This document provides a book review of "The Definitive Drucker" by Mahesh Shinde. The 3-page summary covers key details about Peter Drucker as the "Father of Modern Management", the author Elizabeth Edersheim, and 7 chapters that provide insights on management challenges. The chapters discuss topics like doing business in a globalized world, putting customers first, driving innovation through new opportunities, and the importance of collaboration between organizations. The book review analyzes Drucker's teachings and ideas to derive lessons for 21st century management in a changing business landscape.
The Essential Drucker by Peter Drucker - Book ReviewAlmog Ramrajkar
Peter Drucker - Rightfully known as the Father of Management has written over 39 books and has been honoured by prestigious awards including the Presidential Medal of Freedom in 2002. The book "The Essential Drucker" is a compilation of 26 chapters from Drucker's 60 years of work.It takes you through Peter Drucker's thoughts on Management and the values that differentiate great managers from good. In a nutshell;, the book talks about the origins of management, how organizations have evolved, what drives them, what kind of data is needed by executives in the modern day functioning and what qualities are required to be developed to move from Good to great. These qualities include, leadership, good communication, time management, accountability etc.
Enjoy the presentation and please share your thoughts and comments!!!
The Essential Drucker by Peter Drucker - Book ReviewAlmog Ramrajkar
Peter Drucker - Rightfully known as the Father of Management has written over 39 books and has been honoured by prestigious awards including the Presidential Medal of Freedom in 2002. The book "The Essential Drucker" is a compilation of 26 chapters from Drucker's 60 years of work.It takes you through Peter Drucker's thoughts on Management and the values that differentiate great managers from good. In a nutshell;, the book talks about the origins of management, how organizations have evolved, what drives them, what kind of data is needed by executives in the modern day functioning and what qualities are required to be developed to move from Good to great. These qualities include, leadership, good communication, time management, accountability etc.
Enjoy the presentation and please share your thoughts and comments!!!
Tech giant Microsoft’s India-born CEO Satya Nadella’s first book in which he explores his personal journey, the company’s ongoing transformation and the wave of technological change will hit the future.
The book titled “ Hit Refresh “ carries a foreword by Microsoft co-founder Bill Gates.
Some of my Key picks from the Book
Page 38 & 39- 3 Business & leadership principles learned from Cricket
• Compete vigorously and with passion in the face of uncertainty and intimidation
• Put your team first, ahead of your personal statistics and recognition.
• One brilliant character who does not put the team first can destroy the entire team.
Page 119
• “ To be a leader in this company, your job is to find the rose petals in the field of Shit “ – We can look at a leader as an operator of a machine. Machines are built up using a lot of different cogs of all sizes that coherently work together as one giant machine. So be definition it is important to select cogs that you know you can trust and rely on before operating your machine. Since without these cogs, it all falls apart and you would not be able to operate anything.
Page 119 & 120 -Leadership Principles
• Bring clarity to those you work with. By taking internal and external noise and synthesizing a message from it to deliver to your team.
• Leaders generate Energy, not only on their own teams but across the company.
• To find a way a way to deliver success to make things happen. This means driving innovations that people love and are inspired to work on; finding balance between long-term success and short-term wins; and being boundary-less and globally minded in seeing solutions.
Page 125 – Our Partners
• “ For everyone working with partners, I encourage you to ask yourself “ What could be?” and explore new, creative ways to do interesting things that add value back to our platforms for customers” .
Page 126 – Four initiatives every company must make a priority
• Engage with your customers base by leveraging data to improve the customer experience.
• Empower your own employees by enabling greater and more mobile productivity and collaboration in the new digital world of work.
• Optimize operations, automating and simplifying business process across sales, operations & finance.
• Transform products service and business models ( Become a digital company)
Page 166– Quantum Computers
• “ Quantum computers will not stake the form of new stand-alone, super-fast PC but will operate as a co-processor , receiving its instructions and cues from a stack of classical processors” .
In the year 2002, Warren Buffett made an admission that he had not been as vigilant as he should have been in his role as Director of the various subsidiaries of his holding company, Berkshire Hathaway. In a letter to the shareholders he wrote “ Too often I was silent when management made proposals that I judged to be counter to the interest of the shareholders. In those cases, collegiality trumped independence and a certain social atmosphere presides in boardrooms where it becomes impolitic to challenge the Chief Executive.
