From 1950 to 1973, the U.S. economy enjoyed record prosperity. Gross national product and per capita disposable income, measured in real terms, grew at annual rates of 3.7% and 2.4%, respectively. Among the many consequences of this growth has been an attitude among managers that growth is beneficial and will continue and an assumption that the most talented and aggressive managers should lead rapidly growing divisions. Slowly growing or declining divisions have been left to the less aggressive or over-the-hill managers.
A version of this article appeared in the September 1979 issue of Harvard Business Review.
