Managers tend to focus on maximizing their short-term gains, and that tends to blind them from future events and surprises. Managers tend to believe that the future will always be rosy, so underestimate potential future disasters. Managers tend to be influenced more by the short-term, and aren’t willing to sacrifice now for potential future benefits. Managers make short-sighted decisions that advance them now, but hurt them in the long-run. Today’s best managers are aware of these dangerous tendencies and work hard to avoid predictable disasters. For example, make both short-term and long-term plans at the same time to limit future damage.
Source: How short-term focus contributes to future disasters. 2008, December. Negotiation, pp. 6-7.
