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    • PETER F. DRUCKER AND MASATOSHI ITO GRADUATE SCHOOL OF MANAGEMENT COMMUNICATION ON PROGRESS REPORT 2008-2010
    • The Mission of the Peter F. Drucker and Masatoshi Ito Graduate School of Management We achieve our purpose by developing and enriching the professional lives of our students: • Enhancing their ability to think rigorously and ethically about complex, ambiguous issues, to make sound strategic decisions, and to lead and inspire others to achievement of common purposes • Providing a personalized and practical, yet reflective learning experience • Instilling intellectual curiosity and learning skills that will sustain a lifelong search for understanding and openness to innovation and change We also achieve our purpose through relentless efforts to create and disseminate knowledge relevant to critical issues affecting management practice worldwide: • By promoting integrative and interdisciplinary research that advances management theory and translates it into successful practice. • By initiating and conducting intensive worldwide dialogues with management scholars and practitioners with whom we collaborate in order to advance the practice of management. 2
    • A word from the Dean In January of 1999 I was a witness to history in Davos, Switzerland when then UN Secretary General Kofi Annan first unveiled his powerful concept of business, government, and civil society organizations voluntarily advancing together a united agenda of human, environmental, and labor rights through a proposed Global Compact. In July of 2000 I attended the first official convening of the UN Global Compact at the General Assembly in New York City. In 2007, I had the honor of being on a taskforce of 60 deans, university presidents, and official representatives of leading business schools under the United Nations Global Compact. In the summer of that year, in Geneva, Switzerland, a group of us on the task force met with current UN Secretary General Ban ki-Moon to formally present the product of our work: Principles for Responsible Management Education. In January of 2008, the Peter F. Drucker and Masatoshi Ito Graduate School of Management at Claremont Graduate University became a signatory of the Principles of Responsible Management Education (PRME) initiative. I now have the privilege, along with Deans Pierre Tapie of ESSEC and Carolyn Woo of Notre Dame, of serving as co-chair of the AACSB Affinity Group for PRME. In a climate of ethical challenges and increased globalization, today's business and industry leaders are seeking out individuals who: • are productive and purposeful • achieve professional success and positive, sustainable social impact • understand the importance of strategic thinking and values-based management Our program infuses Peter Drucker's management principles along with these important skills into many aspects of learning, resulting in graduates who are ethical and effective leaders in a variety of capacities and an array of fields. At the Drucker School, we believe outstanding leadership is an endeavor requiring both character and competence--moral courage as well as analytical insight. Effective leaders 3
    • make a difference in the lives and institutions they touch by infusing them with high values and bringing definition to common purpose, commitment to strategy, dignity to human interaction, and increased opportunity for creative self-expression. This Communication on Progress captures our efforts during the 2008-2010 calendar years and includes just a sample of a wide variety of the initiatives undertaken to further the Global Compact principles. Sincerely, Ira A. Jackson Henry Y. Hwang Dean of the Peter F. Drucker and Masatoshi Ito Graduate School of Management and Professor of Management at Claremont Graduate University 4
    • Principle 1 Purpose: We will develop the capabilities of students to be future generators of sustainable value for business and society at large and to work for an inclusive and sustainable global economy. CASE AND BUSINESS PLAN COMPETITIONS – Leeds-Net Impact Competition In spring of 2009, four Drucker School of Management students finished in first place in the Net Impact national competition. The competition featured 85 business schools from around the U.S. which was narrowed down to 20 presenting teams. The final presentations were held at the Leeds School of Business at the University of Colorado's Boulder campus. Drucker students were assigned a case study centered around Colorado's Vail ski resort's effort to define its environmental initiative. In winning the competition, the Drucker foursome was awarded a $6,000 cash prize and a chance to present their ideas directly to the Vail senior staff. The final round challenge consisted of two parts; a charge to increase the number of riders on Vail’s newest acquisition, Colorado Mountain Express (in order to reduce traffic), and a proposal which would increase Vail’s goal of creating a total customer experience while promoting sustainability. After an all-night, 12-hour preparation session, presentations began. Twenty teams of four presented in the morning, and five were selected to present again for the final round in the afternoon. This is the eighth year that Net Impact has held a national competition. Since 2002, the Net Impact competition has hosted rising business leaders from MBA programs from around the nation to help find innovative solutions to corporate sustainability issues. This Net Impact award is billed as "the premier case format competition built around businesses facing sustainability challenges while succeeding financially." – Net Impact/Walmart Better Living Business Plan Challenge The Walmart Better Living Business Plan competition seeks to promote entrepreneurship in the area of sustainability. 5
    • Better living will be defined as the actions that we take today that improve quality of life for us, our children, and future generations, including actions that : • Preserve clean air, water and soil. • Reduce waste. • Improve energy efficiency or usage of renewable energy. • Promote healthy living for people and communities and support biodiversity. A team of four Drucker Students had made it to the semi-final round of the competition, which was held in Bentonville, Arkansas. They had a chance to compete against seven other regional competition winning teams from the leading universities and to present their business plan to a panel of judges that included industry leaders, non-governmental organizations, and top Walmart executives.1 – Henry R. Kravis Business Plan Competition In conjunction with the naming of the Peter F. Drucker Graduate School of Management, Henry R. Kravis, a founding member of the Board of Visitors, established a $175,000 endowment fund. Each year the income from this endowment is awarded to the student(s) or alumni, if any, who demonstrate real promise as entrepreneurs. Awards are made by a committee of judges comprised of practitioners involved in entrepreneurial ventures and venture capital.2 STUDENT CLUBS – Net Impact Originally founded as Students for Responsible Business in 1993, Net Impact is a network of business leaders in a unique position to influence what happens in society for years to come. With this power comes monumental responsibility. We can choose to ignore this responsibility, and thereby exacerbate problems such as economic inequality, environmental degradation, and social injustice – problems that will compromise our ability to do business in the long run. Or, as business leaders, we can realize our potential to create lasting social change. The projects have included: • Hosting Mark Albion, co-founder of the Social Venture Network and Net Impact, former Harvard Business School professor, and author of “Making a Life, Making a Life,” as well as “More than Money: Questions Every MBA Needs to Answer.” • Organizing community service projects • Promoting and participating in various business plan competitions 1 http://www.netimpact.org/displaycommon.cfm?an=1&subarticlenbr=2315 2 http://www.cgu.edu/pages/1938.asp 6
    • • Hosting a lecture with Gregg Vanourek, entrepreneur and author of “Life Entrepreneurs” – Women in Leadership Association The Drucker Women in Leadership Association (WILA) encourages the professional and leadership development of women graduate students at Claremont Graduate University (CGU). WILA supports the development of women through Speaker Series events, the Annual WILA Conference, and other networking events with women leaders. In spring of 2008 the club hosted its first annual WILA conference. It attracted ambitious, visionary women from our programs, the 5 Claremont Colleges, and sister associations at other regional universities. Renowned Drucker School professor Jean Lipman-Blumen, co-founding director of the Institute for Advanced Studies in Leadership and an expert on gender roles and toxic leadership, delivered the keynote address. There were also a series of panels offered throughout the day featuring local and regional leaders: * Women as Entrepreneurs * Corporate Social Responsibility * Healthy Living * Non-traditional Leadership. – The Drucker School Student Association The Drucker School Student Association (DSSA) was created for the purpose of representing the student body of the Drucker School. The DSSA strives to enhance all aspects of the Drucker School, both internally and externally, through respect, communication, and hard work. It endeavors to understand the needs of the student body, and works to meet those needs through planning and execution, as well as collaboration and coordination with administration, other boards, student clubs, alumni, and outside parties. The DSSA’s responsibility is to continuously improve the quality of the entire Drucker experience for each and every member of the Drucker community. The DSSA is designed to be a sustaining body that is also enabled to choose the focus that will deliver the best experience to the students it serves. This year the focus grew in the areas of social entrepreneurship and corporate social responsibility. Other student clubs that discuss the topics of ethics and corporate and social responsibility include: – Drucker School Consulting Club – Drucker Student Book Club – Drucker Finance Club – DSAB – The DSSA for EMP students 7
