peter f. drucker larry sayler life born in vienna in 1909 educated in austria and england ...
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Peter F. Drucker
Larry Sayler
LifeBorn in Vienna in 1909Educated in Austria and EnglandDoctorate in Law in GermanyCame to the US in 1937Taught 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 ManagementManaging a BusinessManaging ManagersManaging 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 ProductionThree 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 King of England
Thomas Beckett Archbishop of Canterbury
Mid 1100s Sack cloth and ashes
Management by Objectives(MBO)
Prepared by Employee
(In Consultation with His/Her Manager)
Includes Objectives and Measurement
Standards
Facilitates “Management by Self Control”
Other TopicsSpan of Managerial ResponsibilityThe Manager and his SuperiorThe Spirit of an Organization
Appraisals, Compensation, Promotions
CEO and the BoardDeveloping Managers
Managing Workers and Work
Managing Workers and Work
Personnel ManagementTaylor, Fayol, Gilbreth
Organizing for Peak PerformanceEngineering the Job
Motivating for Peak PerformanceCommunication; Vision
Supervisor / ForemanProfessional Employee
Summary and Conclusions
The Work of the ManagerSet ObjectivesOrganizeMotivate and CommunicateMeasurementDevelop People
5 Steps in Making DecisionsDefine the ProblemAnalyze the ProblemDevelop Alternative SolutionsFind the Best Solution Implement the Decision
The Manager of Tomorrow1. Must manage by objectives2. Must take more risks and have a longer
time frame3. Must be able to make strategic decisions4. Must be able to build an integrated team5. Must be able to communicate fast and
clear6. Must see the business as whole7. Must relate to total environment
Responsibilities of MgmtOperate at a Profit and Grow
Social Impact “Our Lord’s Parables of the Talents
Management as a Leading Group
The Effective Executive
Peter Drucker
1966
Two major assumptions
The executive’s job is to be effective
Effectiveness can be learned
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, Kierkegaard’s great self-develop-ment tract, Training in Christianity. (p. 169)
Executives tend to have high levels ofIntelligenceImaginationKnowledge
But often lackEffectiveness
Intelligence, Imagination, and Knowledge are essential
But only Effectiveness converts them to Results
An Executive is To Execute
EFFECTIVE EXECUTIVES
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
Make effective decision Effective decision making is a system – a series of
correct steps in the correct sequence
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
The Supply of Time is totally inelastic No matter how high the price, the supply cannot
increase
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 mal-
organization. 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 executive’s time Another major time waster is malfunction in
information
TIMEThree Step Process
Record TimeManage 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 STRENGTHSPromote 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
Don’t make jobs impossible Do make jobs demanding and big Know employee’s 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 STRENGTHSEffective 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?”
PRIORITIZESloughing 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
PRIORITIZERules for identifying priorities
Pick 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 DECISIONSTo 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 DECISIONSThe effective executive does NOT start
with the facts, but with opinionsThe effective executive encourages
differences of opinionsDon’t 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 theNon Profit Organization
Peter Drucker
1990
I. The MissionDevelopment of the Mission
The mission is forever and may be divinely ordained; the goals are temporary
Leadership is a Foul-Weather Job
Interview - Exec. Director of Girl Scouts Setting 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 Winning Strategies
“Pray for Miracles; Work for Results” How to Innovate Common Mistakes
Interview – Prof. at Northwestern Defining the Market
Interview – CEO, American Heart Assoc. Building Donor Constituency
Action Implications
III. Managing for Performance
What is the Bottom Line?Basic Do’s and Don’t’sEffective Decisions Interview – President of American
Federation of Teachers How to Make Schools Accountable
Action Implications
IV. People and RelationshipsPeople DecisionsKey Relationships Interview – Vicar for Social Ministry
From Volunteers to Unpaid Staff Interview – President of Fuller
Theological Seminary The Effective Board
Action Implications
V. Developing YourselfAs 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
Interview – VP of Hospital Chain The Woman Executive
Action Implications