Jan 312013
 

One of my fellows in the world of product cost and design, Mike Shipulski, just posted the following:

The Middle Term Enigma

 

 

The general synopsis of it is:

  1. Firms focus more and more on the short term
  2. The “short term” is shorter and shorter.
  3. Short term leads to minimization and typically damages long term success
  4. On the other hand, the firms (especially execs) fear the long term plan as expensive and risky
  5. So why not focus on the “medium term”

Our Opinion:

Mike is right.  The short term thinking kills companies and actually wastes a lot of time and money – paradoxically.

I would offer the following addition:  Short, Medium, and Long term all have their places, but there has to a be a thoughtful and maintained plan for each. You just can’t make a plan today and then look at it in a year.  Every 2-3 months, you should be re-assessing and moving the plan accordingly.  However, you should not see whipsawing, but just gentle, organic fine tuning as you gain more information.

I also would like for Mike to define the Short, Medium, and Long term.  I realize that this changes product to product, but a general guideline would be helpful.

 

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