Short Term vs. Long Term Metrics

Silicon Valley has replaced Wall Street as the preferred destination of fresh graduates. The pursuit of short term wealth on Wall Street in the 80s is replaced with other short term data points which, when pursued with a singular focus, can skew one’s moral compass.

“If Google’s primary weapons are relevancy and speed, then Uber’s are cost and speed.” What I didn’t say: They are fairly similar in their inability to deal with consumers at a human level. That is the challenge of our times.

– Om Malik, Technology and the Moral Dimension

In this data-driven world we must keep in mind what is being measured and remember that organizations instinctively optimize for those metrics. During this Thanksgiving break, think of alternative, long term metrics such as Lifetime Customer Value, Renewal Rates, and Net Promoter Score as important KPIs for your business’ success in the long term.

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