Author: Sonya Johnson | Biz Assist Central
In business, as in life, there is always a temptation to take the easy way out. When it comes to managing a company, this often manifests itself in the form of short-term management decisions. While these decisions may provide a quick fix or temporary relief, they almost always come with long-term risks and consequences.
Here are three of the most significant risks associated with short-term management.
1. Long-term risks are not considered.
Short-term management decisions are usually made without thinking about the long-term consequences. This can lead to problems down the road that could have been avoided if a long-term perspective had been taken from the outset.
2. May create new problems.
In many cases, short-term solutions only serve to create new problems. For example, a company might decide to cut costs by downsizing its workforce. While this may save money in the short run, it can lead to morale issues and a loss of productivity in the long run.
3. Unsustainable in the long term.
Even if a short-term management decision does not create new problems, it is often not sustainable in the long term. For example, a company might decide to slash prices in order to increase sales in the short term. However, this could lead to financial difficulties down the road if prices are not increased again once demand has stabilized.
While short-term management decisions may seem like an attractive option, they come with a number of risks that can have serious implications for a company in the long run. Therefore, it is important to carefully consider all options before making any decisions—especially when it comes to something as important as business management!