4 ms·
Maybe then for certain industries the quarterly report goals have to be replaced by yearly reports & 10 year plans? So that pursuing short term gains cannot be
by artemonster 6y ago
Maybe then for certain industries the quarterly report goals have to be replaced by yearly reports & 10 year plans? So that pursuing short term gains cannot be exploited and be damaging in long term?
I think publicly owned company model is not comptible with high investment high risk businesses (which are usually all tech/hardware businesses, like space, aero, semi, etc)
- mschuster91 6y agoThe problem with 10 year plans is that they are far too fixed. The Soviet Union and every other realsozialist country failed with 5 year plans. What's needed, though, are 10-50 year visions: basically, management plans "where do we want to be in a long period of time" and owners commit to that. That is the reason why the German family-owned Mittelstand is so successful - they are not bound to ever changing demands (especially not of "activist shareholders").
- MacsHeadroom 6y agoChina is doing pretty good with their 100 year vision and 5 year plan cycle. (This year marks the end of their current 5 year plan.) Of course, China is the largest corporation on Earth. Some perhaps some smaller version of that is more ideal for smaller corporations.
- throwaway2048 6y agoQuarterly reports didn't start mattering in a vacuum, any more than the fact that a calendar is broken into days and weeks causes people to focus on daily and weekly timetables to the detriment of yearly and decade long ones.