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Strategy, Growth Article, short-term earning
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Article at a glance:

Balancing short- and long-term performance

Achieving long-term shareholder value is a delicate balancing act. While executives must plan for the long haul, few can afford to ignore the investor’s demand for strong quarterly results. Our research has identified traits of companies that were successful in both the short and the long term.

The take-away

Companies that instill a long-term mind-set among their leaders are more adept at juggling current opportunities with those providing for long-term growth. Their chief executives have longer tenures, and their stock prices are less volatile.

This article includes the following exhibit:
  • Exhibit: Short- and long-term performance of S&P 500 companies, 1984–2004

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