"When a CEO's mandate shifts from "build for the future" to "deliver results this quarter," even the best strategies can start to erode an organization's long-term competitiveness. Under pressure from investors, boards, or incentive structures that reward immediacy, even well-intentioned CEOs often default to visible short-term moves, such as cost cuts, restructures, or product launch delays, to signal responsiveness. These actions may boost near-term earnings but often create hidden costs that compound over time: lost momentum, declining trust, and the quiet exit of top talent."
"Under pressure from investors, boards, or incentive structures that reward immediacy, even well-intentioned CEOs often default to visible short-term moves, such as cost cuts, restructures, or product launch delays, to signal responsiveness. These actions may boost near-term earnings but often create hidden costs that compound over time: lost momentum, declining trust, and the quiet exit of top talent."
When a CEO's mandate shifts from focusing on long-term building to delivering immediate quarterly results, organizational strategies and competitiveness begin to erode. Pressure from investors, boards, and incentive structures that reward immediacy drives even well-intentioned CEOs toward visible short-term moves. Common short-term measures include cost cuts, restructures, and delayed product launches intended to signal responsiveness. Those measures can boost near-term earnings while creating hidden costs that compound over time. Hidden costs manifest as lost momentum, declining trust among stakeholders, and the quiet exit of top talent, undermining long-term innovation and market position.
Read at Harvard Business Review
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