Navigating the Time Dilemma in Business Strategy

The dance of time in the realm of business strategy is captivating! The intriguing dichotomy between short-term and long-term goals is not unlike the delicate balance between the tempos and time signatures of a symphony and its flutter of melodies, with the sharp, immediate crescendo of fanfare. Each plays a crucial role, the former being the fruit of patient planning, poised to pay dividends in a far-off future. The latter, on the other hand, always demands attention to be thought about first. It represents the pressing concerns of the present, the immediate tasks that demand our attention here and now. A successful entrepreneur, or for that matter, any business leader, is often found perched on the tightrope of time, trying to maintain equilibrium between these two. Successfully managing the delicate balance is nothing short of a skill of elegance.

In the world of business, as in music, timing is everything. One must master the art of hitting the right notes at the right time. An enterprise's survival often depends on how effectively it juggles the immediate targets and the future vision, short-term goals that bring quick returns, and long-term objectives that promise sustainable growth and continuity.

However, the cacophony of this confluence isn't always harmonic. The discord often arises from the fact that these goals can be at odds with each other. Immediate profit maximisation might require cutting corners, compromising the quality or sustainability that forms the bedrock of long-term success. Similarly, excessive focus on future plans might ignore the pressing needs of the present, leading to immediate setbacks.

Thus, I invite you to join me as I venture forth on this expedition to explore such a challenging yet fascinating aspect of business strategy. I will ponder the allure and pitfalls of short-term goals, the power and challenges of long-term objectives, and finally, attempt to strike a harmonious chord between the two. And do let me know your own thoughts on how to choreograph this dance of time. 

The Power and Challenges of Long-Term Goals

Ah, the seductive sonata of long-term goals. They are the alure and anticipation of a crescendo in our symphony, the ambitious refrain that pulls us toward an envisioned future. 

Research by Edwin Locke and Gary Latham, two of the foremost voices in goal-setting theory, suggests that setting specific and challenging long-term goals can lead to better performance. In their 1990 paper,  "A Theory of Goal Setting & Task Performance,"  they argue that high goals lead to greater output levels than do easy goals or 'do your best' exhortations, a concept that they call 'goal difficulty.' A person or a company with a higher aspiration, therefore, has a greater propensity to perform better, much like a musician aiming to master an intricate symphony as opposed to a simple melody. 

There is clearly a great power that arises from embracing long-term thinking. A classic example is  Amazon's 'Day 1' philosophy.  Founder Jeff Bezos, in his 1997 letter to shareholders, coined this term to reflect a commitment to long-term thinking - customer obsession, a sceptical view of proxies, eager adoption of external trends, and high-velocity decision making are its key tenets. These principles, built on the solid rock of long-term thinking, have guided Amazon's journey from a humble online bookstore to the behemoth it is today.

It's not just corporations, but nations too that have benefited from long-term goals. The United Nations' Sustainable Development Goals (SDGs), adopted in 2015, are a set of 17 global goals designed to be a "blueprint to achieve a better and more sustainable future for all" by 2030. These are complex, long-term objectives addressing diverse issues such as poverty, inequality, environmental degradation, and peace and justice. The very existence of these SDGs indicates an international recognition of the power of long-term planning to address systemic and ingrained issues.

The power of long-term goals becomes even more evident when we turn our attention to science and technology. In an interview with the Financial Times in 2019, Google’s CEO, Sundar Pichai, reinforced the tech giant’s commitment to ‘moon-shot’ projects and long-term thinking, stating, "I view our position as similar to computer science in the 1970s and 1980s, and it's our responsibility to figure out how to evolve it." This mindset of long-term investment in revolutionary technologies underlies not only Google's success but the entire growth trajectory of the Silicon Valley tech industry. 

Just to labour the point further. A Harvard Business Review article, "Research: Firms Give More Stock Options When They're Committing Fraud" by Shivaram Rajgopal, offered some striking insight into this. The study from 2016 discovered that companies with a long-term focus tend to invest more in the future, in terms of capital, R&D, and employee development, leading to increased economic and innovative output.

