“In most British enterprises senior executives worked closely in the same office building, located in or near the largest plant, having almost daily personal contact with, and thus directly supervising middle and often lower-level managers. Such enterprises had no need for the detailed organization charts and manuals that had come into common use in large American and German firms before 1914. In these British companies, selection to senior positions and to the board depended as much on personal ties as on managerial competence. The founders and their heirs continued to have a significant influence on top-level decision-making even after their holdings in the enterprise were diminished.”

—  Alfred D. Chandler, Jr.

Source: The Visible Hand (1977), p. 242.

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Alfred D. Chandler, Jr. 14
American historian 1918–2007

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