Short term vs Long term planning
Quarter Se Quarter Tak (QSQT) The task of continuously showing an ever increasing topline with a steady growth in the bottomline is akin to a tightrope walk across two skyscrapers without a safety harness– one representing the revenues and the other profits. Managing the expectations of various stakeholders has become an onerous task indicated by periodic telecon with investors and institutional investors to continuously update on the business outlook and the earnings potential. While the companies spell out short and long term objectives, increasingly it is becoming evident that the pressures to deliver in short term, overrun the policies required to deliver long term results. Most of the review meetings today start with earning per share (EPS) figures and the ability of the company to outperform on the stock market vis-à-vis its industry peers. Failure to do so in certain cases means the exit door for people at the helm of affairs. Capital is scarce and the fight to a...