Kevin Sharer, Chairman of Amgen, the US biotech company, portrayed a very different relationship between board and chief executive. “ Working with the board is vital, complex, and beyond your prior experience. It is among the most complex human relationships, especially if you are the chairman, when you are their boss, and they are your boss. Get the relationship right or it will hurt you.
These two very different experiences open a new book, Boards that Lead- When to take charge, When to Partner and When to stay out of the way. The central premise of the books is a plea. “ Governing boards should take more active leadership of the enterprises, not just monitor its management?
The growing complexity of markets and strategy, the authors say, is one of the biggest challenges for board members. It also means that they cannot afford to sit back and rubber stamp executive’s plans.
Boards often fail to do their job, they point out, for example failing to do their due diligence. They cite the example of Yahoo’s Chief Executive Scott Thompson. After a few months in the post, it was discovered that he had listed a degree in both accounting and computer science, but had actually earned only the first.
A good book to read move from Delivering to Leading.
Happy Reading
Whether corporate governance is a burden meant to report compliance on companies’ performance, or can it be used as a competitive advantage in view of the changing laws, awareness and scenario is the important question which is present in the minds of those at the top of the company affairs including the CEO, Directors and Boards.
The book under reference, “Boards that Deliver”, by Ram Charan attempts to answer this question in a certain and prudent manner. The author believes that with the right set of practices, any group of directors can become a board that delivers value to the management and to the investors and goes ahead to demonstrate his points giving directions on various steps to be taken to make this happen.
This is a review and compilation of management concepts and ideas especially applicable to entrepreneurial ventures. www.profjorgeentrep-ateneo.blogspot.com
A company is in Prime when form and function are in balance. The what and the how are in balance. Prior to Prime, function is more important than form. In other words, what we do is more important than how we do it. After Prime, how we do it is more important than what we do. That is why, after Prime, how you do something and whom you know is more important than what you do. In Prime, the what and how are in balance. In Prime, the company is both flexible and in control. Prior to Prime, the company is flexible, but not very much in control of itself. After Prime, control is very high, and the company loses flexibility. In Prime, flexibility and control are together.
However, in a company in Prime, the management is not as flexible as before Prime, because there is professional management: The tendency to depend on any single indispensable individual does not exist as it does in younger companies. On the other hand, in Prime, the organization has a strategic outlook without losing attention to detail. Furthermore, the organization does not look only at detail without losing its strategic outlook, so the company in Prime has controlled flexibility, and it doesn’t depend on any single individual.
A company is in Prime when form and function are in balance. The what and the how are in balance. Prior to Prime, function is more important than form. In other words, what we do is more important than how we do it. After Prime, how we do it is more important than what we do. That is why, after Prime, how you do something and whom you know is more important than what you do. In Prime, the what and how are in balance. In Prime, the company is both flexible and in control. Prior to Prime, the company is flexible, but not very much in control of itself. After Prime, control is very high, and the company loses flexibility. In Prime, flexibility and control are together.
However, in a company in Prime, the management is not as flexible as before Prime, because there is professional management: The tendency to depend on any single indispensable individual does not exist as it does in younger companies. On the other hand, in Prime, the organization has a strategic outlook without losing attention to detail. Furthermore, the organization does not look only at detail without losing its strategic outlook, so the company in Prime has controlled flexibility, and it doesn’t depend on any single individual.
The average Fortune 500 Company today can expect to enjoy a run of about 40 to 50 years. That may sound like a respectable life span until you learn there are large and small companies in the World that have been around for two, three and even four centuries .
What’s the secret to their longevity ?
Long-lived companies don’t focus solely upon economic activity. Instead , their goal is to build a community that grows & thrives beyond the individual contributions of each generation.
The idea may sound radical but it’s the foundation for a variety of other institutions including Churches, Universities, and even armies that were established centuries ago & continue to flourish today. These institutions & their corporate counterparts exhibit the behaviour & select characteristics of living organisms. They learn, develop an identity, build relationships with other life forms, grow and eventually die. They are, in fact, living entities.
Living companies, like all organisms, exist primarily to survive & fulfil their maximum potential. Just as work is a means to an end for you, making money by producing goods & services is a means to an end for a living company. Their end is to live.
