The McKinsey report says firms should create long-term value for investors only when they satisfy customers, engage and motivate employees, and maintain good relations with communities and regulators across extended time horizons. The researchers also went ahead to identify some key behaviours that managers and boards can take to reorient their organisations toward long-term value creation. According to the study, firms should invest sufficient capital and talent in large, risky initiatives to achieve a winning position just like Amazon and Microsoft. “Executives undeniably face real pressure to focus on and deliver satisfactory short-term results. However, they must weigh short-term demands against the flood of empirical evidence showing that companies that seek strong long-term results outperform companies that optimise short-term gains.”Share this story

Source: Standard Digital July 31, 2021 15:45 UTC