Peter F.

Drucker
Larry Sayler

Life
Born

in Vienna in 1909 Educated in Austria and England Doctorate in Law in Germany Came to the US in 1937 Taught and Consulted
Bennington

College New York University Claremont Graduate School (Since 1971)

The Practice of Management

Peter Drucker 1954

The Practice of Management

1954 The first true management book Depicts management as a distinct function Management has distinct responsibilities

Three Roles of Management

Managing

a Business Managing Managers Managing Workers and Work

Managing a Business

Managing a Business

Purpose of Business

To Create Customers

Functions of Business

Marketing Innovation

Profit is result, not a cause, of business activity

What is Our Business?

Who

is the Customer? What does the Customer Buy? What is the Value to the Customer? What will our Business Be? What SHOULD our Business Be?

Business Performance Objectives

Market Share Innovation Productivity Physical and Financial Resources Profitability

Manager Performance and Development Worker Performance and Attitude Public Responsibility

Principles of Production
Three

Systems of Production

Unique

Product Production Mass Production

Old style New style

Process

Production

Managing Managers

Three Stonecutters
I

am earning a living I am being the best stonecutter I can be I am creating a cathedral

Misdirection by the Boss

Sometimes Management Directions are Not Clear
Henry II Thomas Beckett King of England Archbishop of Canterbury Sack cloth and ashes

Mid 1100s

Management by Objectives (MBO)

Prepared by Employee (In Consultation with His/Her Manager) Includes Objectives and Measurement Standards Facilitates Management by Self Control

Other Topics
Span

of Managerial Responsibility The Manager and his Superior The Spirit of an Organization Appraisals, Compensation, Promotions CEO and the Board Developing Managers

Managing Workers and Work

Managing Workers and Work

Personnel

Management Taylor, Fayol, Gilbreth Organizing for Peak Performance Engineering the Job Motivating for Peak Performance Communication; Vision Supervisor / Foreman Professional Employee

Summary and Conclusions

The Work of the Manager

Set

Objectives Organize Motivate and Communicate Measurement Develop People

5 Steps in Making Decisions

Define

the Problem Analyze the Problem Develop Alternative Solutions Find the Best Solution Implement the Decision

The Manager of Tomorrow

Must manage by objectives 2. Must take more risks and have a longer time frame 3. Must be able to make strategic decisions 4. Must be able to build an integrated team 5. Must be able to communicate fast and clear 6. Must see the business as whole 7. Must relate to total environment
1.

Responsibilities of Mgmt
Operate Social
Our

at a Profit and Grow

Impact
Lords Parables of the Talents

Management

as a Leading Group

The Effective Executive

Peter Drucker 1966

Two major assumptions

The

executives job is to be effective can be learned

Effectiveness

Three interesting quotes

There are few things less pleasing to the Lord, and less productive, than an engineering department that rapidly turns out beautiful blueprints for the wrong product. (p. 4) People decisions are time consuming, for the simple reason that the Lord did not create people as resources for organization. (p. 33) There is little danger that anyone will compare this essay on training oneself to be an effective executive with, Kierkegaards great self-development tract, Training in Christianity. (p. 169)

EFFECTIVE EXECUTIVES

Executives tend to have high levels of Intelligence Imagination Knowledge But often lack Effectiveness Intelligence, Imagination, and Knowledge are essential But only Effectiveness converts them to Results An Executive is To Execute

EFFECTIVE EXECUTIVES

Executive and Manager are not synonymous An executive is those knowledge workers, individual professionals, and managers who are expected by virtue of their position or their knowledge to make decisions in the normal course of their work that have significant impact on the performance and results of the whole.

EFFECTIVE EXECUTIVES

Effective executives have certain practices in common that make them effective. In other words, effectiveness is a set of practices; a habit Practices can be learned. Therefore, effectiveness can be learned As with all practices (such as playing the piano) anyone with normal aptitudes may become competent. Mastery may elude a person, but with effectiveness, what is needed is simply competence.