They stay alive by
· Learning & choosing to adapt to their environment
· Creating strong identities as tightknit communities
· Paying attention to their relationships with both members & external agencies
· Controlling their growth by spending money frugally.
Understanding how a company can be a living entity is a first step towards increasing its life expectancy.
The enclosed document captures Some Impressionistic takes how a living company learns, develops a strong identity, nurtures relationships & evolves to a ripe old age.
Rumelt describes strategizing as identifying pivotal issues within your market and your industry and making a plan focused on forceful, results-oriented action. He reminds readers that strategy has little to do with ambitious goals, vision, leadership, innovation or determination. For many business leaders, strategy means promulgating meaningless slogans that tout impressive but unrealistic goals. A sound business strategy presents a specific action plan to overcome a defined challenge. Rumelt says good strategy involves multiple analyses and the painstaking development of thoughtful, expertly implemented policies that surmount obstacles and move the firm profitably ahead.
Is your company’s human resources operation a true “business partner” that makes a major contribution to your bottom line? Or does it merely fulfil the daily tasks of hiring, firing and paying your employees? If the latter, don’t worry – that can change. So say the human resources experts who founded the RBL Group and the RBL Institute, a consultancy and an educational organization dedicated to helping HR leaders attain new levels of professionalism. Using the institute’s tools and tactics, you can “transform” your human resources department into a valued, knowledgeable and contributing member of your corporate team. While you don’t have to be a human resources professional to benefit from this book, its HR-speak presents a pretty dense thicket that might daunt a novice.
The triple bottom line consists of financial profit (or success), social justice, and environmental protection. It is sometimes summarized as “Profits, People, and Planet.” An intimately related concept is “sustainability”---corporations that are built to last, societies that are stable and just, and a global natural environment that is in a healthy equilibrium. The basic argument is that we live in a time when a narrow, short-term focus on the financial bottom line alone will generate dysfunctions among people and in the environment that will come back to bite the corporation.
Sustainability and the “3BL” are, instead, about mutual benefits flowing in all three directions. The challenge is to find the sustainability “sweet spot” (think golf) where all three interests coincide. Example: Toyota’s Prius low-fuel hybrid benefits the environment, the people who build or buy them, and the owners of the company. Certainly there will be trade-offs; 3BL choices and strategies will require negotiation and compromise. But this is now an economic reality, not just an altruistic dream
It could be argued that what’s new here is just a strong case that financially successful companies must think more broadly and holistically and be sure to take into account all their stakeholder interests, including the environment and society. But it is still the financial bottom line driving the business.
Business ethics is a huge canvas, bigger than sustainability, CSR, corporate governance, or the 3BL. Business ethics is about doing the right thing and building good organizations. Business ethics and values grow out of purposes, missions, and visions and are organically intertwined with corporate cultures. There are more than three bottom lines---there are bottom lines related to every stakeholder. Business ethics doesn’t just ask how to keep three of those stakeholders (owners, environment, society) going and make them last (sustain them) but about what is right and fair and just, about what would constitute excellence and success.
Talent Wins” by Dr.Ram Charan, Dominic Barton, Dennis Carey
Most executives today recognize the competitive advantage of human capital, and yet the talent practices their organizations use are stuck in the twentieth century.
Typical talent-planning and HR processes are designed for predictable environments, traditional ways of getting work done, and organizations where "lines and boxes" still define how people are managed. As work and organizations have become more fluid--and business strategy is no longer about planning years ahead but about sensing and seizing new opportunities and adapting to a constantly changing environment--companies must deploy talent in new ways to remain competitive.
Turning conventional views on their heads, talent and leadership experts Ram Charan, Dominic Barton, and Dennis Carey provide leaders with a new and different playbook for acquiring, managing, and deploying talent--for today's agile, digital, analytical, technologically driven strategic environment--and for creating the HR function that business needs. Filled with examples of forward-thinking companies that have adopted radical new approaches to talent (such as ADP, Amgen, BlackRock, Blackstone, Haier, ING, Marsh, Tata Communications, Telenor, and Volvo), as well as the juggernauts and the startups of Silicon Valley, this book shows leaders how to bring the rigor that they apply to financial capital to their human capital--elevating HR to the same level as finance in their organizations.
Providing deep, expert insight and advice for what needs to change and how to change it, this is the definitive book for reimagining and creating a talent-driven organization that wins.
