In my experience leading and advising companies, I have seen time and again that the fundamental key to success does not lie solely in achieving immediate results, but in always being clear about the ultimate long-term objective. This principle, while seemingly obvious, is often lost in the day-to-day rush, especially when market pressures demand quick responses and strong quarterly results.
Long-term sustainability should be the primary objective of every organization, regardless of size. Short-term thinking may deliver fleeting wins, but it sacrifices the company’s ability to adapt, grow, and thrive in an uncertain future. Future survival, therefore, is just as relevant—if not more so—than any immediate outcome.
To maintain focus on this strategic horizon, it is essential to be clear about the shareholders’ primary objective: is it to generate ongoing income through dividends or other distribution mechanisms, or to prepare the company for a successful future exit? If the goal is to generate income or dividends for shareholders, every decision must be oriented toward that objective, both in the short and long term, avoiding the classic trap of “bread for today, hunger for tomorrow.” If the goal is an exit, every decision within the company must be aligned with value creation—whether by increasing EBITDA, growing the user base, boosting recurring revenues, strengthening brand value, achieving technological differentiation, or expanding the customer base—while also ensuring the responsible use of funds from successive investors and/or retained earnings.
However, this strategic alignment does not happen by chance. It requires a firm commitment from all shareholders, a solid and clearly defined strategic plan, and a robust Balanced Scorecard that allows for the monitoring of the critical KPIs that lead toward the ultimate objective. These elements form the framework that guides all decisions and ensures that the organization’s end goal remains front and center.
That said, rigidity is the enemy of business success. Markets are dynamic, and circumstances can change unexpectedly. When they do, it is essential to maintain flexibility in operational strategies, as long as those adjustments remain aligned with and oriented toward the main strategic objective.
Active shareholder involvement is critical in this process, particularly through the Board of Directors. Its role must be clearly defined: to set and safeguard the strategic vision, exercise appropriate oversight over management, and serve as a space for analysis and reflection on the most consequential decisions. The CEO, in turn, must have sufficient room to make operational decisions, ensuring that both he or she and the management team are fully aligned with the company’s ultimate objective.
In summary, maintaining a clear long-term strategic purpose is vital to ensuring not only immediate success, but also the company’s long-term survival and sustained growth. Only in this way can we build resilient organizations capable of enduring over time, generating real and lasting value for shareholders, employees, customers, and society as a whole.