EFFECTIVE EXECUTIVES
There are 5 practices/habits that have to be acquired to be an effective executive

Time allocation Focus on outward contribution Build on strengths, own and others Establish Priorities

Concentrate on a few major areas where superior performance will produce outstanding results Effective decision making is a system a series of correct steps in the correct sequence

Make effective decision

TIME

Output is limited by the scarcest resource Time is the limiting factor, the most scarce resource

Can always acquire more money or people But one cannot obtain more time No matter how high the price, the supply cannot increase

The Supply of Time is totally inelastic

TIME

Three Step Process

Record

Time Manage Time (Prune the time wasters) Consolidate Time

TIME WASTERS

Identify time wasters which follow from lack of system or foresight

Recurring crisis

Time waste often results from overstaffing Another common time waster is malorganization. Its symptom is an excess of meetings

People can either meet or work, but they cannot do both at the same time Meetings should never be allowed to become the main demand on an executives time

Another major time waster is malfunction in information

TIME
Three

Step Process

Record

Time Manage Time (Prune the time wasters) Consolidate Time

OUTWARD CONTRIBUTION
Key

Question -

What do you do that justifies being on the payroll Answer must be outward focused, not inward

BUILD ON STRENGTHS
Promote

people based on what they

can do
Make

staffing decisions to maximize strengths, not minimize weaknesses

BUILD ON STRENGTHS

Four rules for staffing based on strengths Dont make jobs impossible Do make jobs demanding and big Know employees strengths Know that to get strengths, one must put up with weaknesses Logical consequence - It is the duty of the executive to remove ruthlessly anyone who consistently fails to perform with high distinction.

BUILD ON STRENGTHS
Effective

executive must also maximize his/her own strengths

Must

ask oneself, What are the things that I seem to be able to do with relative ease, while they come rather hard to other people?

PRIORITIZE
Sloughing

off Yesterday

Continuously

ask, If we did not already do this, would we go into it now.

Priorities

and Posteriorities

Priorities

- Decide what you will do Posteriorities - Decide what you will not do

PRIORITIZE
Rules
Pick

for identifying priorities

the future instead of the past Focus on opportunity rather than problems Choose your own direction, rather than climb on the bandwagon Aim high for something that will make a difference rather than for something that is safe and easy to do

EFFECTIVE DECISIONS
To

make decisions is the specific executive task

Effective

executives do not make many decisions. They concentrate on the important ones

EFFECTIVE DECISIONS

Elements of the Decision Making Process

Is

this a generic situation, or a special situation? What must the solution accomplish? Build into the decision the action to carry it out Determine feedback which tests the actual results against the desired results

EFFECTIVE DECISIONS
The

effective executive does NOT start with the facts, but with opinions The effective executive encourages differences of opinions Dont foster consensus, but dissension

EFFECTIVE DECISIONS
Executives are not paid for doing things they like to do. They are paid for getting the right things done most of all in their specific task, the making of effective decisions.

Managing the Non Profit Organization

Peter Drucker 1990

I. The Mission
Development
The

of the Mission

mission is forever and may be divinely ordained; the goals are temporary

Leadership
Interview
Setting

is a Foul-Weather Job

- Exec. Director of Girl Scouts

New Goals

I. The Mission
Interview

- Max De Pree, chairman of Herman Miller and Hope College

Leadership

Action

Implications

Never

start with tomorrow to reach eternity Think long range, then figure out today

II. From Mission to Performance

Converting Good Intentions into Results

Need Plan, Marketing, People, Money Pray for Miracles; Work for Results How to Innovate Common Mistakes Defining the Market Building Donor Constituency

Winning Strategies

Interview Prof. at Northwestern

Interview CEO, American Heart Assoc.

Action Implications

III. Managing for Performance

What

is the Bottom Line? Basic Dos and Donts Effective Decisions Interview President of American Federation of Teachers
How

to Make Schools Accountable

Action

Implications

IV. People and Relationships

People

Decisions Key Relationships Interview Vicar for Social Ministry

From

Volunteers to Unpaid Staff

Interview
The

President of Fuller Theological Seminary

Effective Board

Action

Implications

V. Developing Yourself
As a Person, as an Executive, as a Leader

You Are Responsible What do You Want to be Remembered For Interview Founder of 2 NFPOs

Non-Profits: The Second Career The Woman Executive

Interview VP of Hospital Chain

Action Implications