Happy reading & Learning
Execution - The Discipline of getting things done GMR Group
This book was published in the year 2002 and I had read this book at that time. Revisited and read this book again just to evaluate the context. Even today the context of this book is very relevant.
Too many leaders fool themselves into thinking their companies are well run. They are like the parents in Garrison Keillor’s fictional Lake Wobegon, all of whom think their children are above average. Then the top performers at Lake Wobegon High school arrive at the University of Minnesota or Colgate or Princeton and find out they are average or even below average. Similarly , when corporate leaders start understanding how the GE’s and Emerson Electrics of this world are run- how superbly they get things done- they discover how far they have to go before they become World class in Execution.
Here is the fundamental problem: People think of execution as the tactical side of business, something leaders delegate while thy focus on the perceived “bigger” issues. This idea is completely wrong. Execution is not just tactics—it is a discipline and a system. It has to be built into a company’s strategy, its goals, and its culture. And the leader of the organization must be deeply engaged in it. He can delegate its substance.
We talk to many leaders who fall victim to the gap between promises they’ve made and results their organizations delivered. They frequently tell us they have a problem with accountability—people aren’t doing the things they’re supposed to do to implement a plan. They desperately want to make changes of some kind, but what do they need to change? They don’t know.
Execution is a specific set of behaviors and techniques that companies need to master in order to have competitive advantage.
Read this Summary ……
• Matrix structures combine the benefits of traditional functional & product / service based structures. In a matrix reporting channels form a grid, and employees typically report to both a functional leader as well as a product or service based leader.
• Prior to adoption, an organization should understand the advantages and challenges associated with the matrix structure, as well as how such structure would address the specific needs of the current and future business. Matrix structures have several advantages over conventional one, such as flexible allocation of resources, increase information flow & increase employee autonomy. However, in addition to being extremely difficult to implement and sustain, matrix structures can incur greater overhead costs and increase internal competition for limited resources.
• If an organization decides to adopt a matrix , then it should be aware that, to succeed, the transition will require significant investment of both time and effort. Simply adopting a matrix structure is no guarantee for success, and such fundamental changes to an organization are not made swiftly. Organizations should acknowledge that changing cultural attitudes and norms, increasing levels of emotional intelligence and awareness, and developing effective training for employees and leaders are all critical components in maximising a matrix structure’s potential success.
• Organizations also should give thought to how they will navigate the unique challenges associated with successfully adopting a matrix structure, such as the increased potential for misaligned goals, unclear roles, responsibilities , ambiguous authority, the lack of matrix guardianship and silo- focused employees.
Book Summary of Execution : The Discipline of Getting Things DoneChandra Kopparapu
The book titled Execution: The Discipline of Getting Things Done by Lawrence Bossidy and Ram Charan is an examination of what it takes for companies to succeed through strategies, processes, leadership and ultimately, execution. It is this which sets successful companies apart from those that fail. It was reported that nearly 25% of the fortune 500 CEO’s failed to execute the Business Strategy.
A quick look at today’s most pressing business issues through the eyes of Peter Drucker—the father of modern management
As technology, globalization, and business innovation advance at breakneck speed, the question “What would Drucker do now?” becomes more relevant by the day. More than anyone of his time, Peter Drucker understood how the individual, the organization, and society are interrelated. And no one better recognized and articulated the challenges facing all three—or came up with more practical solutions to those challenges.
Since 2007, the Drucker Institute’s executive director, Rick Wartzman, has been asking what Drucker would do on a regular basis— in his popular online column for Bloomberg Businessweek. In each piece, Wartzman introduces a current issue and provides a view of it through the eyes of Peter Drucker, based on his deep knowledge of Drucker’s ideas and ideals.
Tech giant Microsoft’s India-born CEO Satya Nadella’s first book in which he explores his personal journey, the company’s ongoing transformation and the wave of technological change will hit the future.
The book titled “ Hit Refresh “ carries a foreword by Microsoft co-founder Bill Gates.
Some of my Key picks from the Book
Page 38 & 39- 3 Business & leadership principles learned from Cricket
• Compete vigorously and with passion in the face of uncertainty and intimidation
• Put your team first, ahead of your personal statistics and recognition.
• One brilliant character who does not put the team first can destroy the entire team.
