failure family
short termism
- metrics-driven relevancy blindness: A focus on quarterly earnings and short-term stock price performance distracts an organization from identifying the strategies that would keep the fir
- profitable irrelevance: Microsoft lost relevance under Steve Ballmer because it optimized for short-term financial metrics instead of designing products for the next generati
- quarterly reporting feedback loop: Increasing shareholder control over executives can be actively counterproductive: it further incentivizes the damaging emphasis on quarterly financial
- long-termism initiative failure: Corporate governance initiatives designed to encourage long-term thinking rarely work as policymakers expect them to.
- stewardship reinforces centralization: Mobilizing investors as stewards leads managers to ask the wrong questions about sustainable success: rather than pushing firms toward innovation and
- stewardship induced payout pressure: Stewardship pressures push companies toward an unhealthy focus on short-term dividends and share buybacks designed to please the stock market, the opp
- short-termism-obscures-relevancy: Less successful companies share a myopic short term focus on shareholder value maximization, which produces an unhealthy emphasis on share price, mark
- metrics-driven-irrelevance: Microsoft under Steve Ballmer missed the shift to networked technologies and mobile consumption because it focused on short term financial metrics rat
- fungible token short termism: A DAO focus on the value enhancement of fungible tokens can produce short termism and lead the organization to ignore ethical and governance issues.
- token plutocracy: The one token one vote designs popular in the early 2020s produced suboptimal voting outcomes because they allocate more power to holders of a large s
- Fungible token short-termism: The focus on value enhancement of fungible tokens can drive short termism in DAOs and cause ethical and governance issues to be ignored.
- short-termism obscures relevancy: Firms that fare worst under disruptive innovation share a myopic short-term focus on shareholder value maximization, because emphasis on share price a
- Exit driven short termism: Because venture capitalists typically want to cash out their gains five to ten years after the initial investment, they play an active role in directi
- activist-induced volatility cascade: Activist tactics including short selling, public media campaigns, and strategic leaks amplify stock price volatility between annual meetings, exploiti
- mercenary shareholder capture: LER can backfire by attracting short-term mercenary shareholders who chase the reward rather than hold, eroding the loyalty benefit and increasing vol