    • CAREER DEVELOPMENT PROGRAM – Office of Career Management There are four ways in which the Office of Career Management (OCM) incorporates social impact into its initiatives. • One, a professional skills workshop is offered to students. As part of the curriculum, career related ethical issues are discussed where students are presented with a difficult situation and they must present how they would handle it in a responsible way. • Two, several panel discussions are offered throughout the year. At least one of the topics per year focuses on sustainability and green careers. • Three, OCM informs students about community events outside of CGU, so that they can participate in events such as ‘Hollywood goes green’ or various community building events. • Finally, at career fairs, OCM is careful to include employers who pride themselves on sustainable social and environmental management. Companies that had come to the campus include Southern California Edison, Target, Green Suites, Patagonia, CH2M Hill, Analysis Group, Frontier Project Foundation, Green Energies Consulting, and others. In the Fall of 2008 a new Student Mentorship Program was introduced by the DSSA. Volunteering second-year students were given a group of six to eight first-year students to mentor. The program was mainly designed to facilitate student involvement, promote student collaboration, and advise new incoming students. INTERNATIONAL IMMERSIONS – Global Strategy & Trade (MGT 401) Oxford course, held at St. Peter’s College, Oxford University, is a 12-day intensive program on the multi-dimensional aspects of global strategy and trade. The focus is on formulating and implementing global strategies in the context of evolving legal, political, and trade environments in the dramatically changing global marketplace. Current trade developments and strategic issues in the European Union are emphasized. The program includes guest lecturers, field trips to local firms, and a variety of cultural and social events. 8
    • This course is also a TNDY course, which means that it is transdisciplinary. The Transdisciplinary Studies Program at CGU offers courses in seminar and lecture/discussion format that combine scholarship and methodologies from a range of disciplines thereby creating an enriched pedagogical and research environment for students and faculty.3 – Strategic Risk Management (MGT 410) With Mexico City as our venue, students are introduced to the challenges of managing the strategic risks of doing business in an emerging economy. Beginning with an introduction to the economy of Mexico, the course develops a framework for formulating strategies and managing the risks of international business initiatives anywhere in the world. EXCHANGE PROGRAMS In addition to classes offered by the Drucker School, students may participate in an exchange program with one of our partner schools - Hitosubashi University in Japan, St. Gallen University in Switzerland, Inha University in South Korea, and Rotterdam School of Management Erasmus University in the Netherlands. International experience – of different cultures, people, languages and attitudes – is perhaps the most sought-after attribute for managers today. This experience is so highly valued because it cannot be taught; it can only be lived. With 100 nationalities represented by our student body, working in an international environment is exactly what RSM offers. Teams of students from diverse cultures, working together, create a microcosm of multinational business – a great way to develop skills in the subtle art of global communication and cooperation. RSM also actively encourages the international exchange of students to and from our many excellent international partner schools. International study trips and internships abroad are a feature of most of our programs. “The world is a book, and those who do not travel read only a page.” – St. Augustine4 3 http://www.cgu.edu/pages/6078.asp 4 RSM International: http://www.rsm.nl/home/international 9
    • Principle 2 Values: We will incorporate into our academic activities and curricula the values of global social responsibility as portrayed in international initiatives such as the United Nations Global Compact. “BUSINESS AS UNUSUAL”: THE 2008 NET IMPACT STUDENT GUIDE TO GRADUATE BUSINESS PROGRAMS In its annual publication, “Business as Unusual,” Net Impact ranks universities and colleges based on how students feel their programs address social and environmental issues. Now affiliated with U.S. News and World Report, it's estimated that the guide will be downloaded by some 5,000 to 7,000 current and prospective MBA students. In it, the Drucker School was ranked among the top 10 schools in the 2009 edition of the publication, above schools such as Cornell, Yale, Tuck, Haas, and Duke in how well we prepare our students for “ethical and socially responsible leadership.” As explained on its Web site, Net Impact is an international nonprofit organization whose mission is to make a positive impact on society by growing and strengthening a community of leaders who use business to improve the world. It spans six continents, making it one of the most influential networks of MBAs, graduate students, and professionals in existence today. CURRICULUM INNOVATIONS This academic year, we added many new classes to the Drucker curriculum, including: Sustainable Business; Women in Leadership; Labor & Personnel Economics for Managers; CEO Forum; and Shared Leadership: Extreme Edition. COURSES The Drucker School uses a stakeholder approach, as opposed to the sole focus on the shareholder. In the traditional view, increasing value to the shareholders, or strict profit- maximization, is emphasized. Because we utilize the stakeholder approach, however, we realize our responsibility to a wider scope of stakeholders, including the environment and communities in which we operate. Therefore, and as noted by AACSB, the issues such as ethics and corporate social responsibility weave throughout every class we teach. Examples of Business Ethics and Social Responsibility Courses at the Drucker School: – Morality and Leadership (MGT 315) This course explores the moral dimension of leadership. The central, recurring theme of the course is captured by a fundamental question: Faced with conflicting basic responsibilities, uncertainty, relentless competition, and a morally imperfect world, how 10
    • can a leader create a high-performing organization and still live an honorable life with integrity? – The Drucker Difference (MGT 325) This one-of-a-kind course focuses on a values-driven, human-centered approach to management, and relates current Drucker faculty research to the teachings and philosophies of Peter F. Drucker. It sprang from a conversation amongst the Drucker faculty during one of their monthly meetings where they were talking about how to infuse more “Drucker” into the Drucker School. We realized we were not always articulating the tenets of Drucker and his beliefs in the idea that management is a human enterprise and a liberal art. So we decided that each of our core faculty would teach a class meeting on their expert area and infuse that discussion with how Drucker would also interpret that particular topic. It was an exciting time that Spring and Summer as we developed the course materials, full of new ideas and writing. This is a required gateway course that all Drucker students are required to take. We produced a book based on the course which was released in October, 2009, which approaches management as a liberal art and an integrative process. – Sustainable Business (MGT 330) This course has been designed to provide students with a solid understanding of the importance and scope of the social and environmental impacts of business activity; of the principles and practices that comprise sustainable business; of the forces at work that influence the pace, scope, and direction of sustainability efforts within societies, polities, and businesses; and of the effects of the issue of sustainability on competition, business innovation, and the concept of business enterprise itself. In addition to this content-based agenda, many of the class sessions include modules on skill-building, introducing the students to analytical models and techniques that allow more thorough and in-depth analysis of the issues involved in sustainable business practice. – Corporate Governance (MGT 336) How can we explain the turmoil that confronts shareholder capitalism today? What happened to Enron, Global Crossing, Tyco, and numerous other corporations in the last few years? Are these “isolated” incidences or is there a broader pattern of ethical lapses we need to be concerned with? What are the underlying issues? To answer such questions, this 2-credit course looks at the fast changing field of corporate governance. It 11
    • is designed to survey the system, the process, the participants, the legal/regulatory environment, and the most important developments in the field over the last few years. – Drucker on Management & Society (MGT 343) This course uses materials prepared by Professor Drucker, to survey and apply his seminal insights into a number of key themes pertaining to the: (1) development of oneself, (2) practice of management, and (3) ingredients of a functioning society. Each of these topics has current and future application to a person’s life and role in a society. – Drucker in Practice (MGT 344) The purpose of this course is to provide the students with an opportunity to focus on one of the major Drucker topics in an actual organization carefully chosen as Drucker- sympathetic in management philosophy. The topics focus on the practice of management in for-profit, social, and public sector organizations. This course gives the students the opportunity to not only deepen their understanding of the Drucker work, but to also put the theory into practice. – The Nonprofit Leader (MGT 353) The focus of this course is on nonprofit leaders. When a "leader" of a nonprofit organization is referenced, often an image of the organization's CEO or director first comes to mind. But leadership in nonprofit organizations can take many forms. Supervisory staffs of many nonprofits do most of the real day-to-day leading. Boards play a critical leadership role along with other volunteers – many of whom play key leadership roles in other organizations. This course explores the key areas of challenge for nonprofit leaders, in the broad sense of the term, and examines leadership theories, models, and methods considered applicable for improving the effectiveness of organizations in the social sector. – Toxic Leadership (MGT 365) The primary objective of this course is to understand the dynamics of the relationship between toxic leaders and their followers. The secondary objective is to examine strategies for identifying, coping with, and escaping from toxic leaders. – Connective Leadership in the 21st Century (MGT 367) Using both classical and contemporary leadership concepts, this course explores new demands and relevant strategies for people who expect to lead in the 21 st century. Students examine leadership from the perspective of the individual leader, heuristically separated from the organizational context. Thus, it is designed to focus on the leader as an individual, rather than organization. The course is designed, in part, to examine participants’ own leadership strengths and limitations. In addition, the course explores various approaches to recognizing leaders and leadership potential in others. 12
