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Discusses the development and operations of a small manufacturing and mail order company doing $3 million sales. L.L. Bean operates in violation of most reasonable business principles, but it is profitable and growing.

The growing pace of change demands that companies structure themselves to ensure that external and internal problems are both given sustained attention, instead of having managers oscillate from one group of problems to the other. Companies need management structures conducive to innovation. A new staff function, decision analysis, will help. Managers need to be broader-minded than their predecessors.

Organizational changes and implementation of one-year profit plan.

Discusses the reorganization of Texas Instruments Metals & Controls Division, the formulation of the profit plan, and the courses of action available to the manager in the face of his department's failure to meet forecasted sales and profits.