Is Short-Term Behavior Jeopardizing the Future Prosperity of Business? (CFO Strategic Implications)

Managers of public companies are under constant pressure to meet quarterly guidance and maximize profits, often at the expense of future profitability. Public companies are dying faster than ever, and these contracting corporate life spans are, on average, diminishing long-term value creation, making it more important than ever that business leaders act to ensure that the drive for short-term performance doesn’t come at the expense of sustainable value creation. CFOs can play a critical role in developing and driving a strategy that balances long-term value creation with short-term fiscal concerns and ensuring that the company’s long-term strategy and performance are communicated effectively to all stakeholders.

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