Quarterly Earnings Forecast

John Hagel writes:

Public markets, especially in the US, do tend to put undue emphasis on short-term performance. But whos to blame for this?

Ask these same CEOs and their management teams two simple questions:

* What will your relevant markets look like five to ten years from now?

* What will your company need to do in order to thrive in these markets five to ten years from now?

Almost always, the answer will come back that theres just too much uncertainty to have a clear point of view on this. But, heres the rub: If the senior management team of acompany doesnt have a clear point of view on where the company is headed, why should investors put a lot of faith in the long-term performance of the company? In the absence of a clear and compelling long-term perspective, investors naturally fall back on short-term results.

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.