Page 119
• “ To be a leader in this company, your job is to find the rose petals in the field of Shit “ – We can look at a leader as an operator of a machine. Machines are built up using a lot of different cogs of all sizes that coherently work together as one giant machine. So be definition it is important to select cogs that you know you can trust and rely on before operating your machine. Since without these cogs, it all falls apart and you would not be able to operate anything.
Page 119 & 120 -Leadership Principles
• Bring clarity to those you work with. By taking internal and external noise and synthesizing a message from it to deliver to your team.
• Leaders generate Energy, not only on their own teams but across the company.
• To find a way a way to deliver success to make things happen. This means driving innovations that people love and are inspired to work on; finding balance between long-term success and short-term wins; and being boundary-less and globally minded in seeing solutions.
Page 125 – Our Partners
• “ For everyone working with partners, I encourage you to ask yourself “ What could be?” and explore new, creative ways to do interesting things that add value back to our platforms for customers” .
Page 126 – Four initiatives every company must make a priority
• Engage with your customers base by leveraging data to improve the customer experience.
• Empower your own employees by enabling greater and more mobile productivity and collaboration in the new digital world of work.
• Optimize operations, automating and simplifying business process across sales, operations & finance.
• Transform products service and business models ( Become a digital company)
Page 166– Quantum Computers
• “ Quantum computers will not stake the form of new stand-alone, super-fast PC but will operate as a co-processor , receiving its instructions and cues from a stack of classical processors” .
In the year 2002, Warren Buffett made an admission that he had not been as vigilant as he should have been in his role as Director of the various subsidiaries of his holding company, Berkshire Hathaway. In a letter to the shareholders he wrote “ Too often I was silent when management made proposals that I judged to be counter to the interest of the shareholders. In those cases, collegiality trumped independence and a certain social atmosphere presides in boardrooms where it becomes impolitic to challenge the Chief Executive.
Kevin Sharer, Chairman of Amgen, the US biotech company, portrayed a very different relationship between board and chief executive. “ Working with the board is vital, complex, and beyond your prior experience. It is among the most complex human relationships, especially if you are the chairman, when you are their boss, and they are your boss. Get the relationship right or it will hurt you.
These two very different experiences open a new book, Boards that Lead- When to take charge, When to Partner and When to stay out of the way. The central premise of the books is a plea. “ Governing boards should take more active leadership of the enterprises, not just monitor its management?
The growing complexity of markets and strategy, the authors say, is one of the biggest challenges for board members. It also means that they cannot afford to sit back and rubber stamp executive’s plans.
Boards often fail to do their job, they point out, for example failing to do their due diligence. They cite the example of Yahoo’s Chief Executive Scott Thompson. After a few months in the post, it was discovered that he had listed a degree in both accounting and computer science, but had actually earned only the first.
A good book to read move from Delivering to Leading.
Happy Reading
Whether corporate governance is a burden meant to report compliance on companies’ performance, or can it be used as a competitive advantage in view of the changing laws, awareness and scenario is the important question which is present in the minds of those at the top of the company affairs including the CEO, Directors and Boards.
The book under reference, “Boards that Deliver”, by Ram Charan attempts to answer this question in a certain and prudent manner. The author believes that with the right set of practices, any group of directors can become a board that delivers value to the management and to the investors and goes ahead to demonstrate his points giving directions on various steps to be taken to make this happen.
This is a review and compilation of management concepts and ideas especially applicable to entrepreneurial ventures. www.profjorgeentrep-ateneo.blogspot.com
A company is in Prime when form and function are in balance. The what and the how are in balance. Prior to Prime, function is more important than form. In other words, what we do is more important than how we do it. After Prime, how we do it is more important than what we do. That is why, after Prime, how you do something and whom you know is more important than what you do. In Prime, the what and how are in balance. In Prime, the company is both flexible and in control. Prior to Prime, the company is flexible, but not very much in control of itself. After Prime, control is very high, and the company loses flexibility. In Prime, flexibility and control are together.
However, in a company in Prime, the management is not as flexible as before Prime, because there is professional management: The tendency to depend on any single indispensable individual does not exist as it does in younger companies. On the other hand, in Prime, the organization has a strategic outlook without losing attention to detail. Furthermore, the organization does not look only at detail without losing its strategic outlook, so the company in Prime has controlled flexibility, and it doesn’t depend on any single individual.
