answers to these questions in the article. It is important for company boards and senior executives to address these extremely well-researched findings and make sure they are well-placed to avoid the pitfalls out there.

Look to Your Biggest Asset for Long Term Returns

The duty of a board of directors, and therefore the de-facto responsibility of management, is the long term sustainability of the company.  

In my opinion, that must include looking at your single biggest asset: PEOPLE.  

You can start on that journey by measuring employee engagement and taking deliberate steps to build the company and culture through your people.

Many great companies are doing this and succeeding! FedEx? Google? Apple? Do we need more proof?

>> Workplace Engagement Insights can help you create a high performance culture in your company and improve your long term prospects. It starts with an employee engagement survey. Contact me for a free 30 minute consultation.

Get my free cheatsheet to help you take steps in the right direction today! Download “Improving Employee Engagement in Just 10 Minutes”.

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Written by Dwight Lacey

Dwight Lacey

Dwight is the President at Workplace Engagement Insights. He leads Workplace Engagement Insights with a clear understanding of the latest employee engagement research, survey best practices, and leadership styles that create successful businesses.

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