ACCA PM Syllabus E. Performance Measurement And Control - Short-term Financial Gain vs Long-term Sustainability - Notes ^{5 / 7}

Focusing on short-term financial gain can harm long-term sustainability.

Neglecting investments and considerations for the external environment may lead to decreased value creation and future challenges for the organization.

For example:

A football team postpones stadium toilet refurbishment to boost short-term financial performance.

The long term affect is to reduce fan satisfaction, and therefore profitability in the long run.

Using cheaper more polluting materials in the long run has can raise costs and damage the company's reputation.

In summary, prioritising long-term sustainability over short-term gains is crucial for preserving value and mitigating potential risks.