But, to be fair, there’s a twist in the tale. Much like a complex piece of music that takes time and effort to master, long-term goals present their own set of challenges and demands. 

Although Locke and Latham's research provides strong support for the benefits of long-term goals, they can also seem dauntingly far off and abstract. The distance itself may lead some to loss of motivation. Just like the arduous journey of learning a musical piece that requires persistence and patience, staying committed to long-term goals demands resilience.

Entrepreneur Elon Musk, who is no stranger to lofty long-term goals, offered an insight into this struggle in an interview with WaitButWhy in 2015, saying, "If something is important enough, even if the odds are against you, you should still do it." Musk's ventures SpaceX and Tesla were both fuelled by ambitious long-term goals and faced substantial challenges. Despite widespread scepticism and numerous setbacks, Musk's unwavering focus on the long-term vision has yielded remarkable results. For anyone who watched the stock price bounce like a ball as it was continuously shorted for many years, persistence and patience was a distinct requirement. 

As the Canary Wharf pin host I was enlightened by Simon Zutshi’s continual commitment to pin meetings. That they only needed to wash their face was a testament to that commitment, and the long term vision of them provided a deeper purpose than monetary gain. 

The journey is rarely straightforward. As per research conducted by the University of Scranton, a staggering  92% of people fail to achieve their long-term goals.  But does this mean we abandon the pursuit? Quite the contrary. The trick, as we shall discuss in the following sections, lies in understanding how to strike the right balance between the immediate and the distant, the short-term and the long-term - a concerto of harmonious integration, if you will. 

The Allure and Pitfalls of Short-Term Goals

Now let's delve into the electrifying realm of short-term goals, much akin to exciting, vocal acrobatics in a rock concert. Short-term goals are the melodies and solos that infuse energy into the day-to-day operations of a business. They provide immediate feedback, a gratifying sense of accomplishment, and the drive to power through.

Short-term goals are akin to the catchy tunes we find ourselves humming without realizing it. They infuse rhythm into our daily operations, keep the wheels turning, and the lights burning. They offer a clear direction, measurable outcomes, and the gratification of immediate results. We can see the effects of our decisions, feel the pulse of our actions, and adjust our course as necessary. They offer invaluable lessons in decision-making, risk-taking, and resource allocation, teaching us to navigate the ever-changing landscape of the business world.

Indeed, let us dive further into the labyrinth of short-term goals and their enchanting allure. They often act as the adrenaline that keeps the heart of the enterprise pulsing, as also revealed by the research from Dominic Barton of McKinsey and Company. In his co-authored piece, "Where companies with a long-term view outperform their peers"  (2017), he has observed that the pressure of delivering immediate returns often pushes companies into the short-termism abyss. It's like the intoxicating beats of a fast-paced musical piece that demands your immediate attention but leaves little space for a melodious symphony to unfurl.

So, just as with a pop song, especially when overplayed, the constant fixation on short-term goals can become repetitive and exhausting. Many a time, businesses find themselves trapped in the hamster wheel of short-term profitability, caught up in the frenzied pursuit of immediate gains, and reacting to urgent distractions. This narrow focus on the immediate horizon can cause a company to lose sight of the broader, and often more complex or subtle picture. The constant drive for quick results can lead to myopic decisions, compromising quality and sustainability. When the focus shifts to instant gratification, long-term vision may become obscured, leading to potentially damaging long-term consequences.

Consider, for instance, a business that becomes so fixated on increasing its quarterly profits that it resorts to cost-cutting measures that compromise the quality of its products. While this may lead to a temporary boost in earnings, over time, it may lead to a loss of consumer trust and, ultimately, a decline in market share.

