Managing for the short and long term

In the not too distant past, when time and weather permitted, I used to find myself on a stand-up paddle board on Perth’s beautiful Swan river. Over the hour-long paddle the often calm waters could turn into quite a swell depending on the wind and passing boats. Negotiating these unsteady times involved keeping one eye on the board and the shaky waters at hand and another on the horizon to ensure you stay above board, travel at a good pace and in the right direction.

So too in business, managers must have a dual focus of the microscope and the telescope in administering their organisations and making constant adjustments.

Too much focus on either could be disastrous.

These days, managers, political leaders and CEOs have decreasing tenures making focusing on the long term difficult. There may be forced to deliver short term returns such as increasing profitability, reducing costs, and providing dividends to shareholders. But whilst all of these are honourable pursuits they must be conduct…