Peter F. Drucker Larry Sayler

Transcription

Peter F. Drucker Larry Sayler
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


Functions of Business



To Create Customers
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
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 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
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-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
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 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 executive’s 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
 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 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
 Don’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 the
Non Profit Organization
Peter Drucker
1990
I. The Mission
 Development
of the Mission
 The
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


Winning Strategies




Defining the Market
Interview – CEO, American Heart Assoc.


“Pray for Miracles; Work for Results”
How to Innovate
Common Mistakes
Interview – Prof. at Northwestern


Need Plan, Marketing, People, Money
Building Donor Constituency
Action Implications
III. Managing for Performance
 What
is the Bottom Line?
 Basic Do’s and Don’t’s
 Effective Decisions
 Interview – President of American
Federation of Teachers
 How
 Action
to Make Schools Accountable
Implications
IV. People and Relationships
 People
Decisions
 Key Relationships
 Interview – Vicar for Social Ministry
 From
Volunteers to Unpaid Staff
– President of Fuller
Theological Seminary
 Interview
 The
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


Interview – VP of Hospital Chain


Non-Profits: The Second Career
The Woman Executive
Action Implications