Similarly, a relentless pursuit of short-term targets could lead to employee burnout, due to decreased morale and increased turnover. As short-term goals often involve pressing deadlines and high-stakes outcomes, they can create a high-pressure work environment that's counterproductive in the long run. 

At the same time, there's a risk of short-term objectives leading to a kind of business myopia, where one loses sight of the grand vision while wrestling with immediate concerns. Jeff Bezos, founder of Amazon and Blue Origin, speaks to this danger in his 2016 letter to shareholders, where he emphasised the need to remain stubborn on the long-term vision while staying flexible on the details. Bezos' belief is echoed in Amazon's journey, which has been marked by long-term bets like Amazon Web Services and Kindle, which faced scepticism initially but turned out to be monumental for the company's success.

As short term goals erode the long term business vision, the belief of the team in that vision is diminished. Over time, the engagement of the team lessens, the effort becomes transactional, and the grass may begin to appear greener elsewhere. The picture that unfolds is a loss of the best team members, and a sluggish approach from what’s left. 

It is clear then, that while the attainment of short-term goals brings immediate gratification and a sense of progress, it can also be a double-edged sword. If not carefully managed, an undue focus on the short-term can derail us from our grand vision and long-term objectives, akin to getting lost in the technical mastery of an individual music piece, and losing the harmonious symphony of the entire concert.

So while the allure of short-term goals lies in their immediacy and the tangible results they deliver, their pitfalls emerge when, or as, they dominate the strategic direction of a company. Becoming so entranced by the infectious beat of a drum, you can indeed lose the melody and structure altogether. The challenge, then, lies in finding the right balance between this energetic rhythm and the harmonious symphony of long-term vision. And to this delicate balancing act, we shall turn our attention next.

Balancing Quick Wins with Enduring Vision

The trick then is to maintain a jazzy swing to the timing of business goals, one that is replete with improvisation and spontaneity that return with ease to the stability provided by drums and bass. 

According to the Wharton School of the University of Pennsylvania's Katherine L. Milkman and her team, the key to achieving long-term goals often lies in integrating them with short-term tasks. In a 2013 study titled "Holding the Hunger Games Hostage at the Gym: An Evaluation of Temptation Bundling," the researchers found that bundling instantly gratifying activities with those that serve long-term goals significantly improved goal attainment.

Picture a concert pianist practising scales. While the daily drill of scales might seem like a short-term task with limited immediate rewards, it contributes significantly towards the long-term goal of becoming a virtuoso performer. Similarly, businesses and individuals can leverage this approach by bundling short-term tasks, and some that provide actual satisfaction (unlike scales) with steps that move them closer to their long-term goals.

A perfect case study is provided by Indra Nooyi, former CEO of PepsiCo. She adopted a long-term strategy, called 'Performance with Purpose,' to make PepsiCo a more sustainable company. This strategy, launched in 2006, aimed to move the company's product portfolio towards healthier options, reduce environmental impacts, and uplift the communities it operates in. While it faced initial resistance due to concerns about short-term profitability, it eventually contributed to the company's financial performance and reputation in the long-term.

However, let us not forget, the balance between the two is not static and needs a keen sense of timing, just as a conductor knows when to emphasise different sections of the orchestra. As Mike Tyson once aptly put it, "Everyone has a plan until they get punched in the mouth." I’m not a fan of boxing, but answers are frequently found in unexpected places, and this quote holds true in the realm of business too. Real-world conditions can often force businesses to shift their focus from long-term to short-term goals. It is, therefore, imperative for them to remain flexible and adapt their strategy based on the exigencies of the situation, but not forget the vision on the horizon. 

The team behind TableNetwork are working with the end in mind, towards a clearly defined long term vision of helping businesses tackle adversity, and making all of the businesses, and those involved, stronger together. But the needs of today count, and as we forge towards the launch of our real estate Tables, creating methods to sell, and delivering on conversions, are exciting, challenging and necessary. It is tempting to take quick wins, make quick decisions without thorough thought, because they can produce sales. But actions must enable, not distract. TableNetwork needs to stick to its Mantra –  Add Value for Members and taking easy sales will not add value, and will not achieve the long-term vision. We want Tables to be so valuable to Members, both financially and from a personal improvement standpoint, that they cannot afford to leave, and we must draw comfort in the proverb that slow and steady often wins the race. 

