Short-termism
Short-termism prioritises immediate measured results at the expense of longer-term value or organisational objectives. It can be encouraged by annual targets, accounting measures, reward timing or pressure for rapid results. Examples include deferring maintenance, cutting useful development or rejecting worthwhile investment. Distinguish harmful sacrifice from a necessary response to genuine liquidity constraints, and design measures that recognise both current outcomes and future capability.
Worked example
A manager cancels essential preventive maintenance to hit quarterly profit, increasing breakdown risk and expected future cost.
Common mistake
Not every short-term saving is harmful; assess the actual future consequences rather than assume all spending supports long-term value.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |
