Former Jive Software CEO David Hersh says that there is too much focus on quarterly revenue numbers. He has some good suggestions — keep R&D involved in strategy, make sure the board understands that revenues are the result of strategy not the other way around — but omits the key factor of communicating effectively with investors.
There’s nothing wrong with having a quarterly target; cash is the oxygen of a growth business, and it needs to be managed very carefully. But company leaders, especially those who are still learning to navigate their market, must have a deep, unwavering focus on how they will win over the long run. Doing anything else is like driving across the country while looking only five feet in front of your car.