A company is in Prime when form and function are in balance. The what and the how are in balance. Prior to Prime, function is more important than form. In other words, what we do is more important than how we do it. After Prime, how we do it is more important than what we do. That is why, after Prime, how you do something and whom you know is more important than what you do. In Prime, the what and how are in balance. In Prime, the company is both flexible and in control. Prior to Prime, the company is flexible, but not very much in control of itself. After Prime, control is very high, and the company loses flexibility. In Prime, flexibility and control are together.
However, in a company in Prime, the management is not as flexible as before Prime, because there is professional management: The tendency to depend on any single indispensable individual does not exist as it does in younger companies. On the other hand, in Prime, the organization has a strategic outlook without losing attention to detail. Furthermore, the organization does not look only at detail without losing its strategic outlook, so the company in Prime has controlled flexibility, and it doesn’t depend on any single individual.
The average Fortune 500 Company today can expect to enjoy a run of about 40 to 50 years. That may sound like a respectable life span until you learn there are large and small companies in the World that have been around for two, three and even four centuries .
What’s the secret to their longevity ?
Long-lived companies don’t focus solely upon economic activity. Instead , their goal is to build a community that grows & thrives beyond the individual contributions of each generation.
The idea may sound radical but it’s the foundation for a variety of other institutions including Churches, Universities, and even armies that were established centuries ago & continue to flourish today. These institutions & their corporate counterparts exhibit the behaviour & select characteristics of living organisms. They learn, develop an identity, build relationships with other life forms, grow and eventually die. They are, in fact, living entities.
Living companies, like all organisms, exist primarily to survive & fulfil their maximum potential. Just as work is a means to an end for you, making money by producing goods & services is a means to an end for a living company. Their end is to live.
They stay alive by
· Learning & choosing to adapt to their environment
· Creating strong identities as tightknit communities
· Paying attention to their relationships with both members & external agencies
· Controlling their growth by spending money frugally.
Understanding how a company can be a living entity is a first step towards increasing its life expectancy.
The enclosed document captures Some Impressionistic takes how a living company learns, develops a strong identity, nurtures relationships & evolves to a ripe old age.
Rumelt describes strategizing as identifying pivotal issues within your market and your industry and making a plan focused on forceful, results-oriented action. He reminds readers that strategy has little to do with ambitious goals, vision, leadership, innovation or determination. For many business leaders, strategy means promulgating meaningless slogans that tout impressive but unrealistic goals. A sound business strategy presents a specific action plan to overcome a defined challenge. Rumelt says good strategy involves multiple analyses and the painstaking development of thoughtful, expertly implemented policies that surmount obstacles and move the firm profitably ahead.
Is your company’s human resources operation a true “business partner” that makes a major contribution to your bottom line? Or does it merely fulfil the daily tasks of hiring, firing and paying your employees? If the latter, don’t worry – that can change. So say the human resources experts who founded the RBL Group and the RBL Institute, a consultancy and an educational organization dedicated to helping HR leaders attain new levels of professionalism. Using the institute’s tools and tactics, you can “transform” your human resources department into a valued, knowledgeable and contributing member of your corporate team. While you don’t have to be a human resources professional to benefit from this book, its HR-speak presents a pretty dense thicket that might daunt a novice.
The triple bottom line consists of financial profit (or success), social justice, and environmental protection. It is sometimes summarized as “Profits, People, and Planet.” An intimately related concept is “sustainability”---corporations that are built to last, societies that are stable and just, and a global natural environment that is in a healthy equilibrium. The basic argument is that we live in a time when a narrow, short-term focus on the financial bottom line alone will generate dysfunctions among people and in the environment that will come back to bite the corporation.
Sustainability and the “3BL” are, instead, about mutual benefits flowing in all three directions. The challenge is to find the sustainability “sweet spot” (think golf) where all three interests coincide. Example: Toyota’s Prius low-fuel hybrid benefits the environment, the people who build or buy them, and the owners of the company. Certainly there will be trade-offs; 3BL choices and strategies will require negotiation and compromise. But this is now an economic reality, not just an altruistic dream
It could be argued that what’s new here is just a strong case that financially successful companies must think more broadly and holistically and be sure to take into account all their stakeholder interests, including the environment and society. But it is still the financial bottom line driving the business.
