Study shows ‘short-term thinking’ leads to poor results

Corporate leaders need to become more sophisticated in measuring the success of their work groups, going beyond short-term financial gains to develop metrics that measure long-term potential, according to Susan Annunzio, adjunct professor of management.

Annunzio, chairman and CEO of the Hudson Highland Center for High Performance and author of Contagious Success (Portfolio, New York City, 2004), shared results of a first-of-its-kind global study of more than 3,100 of the highest paid, best educated people from top companies in the world at a session of Meet the Professors hosted January 19 at Gleacher Center by the Chicago GSB Club.

The survey showed that 77 percent of workers believe their work groups achieve high performance, but when asked whether their groups either grow profits or revenues, or bring new products or services to market, only 10 percent could back up their claims, Annunzio said. Another 30 percent said their groups used to be high performing.

Why? The No. 1 answer, around the world, was short-term thinking, she said.

Groups that remained high performing shared three main qualities: they made employees feel valued, optimized critical thinking, and seized opportunities. Difference of opinion was valued and respected, she said.

While some work groups achieve short-term financial results the wrong way, such as intimidating employees into producing more, such results never last, Annunzio said. And financially nonperforming work groups probably could be profitable if they could cross match and learn from already high-performing groups, she said.

Another key to boosting performance is improving lines of communication and encouraging employees to speak out through tell-all meetings, Annunzio said. In order for this type of meeting to work, the CEO has to say, ‘It’s OK for you to say things you're afraid to say,' she said. Often what’s missing is the human dialogue.

 

Ed Finkel