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Why Do We Need More Long-termism in the Age of Impatience?

Mar 25-2025   




*This article is based on a speech by Gong Yuzhen, Professor of Management at NSD, Associate Dean and Academic Director of BiMBA of PKU.

 

Short-termism Can Cause Long-term Damage

Long-termism is difficult, but why should we choose it anyway? Simply because short-termism will cause damage in the long run.

The first damage that short-termism does to management is at the leadership level. Individual leaders who are short-termists are bound to show a lack of vision and selfishness. Those who lack vision are doomed to fail, and those who are selfish are doomed to have no followers.

The second danger lies at the decision-making level. If you focus too much on immediate performance, you will neglect other more important things, which will instead create more and more problems for the company and damage its long-term development.

The third danger is at the organizational level. Organizations that are used to making a quick buck do not have solid roots and cannot develop their core competencies.

In terms of fundamentals, short-term behaviour appears to be a rational choice on the surface, but in the long run it is actually irrational, because such short-term behaviour is trading tomorrow for immediate benefits.

 

The Value of Long-termism

The choice between short-term and long-term is really a process of resource allocation. Short-termism is investing resources in the present and reacting passively to changes in the environment, while long-termism is investing resources in the future and actively shaping one's own destiny.

Why on earth do we need long-termism?

First, in terms of purpose, a sense of direction and motivation are two very important requirements for success in life and in organizations.

Secondly, in terms of cognition, long - termism gives us a new cognitive framework that allows us to see, in a longer time dimension, what the real dynamic is.

Third, in terms of action, long-termism can give far-reaching meaning to our immediate actions, giving consistency and continuity to our efforts.

Fourthly, from a competitive point of view, long-termism is the best option for getting out of involutionary competition.

 

How Can We Become a Long-termist?

First, long-termism is an awakening.

To be a long-termist, we must recognize that there is short-termism within all of us. This is the reality we must first recognize and acknowledge. Therefore, we will always be on guard against the impulse to be a short-termist, and we must consciously choose and continually strengthen our long-termist traits.

Second, long-termism is a belief.

Long-termism is about decisions for the future, and the future is uncertain and not yet a reality. So when people lose faith in the future, they abandon long-termism and pursue short-term interests.

Specifically, I believe we need the following six points of 'belief'.

First, we need to believe in the power of the long term; second, we need to believe in the power of faith; third, we need to believe in the power of symbiosis; fourth, we need to believe in the power of fundamentals; fifth, we need to believe in the power of focus; and sixth, we need to believe in the power of goodness.

Finally, long-termism is a practice.

In the process of adhering to long-termism, you will doubt and hesitate, but this is actually the process of growth and maturity for you and your organization.

Why Do We Need More Long-termism in the Age of Impatience?

Mar 25-2025   




*This article is based on a speech by Gong Yuzhen, Professor of Management at NSD, Associate Dean and Academic Director of BiMBA of PKU.

 

Short-termism Can Cause Long-term Damage

Long-termism is difficult, but why should we choose it anyway? Simply because short-termism will cause damage in the long run.

The first damage that short-termism does to management is at the leadership level. Individual leaders who are short-termists are bound to show a lack of vision and selfishness. Those who lack vision are doomed to fail, and those who are selfish are doomed to have no followers.

The second danger lies at the decision-making level. If you focus too much on immediate performance, you will neglect other more important things, which will instead create more and more problems for the company and damage its long-term development.

The third danger is at the organizational level. Organizations that are used to making a quick buck do not have solid roots and cannot develop their core competencies.

In terms of fundamentals, short-term behaviour appears to be a rational choice on the surface, but in the long run it is actually irrational, because such short-term behaviour is trading tomorrow for immediate benefits.

 

The Value of Long-termism

The choice between short-term and long-term is really a process of resource allocation. Short-termism is investing resources in the present and reacting passively to changes in the environment, while long-termism is investing resources in the future and actively shaping one's own destiny.

Why on earth do we need long-termism?

First, in terms of purpose, a sense of direction and motivation are two very important requirements for success in life and in organizations.

Secondly, in terms of cognition, long - termism gives us a new cognitive framework that allows us to see, in a longer time dimension, what the real dynamic is.

Third, in terms of action, long-termism can give far-reaching meaning to our immediate actions, giving consistency and continuity to our efforts.

Fourthly, from a competitive point of view, long-termism is the best option for getting out of involutionary competition.

 

How Can We Become a Long-termist?

First, long-termism is an awakening.

To be a long-termist, we must recognize that there is short-termism within all of us. This is the reality we must first recognize and acknowledge. Therefore, we will always be on guard against the impulse to be a short-termist, and we must consciously choose and continually strengthen our long-termist traits.

Second, long-termism is a belief.

Long-termism is about decisions for the future, and the future is uncertain and not yet a reality. So when people lose faith in the future, they abandon long-termism and pursue short-term interests.

Specifically, I believe we need the following six points of 'belief'.

First, we need to believe in the power of the long term; second, we need to believe in the power of faith; third, we need to believe in the power of symbiosis; fourth, we need to believe in the power of fundamentals; fifth, we need to believe in the power of focus; and sixth, we need to believe in the power of goodness.

Finally, long-termism is a practice.

In the process of adhering to long-termism, you will doubt and hesitate, but this is actually the process of growth and maturity for you and your organization.