Interesting article about Excessive “short-termism” that, as JOHN BROGDEN FAICD, MANAGING DIRECTOR & CEO of the Australian Institute of Company Directors says, has the potential to become the scourge of the modern boardroom. It pervades decision-making and inhibits the positive outcomes of board deliberations.
One quote in particular stands out for me, “Not-for-profits constantly struggle with short-termism in the form of unpredictable government funding. No listed company would be expected to operate efficiently if it couldn’t predict its income from one year to the next, so it’s unfair that not-for-profits which provide critical services to the community are expected to do so.”
Source: The Perspective