Written by Filip Orth
February 22, 2023
I think of long-term value creation as a way of maintaining growth, while still managing that growth in a sustainable and feasible way. Today the crucial question that often comes up is not how to scale a company faster, but how to achieve growth with respect to Environmental, Social, and Corporate Governance (ESG). I believe that value creation is important and something to be sought after, however if it is supposed to be long-term, then the sustainable factor has to be included in the equation as well.
A sustainable economic model involves both the environment and all the stakeholders associated with the company. This means that a company has to account for everything affiliated with its stakeholders. I would say that a company operates in a very similar way that a country does, as conscious of all the components that make up a society. If one group/component is omitted then it is truly hard to consider long-term value creation as a whole. In the grand scheme of things, if there is at least some form of value creation, which works in the long term then that is already a step forward; however its feasibility may become challenging. In my opinion, long-term value creation really stems from a strong, solid foundation from the beginning, which is then simply refined throughout the lifetime of an organization. It's similar to a value system, once a person has it, it’s rather easy to modify and refine, however if there wasn’t any sense of foundation or a value system to begin with, it may be challenging to scale with that in mind. Similarly as a company, a country has the need to create long-term value for its citizens to not consider leaving it and further continue to contribute to its economy, subsequently its citizens doing everything for the country to achieve prosperity.
Personally, I make choices in my life through focusing on these values and how I apply them in situations or through the decisions I make. Those are the ‘foundations’ for my decision-making process. This doesn’t have to only be reflected from a consumer perspective, but also through any work I decide to take on. This is why if I am creating value, then I think of how I can do it in the long term, not only for the cost-benefit perspective but also for the often immeasurable ‘impact’ perspective.
When I think of the decisions and steps and what effects they will have in the future, I consider the long run and whether there will be a positive or negative impact and that guides me. Lasting value comes from continuous, diligent and focused work on a particular thing. Meticulousness is an important component as well, and perfectionism has its advantages, however it can become a burden as speed is definitely needed with regards to long-term value creation in our world today.
Filip Orth '23 is currently majoring in Business Management and Political Science. He is passionate about making things more effective, while focused on results by helping businesses get their desired utilization. He is the Head of Sales for a local software company and a full-time business first-generation college student. Filip lives by the adage, "Destiny is a matter of attitude."