“If there is mounting pressure to deliver short-term results at the enterprise level, then the first step in resisting the pressures of short-termism is to correctly identify their source, but what is the root cause of short-termism at the enterprise level?”
Short-termism in big business is still under debate for some people. One of these naysayers would inevitably point out that if there was really an issue then there should have been a downturn in corporate profits over the last fifty years. We’ve been doing okay, there has been a suspicious lack of such a trend, but it is also self-evident that indigenous innovation has been dropping since the 1970s. Corporations aren’t coming up with as many truly new ideas. We aren’t solving the big problems. That’s perhaps why we are still driving on non-renewable resources and all our cellphones, movies, computers, and clothes seem to be the same. So, the symptom of short-termism is not a change in profits, but the level of innovation and growth in corporations.