How HR Professionals Can Adapt to the Changing Lifespan of Corporations

Something is happening to the major corporations of the world.

They are moving through their life phases faster than ever before and dying earlier than in any previous era.

In the last century, the average lifetime of a corporation listed in the S&P index of leading companies in the United States alone has decreased by over 50 years.

In the 1920s, the average company lived for 75 years. By the 1970s, it was down to 27 years. In the last half of the decade, it dropped even further down to 15 years.

Don’t be surprised if by 2020 the current rate of demise of America’s corporations continues; more than three-quarters of the S&P 500 list will be companies we haven’t even heard of yet.

Hand and hand with the shorter life of the corporation is the shorter average amount of time spent by a Chief Executive Officer with a corporation.

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