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Declining company longevity, executive tenure, and stock holding periods (from years to months) have created a system of "temporary organizations being led by temporary leaders owned by temporary investors." This structural instability makes long-term thinking and trust-building nearly impossible.

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Many companies operate like zombies, controlled by external forces like quarterly earnings. Leaders at all levels feel powerless but blame others, failing to see the systemic issue of a weak corporate structure that's susceptible to short-term demands.

The private equity demand for speed is counterproductive without a foundation of trust and alignment. Trying to move fast on a weak base leads to fragility: constant busyness, recurring problems, and disengagement. True, sustainable speed is an outcome of trust, not a standalone goal.

A CEO who stays too long creates an organization optimized to respond only to them, causing other skills and response mechanisms to weaken. Leadership changes are healthy because they force a company to develop a more balanced and resilient set of capabilities, breaking the imperial CEO model.

Sludge is profitable in the short term. With CEO tenures shorter than ever and compensation tied to quarterly stock performance, executives are incentivized to cut customer service costs now, even if it harms long-term customer relationships and brand loyalty.

The typical 'buy and hold forever' strategy is riskier than perceived because the median lifespan of a public company is just a decade. This high corporate mortality rate, driven by M&A and failure, underscores the need for investors to regularly reassess holdings rather than assume longevity.

The downfall of great organizations isn't due to bad people, but to structural vulnerabilities. Success makes a company a valuable target for forces that prioritize extraction over value creation, a modern economic flaw, not an inherent moral one.

Many layoffs result from leaders taking the "lazier way" out of a poorly-defined strategic bet. Instead of sticking with decisions or accepting consequences, they pass the burden of their lack of clarity onto employees. This erodes trust systemically by treating people as expenses, not partners in a mission.

The current financial system often rewards leaders for short-term cost cuts (like removing a hotel's free cookie) without holding them accountable for the resulting long-term damage to brand equity and customer loyalty, pulling companies toward mediocrity.

Our current system of corporate governance is politically absurd. It's akin to letting tourists who are in town for one day vote in a national election. This structure, which empowers transient owners, inherently favors short-term exploitation over long-term stability and value creation.

TeamShares argues that the typical private equity model, which involves selling a company multiple times, is unhealthy. This means the company is perpetually "for sale" from the day a transaction closes, fostering short-term thinking and uncertainty. Their "buy and hold forever" model provides stability for the business, employees, and stakeholders.

We've Built an Economy of Temporary Organizations and Leaders | RiffOn