The deft execution of an engaging concerto where short-term tactics are cleverly woven into a long-term strategy is important to master. Indra Nooyi’s example underscores the potency of aligning short-term objectives with the overarching melody of long-term vision. But how does one master this delicate balance between the short-term and the long-term? And what role does the environment and one's mindset play in achieving this harmony? Stay with me as we delve deeper into this intricate sonata.

Reconsidering the Dichotomy

The debate between short-term and long-term goals often conjures images of a stage, where two protagonists are set against each other in a grand confrontation. Yet, like in any great composition, it’s not so much about the solitary notes as it is about the harmonious blend.

I am reminded of the wondrous dance performed by Earl Slick and David Sanborn, as their contrasting instruments and styles complement each other throughout Bowie’s 1974 World Tour. Their exploration of each other’s talents is a significant element that makes this year, possibly the greatest of Bowie’s live eras. And an innovative approach to goal-setting recognises that there isn’t an either-or choice, but an inclusive "and." 

This shift in perspective isn't just philosophical, it's backed by robust research and real-world results. Take, for example, the  Balanced Scorecard  approach developed by Robert Kaplan and David Norton in the early 1990s. Their research, published in the Harvard Business Review, introduced a performance metric that, among other things, incorporated both short-term and long-term objectives. By enabling organisations to track financial results while simultaneously monitoring progress in building capabilities and acquiring the intangible assets they would need for future growth, the scorecard represented a sea change in strategic management. It is for this reason that TableNetwork undertakes and delivers financial appraisals for all Members’ businesses annually, enabling clarity of how long and short term goals may interact and collaborate.

Moving from the sphere of academic research to the practical world of business, I again consider Amazon. Under the leadership of Jeff Bezos, Amazon has become synonymous with an approach that effortlessly marries short-term execution with long-term vision. In the previously cited 2016 letter to shareholders,  I mentioned this dual-focus strategy with his concept of "being stubborn on vision, flexible on details." Amazon's ability to introduce innovative solutions while improving its immediate customer offerings showcases the power of this reimagined paradigm for business goal-setting.

This approach is also reinforced by Jim Collins, author of "Built to Last" (1994), who presented the idea of embracing 'the genius of the and.' Collins argues that truly visionary companies do not get entangled in the false dichotomy of 'either-or.' Instead, they embrace 'and' – they pursue multiple objectives and thrive amidst paradox and uncertainty. This also reminds me of the modern business mantra “win-win”, where the outcome is so much more than zero sum, as it is no longer ‘you-or-I’. The whole philosophy of TableNetwork is that it is not you-or-I, but the Table benefiting together.

So, it seems that we must become skilled maestros, able to conduct our businesses through a symphony of goals that ebb and flow, from the immediacy of the short-term to the visionary heights of the long-term. A new paradigm for business goal-setting, one that embraces the potential of both short-term and long-term goals, is not just plausible but essential for orchestrating enduring success in today's complex business landscape.

As we continue to write the score of our own business narratives, let us remember that each note, whether representing a short-term task or a long-term objective, contributes to the beauty of our enterprise. The artistry lies in acknowledging their individual importance while weaving them into a harmonious whole. 

Can you hear the music of success playing?

Environment and Mindset for Goal Achievement

Research has extensively illuminated the role that environment plays in shaping behaviour. The Physical Environment and Employee Behaviour study conducted by Ira S Wolfe in 2002, found that workspace design influences employee productivity and satisfaction, which indirectly affects organisational goals. So, one might say, the setting of your orchestra—both physically and psychologically—plays a vital role in the harmonious performance of your business concerto. Unfortunately, the study wasn’t well followed up with action and is now almost impossible to find, and newer studies that find the same conclusions remain largely overlooked. 

