We are analyzing The 40 Most Common Brand Problems and how to overcome them. Short-termism comes in at number three.
Common Brand Problem Number 3: Focusing on short-term profitability at the expense of long-term revenue growth
Analysis: This may be the underlying cause of the previous two problems. This problem is driven by the organization’s reward systems. If brand managers and general managers are compensated and promoted for delivering quarterly or annual financial results without a focus on longer-term business growth, this is sure to occur. This problem is most acute in publicly held companies pressured to deliver impressive financial results on a quarterly basis.
Key Point: Create a balanced scorecard that integrates growth objectives into common and individual performance measures.
The Blake Project Can Help You Grow: The Brand Growth Strategy Workshop
Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Growth and Brand Education
