We Have Always Done It That Way

I’m not the only one who sees the value in “middle-level thinking.” There is an article in Harvard Business Review titled “To Succeed in the Long Term, Focus on the Middle Term” that argues for the strategic importance of the middle-term time horizon. His analysis is at the large corporation level (his case study is Cisco Systems), but the lessons should be relevant anywhere. Most organizations build themselves around the short term (are we making out numbers this year) and long-term (what is our vision?). But there is a middle term where you launch new initiatives, lay the foundation for future success, and build your brand, your reputation, your R&D infrastructure, etc. The problem is, anything done in this time horizon is viewed as a failure, because our measurement systems tend to be either long-term or short-term focused:

“All companies have their established ways of assessing performance. Many have also devised their own methods of gauging whether research and development projects are progressing as hoped. Unfortunately, few have found a way to measure Horizon 2 [middle-term] efforts that takes into account their particular challenges. Instead, companies compare these projects either with those of Horizon 1 (which are much more reliable and lucrative) or with those of Horizon 3 (which are much more inspiring). Regardless of which standard Horizon 2 offerings are held to, they fall short, and whatever organization is sponsoring them is found wanting.”

Tags: The Way We Think, We've Always Done It That Way //