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Peter Drucker Peter Drucker Presentation Transcript

  • Marketing Management Perspectives on Peter F. Drucker (1909 – 2005) Sondramarie Bellace Elle Hargrave Valerie Herb Christie Lorah Larry Nagazina Ryan Werst Danielle Woszczak
  • Introduction Management by Objectives Business/Customer Innovation Knowledge Worker Non-profits Change Leader Peter F. Drucker
  • Born in Vienna, Austria —— Earned Doctorate in International Law in Germany —— Moved to U.S. and became citizen in 1943 —— Professor at New York University (1950 – 1971) —— Professor at Claremont Graduate University (1971 – 2005) —— Awarded Presidential Medal of Freedom by George W. Bush (2002)
  • Management by Objectives Principles —— Cascading of organizational goals and objectives —— Specific objectives for each member —— Participative decision making —— Explicit time period —— Performance evaluation and provide feedback
  • Management by Objectives SMART Method —— Specific Measurable Achievable Relevant Time-bound
  • Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not quality because it is hard to make and costs a lot of money, as manufactures typically believe. This is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality. — Peter Drucker
  • Customer Who is it? —— Actual/Potential customer —— Where are they located? —— How do they buy? —— Why do they buy? The Practice of Management (1954)
  • Customer Value —— Most difficult question —— What do they look for? —— Price! The Practice of Management (1954)
  • Management Challenges for the 21 Century (1999) Every organization operates on a Theory of the Business, that is, a set of assumptions as to what its business is, what its objectives are, how it defines results, who its customers are, what the customer’s value and pay for. — Peter Drucker
  • Purpose of a Business One valid definition: to create a customer —— Markets are created by the people who manage a business —— The customer determines what a business is —— Customers are the foundation of a business and keep it in existence People and Performance: The Best of Peter Drucker on Management (1977)
  • Two Functions Marketing —— Distinguishing, unique function —— A business is set apart by the fact that it markets a product or service —— Marketing to Selling What do customers want to buy? People and Performance: The Best of Peter Drucker on Management (1977)
  • Two Functions Innovation —— To create a new satisfaction —— Finding new uses for old products People and Performance: The Best of Peter Drucker on Management (1977)
  • Innovation Innovation is the specific instrument of entrepreneurship…the act that endows resources in a new capacity to create wealth. — Peter Drucker Innovation and Entrepreneurship (1985)
  • Innovation IMC —— Bell Labs Strategic Marketing Management (2004) “Management’s New Paradigms” (1998)
  • The Age of Discontinuity (1968) The knowledge worker see’s himself just as another professional, no different from the lawyer, the teacher, the preacher, the doctor or the government servant of yesterday. — Peter Drucker
  • Knowledge Worker Primarily works with information and knows how to do job better than anybody else —— Why the need for “knowledge workers”? —— Peter Drucker as a Knowledge Worker Drucker on Asia (1997) Management: Tasks, Responsibilities, Practices (1973)
  • Knowledge Worker Can help by —— Business intelligence —— Increasing intellectual capitol —— Insight into customer preferences Management: Tasks, Responsibilities, Practices (1973)
  • Non-profits Mission and Requirements —— Board Committee “What Business Can Learn from Non-profits” – HBR (1989)
  • “What Business Can Learn from Non-profits” – HBR (1989) Starting with the mission and its requirements may be the first lesson business can learn from successful non-profits. It focuses the organization on action. It defines the specific strategies needed to attain the crucial goals. It creates a disciplined organization. It alone can prevent the most common degenerative disease of organizations, especially large ones: splintering their always limited resources on things that are “interesting” or look “profitable” rather than concentrating them on a very small number of productive efforts. — Peter Drucker
  • Non-profits
  • Corporations as well as governments have a natural human tendency to cling to "yesterday's successes" rather than seeing when they are no longer useful. — Peter Drucker Management Challenges for the 21st Century (1999)
  • Change Leader Planned Abandonment Theory —— Organized Improvements —— Exploitation of Success —— Create Change Management Challenges for the 21st Century (1999)
  • Change Leader Windows of Opportunity Organization’s own/competitors unexpected success and unexpected failures Incongruities in production, distribution, or customer behavior Process Needs Changes in industry and market structures Changes in demographics Changes in meaning and perception New knowledge Management Challenges for the 21st Century (1999)