When I did a Google image search for ‘long term view’ the search results were filled with graphs and statistics. Funny, I was expecting to see sustainable forests, children and maybe property. Shows you how much money influences our ability to assess the long-term view!

We weigh up the long-term with the short-term on a daily basis. Raising children is not without its short-term rewards but as parents we look forward to the company of our grown children. Those of us who choose to exercise and keep an eye on what we eat do so because we feel better for it but also because we hope that in the long-term there will be a benefit to our health. Of course there is no guarantee that you won’t get ill at a later stage but we make good choices because research has shown us that it will increase our chances of a good outcome. To some extent making a choice for the long-term can be a leap of faith!

Inside our organisations we are regularly challenged to choose between a long-term and a short-term view particularly with respect to how we treat our employees. In the current economic climate we may not be able to afford bonuses and fancy team building events, but even these rewards are short-term. The question is what can you do to build for the long-term, for when the economy takes an upturn again.

Consider the employee who is experiencing job insecurity and wonders if she will be made redundant. As a result, she chooses to turn in a below average performance. In the short-term she is less stressed and justifies her actions because the organisation is not providing her with the security that she wants. After a year she has still not been made redundant and the company does well in the improved economic climate. The consequences of her reduced performance are that she receives a low bonus and misses out on a promotion.

Consider the manager who is under pressure to deliver sales in a tight market. Every team meeting is focussed on what has gone wrong and what his team need to do to make it right. His role in making it right or encouraging the team is conveniently forgotten. In the short term the sales come in and the team actually gain valuable experience. After 18 months there are signs of economic growth and competitor organisations are expanding and looking for good staff. Half of his team resign over the next 6 months in search of better working conditions. The manager is forced to recruit inexperienced staff and he is unable to take full advantage of the upturn in the economic conditions and loses sales to his competitors.

Consider the organisation that chooses to significantly reduce opportunities for employee development to save on the budget. In the short term the balance sheet looks better but without development some managers in a new business area lose sight of the strategic goals and struggle to focus and motivate their team. That business venture fails and a competitor grabs the opportunity.

The problem with ‘short termism’ is that it is short term!