To mitigate the risks associated with myopic management, businesses can adopt several strategies:
Balanced Scorecard: Implement a balanced scorecard approach that includes both short-term and long-term performance metrics. Long-term Incentives: Design executive compensation packages that reward long-term success, such as stock options that vest over several years. Stakeholder Engagement: Engage with a broader range of stakeholders, including employees, customers, and the community, to ensure decisions are balanced and sustainable.