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

Managers of public companies are under constant pressure to meet quarterly guidance and maximize profits, often at the expense of future profitability. Business leaders must act to ensure that the drive for short-term performance doesn’t come at the expense of sustainable value creation. Through their knowledge of the business and its human capital, CHROs are in a unique position to help senior management and boards of directors drive performance through HR- and talent-related policies that support the company’s long-term strategy. Tactics for driving performance include strategic workforce planning, forward-thinking executive compensation design, and communication to and engagement of internal stakeholders in long-term strategy.

Explore our full portfolio of thought leadership on short-termism here.