THE RETURN OF LONG TERM

Short-termism dominates Western businesses, but the complex challenges our society faces are prompting a reevaluation of long-term thinking. Recognizing the benefits of a long-term orientation is a positive development.

In the Netherlands, we primarily follow the Anglo-Saxon business culture, which emphasizes shareholders, quarterly results, and bonus systems (How Short-Term Orientation Dominates Western Businesses, 2023). In marketing, we also seem to focus predominantly on the short term. The rise of digital media, the measurability of performance marketing, and the availability of real-time data contribute to this trend. Add economic headwinds and inflation to the mix, and marketers tend to prioritize short-term goals over building a brand for the long haul.

Scoring for Tomorrow
Two major developments are driving a renewed appreciation for long-term perspectives:

1. Climate and nature
2. Social fragmentation and discontent

These two issues are universally recognized as the major challenges of our time. There are no simple, straightforward solutions to these problems. Addressing them requires a shift to long-term thinking and systemic change. While politics today may appear short-term oriented, Toekomst Nederland 2040 predicts that by 2040, national politics will focus more on the long term, moving away from “scoring for tomorrow” and an obsession with minutiae.

Family Businesses
A recent academic article, Temporal Orientation and Corporate Social Responsibility: Global Evidence (2023), shows that a country's long-term orientation (LTO) influences the LTO of its businesses. This, in turn, leads to more initiatives in sustainability and circularity, as well as in socially responsible practices, such as diversity, equality, inclusion, and local engagement. Interestingly, the correlation between LTO and sustainability is stronger than that between LTO and social responsibility.
Family businesses traditionally have a greater long-term focus, emphasizing continuity, sustainable growth, preserving family values across generations, local social embedding, and societal impact (SEO Research, 2024). They contribute significantly to economic stability in the Netherlands, as they are more resilient to recessions and maintain employment. More importantly, family businesses with a long-term orientation also demonstrate superior business performance (Family Governance and Firm Performance, 2006).

The Long and the Short of It
On an individual level, a long-term orientation has positive effects as well. Parents with a stronger future orientation show lower levels of negative parenting and greater positive involvement with their children (Parental Future Orientation and Parenting Outcomes, 2023). Similarly, students from countries with high long-term orientation perform better academically—not just in math and reading but also with fewer absences, disciplinary incidents, and grade repetitions (Long-Term Orientation and Educational Performance, 2017). Clearly, a long-term orientation brings many benefits.
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The growing popularity of work by Byron Sharp, Binet & Field, and Mark Ritson demonstrates renewed interest in long-term brand building. However, debates about the effectiveness of “the long and the short of it” persist. It’s important to understand that this isn’t a trade-off. It’s not a simplistic “either/or” approach where one comes at the expense of the other. According to Mark Ritson, there’s an asymmetry: short-term efforts don’t create long-term results, but long-term strategies can deliver short-term outcomes. The better a campaign builds a brand, the more likely it is to drive short-term sales as well (System1 Research). Short-term results are always necessary, and short-term activation has its uses, but it’s clear that long-term orientation must always form the foundation.