Business ethics is a huge canvas, bigger than sustainability, CSR, corporate governance, or the 3BL. Business ethics is about doing the right thing and building good organizations. Business ethics and values grow out of purposes, missions, and visions and are organically intertwined with corporate cultures. There are more than three bottom lines---there are bottom lines related to every stakeholder. Business ethics doesn’t just ask how to keep three of those stakeholders (owners, environment, society) going and make them last (sustain them) but about what is right and fair and just, about what would constitute excellence and success.
Talent Wins” by Dr.Ram Charan, Dominic Barton, Dennis Carey
Most executives today recognize the competitive advantage of human capital, and yet the talent practices their organizations use are stuck in the twentieth century.
Typical talent-planning and HR processes are designed for predictable environments, traditional ways of getting work done, and organizations where "lines and boxes" still define how people are managed. As work and organizations have become more fluid--and business strategy is no longer about planning years ahead but about sensing and seizing new opportunities and adapting to a constantly changing environment--companies must deploy talent in new ways to remain competitive.
Turning conventional views on their heads, talent and leadership experts Ram Charan, Dominic Barton, and Dennis Carey provide leaders with a new and different playbook for acquiring, managing, and deploying talent--for today's agile, digital, analytical, technologically driven strategic environment--and for creating the HR function that business needs. Filled with examples of forward-thinking companies that have adopted radical new approaches to talent (such as ADP, Amgen, BlackRock, Blackstone, Haier, ING, Marsh, Tata Communications, Telenor, and Volvo), as well as the juggernauts and the startups of Silicon Valley, this book shows leaders how to bring the rigor that they apply to financial capital to their human capital--elevating HR to the same level as finance in their organizations.
Providing deep, expert insight and advice for what needs to change and how to change it, this is the definitive book for reimagining and creating a talent-driven organization that wins.
Happy reading & Learning
Execution - The Discipline of getting things done GMR Group
This book was published in the year 2002 and I had read this book at that time. Revisited and read this book again just to evaluate the context. Even today the context of this book is very relevant.
Too many leaders fool themselves into thinking their companies are well run. They are like the parents in Garrison Keillor’s fictional Lake Wobegon, all of whom think their children are above average. Then the top performers at Lake Wobegon High school arrive at the University of Minnesota or Colgate or Princeton and find out they are average or even below average. Similarly , when corporate leaders start understanding how the GE’s and Emerson Electrics of this world are run- how superbly they get things done- they discover how far they have to go before they become World class in Execution.
Here is the fundamental problem: People think of execution as the tactical side of business, something leaders delegate while thy focus on the perceived “bigger” issues. This idea is completely wrong. Execution is not just tactics—it is a discipline and a system. It has to be built into a company’s strategy, its goals, and its culture. And the leader of the organization must be deeply engaged in it. He can delegate its substance.
We talk to many leaders who fall victim to the gap between promises they’ve made and results their organizations delivered. They frequently tell us they have a problem with accountability—people aren’t doing the things they’re supposed to do to implement a plan. They desperately want to make changes of some kind, but what do they need to change? They don’t know.
Execution is a specific set of behaviors and techniques that companies need to master in order to have competitive advantage.
Read this Summary ……
• Matrix structures combine the benefits of traditional functional & product / service based structures. In a matrix reporting channels form a grid, and employees typically report to both a functional leader as well as a product or service based leader.
• Prior to adoption, an organization should understand the advantages and challenges associated with the matrix structure, as well as how such structure would address the specific needs of the current and future business. Matrix structures have several advantages over conventional one, such as flexible allocation of resources, increase information flow & increase employee autonomy. However, in addition to being extremely difficult to implement and sustain, matrix structures can incur greater overhead costs and increase internal competition for limited resources.
• If an organization decides to adopt a matrix , then it should be aware that, to succeed, the transition will require significant investment of both time and effort. Simply adopting a matrix structure is no guarantee for success, and such fundamental changes to an organization are not made swiftly. Organizations should acknowledge that changing cultural attitudes and norms, increasing levels of emotional intelligence and awareness, and developing effective training for employees and leaders are all critical components in maximising a matrix structure’s potential success.
• Organizations also should give thought to how they will navigate the unique challenges associated with successfully adopting a matrix structure, such as the increased potential for misaligned goals, unclear roles, responsibilities , ambiguous authority, the lack of matrix guardianship and silo- focused employees.
