The Short-Term Mindset
I am often asked whether I believe business leaders deliberately get in the way of high performance. The answer to that is an emphatic “no.” Sometimes people are just not good managers – they don’t have the right skills to foster environments in which people can do their best work. However, a much larger problem is the effect of short-term focus on performance.
Companies are today under constant pressure to reduce expenses, cut staff and live quarter to quarter. This may drive short-term profits, but it’s killing high performance.
The way companies are cutting is harming their ability to grow profitably. Instead of discussing how to solve the problem with workers, they unilaterally mandate cuts. This often demoralizes high performers and takes away the resources they need to do their best work.
What is the effect of short-term thinking on performance at your company? How does it get in the way?