Don't Sacrifice Long-Term Growth Just to Hit Your Forecast

When you realize the forecasts you set for the quarter or year are simply not attainable, it's tempting to act drastically. But be careful how you meet your targets. Here are three tips for taking action without losing track of your long-term goals:

Maintain your capacity to grow. Your first instinct may be to slash investments that offer no near-term payoff. Cuts can boost short-term profits, but they can also inhibit a company's ability to hit longer-term growth objectives.

Don't rush ideas. Accelerating early-stage innovative ideas to plug a near-term gap can lead to an even bigger gap if those ideas collapse. Avoid trying to cover operational issues with not-ready-for-prime-time ideas.

Do more with less. The short-term pressure likely means less investment in innovation. But remember that scarcity can sometimes force helpful creativity.

Source: Harvard Business Publishing :Today's Management Tip was adapted from "Three Tips for Leaders About to Miss Their Forecasts" by Scott Anthony.

Nick Kalikajaros 2019