ABSTRACT
The solution of the management problems requires an outside, impersonal yardstick of management performance. What has to be measured is not competence in a specialty but performance in making a business survive and prosper. A "competitive market" does not necessarily exist because the productive resources of the economy are privately owned, and is not necessarily absent when they are nationalized. And there is a truly "competitive market" for industrial power, as the industrial users can build their own powerhouses and thus determine both the size of the market and the price. The American Telephone Company is probably the most management-conscious of all our large enterprises. It is organized in autonomous companies, each with its own distinct territory and its own autonomous management; by all outward signs it is completely federalized. The management is also extremely conscious of the fact that it lacks any but technical standards.
