Financial outcomes are often short-term in nature and consequently focusing too much on financial measures may lead managers to overlook other key factors that might be very important to the longer-term viability of the organization.

Question

Quizplus · Accepted Answer

Financial outcomes are often influenced by short-term factors such as market fluctuations, while long-term success of an organization depends on factors such as employee engagement, customer satisfaction, innovation, and social responsibility. Focusing only on financial measures can lead to neglect of these important long-term factors.

Financial Outcomes Are Often Short-Term in Nature and Consequently Focusing