    • – Women in Leadership (MGT 368) The primary objective of this course is to uncover the unique challenges, constraints, and opportunities that face women today as they ascend to leadership positions in organizations. The issues have to do with managing diversity, the dynamics of power, authority, and influence, being different, and social expectations as they pertain to women. We explore these topics by drawing on the experiences of women leaders from a variety of sectors and by bringing in important concepts and research insights from psychology, sociology, and business. A secondary objective of the course is to allow students to reflect on their own experiences; to provoke them to think about their own assumptions and to help them develop their own perspective and leadership style. The purpose is not to provide students with a set of clear-cut tactics, but rather to expose them to the issues related to women in leadership and provide a basis for them to be aware, thoughtful, and confident members of organizations. – Self & Shared Leadership (MGT 403) Most courses on leadership focus primarily on how leaders can do a better job of influencing followers, in what is essentially a top-down model of leadership. This course, however, focuses on two critical leadership processes that, until recently, have received comparatively little attention: self- and shared leadership. Self-leadership deals with means by which individuals can better influence themselves – toward more effective thought and behavioral patterns. Shared leadership deals with the dynamic process of leadership in true teams – one that is characterized by the serial emergence of multiple leaders, depending on the tasks facing the team and the skills of the team members. As such, the course examines ways to better influence oneself and others, as well as how to better receive the appropriate influence of others. – Nonprofit Management and Leadership (MGT 517) The course focuses on the knowledge, skills, and competencies necessary to manage nonprofit organizations. The course describes organizational, interpersonal, political, and ideological approaches to leading and will show how to integrate them in the service of mission. Special attention is given to leading without relying on traditional structures of power. – Managing Crisis: Contemporary Theory and Practice (MGT 652) Using a transdisciplinary approach, this course explores the dynamics of decision-making in crises and the multifaceted consequences that flow from crises. It focuses on the impact of crises on leaders and their supporters. Organizational leaders and managers play a key role in crises, but they must be prepared to make cool decisions in the face of ambiguity and chaos. The course considers how crises can make or break current leaders, 13
    • offer flagging leaders the chance to find new direction, and create opportunities for new leaders to emerge. It will explore how crises render followers particularly vulnerable to toxic leaders and how followers may avoid susceptibility. Other examples of courses that cover topics of both social and ethical responsibility include: – The CEO Forum (MGT 300) – Law, Ethics, and the Enterprise (MGT – Consumer Behavior (MGT 323) 584) – Revitalization (MGT 362) – Shared Leadership: Extreme Edition – Labor and Personnel Economics for (MGT 635C) Managers (MGT 369) TRANSDISCIPLINARY CLASSES The Drucker School and Claremont Graduate University were founded on a transdisciplinary approach that emphasizes management as a liberal art. Our joint degree in Financial Engineering is the only transdisciplinary program of its kind that links a School of Mathematics with a School of Management. Similarly, our joint Arts Management degree is distinctive and pioneering in matching a School of Arts and Humanities with a Business School. We are actively exploring similar cross and transdisciplinary approaches between Drucker and the new School of Community and Global Health. Recent data suggests that Drucker is a net importer of students from other CGU schools and we are proud of this distinction and the positive role we play in encouraging transdisciplinary learning across CGU. We feel that transdisciplinarity is part of who awe are and at the core of our enterprise and we are committed to sustaining and increasing our efforts. As the Drucker School is part of a high-end Claremont University Consortium, also known as Claremont Colleges, our students have a unique opportunity to expand their ethics and/or corporate and social responsibility education by taking transdisciplinary courses at the partnering schools such as School of Politics and Economics at CGU, Pomona, or Pitzer College, to name just a few. Some examples of these courses include: – The Nature of Inquiry – Transdisciplinary Perspectives (TNDY 401I) The purpose of this interdisciplinary course is to expose PhD students to alternative ways of approaching problems in their discipline. It explores the philosophical and ethical underpinnings of scientific inquiry, assess the virtues of case studies, qualitative research, experimental, inductive and formal approaches. – Extremism: Transdisciplinary Perspectives (TNDY 402A) 14
    • This course focuses on extremism from multiple disciplinary perspectives: social psychology, abnormal/clinical psychology, sociology, religion, history, literature, political science, and others. It covers a range of issues including ideological orthodoxy, genocide, terrorism, religious extremism, fascism, zealotry/true believers, persecution of deviants, etc. Students who are interested in his Extremism course are required to attend an all day symposium in place of several class meetings. – Cultural Diversity, Conflict & Religion in a Global Era (TNDY 402P) The UNESCO Universal Declaration on Cultural Diversity was adopted unanimously in the wake of the events of September 11th, 2001. The Universal Declaration emphasizes that each individual must acknowledge not only ''otherness'' in all its forms, but also the plurality of his or her own identity as necessary for humankind, emphasizing that cultural diversity is as important for humankind as biodiversity is for nature. Recognizing that culture is dynamic, multifaceted, embedded in context and influenced by social, economic and political factors, this course is designed as a transdisciplinary seminar. In our discussions, the growing phenomena of what Peter Berger and Samuel Huntington in their 2002 book, Many Globalizations: Cultural Diversity in the Contemporary World, describe as emerging new patterns and trends of global cultures, are examined and analyzed. A central question remains: What is the place of culture within a globalizing world? Approaches and theories of culture and the relationships between culture and identity, religion and politics are explored. A number of theories and approaches are used in our analysis of the various ways in which ‘culture’ operates including the macro level of interactions between states and the micro levels of community life in various countries and the relationship between the individual and the state. Our learning is enriched by practical examples and alternatives set out in case studies from India, Japan, Turkey, and other societies from around the globe. 15
    • Principle 3 Method: We will create educational frameworks, materials, processes and environments that enable effective learning experiences for responsible leadership. ACADEMIC CENTERS THE DRUCKER INSTITUTE5 In May 2006, more than 100 leading Drucker-like thinkers and practitioners gathered in Claremont, Calif., to help answer one question: What is Peter Drucker’s legacy? Attendees included Jim Collins, management expert and best-selling author of Good to Great and Built to Last; Paul H. O’Neill, former U.S. Secretary of the Treasury and former chairman of Alcoa; A.G. Lafley, chairman and CEO of Procter & Gamble; Nobuhiro Iijima, CEO of the multi-billion dollar Yamazaki Baking Co.; and Masatoshi Ito, the founder and honorary chairman of the Ito-Yakado Group, Asia’s largest retail chain. This distinguished group’s answer to the question was that Drucker’s legacy is much more than the man or his writing. Drucker’s legacy, they said, is a collection of ideas and ideals desperately needed by future generations of leaders responsible for the companies and communities in which we work and live. In response, the Board of Advisors of the Peter F. Drucker Archives (founded in 1999) and Claremont Graduate University took a crucial step in 2006: They decided the best way to keep Drucker’s legacy alive was not simply to look backward (through old manuscripts and other documents) but to look forward (by building on Drucker’s wisdom and applying it to important contemporary issues). Their mandate, in other words, was to transform the archival repository into a think tank and an action tank whose purpose is to stimulate effective management and ethical leadership across all sectors of society. Out of the Drucker Archives thus grew the Drucker Institute. We are a campus-wide resource of Claremont Graduate University that is closely aligned with the Peter F. Drucker and Masatoshi Ito Graduate School of Management, where Peter Drucker taught for 35 years and which continues to produce effective managers and ethical leaders for business, government, and civil society. 5 http://www.druckerinstitute.com/ 16
    • The Drucker Institute’s logo was created in 2008 by Paul Kokinakes, art director at PainePR and principal at Kokinakes Design. The logo brings together four elements that capture the essence of the Institute’s work: a capital “D” is embedded in the design because Drucker is at our core; a path from past to future expresses the connection between Drucker’s work and the leaders and managers who are carrying it forward; a globe conveys the worldwide reach of the Drucker Societies; the globe is fractured by the Responsibility Gap, but its pieces are connected by a bridge that symbolizes the Institute’s efforts to help close the Gap. No other business school has a global outreach mechanism that is similar. As a non- degree granting free-standing institute, the Drucker Institute has a normative mission of promoting effective management, ethical leadership, and social responsibility in organizations around the world. We are trying to create a grass roots global movement for positive social change and effectiveness, based on Peter Drucker’s principles and practices. The Drucker Institute Staff includes: – Rick Wartzman, Executive Director. Before joining the Institute, Rick worked for two decades in newspapers. He began his career at The Wall Street Journal, where he served in a variety of positions, including White House correspondent and founding editor of the paper’s weekly California section. He joined the Los Angeles Times in 2002 as business editor and, in that role, helped shape “The Wal-Mart Effect,” which won the 2004 Pulitzer Prize for National Reporting. Rick later became editor of the newspaper’s Sunday magazine, West. He is the co-author, with Mark Arax, of the best-seller The King of California: J.G. Boswell and the Making of a Secret American Empire, which was selected as one of the 10 best books of 2003 by the San Francisco Chronicle and one of the 10 best nonfiction books of the year by the Los Angeles Times. It also won, among other honors, a California Book Award and the William Saroyan International Prize for Writing. His new book, Obscene in the Extreme: The Burning and Banning of John Steinbeck's The Grapes of Wrath, was published by Public Affairs in fall 2008. It was a Borders "Original Voices" selection, one of the Los Angeles Times' 25 favorite nonfiction books of the year and a finalist for the Los Angeles Times Book Prize in history. Until recently, Rick was an Irvine senior fellow at the New America Foundation, a nonpartisan public policy think tank. He writes “The Drucker Difference” column for BusinessWeek online. – Zachary First, Managing Director. Zach joined the Drucker Institute after a 10-year career in higher education. He worked most recently as the inaugural assistant dean at Olin College, a new undergraduate engineering institution founded with a $430 million gift from the F. W. Olin Foundation, where he led the invention and implementation of the judicial and residence life programs. Zach received his B.A. in philosophy from Haverford College, and his masters 17
