Peppers Unplugged: Short-termism Kills
In my latest video blog, I look at the peanut salmonella outbreak from a business perspective. Short-term thinking by Peanut Corp. of America led to catastrophic circumstances.
Executives knew they had tainted food, but shipped them out anyway to maintain current revenue. Now eight people are dead, 500 are sick, and the government is figuring out how to charge company officials. And any long-term revenue by Peanut Corp. is gone, as is their entire company, most likely.
Watch the Peppers Unplugged video, "Short-termism Kills" to learn more.
Related Entries
Short-termism directly led to lending crisis as well. Loans were made that lending institutions knew in advance were inappropriate for the borrower were granted. This ultimately led to the downfall of the lending institution. Had they truly valued customers they would have developed other ways to support the financial goals of those unqualified loan applicants and passed on the loans. Perhaps this recession/depression will result in the share-price, short term mentality to be balanced by equal consideration of what's the right thing for the customer and what's the right thing to do for the long-term sustainability of the company and the customer.