And anyway, environment alone isn't enough. Just as an orchestra requires a skilled conductor to guide it, so too does the pursuit of goals necessitate the right mindset. And the mindset is most often driven by the CEO, or leader of the business. To that end, we find ourselves looking at the idea of a 'growth mindset', coined by Stanford psychologist Carol S. Dweck. In her seminal work "Mindset: The New Psychology of Success", Dweck argues that individuals who believe their talents can be developed - through hard work, good strategies, and input from others - have a growth mindset. YouTube should be embraced more as the world’s university, so I link to a talk, albeit the book remains a very worthwhile read. Those with growth mindset tend to achieve more than those with a fixed mindset – or those who believe their talents are innate gifts.

In terms of business, it's a metaphorical score, encouraging the leader to be more open, adaptable, and ready to face challenges—attributes crucial for balancing and achieving both short-term and long-term goals. I'm reminded of a quote by Jack Dorsey, co-founder of Twitter and Square, who said in 2013: "Make every detail perfect, and limit the number of details to perfect." This resonates with me deeply, and is the cornerstone of TableNetwork’s being, as we bring leaders together to share and to learn from one another, echoing the concept of growth mindset, encouraging focus, simplicity, adaptability, and the pursuit of excellence.

Transforming Organisational Culture

No melody can capture an audience without both the lilting, fleeting charm of high notes and the anchoring stability brought by the depth of the low ones. It is in the combination that music finds its unique character, and its beauty, and it frequently reminds me of the balance to be embraced when managing a business. Fostering a dual-focus mindset within an organisation is about combining the agility and urgency of short-term goals with the stability and foresight of long-term ones. 

John Kotter, a renowned authority on leadership and change, suggests in his work "Leading Change" (1996) that an effective organisational culture values both short-term and long-term thinking. He argues that effective leaders are capable of “creating a vision,” and “communicating the vision” – tasks inherently linked with long-term goals, while simultaneously “motivating action” and “producing short-term wins” – an arena where short-term goals shine.

Evidently, cultivating this dual-focus mindset is not merely about individual leaders but is also about the culture of the organisation as a whole. The culture of a company can significantly influence its capacity to balance short and long-term goals. As an example, consider the software company Adobe. The company shifted from short-term licensing revenues to a long-term subscription-based model. This was an enduring strategic decision enacted by Shantanu Narayen, the CEO, which demanded not just a shift in business model but a transformative change in the company's culture and thinking. 

The study "Strategic Leadership for the 21st Century" by Michael Hitt, indicates that organizations with a dual-focus mindset tend to outperform their competitors. The study suggests that these organizations manage short-term pressures without losing sight of long-term objectives. They foster a culture where teams understand how their immediate tasks tie into the grander vision. Bringing it back to our music analogy, this is akin to each musician in an orchestra understanding how their individual notes contribute to the overall symphony. As the conductor, the business leader needs to communicate this vision and ensure that everyone is playing in harmony.

In the end, fostering a dual-focus mindset is a strategic choice that can create an organisational culture that dances seamlessly between the pressing needs of the present and the strategic vision of the future. A balance, it seems, is not just desirable, but integral to the symphony of success.

With this understanding of environment and mindset, we're well equipped to construct a conducive space for our business symphony. But what happens when our plans are interrupted? How can we adapt? The next movement of our composition is about to begin.

Adapting to the Unexpected Solo

A successful conductor is proficient, not only at following the score but also at improvising when a musician hits an off note or, heaven forbid, breaks a string mid-performance. Resilience and adaption in times of stress and urgency is what often sets the best leaders apart. 