    • and doctorate degrees in higher education from Harvard University. His doctoral dissertation research focused on the connection between leadership tactics and organizational performance. He also currently serves as principal investigator for a study of innovation in higher education funded by the Spencer Foundation. Drucker Institute Board of Advisors: – Bob Buford, Chairman Mr. Buford is an author and “entrepreneurial nonprofit philanthropist,” who in 1984 started Leadership Network, a private operating foundation, to identify and provide resources for senior ministers and staff of large church congregations (1,000-plus in attendance) in the U.S. He is also the founding chairman of the Board of Governors of the Peter F. Drucker Foundation for Nonprofit Management (now the Leader to Leader Institute). In January 1998, Mr. Buford launched what became Halftime, an organization to help high-powered marketplace leaders convert their faith into action and effective results. In 1999, Mr. Buford concluded a 35-year career in the communications business by selling Buford Television Inc., where he had been chairman. He is the author of four books, including the best seller, Halftime: Changing Your Game Plan from Success to Significance; Game Plan: Winning Strategies for the Second Half of Your Life and Stuck in Halftime: Reinvesting Your One and Only Life; and Finishing Well. – John Bachmann Mr. Bachmann is a senior partner at the St. Louis-based investment firm Edward Jones. During Mr. Bachmann’s 24-year stint as managing partner, Edward Jones grew from 200 offices in 28 states to more than 9,000 offices throughout the U.S., as well as in Canada and the United Kingdom. He has been involved with a broad range of professional and philanthropic undertakings, including serving as chairman of the Securities Industry Association, chairman of the U.S. Chamber of Commerce, campaign chairman of the United Way of Greater St. Louis and chairman of the St. Louis Symphony Orchestra. His current activities include serving as a director of AMR Corp. and Monsanto Co. and a trustee of Washington University. In addition to his role at the Institute, he also serves as a trustee of Claremont Graduate University and is chairman of the Board of Visitors at the Peter F. Drucker and Masatoshi Ito Graduate School of Management. – John Byrne Mr. Byrne is the editor-in-chief and executive editor of BusinessWeek.com. After serving as executive editor of BusinessWeek magazine for two years, Mr. Byrne assumed the top editorial job at BusinessWeek’s fast-growing online operation. In his first year in this role in 2007, he led BusinessWeek.com to record levels of reader engagement and traffic, oversaw the redesign of the website, and launched extensive new areas of coverage, including on management. Previously, Mr. Byrne was editor-in-chief of Fast Company magazine. He is the author of eight books on business, leadership, and management. Among them is Jack: Straight from the Gut, the highly anticipated 18
    • collaboration with former General Electric Co. CEO Jack Welch, which debuted at the top of The New York Times bestseller list. Mr. Byrne holds a master’s in journalism from the University of Missouri and an undergraduate degree in English and political science from William Paterson College. – Cecily Drucker Ms. Drucker, one of Peter and Doris Drucker’s four children, is an attorney in San Francisco. Since 1974, Ms. Drucker has focused her practice in the areas of real-estate tax planning and financing, as well as other business and commercial transactions. She specializes, in particular, on structuring and implementing complex 1031 tax-deferred exchanges. She is the co-author of Real Property Exchanges, published by the California Continuing Education of the Bar. – Doris Drucker Mrs. Drucker, who was married to Peter Drucker for 68 years, studied law and economics at the London school of Economics, Kiel University and Frankfurt University. After her arrival in the United States in the late 1930s, she received an M.S. in physics from Fairleigh Dickenson University and conducted scientific market research as an independent contractor for several decades. In 1996, when she was 82 years old, Mrs. Drucker founded RSQ, a company to manufacture and market a voice-volume monitor that she and a partner invented. Her memoir, Invent Radium or I’ll Pull Your Hair, was published in 2004. Mrs. Drucker continues to travel and lecture widely; for instance, she served as a plenary speaker at the Australian Institute of Management’s convention in Sydney in September 2007. The Peter F. Drucker and Masatoshi Ito Graduate School of Management is currently looking to fill the Doris Drucker Chair in Global Management. – Allison Graff-Weisner Mrs. Graff-Weisner is the executive director of City Year Los Angeles. Prior to moving to the West Coast to launch City Year Los Angeles in 2007, Mrs. Graff-Weisner served as the national alumni director of the organization, which unites young people of all backgrounds for a year of full-time community service. In addition to her involvement with City Year, Mrs. Graff-Weisner has worked at numerous community development and educational organizations in the U.S. and abroad. After running parent involvement programs at 20 schools in the Bronx with Learning Leaders, a group that engages 10,000 volunteers in New York City schools, she helped oversee its program department. She also taught and ran an after-school program in Washington, D.C., during her year of national service with Public Allies. She is a graduate of U.C. Berkeley and Harvard’s Kennedy School of Government. – Joseph C. Hough, Jr. 19
    • Mr. Hough is the interim president of Claremont Graduate University. He served for nine years (1999-2008) as the fifteenth president of Union Theological Seminary in New York City, where he is also William E. Dodge professor of social ethics. Prior to assuming the post at Union, Hough served for nine years as dean and professor of ethics of the Vanderbilt University Divinity School in Nashville, Tennessee. He was also the first director of the Cal Turner Program in Moral Leadership, a program for the law, divinity, medical, and business schools of Vanderbilt. Before that, he served on the faculty of the Claremont School of Theology and was chair of the religion department of Claremont Graduate School. He also served as dean of the Claremont School of Theology from 1974 to 1987. Hough has earned numerous honors over the years, including a Doctor of Divinity from Wake Forest University and the Centennial Medal for Distinguished Service from Claremont in 1986. He also received the Joshua Award from the Jewish Federation Council in 1986 for outstanding contributions to human relations. – Nobuhiro Iijima Mr. Iijima is president and CEO of Yamazaki Baking Co., Japan’s leading manufacturer of bread and baked goods, with more than $6 billion in sales. Under Mr. Iijima’s leadership, Yamazaki has grown from humble beginnings into an operation with 25 domestic factories and more than 16,000 employees producing thousands of product lines for sale in 100,000 stores. He joined the company after graduating from Hitotsubashi University. The company sent him to London to study baking at what is now South Bank University, from which he holds an Honorary Doctor of Science degree. He was named president of the firm in 1979. Mr. Iijima also sat on the advisory board of the Peter F. Drucker Foundation for Nonprofit Management (now the Leader to Leader Institute), and currently serves as vice chairman of World Vision Japan, a Christian relief and development organization. – Ira Jackson Mr. Jackson is the dean of the Peter F. Drucker and Masatoshi Ito Graduate School of Management. At the age of 26, Mr. Jackson became chief of staff to Boston Mayor Kevin White. He later became senior associate dean of Harvard’s John F. Kennedy School of Government. Mr. Jackson left the Kennedy School to become Commissioner of Revenue for the Commonwealth of Massachusetts, where he was credited with being one of the architects of the state’s “economic miracle.” Later, he served as executive vice president of BankBoston for a dozen years. Mr. Jackson then returned to Harvard as the director of its Center for Business and Government at the Kennedy School and later became the first president of the Arthur M. Blank Family Foundation in Atlanta. Prior to coming to Claremont, he was president and CEO of the Arizona State University Foundation. He is the co-author, with Jane Nelson, of Profits with Principles: Seven Strategies for Delivering Value with Values. – Jody Greenstone Miller 20
