The Marathon, Not The Sprint: The dangerous allure of instant gratification for Boards and Leadership

In today's fast-paced business landscape, the allure of instant gratification and quick success can be enticing for enterprises. The pursuit of immediate results often leads to the adoption of extremist choices to expedite organizational goals. However, this short-sighted focus can result in the wastage of valuable management bandwidth when organizations fail to persist with projects and strategies that require time to manifest outcomes aligned with long-term objectives. The consequences of this fixation on instant gratification are profound and can ultimately wear organizations down. High levels of burnout, attrition, erosion of culture, and a loss of purpose are common by-products, and these issues significantly impact organizational performance. This article serves as a guide on how to resist the allure of instant success and instead focus on investments that foster growth, scale, perpetual success, and employee well-being. It underscores the importance of balancing short-term pressures from stock markets and financial investors with the long-term vision set by Boards and Leadership. These arguments are reinforced by relevant data that highlight the negative consequences of prioritizing short-term gains over long-term sustainability.

?The Temptation and Pitfalls of Instant Success

Instant gratification may promise a quick route to success, but it often comes at a steep cost:

High Burnout Rates:

Research, including studies by the American Psychological Association, consistently demonstrates that organizations fixated on instant success tend to experience higher levels of employee burnout. The relentless pursuit of immediate results places undue stress on employees. Excessive stress and anxiety trigger cortisol release, impairing memory, focus, and decision-making, reducing productivity.

Elevated Attrition Rates:

Data from the Society for Human Resource Management (SHRM ) suggests that organizations that continually shift their focus in pursuit of instant success face higher attrition rates. Employees are more likely to leave when they perceive their work environment as inconsistent and short-sighted.

Erosion of Organizational Culture:

The Corporate Culture and Performance report from Harvard Business Review underscores that an excessive emphasis on immediate gratification can corrode an organization's culture. This leads to a decline in employee morale, engagement, and a loss of a shared sense of purpose.

?The Impact on Organizational Performance

Decreased Employee Engagement:

Research conducted by Towers Watson reveals that organizations prioritizing instant success and immediate rewards report significantly lower levels of employee engagement. Engaged employees are integral to the performance of high-achieving organizations.

Suppression of Innovation:

The pursuit of instant success can stifle innovation within an organization. Data from a study by Accenture Strategy indicates that organizations emphasizing long-term strategies tend to foster more innovative environments.

Diminished Long-term Profitability:

Research published in the Journal of Financial Economics as well as one done by McKinsey indicates that companies focused on short-term gains and extremist strategies tend to underperform their peers over the long term.

?The Need for Balancing Short-Term and Long-Term Goals

"The best time to plant a tree was 20 years ago. The second-best time is now." - Chinese Proverb

This proverb aptly illustrates the principle of taking action today to reap rewards tomorrow. Boards and Leadership must understand that long-term investments are the seeds for future prosperity.

"Perseverance is not a long race; it is many short races one after the other." - Walter Elliot

Walter Elliot's quote underscores that sustained success requires a series of strategic actions. Boards and Leadership must grasp that achieving organizational goals is not a single sprint but a marathon of well-planned, methodical steps.

?A Call to Action for Boards and Leadership

?Cultivate a Long-term Vision:

Boards and Leadership must nurture a clear, inspiring long-term vision for the organization that goes beyond immediate achievements. This vision should emphasize growth, scalability, and the well-being of the workforce as key components of success. Apple and Tesla are probably the best examples.

Prioritize Employee Well-being:

The well-being of employees should be at the core of organizational strategy. Support programs, flexible work arrangements, and a healthy work-life balance are essential for reducing burnout and attrition. Based on AON’s National Wellbeing survey post Covid 85% or organisations surveyed reported mental resilience had a direct impact on their financial performance.

Promote a Positive Culture:

Boards and Leadership should cultivate a robust, inclusive organizational culture that fosters teamwork, innovation, and a shared sense of purpose. Employees should feel proud to be part of the organization and motivated to contribute to its long-term success.

Invest in Continuous Learning:

Developing leadership capabilities and providing ongoing training are essential for building a strong leadership pipeline. Leaders should be equipped with the skills and knowledge required to navigate complex challenges and make informed, strategic decisions for the long-term benefit of the organization.

?The pursuit of instant gratification and extremist choices may offer fleeting moments of satisfaction, but the ultimate cost is high. Boards and Leadership must acknowledge that unwavering focus on immediate results can come at the expense of employee well-being, culture erosion, and long-term profitability. Sustainable growth, scalability, perpetual success, and employee well-being should be the guiding principles for every decision. As you guide your organization into the future, remember that long-term success necessitates a thoughtful balance between the next quarter and the next quarter century. The data and insights provided offer a compelling argument for prioritizing the well-being of your workforce and the long-term health of your organization. This path leads not just to success but to enduring prosperity and purpose, despite the pressures from shareholders and external stakeholders.

-??????? Rituparna Chakraborty – Co-founder TeamLease, Independent Director

#Leadership #Sustainability #BusinessGrowth #BalanceMatters #LongTermSuccess #corporategovernance #CEOs #Boards #BoardGovernance

Previously published in https://www.moneycontrol.com/news/opinion/the-marathon-not-the-sprint-the-dangerous-allure-of-instant-gratification-for-boards-and-leadership-11611991.html

You can follow me on

twitter - https://twitter.com/ritu205