Business portfolio management (BPM) has historically undergone cycles of profitability-orientation and growth-orientation. In the first half of the Heisei era, Japanese firms faced a conglomerate discount and sought to restore profitability through business selection and concentration. In the latter half of the era, however, firms that implemented structural reforms began prioritizing a balance between profitability and growth. Given the potential for learning managerial capabilities through (unrelated) diversification, Japanese firms are now expected to adopt a more growth-oriented BPM to foster learning.