Chapter ~t
THE CRISIS IN MANAGEMENT:
ITS CAUSES
We are faced with a management crisiS.
The top 500 industrial corporations inNthe United States account
for more than 65 percent of corporate sales and 75 percent of
profits. Despite the tremendous advances these companies have
made in science and technology， and the economic power they
can muster， many of their managements are woefully behind.
Unless rapid improvements in management techniques are made，
increasing failures and decreasing productivity will result.
During the past ten years a large number of big and powerful
corporations have experienced rapid and unforseen reverses. These
downfalls were not precipitated by technological breakthroughs or
spectacular market shifts， but by various management errors that
were committed in the normal course of established operations.
The problem was summarized by J. Irwin Miller， president of
Cummins: \"I think we ve just gone through a decade of rather
surprisingly bad decisions by businessmen worldwide. Some of
them so bad that nobody would have guessed it.\"
How much more can the stockholders， the public and the
government take?
The bad guys and the good guys
Consider the fate of some of our most famous billion-dollar
giants: AT&T， A&P， General Dynamics， Litton， Lockheed，
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