Good Morning:

Long Term Thinking?  Who Needs it?

I’m betting every Beyond the Horizon reader fundamentally believes LONG TERM approaches and thinking are preferable to the shorter-term mindset that dominates most operations.  Nevertheless, most of us operate in a get-it-done-today, sooner-is-better, world:

• We have weekly or monthly sales contests (meetings ad nauseum, too) limited-time or almost out-of-stock offers galore.
• Publicly traded companies report results quarterly.
• More than a few wear a health-tracking device like an Oura Ring or an Apple Watch so we can monitor our heart rate NOW.
• We live in a “what have you done for me today” universe, right?

Adopting a longer, more systematic and deliberate commitment is HARD, but there are multiple REALLY GOOD REASONS to do so:

• Less Churn – When you create systems, better train customer-facing (B2B or B2C) colleagues (AI?) and are able to establish ongoing (and ever-increasing) value, those you serve will be more loyal.
• Which naturally leads to more dollars and cents over the lifetime of that customer. 
• Longer-term customers mean you’ll “know” them better, translating to even better service and more relevant product development.  OMG, a dreaded virtuous cycle!
• You’ll love this one – More Time.  When you consciously choose long-term over short, you actually create more time for your organization.  Time to think strategically, strengthen your culture, interact more with each other and maybe even create a new product or two.  With less last-minute thinking and activity often leading to more mistakes, tension and chaos, everyone benefits.
• All leading to more profit!

Here’s a “true confession” example of what was a once-upon-a-time commitment to long-term thinking: The American Airlines AAdvantage Loyalty Program.

I can only imagine the internal thinking and teeth-gnashing when this was first proposed.  Who knows?  It might have come from a customer or consultant.  All I’m certain of is there was a great deal of planning, programming and investment, yet no certainty of success.  (If any readers can shed light, I’d love to know more.)

Here’s how it shaped (s) my behavior in ways I’m sure would please AA leadership, and I promise there are many who have done this and more:

• I joined the AAdvantage program in the spring of 1982.
• While not 100% sure but I believe I got the Citi Mastercard at the same time to help accumulate more miles.
• In at least one year, I “manufactured” a reason to take a short, year-end trip to achieve a higher mileage threshold.
• I’ve made dozens (and then some!) of decisions to fly with AA when other carriers had a direct or more convenient schedule.  As an example, I'm still booking AA out of Detroit Metro, even though Delta is by far the largest carrier and has many more direct flights.
• The result to American?  A lifetime, loyal customer who has probably spent well over $500,000 over those 43 years.  (I contemplated trying to figure it out but really don’t want to know!)
• The result for me?  Yes, the perks that come from AAdvantage Executive Platinum status are nice.  Yet the real benefit is that I’ve developed a belief that I’ll be taken care of when the inevitable flight gets cancelled, bag is lost or someone lets me down. 
• A win-win as I see it!

What can you start working on RIGHT NOW to create a similar long-term win-win?  It matters not if you are B2C or B2B, longer is gooder.  Good luck!

Happy Valentine’s to all!