Goals for long-term value creation for a company’s investors may conflict with incentives that are introduced by short-term pressures, such as analysts’ expectations, internal profit targets, and compensation bonuses tied to short-term performance metrics. Emphasis on short-term results can increase the risk of financial reporting fraud if there isn’t alignment between the short-term goals and the long-term strategy.
On a recent webcast, a panel of experts—Karen Horn of NACD, Doug Chia of the Conference Board, Bill McCracken of the Executive Consulting Group, and Jose Rodriguez of KPMG—discussed what successful companies do to reinforce the alignment between potentially conflicting goals. They also provided actionable recommendations that each supply chain member can implement in their organizations.