Beyond the 90-Day Sprint: Why Our Obsession with Quarterly Earnings is Holding Us Back

What if the very metric we use to define success every three months is actually hindering our ability to achieve lasting growth? Having navigated the complexities of corporate leadership for a quarter of a century, mostly in the Investment Banking space, I've seen firsthand the immense weight placed on quarterly earnings.

But after all these years, a fundamental question continues to gnaw at me: are we so fixated on the 90-day cycle of quarterly earnings that we're sacrificing long-term health and genuine growth for a fleeting moment of perceived success? I believe the answer, unequivocally, is yes.

Disconnect and the Cost to Our Teams and our Culture

From the lofty vantage point of leadership, it's easy to become detached from the daily realities faced by the very people who drive our organizations forward. Decisions made in the name of hitting those quarterly targets often feel abstract, numbers on a page divorced from the human impact on the ground floor. We talk about efficiency and optimization, but sometimes those buzzwords mask cuts that bleed the very lifeblood out of our teams.

One of the most common responses to boost quarterly results is cost-cutting. While reducing expenses might improve the balance sheet temporarily, it often comes at a significant human cost. Personnel reductions, for instance, may seem like a quick fix. But beneath the immediate savings lies a loss of experience, institutional knowledge, and innovation capacity. Morale dips, productivity suffers, and the organization’s capacity to adapt and grow diminishes. The numbers don't tell the story of the institutional knowledge that walks out the door, the morale that plummets among the remaining employees, or the innovation that gets stifled in an environment of fear and uncertainty.

What do we think happens to our organizational culture with such an approach? We cannot underestimate the value and significance of our organizational culture. Creating a healthy culture of consistency and trust, of innovation, of transparency and one in which one feels valued is what separates organizations that can sustain themselves over time regardless of market turbulence.

You can be known for a culture of fear where everyone is on edge, cost cutting is prevalent, turnover is high and where investing in an employee’s development is a foreign concept or a culture where there is stability and actual growth prospects and where one feels valued and vested in. Which of these 2 cultures do you think will sustain themselves over time and have higher productivity?

The Short-Sightedness in Strategy and Talent Development

This obsession with quarterly earnings fosters a culture of short-sighted decision-making. We prioritize projects with immediate payoffs and “buzzwords”, even if they lack substance and/or long-term strategic value. We defer investments in crucial areas like research and development or employee training because they don't deliver immediate returns. We become reactive instead of proactive, constantly scrambling to meet “budget” or the next target instead of building a sustainable future.

Hiring is another area where the tyranny of the quarter rears its head. We bring in talented individuals, brimming with potential, but the pressure to see immediate returns can lead to impatience. Adequate training and development take time. It takes months for a new employee to truly find their footing, to contribute meaningfully. Are we truly investing in these individuals, or are we setting them up to fail by expecting immediate, unrealistic output?

Challenging the Quarterly Metric in a Complex World

And let's be honest, the very notion of quarterly earnings as an absolute measure of a company's health feels increasingly subjective. Market fluctuations, seasonal variations, and even the timing of major projects can significantly skew the results within a three-month window. Why place so much emphasis on such a potentially volatile and incomplete snapshot?

In today's volatile global landscape, with ongoing economic uncertainties and geopolitical shifts like the tariff situation, a short-term mindset is not just limiting – it's potentially perilous. The companies that will not only survive but thrive in this environment are those that adopt a long-term perspective, building resilient organizations with strong foundations and a deeply engaged workforce. It’s worth noting that globally, we've seen examples of economies such as those of India, China, South Korea and Japan that have strategically prioritized long-term industrial development, sometimes accepting slower short-term gains. This patient approach has ultimately led to significant advancements in their global standing and overall economic strength. This longer-term vision, a willingness to nurture foundational growth, has proven to be a powerful engine for sustainable progress.

Why, then, do we so heavily emphasize quarterly earnings as the primary measure of our companies' health? External factors can significantly skew results within a three-month window.

Embracing a Longer Horizon for Sustainable Growth

It’s my contention that we must have the courage and discipline to consider a longer reporting horizon that would allow for more thoughtful strategy, deeper investment in our people and innovation, and a more accurate reflection of our true potential. It would free us from the constant pressure of the quarterly sprint, allowing us to cultivate genuine, sustainable growth.

A longer horizon would also enable us to see the real impact of decisions, rather than chasing fleeting gains. It would shift the focus from “what’s happening this quarter” to “what will sustain us for years to come.” This isn't about ignoring financial performance. It's about reframing our understanding of it. True success isn't measured in a single quarter; it's built over time through consistent investment, strategic vision, and a genuine commitment to the people who make it all happen.

As leaders, it takes courage, but it can be our competitive advantage to look beyond the next earnings call and cultivate a culture that values long-term sustainability over short-term gains. It's time to move beyond the 90-day sprint and embrace a more thoughtful, human-centered approach to building truly resilient and prosperous organizations. The dividends, both literal and figurative, will be well worth the wait.