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