Why Do Businesses Fall into Short-Sighted Decision Making?
Several factors can contribute to short-sighted decision making:
1. Pressure for Immediate Results: Stakeholders and shareholders often demand quick returns on investments, pushing managers to deliver fast results. 2. Quarterly Reporting: The focus on quarterly financial performance can lead to decisions that benefit short-term earnings but harm long-term viability. 3. Lack of Vision: A company without a clear long-term strategy might focus on short-term wins as a substitute for a well-defined future plan. 4. Competitive Pressure: The need to stay ahead of competitors can lead to cutting corners and adopting risky strategies for immediate advantage.