Goodbye Quarterly Targets? [the broken link was removed], Business Week:
On March 14 the Commission on the Regulation of U.S. Capital Markets in the 21st Century, a project of the U.S. Chamber of Commerce, urged executives to stop issuing their short-term goals. The practice is a “self-inflicted wound by American CEOs,” says commission member Robert Pozen, chairman of MFS Investment Management, a Boston fund manager.
Debate over this issue has simmered for years. Indeed, dozens of companies, including Coca-Cola and McDonald’s, have quit publicizing quarterly earnings targets. Now the issue has become urgent, the Chamber argues, as U.S. companies face growing long-term competition from overseas, where such projections are not widely made.
Learning that a fixation on short term profits is bad for the organization is a good step. Deming talked about this problem over twenty years ago in seven deadly diseases of western management one of which was: the emphasis on short term profits.