Introduction: The Origin and Purpose of The Essential Drucker

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Topic Action?

The Essential Drucker


Introduction: The Origin and Purpose of The
Essential Drucker
Purposes
Coherent and fairly comprehensive Introduction to
Management
Overview of works on management
Where do I start to read Drucker?
Which of his writings are essential?
Atsuo Ueda (Japanese friend, translator, editor)
Three volumes Japan, Taiwan, China, Korea,
Argentina, Mexico, and Brazil
Cass Canfield
Western audience
Growing number of people who, while not
themselves executives, have come to see
management as an area of public interest
An increasing number of students in colleges and
universities, while not necessarily management
students, see understanding of management as
part of a general education
A large and rapidly growing number of mid-career
managers and professionals who are flocking to
advanced-executive programs, both in universities
and their employing organizations
Sources (original publications)
Omits 5 important books:
MANAGEMENT
Management as Social Function and Liberal Art
The origins and development of management
Management and entrepreneurship
The accountability of management
What is management?
More than MBA tools
Essential principles
Human beings, joint performance, strengths
effective, weaknesses irrelevant--purpose of
organization
Embedded in culture. Culture used as a
management building block
Topic Action?
Commitment to common goals and shared
values. Simple, clear, and unifying objectives.
Management’s first job: think through, set,
exemplify
Individual growth and development. Teaching,
learning, development that never stops
Communication and individual responsibility
Measurements of management and enterprise
performance. Performance built into enterprise
and its management. Continually improved
Results exist only on the outside
Management as a liberal art
Technology: action and application. Test is results
Humanity: People, their values, their growth and
development. Impact on social structure and
community. Deeply involved in moral concerns--
nature of man, good, and evil
Liberal art:
Liberal: fundamentals of knowledge, self-
knowledge, wisdom, and leadership
Art: Practice and application. Focus on
effectiveness and results
The Dimensions of Management
Mission
Worker achievement
Social responsibilities
The Purpose and Objectives of a Business
The purpose of a business
What should our business be
Objectives, strategies, resource concentration, work
Marketing objectives
Innovation objective
Resource objectives
Productivity objectives
The social responsibilities objectives
Profit as a need and a limitation
What the Nonprofits Are Teaching Business
A commitment to management
Effective use of the board
To offer meaningful achievement
Training, training, training
Topic Action?
A warning to business
Social Impacts and Social Problems
Responsibility for impacts
How to deal with impacts
Social problems as business opportunities
The limits of social responsibility
The limits of authority
The ethics of responsibility
Not knowingly to do harm
Executive compensation
Benefit plans (golden fetters)
Profit rhetoric
Management's New Paradigms
Management is the specific and distinguishing organ
of any and all organization
Management needs to learn to look for, to develop,
to test the organization that fits the task
One does not manage people. The task is to lead
people. The goal is to make productive the specific
strengths and knowledge of each individual
Neither technology nor end use is a foundation for
management policy. The foundation have to be
customer values and customer decisions on the
distribution of their disposable income. It is with
those that management policy and management
strategy increasingly will have to start
Management’s scope is operational and will have to
embrace the entire process. It has to focus on
results and performance across the entire economic
chain around the globe
Outside results
Management’s concern and management’s
responsibility are everything that affects the
performance of the institution and its
results–whether inside or outside, whether under the
institutions control or totally beyond it
The Information Executives Need Today
From cost accounting to yield control
From legal fiction to economic reality (the entire
economic chain)
Information for wealth creation
Where the results are
Topic Action?
Management by Objectives and Self-Control
Misdirection
What should the objectives be?
Management by “drives”
How should objective be set and by whom?
Self-control through measurements
The proper use of reports and procedures
A philosophy of management
Picking People-The Basic Rules
The basic principles
The decision steps
High risk decisions
The Entrepreneurial Business
Structures
The don’ts
The New Venture
The need for market focus
Financial foresight
Building a top management team
“Where can I contribute?”
The need for outside advice
Entrepreneurial Strategies
Innovation introduction
Being fustest with the mostest
Creative imitation
Entrepreneurial judo
Ecological niche strategies
The toll-gate strategy
Specialty skill
Specialty market
Strategy as innovation
Creating utility
Pricing
Adaptation to the customer’s social and economic
reality
Delivering what represent true value to the
customer
THE INDIVIDUAL
Effectiveness Must Be Learned
Why we need effectiveness
Who is an executive?
THE INDIVIDUAL
Effectiveness Must Be Learned

