I have always advocated for organisations to be agile in this dynamic market however there should be a balancing short-term vs long-term performance goals. The organisation often tussle between immediate results and long-term sustainability.
Before trying to achieve the right balance between short-term vs long-term goals, it is important to understand what should be part of short-term and long-term goals. For me, the learning was while working with a CXO who had an advisor who was mentoring him, in a meeting the advisor asked me what it was that I wanted to achieve immediately in 3, 6, 9 and 12 months for the organisation. Without hesitation, my answer was to improve revenue and reduce costs which would involve expansion and cost optimisation. For this, I have presented him our plan for 3, 6, 9 and 12 months and all our leadership accepted it. However, he said in a simple statement that “short-term goals focus on quick wins and operational efficiency, long-term goals emphasise strategic vision and innovation”.
As a business performance and insights professional, it was a learning for me that I will never forget. All the members who were present in the meeting went back to their paper and drafted a sustainable performance goal which withstood market conditions to date.
In one word if the point is required to be explained then it would be “clarity” both for leadership and the team. Let me explain what I meant by clarity:
Particulars | Short-Term | Long-Term |
---|---|---|
Objective | Describes what the business needs to do very soon | Explain the big dreams and reasons behind your company’s existence i.e., the vision and mission statement of an organisation |
Key Characteristics | Clearly defined, measurable, challenging but attainable, motivational. | Broad and strategic, ambitious, motivating, and positive. |
Timeframe | Less than one year; a week, month, or year | 3, 5 or 10 years |
Flexibility | Rigid but realistic. | Adaptable, should change based on circumstances or new information. |
Example | Increase quarterly sales by 10%. Implement a new customer feedback system within the next month. Reduce operational costs by 5% by the end of the quarter. Launch a new marketing campaign within the next two weeks. Conduct employee training sessions on new software by the end of the month. | Expand into new international markets within the next three years. Achieve a 20% increase in market share over the next five years. Develop and launch a new product line within the next two years. Become a market leader in sustainable business practices within the next decade. Establish a company-wide mentorship program to foster professional growth over the next five years. |
As we now know about what are short-term and long-term goals. However, we still make mistakes because if usually miss one more dimension which is the pros and cons. Therefore, before delving into how to develop a balanced goal let’s look into their pros and cons:
The strategy for developing balanced performance goals are as follows which is purely based on my experience and learning over a decade:
Apple exemplifies successful balance:
Balancing short-term wins with long-term vision requires strategic thinking, agility, and a commitment to organisational purpose. Remember that sustainable success lies in harmonising both horizons.
If any suggestions/recommendations or help are required, please feel free to contact me.
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