    • Mrs. Miller is the founder and chief executive of Business Talent Group, a Los Angeles- based firm that provides consultants and interim executives through a model that grew, in part, out of Peter Drucker’s writings on the knowledge worker. Before launching BTG, Miller was a venture partner with Maveron, the Seattle-based venture capital firm founded by Howard Schultz, from 2000 to 2007. Before that, she served as executive vice president and later acting president and COO of Americast, the digital television partnership between Disney and the regional telephone companies. Miller also served in the White House as special assistant to President Bill Clinton, where she was deputy to David Gergen, counselor to the President. She currently serves on the board of directors of TRW and Capella Education Co., a leading accredited online university. She is also a co-founder and board member of the National Campaign to Prevent Teenage Pregnancy. She has written (with her husband, Matt Miller) the November 2005 cover story for Fortune, “Get a Life!” about the relationship between companies and senior business talent, and an April 2004 New York Times Magazine article about the need for better healthcare solutions for independent consultants. – Seung-Woo Nam Mr. Nam is the chairman and CEO of Pulmuone Holdings Co., Ltd. of South Korea and the chairman of the UN Global Compact in South Korea. As CEO of Pulmuone, he leads one of South Korea’s top food product manufacturers. The company, which also has operations in the U.S. and China, was among the first to bring to market soy-based products that are certified as free of genetically modified organisms. In addition, Pulmuone has pioneered new flavors and packaging that are boosting demand for this low-cost, high-nutrient food. As the chairman of the UN Global Compact in South Korea, Mr. Nam heads a group of more than 100 corporate, government and NGO leaders in his country. They are helping organizations across all three sectors fulfill what Peter Drucker called “management’s self interest in a healthy society” by aligning operations and strategies with 10 principles in the areas of human rights, labor, environment, and anti- corruption. Mr. Nam is also a co-president of the Drucker Society of Korea, where he helps convene regular meetings of South Korean corporate executives to read and apply Drucker’s work in their own organizations and communities. – C. William Pollard Mr. Pollard is the former chairman and CEO of ServiceMaster Co. Under his leadership, ServiceMaster was recognized by Fortune magazine as the No. 1 service company among the Fortune 500. It was also identified as a “star of the future” by The Wall Street Journal and recognized by the Financial Times as one of the most respected companies in the world. In 2004, Mr. Pollard received the Rev. Theodore M. Hesburgh Award for Business Ethics at Notre Dame. He is chairman of the Board of Trustees at Wheaton College in Wheaton, Ill., and serves as a director of Herman Miller Inc. Mr. Pollard is also the author of the bestselling book The Soul of the Firm, which Peter Drucker described as a guide to how large service companies can “give its employees dignity, productivity, and meaningful work.” He has authored two other books, as well: The Heart of a Business Ethic and Serving Two Masters?: Reflections on God and Profit. 21
    • – Minglo Shao Mr. Shao is the founder and chairman of Bright China Holding Ltd., an investment group that operates in Los Angeles, Hong Kong and major cities around China. Under his leadership, Bright China Group has invested more than $500 million in China, providing employment to more than 10,000 laid-off workers in more than 20 cities. Donations have also been made in Shanxi to build and operate schools, providing educational opportunities to more than 3,000 students from poverty-stricken farming families in the region. Through Bright China Holding, Mr. Shao heads the Peter F. Drucker Academy, a nonprofit educational organization dedicated to researching and teaching Drucker’s management ideas in China. With a dozen locations across the country, more than 6,000 middle and senior managers are expected to complete the Drucker Academy’s certificate program in 2007. – Craig Wynett Mr. Wynett is general manager of Future Growth Initiatives at Procter & Gamble Co. He joined P&G in 1988 and moved up quickly through the company’s brand manager system. In 1994, Mr. Wynett persuaded then-CEO John Pepper that P&G had “hit a 15- year paralysis in launching major new products.” Mr. Wynett was then tapped to head a startup within P&G—Corporate New Ventures, which was armed with $250 million in seed money and a direct line to the CEO’s office. Under Mr. Wynett, the CNV team captured ideas from all across P&G, by way of an online network, and then used the Internet to analyze market opportunities, demographics and costs. Once it was determined that a project was feasible, it was typically launched within days and new products swiftly brought to market. Mr. Wynett’s development methods have been studied by Harvard researchers and replicated by R&D executives from myriad other multinationals. Mr. Wynett is also co-author of the bestselling You series of advice books. The Drucker Nonprofit Innovation Award The award, administered by the Institute, is given each November to three U.S.-based nonprofit organizations in recognition of existing programs that have made a difference in the lives of the people they serve. The award has been given annually since 1991 and is accompanied by a first-place prize of $100,000 and two runners-up prizes of $7,500 and $5,000. The main role of the award is to advance best practices in the social sector and how it preserves and expands upon Drucker’s early insights about the importance of civil society in holding together what he called functioning or responsible society. Awards' past winners include: • 2008 KickStart, San Francisco, CA • 2007 Brooklyn Workforce Innovations, Brooklyn, NY • 2006 United Through Reading, San Diego, CA 22
    • • 2005 The Landscape Bank, Keep Alachua County Beautiful, Inc., Gainesville, FL Drucker Societies Drucker Societies are the seeds of a global movement for effective management and ethical leadership. These volunteer organizations are springing up all around the world to bring Peter F. Drucker’s wisdom and practical insights to new generations of corporate and social sector thinkers and doers. As independent volunteer-driven associations, the Societies take many forms, each according to the needs and interests of its membership. Their activities include book clubs in which CEOs discuss Drucker’s teachings and how to apply them to their companies and communities; Drucker-based training programs for nonprofit organizations; and presentations on Drucker and his ideas for high school students. The Drucker Institute actively encourages the formation of Societies and serves them as a hub, supporting their efforts and empowering their members. Other Activities that the Drucker Institute is involved in include: – Drucker Apps, which contain ‘usable insights on work and life from the world’s foremost expert on organizations and effectiveness.’ – Drucker Unpacked, an engaging, do-it-yourself workshop-in-a-box that distills decades of Peter Drucker’s most essential ideas so that up to 15 people inside any organization can turn them into action. This was developed with WildWorks Group, a leading process- consulting firm to Fortune 500 companies. 23
    • Principle 4 Research: We will engage in conceptual and empirical research that advances our understanding about the role, dynamics, and impact of corporations in the creation of sustainable social, environmental and economic value. FACULTY SCHOLARLY CONTRIBUTIONS: 2007-2009 HIGHLIGHTS – Prof. Craig Pearce received the 2008 Asia Pacific Leadership Award from the Asian Pacific Human Resource Congress in India February 2008, and has a paper with others appearing in the next issue of Leadership Quarterly, entitled “The roles of vertical and shared leadership in enactment of executive corruption: implications for research and practice.” Its abstract is below. Recent scandals involving executive leadership have vaulted the topic of executive corruption to a central concern in the organizational literature. History suggests that power can corrupt and that absolute power can be an especially toxic influence. In this paper we propose that the propensity for corruption (as measured by CEO responsibility disposition) of leaders and the degree to which leadership is shared are key factors in understanding the potential for executive corruption. More specifically, shared leadership is proposed as a moderator that can deter corruptive tendencies by providing checks and balances capable of reducing the potential for corrupt behavior. A conceptual model is offered along with propositions to help guide future research and practice.6 – Prof. James Wallace received the Best Paper Award at the American Accounting Association Western Region Conference in 2008 for the paper “An Economic Look at Corporate Social Responsibility.” His book, Value(s)-Based Management is to be published in August 2009: As the first decade of the 21st century winds down we have seen a sea change in society's attitudes toward finance. The 1990s can best be described as the decade of shareholder supremacy, with each firm trying to outdo the other in their allegiance to shareholder value creation, or as it came to be known, Value-Based Management (VBM). No one seemed to question this culture as the rising firm valuations translated into vast wealth creation for so many. Three significant economic events have reshaped how the public feels about an unbridled devotion to VBM and have defined the last decade: the dot.com bubble in 2000, the infamous accounting scandals of 2001, and the collapse of the credit markets in 6 http://www.sciencedirect.com/science? _ob=ArticleURL&_udi=B6W5N-4SHFSKP-7&_user=945391&_rdoc=1&_fmt=&_orig=search&_sort=d& _docanchor=&view=c&_searchStrId=952092072&_rerunOrigin=google&_acct=C000048959&_version=1 &_urlVersion=0&_userid=945391&md5=9fc3ef85aa3dba3217bbe60e8100c59f 24
    • 2007-2008. In all three of these events the CEOs were portrayed as reckless and greedy and Wall Street went from an object of admiration to an object of scorn. The first edition of this book, Value Based Management: The Corporate Response to the Shareholder Revolution was written to help explain the underpinnings of Value-Based Management. At the time of its publication, few questioned whether the concept was the proper thing to do. Instead, the debate was focused on how to implement a VBM program. With this new second edition, the authors look at VBM after having seen it through good times and bad. It is not their intent to play the blame game or point fingers. Nor is it their intent to provide an impassioned defense of VBM. Instead they provide an academic appraisal of VBM, where is has been, where it is now, and where they see it going.7 – Prof. Joseph Maciariello has completely revised Peter F. Drucker’s classic, Management, which was published earlier this year by Harper Collins in an initial printing of 50,000, with a forward by Jim Collins in 2008. In November 2007, he published “Peter F. Drucker,” contribution to the International Encyclopedia of the Social Sciences, 2nd Edition, William A. Darity (Duke & UNC), Editor in Chief, Macmillan Reference USA. In addition, Prof. Maciariello serves as an Academic Director of the Drucker Institute. He has developed the Peter F. Drucker Curriculum Project for use at the Drucker/Ito School and for universities and professional societies throughout the world. – Prof. Cornelis “Kees” de Kluyver has published a book titled A Primer on Corporate Governance, in January of 2009. This book is a primer on corporate governance for executives. It is designed to guide you to become an effective participant by discussing corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today’s boards, and how to successfully manage them.8 – Prof. Jean Lipman-Blumen co-edited The Art of Followership: How great followers create great leaders and organizations, described by James MacGregor Burns as a work that is expected to become a “landmark in the complexities of the leader-follower dynamic.” Her current work is in the following: Connective leadership in a diverse and interdependent world; Why followers tolerate toxic leaders; Leadership rhetoric and illusions; A practical theory of crisis management. 7 http://www.amazon.com/Value-Managment-Corporate-Social-Responsibility/dp/0195340388/ref=sr_1_2? ie=UTF8&s=books&qid=1247093667&sr=8-2 8 http://www.businessexpertpress.com/books/primer-corporate-governance 25
