Running American Business: Top Ceos Rethink Their Major Decisions

Although some corporate strategies are formulated by consensus, overall direction is usually determined by the CEO, 89 of whomWilliam Norris of Control Data; Joseph Flavin, Singer; David Rockefeller, Chase Manhattan, among themparticipate in this study by Lamb, author of Competitive Strategic Management. While their recital of corporate successes and failures shows that reactive planning no longer suffices in an age of swiftly changing technologies and management, the author notes that most American companies, unlike the Japanese and Europeans, are still oriented toward short-term profits rather than long-range results. The success of today's CEO may depend on knowing when and which businesses to acquire or sell, skill in repelling hostile takeovers, ability to save a failing company. The CEO must allocate capital and evaluate personnel wisely, keep abreast of new technologies and plan venture and marketing strategies. CEOs, often inadequately prepared, Lamb alleges, serve an average term of only five and a half years. (May 15)