Topic Action?
Executive realities
External time demands
Positive action vs. operating
Within an organization
Within an organization
The promise of effectiveness
Can effectiveness be learned?
A complex of practices
Focus on Contribution
Own commitment
Contribution of knowledges
The right human relations
Communications
Teamwork
Self-development
Development of others
Know Your Strengths and Values
What are my strengths?
How do I perform?
What are my values?
Know Your Time
Effective Decisions
Process/element
Principle based decision needed
Boundary conditions
What is right
Building in the action
Feedback
Thoughts
Opinions rather than facts
Develop disagreement
Is a decision really necessary?
Functioning Communications
Communication is perception, expectation, and
demand
Downward and upward
Management by objectives
Leadership as Work
Work, responsibility and trust earned
Principles of Innovation
Innovation as a practice
Principles of Innovation
Topic Action?
The dos
The don’ts
Three conditions for a successful innovation
The conservative innovator
The Second Half of Your Life
Three answers
Revolution for the individuals
Transformation of every society
The Educated Person
At the core of the knowledge society
Knowledge society and society of organizations
Technes and the educated person
To make knowledges the path to knowledge
SOCIETY
A Century of Social Transformation—(From farmers
and domestic servants to) Emergence of
Knowledge Society
Farmers and domestic servants
The rise and fall of the blue-collar worker
The rise of the knowledge worker
The emerging knowledge society
The employee society
The social sector
The new pluralism
The Coming of Entrepreneurial Society
Planning does not work
Systematic abandonment
A challenge for the individuals
Citizenship through the Social Sector (includes the
need for community)
A “Third Sector”
The need for community
The volunteer as citizen
From Analysis to Perception--The New Worldview
ENIAC (1946) began an age in which information will
be the organizing principle for work.
Information is the basic principle of biological
rather than of mechanical processes.
Major impact on civilization. A new basic
civilization came into being
The social impacts of information
Topic The social impacts of information Action?
The impact of information technologies on the
material civilizations, on goods and services, and
businesses
Sidebar: Impact of major changes
Triggers an explosion of entrepreneurship
We’re in the fourth surge
The impact on the nation state and totalitarian
regime
Transformation of the twentieth-century city
(impact of moving work to the worker)
Form and function
Question of right size for the task and for the
ecology.
Communication
Whatever handles most effectively the
information needed for the task and function
The “skeleton” of the information-based
organization will be the optimal information
system
From analysis to perception
Information is analytical and conceptual
Yet information is the organizing principle of
every biological process (life is matter organized
by information). Biological process is not
analytical—deal with “wholes”
In the biological universe perception is at the
center. We hear “cat” not “C” “A” “T”
Descartes: “I think therefore I am.” “I see
therefore I am.”
New realities are configurations and call for
perception as much as analysis
Dynamic disequilibrium of the new pluralisms
Multitiered transnational economy and
transnational ecology
The new archetype of the “educated person”
that is so badly needed
The shift from a mechanical to a biological
universe will eventually require a new
philosophical synthesis
Afterword: The Challenge Ahead
TopicAfterword: The Challenge Ahead Action?
the paradox of rapidly expanding economy and
growing income inequality--the paradox that
bedevils us now
growing health care and education, possibly a
shrinking market for goods and services
center of power shifting to the consumer--free flow
of information
knowledge workers--expensive resource
governments depending on managers and
individuals

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