    • Principle 5 Partnership: We will interact with managers of business corporations to extend our knowledge of their challenges in meeting social and environmental responsibilities and to explore jointly effective approaches to meeting these challenges. CUSTOM CORPORATE EDUCATION – Edward Jones – Metropolitan Municipal Water District – Panda Restaurants – Pulmuone Co.; etc. – Fujitsu PARTNERING WITH LOCAL AND GLOBAL CORPORATE EXECUTIVES AND KNOWLEDGE WORKERS – Doris Drucker (Author and inventor) – David Gergen (Director of Harvard – AG Lafley (Chairman and CEO of University’s Center for Public Procter and Gamble Co) Leadership, CNN commentator, and – Iqbal Quadir (Founder of former White House advisor) GrameenPhone and now the Legatum – Charles Handy (Author of The Age of Center for Technology, Innovation and Unreason and The Elephant and the Development at MIT) Flea, and cofounder of the London – Rajiv Dutta (Drucker alum, Drucker Business School) Executive-in-Residence and former – Frances Hesselbein (Chairman of the President, eBay Marketplaces, PayPal, Leader to Leader Institute, former and Skype) CEO of the Girl Scouts of the USA, – Masatoshi Ito (Founder and honorary and recipient of the Presidential Medal chairman of the Ito-Yokado Group) of Freedom) – John Bachman (senior partner at – Rosabeth Moss Kanter (The Ernest L. Edward Jones, chairman of the Arbuckle Professor of Business Drucker School Board of Visitors, and Administration at Harvard University) CGU trustee) – Alan Khazei (CEO of Be The Change – Warren Bennis (University professor Inc. and cofounder of City Year) and Distinguished Professor of – Wendy Kopp (Founder and CEO of Business Administration at the Teach for America) University of Southern California) – Minglo Shao (Chairman of Bright – Bob Buford (Author, social China Holding Ltd.) entrepreneur, and chairman of the – Rick Warren (Pastor of Saddleback Drucker Institute) Church) – John Byrne (Executive Editor of – Mike Napoli (President of Tech Coast BusinessWeek) Angels – Inland Empire) – Jim Collins (Author of Good to Great – Don Gould (Head of the Rotary Club and Built to Last) and Owner of Gould Asset Management LLC) 26
    • ACADEMIC CENTERS – The Drucker Institute (we are the only tank that has a global reach through school that has an action-based think Drucker Societies) – Claremont Leadership Roundtable DRUCKER SOCIETIES Drucker Societies are the seeds of a global movement for effective management and ethical leadership. These volunteer organizations are springing up all around the world to bring Peter F. Drucker’s wisdom and practical insights to new generations of corporate and social sector thinkers and doers. BEING PART OF THE CLAREMONT UNIVERSITY CONSORTIUM (CUC) Knowing that our school is small we are leveraging our credibility by having multiple joint agreements with schools and being a part of the Claremont University Consortium. This CGU/CUC partnership gives the students access to many additional resources: access to events, lectures, seminars, and library access to world-class databases for research. In addition, this partnership gives us a unique opportunity to create joint degrees with various schools. For example, our joint degree in Financial Engineering is the only transdisciplinary program of its kind that links a School of Mathematics with a School of Management. Similarly, our joint Arts Management degree is distinctive and pioneering in matching a School of Arts and Humanities with a Business School. Recent data suggests that Drucker is a net importer of students from other CGU schools and we are proud of this distinction and the positive role we play in encouraging transdisciplinary learning across CGU. We feel that transdisciplinarity is part of who awe are and at the core of our enterprise and we are committed to sustaining and increasing our efforts. NEW ACADEMIC PROGRAMS The Drucker School is partnering with Southwestern Law School to launch new dual degree programs. Drucker and Southwestern students concurrently earn a Masters of Business Administration (MBA) and a JD, and Executive MBA and a JD, or Masters in Management (MAM) and a JD. Southwestern Law School has a longstanding emphasis on diversity, public service, and innovative programs. The combination of legal training and management skills is increasingly in demand, and we believe graduates of these concurrent degree programs will find enhanced career opportunities and be able to make a positive difference. In addition, we have established a new Dual MBA/MPH with the School of Global Health (SCGH). Student interest in this possibility has been strong and has confirmed our 27
    • desire to continue to leverage both the SCGH and Drucker School’s disparate strengths to partner in other innovative directions, such as an Executive Master’s in Global Health Management. CLASS PROJECTS These are partnerships created by having students perform projects to help do business better and tie the academic learning to the real world examples. One example was a project done for the City of Ojai, where school and community partnerships were fostered. 28
    • Principle 6 Dialogue: We will facilitate and support dialog and debate among educators, business, government, consumers, media, civil society organizations and other interested groups and stakeholders on critical issues related to global social responsibility and sustainability. We understand that our own organizational practices should serve as an example of the values and attitudes we convey to our students. LECTURES, LECTURE SERIES, EXECUTIVE FORUMS – Dr. David Cooperrider Dr. David L Cooperrider is the Fairmount Minerals Professor of Social Entrepreneurship at the Weatherhead School of Management, Case Western Reserve University. He came to the Drucker School on August 8, 2008, and gave a lecture on “The Discovery and Design of “Positive Institutions” that Magnify and Refract Our Highest Human Strengths into the World.” Through his studies and work in the field, Dr. Cooperrider is now convinced that sustainability is the business opportunity of the 21st century. It is an innovation engine unlike anything we have ever seen in management – and it’s a lens that will dominate the management agenda for the next generation of thirty or more years. Even more important, the outcomes will define the next episode in creative capitalism and, ultimately, will determine the well-being of our imperiled planet. – Iqbal Quadir Mr. Quadir is perhaps most well known for conceiving, designing, and organizing GrameenPhone, which has provided virtually universal access to telephony in his native Bangladesh and self-employment opportunities for its rural poor. After developing a vision for universal access to mobile phones in Bangladesh while working on Wall Street, Quadir created Gonofone Development Corp. (Gonofone means “phones for the masses” in Bengali) and then persuaded Grameen Bank and the Norwegian telephone company, Telenor, to create GrameenPhone and remained actively involved in the board and management of the company through 1999. Today, GrameenPhone is a profitable venture with more than 16 million subscribers, the largest telephone company in Bangladesh. At the same time, it has created self-employment opportunities to more than 250,000 Grameen Bank borrowers, giving telephone access to more than 100 million people. – Closing the Responsibility Gap One in 10 people across the globe had to pay a bribe last year. In the U.S., more than 2 million homes have been or soon will be foreclosed upon. Meanwhile, each day, more than 24,000 people die from hunger or related causes – even though we 29
    • have enough food to feed them. “Our problem,” Nobel Peace Prize Winner Muhammad Yunus has concluded, “is one of management, not lack of resources.” A distance has opened up between our obligations – to be effective managers and ethical leaders – and our actions. The Drucker Institute calls this the “Responsibility Gap.” “Our problem,” Nobel Peace Prize Winner Muhammad Yunus has concluded, “is one of management, not lack of resources.” Clearly, a great distance has opened up between our obligations—to be effective managers and ethical leaders—and our actions. We call this the Responsibility Gap. The Drucker Institute offers a 45-minute presentation on the Responsibility Gap that covers the vital importance of management to the health of modern society; the dire implications of our collective failure to be effective managers and ethical leaders of our people, resources, and institutions; and how Peter Drucker’s core insights and values highlight a way to begin bridging the Gap. A documentary version is in development. – The Odyssey Project In February 2008 the Drucker School was privileged to host famed leadership thinker Charles Handy, co-founder of the London Business School, as its Drucker Scholar in Residence, along with his wife Elizabeth Handy, an accomplished portrait photographer. While they were here, the couple created a seminar class called The Odyssey Project, inspired by the legendary Odysseus and his journey of self-discovery. Odysseus spent twenty years finding his way home from Troy. It was a journey of adventure and a test of values. New students at the Drucker School will also have the opportunity to take part in the Odyssey Project. Here's the gist: Each person is encouraged to determine some of the things that matter most in his or her life, and then find symbolic objects to create a Still Life, modeled on the Dutch Vanitas paintings of the 16th and 17th centuries. Each object in a Vanitas painting is carefully chosen for its rich layers of meaning. For example, students in Charles Handy's seminar were asked to choose five objects and a piece of nature to represent what is most important in their lives. These items were then arranged, photographed and discussed. The idea is that the objects in the symbolic self- portraits lead participants to a richer discussion than would occur with words alone. The resulting discussions about life, work, values and organizations help participants determine where to focus their attention - for better or worse - and how to steer the course for the future. 30
