suecohen posted a comment on the fact that “[...] many business leaders are doing can only be described as short-term thinking. Very few are planning for the next 12 months let alone any further. [...]” (full article here).

I think is true and also is a sad situation, because it goes beyond the problem of crisis and toward the problem of some generations of management.

It’s without any doubt a problem of a global turmoil that makes planning complex, but aiming too short gives immediate results while destroying vale in long term.

Planning in medium-long term, in my opinion is something that requires skills that in most cases current management lacks and, to be honest, the perspective of remaining within same company for a reasonable time. Both of the situations are in place at this time.

CEOs have at most 3 to 5 years before deciding (or having someone do this for them) to change company and retention doesn’t increase too much for other C level executives. Quite probably they will live for short time results and leave a company with no strategic direction.

Solutions? I don’t have in my pocket, but think that:

• working on a compensation deeply linked to results and retention could help in having executives committed to long term results.
• explaining to clients the value of a longer term planning in terms of growth of their company can increase their confidence.

This post as a comment also here