More and more CEOs are committing to long-term performance and a clear purpose for their company that has both an economic and social impact. But it is not easy.  

Unilever CEO Paul Polman recently put his shareholders on notice that he is taking the long view for sustainable growth and profitability. He’s anchored this in a clear purpose of “the highest standards of corporate behavior toward everyone we work with, the communities we touch, and the environment on which we have an impact.” Polman declared he is no longer going to be a slave to quarterly earnings and quarterly guidance.  Instead, he is investing in all stakeholders to build a long-term, highly-profitable future.  

That is a bold move. And not every CEO will feel comfortable taking this stance. It’s one thing to say you are going to take your company in this direction, but it’s quite another to do it – and keep doing it – over time. CEOs are under pressure from shareholders to deliver earnings growth, facing new competitive threats from unexpected fronts, and being scrutinized by their customers and the industry on social media. When the pressure is on, even the most well-intentioned may falter. 

Did you know that more than 130 publicly traded companies in the U.S. are over 100 years old?  I was shocked at how many there were.  What are their secrets for the long term?  What can we learn?  

Let’s take a concrete example of a company that is celebrating 100 years - IBM.   Thomas Watson arrived in 1914 at a company then called The Tabulating Machine Company.  Watson focused the company around the biggest opportunity he saw which was the punch card system for data tabulation - eventually named IBM.  

What was unique about the strategy and culture Watson and his team created?  

You’ve likely spent time and effort defining your company’s long-term strategy, but what’s your time horizon when you think about the long term?  Maybe three to five years?  I would call that a medium term focus.

Yvon Chouinard, the founder and owner of Patagonia, was experiencing very fast revenue growth. The company had the opportunity to expand into multiple worldwide retail chains.  It would have launched the business on a major growth spurt.  Instead, Chouniard and his team stepped back and said, “Whoa - let’s take a look at who we are and what we want to accomplish in this world as a company - over the very long term.”