    • – Father Benigno Beltran In fall of 2008, the Drucker School hosted a very special visitor, Father Benigno Beltran, from Manila, Philippines. A Catholic priest, Father Ben works with people in Manila who live on the so-called “Smokey Mountain” and earn a living by scavenging on the trash heap of Manila. Father Ben has helped these people by creating a plan to enable them to form buying groups that mimic the work of Iqbal Quadir, founder of GrameenPhone in Bangladesh and Muhammad Yunus of Grameen Bank. Father Ben dreams of extending these trading groups to as many as 50,000 people in Manila in the coming year, and his work has generated global interest in this model, which other NGO’s hope to replicate in many countries. For four months, Father Ben was at the Drucker School as a Leader in Residence through Professor Jean Lipman-Blumen’s Institute for Advanced Studies in Leadership. During his time here, Father Ben studied more about Peter Drucker’s work and spoke at various locations in the local California area. He also worked with teams of students to investigate various aspects of operationalizing the Veritas business model. He realized that while he was able to lead his own parish in developing this model, he needed to have help when embarking on the expansion of his work in Manila. Students and alumni of Drucker and CGU were invited to participate in the exciting work by joining one of the special research teams, which were to each take on a different aspect of the “problem” or “question” and to be monitored by a faculty member along the way. In early December the results of each of those projects were presented to an invited audience from the Claremont Colleges and from the local NGO community. – Global Forum of Business as an Agent of World Benefit 2009 In June 2009 at the Global Forum for Business as an Agent of World Benefit, 600 leaders of design, sustainability, business, policy, and management envisioned and designed ways to enhance their fields and meet today's pressing social and environmental needs. Participants are now working to make their projects take flight in their communities, offices, board rooms, and schools. As an on-going initiative, the Global Forum for BAWB will reconvene in 2011.9 In it, Prof. Vijay Sathe presented research that he and Drucker Ph.D. graduate Michael Crook (former CEO of Patagonia) have done about the emergence of the organic cotton sector. – Mark Albion’s “More than Money” Mark Albion, co-founder of the Social Venture Network and Net Impact, and author of “Making a Life,” as well as “More than Money: Questions Every MBA Needs to Answer,” came to the Drucker School to give a presentation followed by a workshop with interested students based on the following premise: 9 http://worldbenefit.case.edu/global-forum/ 31
    • MBA students are chronically risk-averse. Their risk aversion prevents them from seeking and living a life of meaning and purpose. Mark's new book redefines the meaning of risk, and /or asks business students to look at risk in a new way. It shows students that the choices they think of as “safe” (e.g. lucrative jobs that fulfill no personal aspirations aside from financial gain, deferring service to others until retirement, etc...) are actually quite risky. Albion helps MBA students to give themselves “permission” to find profit and purpose. DRUCKER CENTENNIAL EVENTS The Drucker Centennial in November 2009 marked the 100th birthday of Peter F. Drucker, the father of modern management; author of 39 books on organizational behavior, innovation, economy, and society; and winner of the Presidential Medal of Freedom. This commemoration and celebration was crowned by a week of special events at Claremont Graduate University in November 2009 and supplemented by other activities from Fall 2008-2010. “The timing couldn’t be more urgent,” said Ira A. Jackson, dean of the Drucker School at CGU. “With fallout from the financial crisis continuing and institutions of all sorts being viewed with deep mistrust by the public, Drucker’s insights have never been more essential. Clearly, we need Drucker now more than ever.” Underscoring the importance of Drucker’s ideas and ideals was a roster of leaders, thinkers and management luminaries who are serving as chairs of the Centennial. They included John Bachmann, senior partner at Edward Jones, chairman of the Drucker School Board of Visitors and CGU trustee; Warren Bennis, renowned author and USC professor; social entrepreneur Bob Buford, chairman of the Drucker Institute; John Byrne, the executive editor of BusinessWeek; Jim Collins, the bestselling author of Good to Great and How the Mighty Fall; author and inventor Doris Drucker; Rajiv Dutta, former president of eBay Marketplaces; and David Gergen, director of Harvard University’s Center for Public Leadership, CNN commentator and former White House advisor. Also serving as Centennial chairs are Charles Handy, co-founder of the London Business School and author of The Age of Unreason and The Elephant and the Flea; Frances Hesselbein, chair of the Leader to Leader Institute, former CEO of the Girl Scouts of the USA and recipient of the Presidential Medal of Freedom; Masatoshi Ito, founder and honorary chairman of the Ito-Yokado Group, Asia’s largest retailer; Harvard University’s Rosabeth Moss Kanter, author of SuperCorp, Confidence and 16 other books; Alan Khazei, CEO of Be The Change and co-founder of City Year; Wendy Kopp, founder and CEO of Teach for America; A.G. Lafley, chairman of Procter & Gamble; Minglo Shao, chairman of Bright China Holdings and head of the Peter F. Drucker Academy; and Rick 32
    • Warren, the pastor of Saddleback Church and the author of The Purpose Driven Life, the best-selling hardback book in American history. In addition to various forums, conferences and other gatherings (listed below), the Centennial included other significant milestones, such as the publication later this year by McGraw-Hill of The Drucker Difference: What the World’s Greatest Management Thinker Means to Today’s Business Leaders. The book, which analyzes Drucker’s most important ideas in the context of today’s turbulent business environment, was written by Drucker School faculty. Highlights of the past academic year’s events are below: – The Element: A New View of Human Capacity Drucker Institute Director Rick Wartzman talked with Sir Ken Robinson, one of the world’s leading authorities on innovation and creativity, about Sir Ken’s new book, The Element. – “The Character of the Company”: How businesses balance profit with social responsibility Meg Whitman, former President and CEO of eBay, talked with Rajiv Dutta, current Drucker Executive-in-Residence and former President, eBay Marketplaces, PayPal, and Skype. – “Turning a Thousand Points of Chaos Into a Single Beam of Light”: How do you take a mobile, diverse, knowledge-driven workforce and align its thinking? Former top Coca-Cola executive Jack Bergstrand, the author of Reinvent Your Enterprise, talked with Rajiv Dutta, current Drucker Executive-in-Residence and former President, eBay Marketplaces, PayPal, and Skype. – A Visionary Look at the Evolution and Future of India Drucker School of Management Professor Vijay Sathe talks with Infosys Co-Chairman Nandan Nilekani about the future of the Indian subcontinent and its role as a global citizen and emerging economic giant, as explored in Nilekani’s new book, Imagining India. – Cesar Chavez Day community-service project Drucker School students joined with Karen Baker, California’s Secretary of Service and Volunteering, to build a playground in the Inland Empire – Claremont Graduate University’s backyard and one of the fastest-growing regions in the U.S. The event was meant to help showcase Peter Drucker’s passion for the work of nonprofits and his 33
    • insight that “citizenship in and through the social sector is not a panacea” for fixing the ills of society, “but it may be a prerequisite for tackling these ills.” – “Harnessing the Power of Many”: How does a company reach beyond its traditional boundaries to tap into the thoughts and ideas of those on the outside of the organization? Intuit Inc. Founder Scott Cook talked with Rajiv Dutta, current Drucker Executive-in- Residence and former President, eBay Marketplaces, PayPal, and Skype. – The 4th DWS Annual Meeting and Lectures The fourth annual meeting of the Drucker Workshop (DWS)—the Drucker Society of Japan – was one of two Drucker Centennial events in Japan. In the morning, various announcements were made by branch leaders, study groups, and individual members. In the afternoon, three special Drucker Centennial lectures were planned by Prof. Atsuo Ueda, President of DWS, on "Designing Tomorrow and the Future"; Prof. Shinya Iwakura, Tama Art University, who is a former Senior Managing Director of Honda Motor Co., Ltd.; and Mr. Akira Kojima, Trustee & Senior Fellow of the Japan Center for Economic Research, on "The Teachings of Falstaff." – Drucker Society Global Symposium This was the annual gathering of Drucker Society leaders from around the world. Drucker Societies are all-volunteer organizations that use Peter Drucker’s teachings to bring about positive change in their local communities; they are where Drucker’s ideas and ideals get turned into action. The Drucker Institute at CGU, which acts as the hub of this worldwide volunteer network, has committed to doubling the number of Drucker Societies around the world over the Centennial period. – Drucker Centennial Global Conference on Knowledge-Based Innovation in Small- and Medium-Sized Korean Businesses and Social Enterprises The Drucker Society of Korea hosted a conference on fostering growth and innovation in small businesses and social enterprises. In Drucker-like fashion, the Koreans hope this event will help social entrepreneurs learn from those in the private sector, while also helping corporate CEOs and managers learn from successful nonprofits and social enterprises. – Drucker Centennial Marketing Symposium Top marketing executives gathered to examine how innovation intersects with marketing. George Day, of the Wharton School, delivered the lunchtime keynote, highlighting Peter Drucker's contributions to the field. 34
    • This past academic year (2009-2010), The Drucker Centennial event speakers included leading management thinkers including Jim Collins, Stephen Covey, Warren Bennis, Ken Blanchard and Charles Handy. In addition to hosting locally based activities, the Drucker School and Drucker Institute took part in a series of Centennial events around the world—from New York City to Seoul, Vienna to Beijing, and Tokyo to Sao Paulo—all highlighting Drucker’s seminal teachings on effective management, ethical leadership and social responsibility. The list below highlights events for fall 2009 from the Drucker Centennial calendar. (The Centennial will continue through fall 2010). For additional details, including times and exact locations, please visit www.drucker100.com October 6 – 7, 2009 World Business Forum, New York City, NY Each year, thousands of attendees from around the globe gather at Radio City Music Hall to network, advance their businesses and be part of this annual live experience with an incredible lineup of global leaders, brilliant minds, business icons and legendary CEOs. Speakers included President Bill Clinton, Jack Welch, Gary Hamel, Jeffrey Sachs and Drucker School Dean Ira Jackson. This year's World Business Forum has been officially designated a Drucker Centennial event. 35