In the world of business, we can think of unforeseen events positively, if we embrace them. We can, for a start, name them something that enables this. I like the term 'unexpected solos'. Whether they're sudden market changes, technological disruptions, or global pandemics, these solos can throw our meticulously planned symphony into chaos, and it’s our role, as the business leader, to turn what others see as bad luck to our advantage. We won’t always succeed, but when we do, you can be sure people will look and say “They have all the luck”.

We should look at the insightful 2019 Harvard Business Review study led by Ioannis Ioannou and George Serafeim, "Yes, Sustainability Can Be a Strategy" The study highlighted how firms with superior environmental, social, and governance (ESG) performance are more resilient to industry disruptions. The companies that performed best in terms of sustainability were those that had long-term goals and took the time to invest in sustainable practices. This shows us that a longer term outlook, enables vision beyond the current shift in circumstance, allowing us to more readily create a melody out of an unexpected solo. 

But pivoting need not be immediate and reactionary. Legendary business magnate and investor Warren Buffett, in his 2014 letter to Berkshire Hathaway shareholders, wisely noted: "The stock market is a no-called-strike game. You don’t have to swing at everything—you can wait for your pitch."  This wisdom translates directly to dealing with unplanned changes: Businesses don't have to immediately react to every disruption; instead, they can strategically wait for the right moment to act and create a new melody that enhances the overall symphony.

As such, adaptability is paramount. It's about finding the rhythm in the chaos, adjusting our baton, and leading the orchestra through the solo. It's about transforming an unforeseen interruption into a moment of beauty—a testament to the power of long-term planning and the agility of short-term adaptability. But how do we practically manage this dance between long-term and short-term goals? 

Creating Harmony

As we approach the finale of our symphony, we find ourselves reflecting on the melodies and harmonies we've experienced. Let me take a moment to weave together the various threads we've been exploring.

Striving for short-term wins can be a seductive melody; however, its alluring flourishes often hide the risks of sacrificing long-term sustainability and success. Short-term goals, akin to the fast-paced solos in our symphony, are undoubtedly thrilling and crucial for generating momentum and providing immediate wins. Yet, overindulging in the chase for these short-term victories could throw the entire orchestra out of harmony, as we saw with  Kodak's sad fate. 

On the other hand, long-term goals, like the grand crescendo of a symphony, require patience, resilience, and, crucially, an overarching vision. A conductor does not merely focus on the upcoming notes but keeps in mind the entire composition. Just as Microsoft, under Satya Nadella's watchful eye,  patiently manoeuvred their transformation, businesses must stay committed to their long-term objectives amidst the ebb and flow of short-term demands.

However, a symphony is not merely a succession of solos and crescendos. Instead, it is a harmonious blend of various elements which is much more than the sum of its parts — an amalgamation of rhythms in time, quick solos and gradual crescendos in particular keys, all working together to produce a riveting performance. Similarly, in the business world, it's about striking a balance between short-term and long-term goals, understanding when to seize immediate opportunities and when to hold back and play the long game.

But, just as with the best-laid plans, the script can take an unexpected turn. The unexpected solos — unforeseen changes and disruptions — can shake the status quo. And often our best laid plans just don’t work. Yet, as we learned from Serafeim's study and Buffett's wisdom, it is these very moments that test the resilience of our long-term vision and our ability to adapt our short-term strategies. 

As we lower our baton and the echo of our symphony fades away, a question lingers in the concert hall: Are you merely chasing after immediate solos, or are you carefully crafting a symphony of success, balanced between the immediate and the enduring, and resilient to the unexpected solos of life? 

The choice, as always, is ours. The baton is in our hands. And for my part as I try and add value to the world, without filling Tables there are no Members to add value for! So a call to action is required. If you’re a leader, or you want to be a leader in the business world, then follow TableNetwork on LinkedIn, sign up for TableTalk updates, or ask about our Application process.

As always, weaving this melody has been a pleasure, and a reminder of things sometimes forgotten. So I thank you, the leaders of the UK, for bringing me back to my thoughts.

Ed Fowkes

Jun 2023