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Tuesday
Jan152013

Balancing the long term

I just read a great article from the Harvard Business Review, where Amazon's Jeff Bezos was interviewed as the one of the best performing (living) CEOs of a company. You can read it here. The take out message for me was a really powerful idea that when companies focus on the long term, it ensures that customers and shareholders interests are aligned, if companies are focused on short term outcomes only, the interests of one or the other can be out of sync.

It reminded me of the four perspectives a company should consider when applying a balanced scorecard approach.

 

  1. Has performance been in the interests of the owners?
  2. How do customers evaluate the company?
  3. What are the internal resources and capabilities of the company?
  4. In what areas does the company need to innovate?

 

Sometimes it can feel counter intuitive to make decisions that have a long time horizon, often without the immediate pay back that satisfies short term KPIs, but taking this approach can help your business achieve the game changers that ensure a company's survival and long term relevance.

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