    • October 14, 2009 CEO Forum, Claremont, CA Leading CEOs gathered to discuss what it takes to be a leader in an age when the challenges facing our planet, our society, and our individual organizations are more complex and demanding than any known in our lifetimes. October 16 – 19, 2009 Drucker Centennial in China and Hong Kong Drucker Centennial commemorations took place on October 16th in Beijing and at a forum at the Nanjing University School of Business, with keynote speeches and concurrent sessions on Drucker on management. On October 17th, Drucker forums for business, government and social sector leaders took place in Nanchang and Jinan. On October 18, a similar forum took place in Shanghai. On October 19, a Drucker forum in Hong Kong included the presentation of the Bright China Drucker Awards for Innovation in Civil Society and for Corporate Social Integration, and a Drucker 100 Power Dinner for 300 top leaders in government, business and the social sector. DRUCKER CENTENNIAL WEEK CELEBRATION (NOVEMBER 2 – 6, 2009) November 2, 2009 Opening of Japanese art exhibition, Claremont, CA This exhibition, on the campus of Scripps College, showcased pieces from the internationally renowned Sanso Collection. Curated by Bruce Coats, chairman of Scripps College’s Department of Art History, the exhibit highlights Peter Drucker’s ability to draw insights about the human condition from a wide range of fields. Drucker lectured on Japanese art at Pomona College from 1975-1985. The exhibition ran through Sunday, December 6. November 2, 2009 Ken Blanchard, live in Claremont, CA Ken Blanchard is the co-founder of the international management training and consulting firm that bears his name. Blanchard’s book, The One Minute Manager, co-authored with Spencer Johnson, has sold more than 13 million copies. Blanchard is also the author of Raving Fans, Gung Ho!, Whale Done! and Leading at a Higher Level, among many others. His books have combined sales of 18 million-plus copies in more than 25 languages. November 3, 2009 36
    • Management All-Stars forum, Los Angeles, CA This event, at the Club Nokia at L.A. Live Theatre, featured Ken Blanchard; USC professor Warren Bennis, hailed by Forbes as “the dean of leadership gurus”; and British social philosopher Charles Handy. These three management giants paid tribute to Peter Drucker’s path-breaking insights while relating his work to their own. November 4 – 5, 2009 Frances Hesselbein, live in Claremont, CA Frances Hesselbein is the chair of the Leader to Leader Institute (formerly the Peter F. Drucker Foundation for Nonprofit Management). She was awarded the Presidential Medal of Freedom in 1998. The award recognized her leadership as chief executive of the Girl Scouts of the USA from 1976-1990, her role as the founding president of the Drucker Foundation and her service as “a pioneer for women, diversity, and inclusion.” Recently, Hesselbein was named the chair for the Study of Leadership at the U.S. Military Academy at West Point. November 5, 2009 Stephen Covey, live in downtown Los Angeles, CA Stephen Covey has been recognized as one of Time magazine’s 25 most influential Americans. An internationally respected leadership authority, family expert, teacher, organizational consultant, and author, he has sold more than 20 million books in 38 languages. Covey’s The 7 Habits of Highly Effective People was named the No. 1 Most Influential Business Book of the 20th Century by CEO magazine. November 7, 2009 Drucker Centennial Day with Jim Collins, Claremont, CA Drucker Day brought together Drucker School alumni and others interested in hearing great speakers, taking mini-classes with faculty, networking and enjoying great food. Jim Collins, bestselling author of Built to Last, Good to Great and How the Mighty Fall, will keynote the event. In addition, the day featured a raft of other headline speakers, including Charles Handy; former Monsanto CEO Bob Shapiro; Faye Washington, CEO of YWCA of Greater Los Angeles; authors Will Hopper and Bob Nelson; and more. Concurrently, all Drucker Centennial Day guests had access to day-long Expo of Drucker-related activities and organizations that showcased ways to stay connected with the local and global Drucker community. 37
    • DRUCKER’S 100th BIRTHDAY CELEBRATION (NOVEMBER 19, 2009) November 19 – 20, 2009 Drucker Global Forum, Vienna Under the patronage of Michael Häupl, Mayor of Vienna, the Drucker Society 0of Austria held a major conference on management and social responsibility in the 21st Century. The forum took place on the occasion of Peter Drucker’s 100th birthday in the place of his birth. Speakers will include C.K. Prahalad, Charles Handy, Philip Kotler, Fredmund Malik, Hermann Simon, Yves Doz and many more. CONFERENCES – “When the Bottom Line is Changed Lives: How Do We Know Whether Nonprofit Organizations are Effective?” The Drucker Institute’s daytime conference was held with more than 75 participants in the California Science Center in Los Angeles. They heard from a variety of leading experts on nonprofit effectiveness, including David Renz, director of the Midwest Center for Nonprofit Leadership at the University of Missouri-Kansas City; Don Howard, a partner at The Bridgespan Group; and Irv Katz, president and CEO of the National Human Services Assembly.10 A highlight of the conference was a lunchtime keynote speech by Karen Baker, California’s Secretary of Service and Volunteering. – Drucker School Leadership Conference The Leadership Conference was hosted by the Drucker School for students and professionals interested in management, leadership, and business education. People attended this inaugural event to expand their knowledge of leadership and management skills through exciting team-building exercises, personality profile assessment, and discussions about ethical leadership according to Peter F. Drucker – father of modern management. – The Drucker Women in Leadership Association Spring Conference The Drucker School’s Women in Leadership Association hosted their annual Spring conference in April of 2008 at the Drucker School. The conference attracted ambitious, visionary women from our programs, the 5 Claremont Colleges, and sister associations at other regional universities. Renowned Drucker School professor Jean Lipman-Blumen, co-founding director of the Institute for Advanced Studies in Leadership and an expert on gender roles and toxic leadership, delivered the keynote address. There were also a series of panels offered throughout the day featuring local and regional leaders: Women as 10 To see material from their presentations, as well as welcoming remarks from Drucker Institute Director Rick Wartzman, go to http://www.druckerinstitute.com/ShowPage.php?PageID=112. 38
    • Entrepreneurs, Corporate Social Responsibility, Healthy Living, and Non-traditional Leadership. AWARDS – Nonprofit Innovation Award On October 28, 2008, the Drucker Institute hosted a dinner at the Music Center in downtown L.A. to honor this year’s winners of the Peter F. Drucker Award for Nonprofit Innovation.11 The award celebration was kicked off by a group from City Year – young people who dedicate a year of their lives to community service – who showed the suit- and-tie-clad audience how to get “fired up.” A special moment in the program came as one great social-sector leader set the stage for another: Presidential Medal of Freedom winner Frances Hesselbein, chairman of the Leader to Leader Institute and former CEO of Girl Scouts of the USA, introduced the evening’s keynote speaker – Teach for America founder Wendy Kopp. During her talk, Kopp noted that Peter Drucker’s “principles have, in fact, proven to be the key . . . to our growth and impact.” This year, the award for the first place is $100,000. That is up from the $35,000 awarded in previous years, thanks to a generous grant from The Coca-Cola Foundation. The second-place award is $7,500, and the third-place prize is $5,000. – Henry R. Kravis Award for Entrepreneurship In conjunction with the naming of the Drucker School, Henry R. Kravis, a founding member of the Board of Visitors, established a competition to encourage innovation and entrepreneurship. Each year students and alumni of the Claremont Colleges are encouraged to submit concept plans of their innovative ideas. Certificates of participation are granted, and those who demonstrate real promise as innovators and/or entrepreneurs are chosen as finalists. At the award ceremony, the judges, a group of experienced entrepreneurs and venture capitalists, give direct feedback to the finalists as to the strengths and potential of their plans. All finalists receive a Henry R. Kravis Award Certificate and all winners receive a cash prize. Other awards include: – Student of the Year Award – Teacher of the Year Award 11 For more information on this year’s winners – KickStart International, Hidden Harvest, and the Calvert Foundations – go to http://www.druckerinstitute.com/ShowPage.php?PageID=91. And to see a documentary short on how KickStart lifts subsistence farmers in Africa out of poverty, go to http://www.druckerinstitute.com/swf/kickstart.swf. 39
    • PLANS FOR THE NEXT 18 MONTHS • A new course “Becoming a Social Entrepreneur/Global Change Agent” (MGT 310) has been introduced. The objective of this course is to strengthen one’s capacity for achieving global changes by learning and then applying OB, economic and Social Entrepreneurial (SE) skills to improve society and empower the poor. The course is being taught by Dr. Warner Woodworth. • A new course “Designing Excellent Organizations Using Appreciative Inquiry” (MGT 311) by Prof. David Cooperrider has been introduced. • The “Topics in Sustainability” (MGT 374) course has been introduced recently that helps students prepare to develop a multi-disciplinary appreciation of the evolving and complex issues of Sustainability, and learn tools and metrics that will help them manage and lead sustainability initiatives in organizations through an understanding of climate science, government policies, marketing sustainability, green supply chain management plans, triple bottom line and proper reporting of sustainability metrics, resulting in effective sustainability plans for their organizations. • The Drucker School plans to hire two new visiting faculty members who have a vision on sustainability and would also incorporate it in their teaching. • The Drucker Institute will continue with the course “The CEO Forum” - Leading CEOs gather to discuss what it takes to be a leader in an age when the challenges facing our planet, our society, and our individual organizations are more complex and demanding than any known in our lifetimes. • The Drucker Centennial Celebrations marking Drucker’s 100th birthday, will be continued highlighting Drucker’s seminal teachings on effective management, ethical leadership and social responsibility. 40
    • • Drucker Business Forum would be hosting more events that aim to Inspire, Connect and Impact people by bringing in exceptional speakers from the LA business community. 41