Image source: McKinsey Global Institute

A short-term approach at the corporate level has been the subject of debate for a long time. Research has been done, and systematic measurements of long-term and short-term thinking has provided us with evidence that companies with long-term views outperform their short-term peers across many fields.

With companies that have long-term views, revenue growth was 47% higher on average, and more resources were invested in R&D (even in periods of crisis). Financial performance was higher and nearly 12,000 more jobs on average were added. While other, short-term firms were cutting back on R&D, and not adding the same frequency of jobs. These are just some of the findings from the index.

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