Book Summary of Execution : The Discipline of Getting Things DoneChandra Kopparapu
The book titled Execution: The Discipline of Getting Things Done by Lawrence Bossidy and Ram Charan is an examination of what it takes for companies to succeed through strategies, processes, leadership and ultimately, execution. It is this which sets successful companies apart from those that fail. It was reported that nearly 25% of the fortune 500 CEO’s failed to execute the Business Strategy.
A quick look at today’s most pressing business issues through the eyes of Peter Drucker—the father of modern management
As technology, globalization, and business innovation advance at breakneck speed, the question “What would Drucker do now?” becomes more relevant by the day. More than anyone of his time, Peter Drucker understood how the individual, the organization, and society are interrelated. And no one better recognized and articulated the challenges facing all three—or came up with more practical solutions to those challenges.
Since 2007, the Drucker Institute’s executive director, Rick Wartzman, has been asking what Drucker would do on a regular basis— in his popular online column for Bloomberg Businessweek. In each piece, Wartzman introduces a current issue and provides a view of it through the eyes of Peter Drucker, based on his deep knowledge of Drucker’s ideas and ideals.
HBR's 10 must reads on Innovation. Professor Rosabeth M. Kanter from Harvard Business School presents four classic traps in innovation. Companies have been putting resources for new breakthrough for product and service, however, repeatedly, they make the same mistakes as their predecessors.
Peter F Drucker and His Contribution in ManagementNikhil Vyas
In this power point presentation, I try to collect all the main and important contribution made by Peter F Drucker and also gives the name of some of his publications etc.
Peter Ferdinand Drucker (November 19, 1909 – November 11, 2005) was a writer, management consultant, and self-described “social ecologist.” His books and scholarly and popular articles explored how humans are organized across the business, government and the nonprofit sectors of society. He is one of the best-known and most widely influential thinkers and writers on the subject of management theory and practice. His writings have predicted many of the major developments of the late twentieth century, including privatization and decentralization; the rise of Japan to economic world power; the decisive importance of marketing; and the emergence of the information society with its necessity of lifelong learning. In 1959, Drucker coined the term “knowledge worker" and later in his life considered knowledge work productivity to be the next frontier of management.
A
rt
C
re
d
it
DRUCKER
TODAY
16268 Nov09 Kanter.indd 6416268 Nov09 Kanter.indd 64 10/2/09 12:48:49 PM10/2/09 12:48:49 PM
?
hbr.org | November 2009 | Harvard Business Review 65
J
o
h
n
L
a
n
g
The continuing relevance of the Drucker
perspective | by Rosabeth Moss Kanter
HEEDING THE WISDOM of Peter Drucker might have helped us
avoid – and will help us solve – numerous challenges plaguing
communities around the world: restoring trust in business
in the wake of accounting scandals and the global fi nancial
crisis; attracting and motivating the best talent without cre-
ating crippling fi nancial commitments; addressing societal
problems such as climate change, health care, and public
education; dealing with trouble spots in central Asia and the
Middle East.
If Peter Drucker were here today, what would he have to
say about such pressing matters? His fi rst comment might be
“I told you so” – and he would have every right to say that. In
remarkably prescient writings, he pointed to important trends
and looming disasters. He took a broad look at the context
surrounding organizations, noting jarring events he called dis-
continuities. Next, since the signs of diffi culties ahead were
there all along, he might follow up by telling us, “Look at the
underlying systems.” Drucker rarely named or blamed indi-
viduals; he saw root causes in the design of organizations – in
their structures, processes, norms, and routines. He would re-
mind us that it is the responsibility of executives to challenge
that design while being mindful of their companies’ ultimate
purpose. Then he might fi nish by asking leaders a few provoca-
tive questions: “What is your mission? What should you stop
WHAT
WOULD
PETER
SAY
16268 Nov09 Kanter.indd 6516268 Nov09 Kanter.indd 65 10/2/09 12:49:01 PM10/2/09 12:49:01 PM
66 Harvard Business Review | November 2009 | hbr.org
What Would Peter Say?DRUCKER
TODAY
doing? Where has the drive for short-term effi cien-
cies undermined long-term eff ectiveness? What
should be your objectives and guiding principles?”
My credentials for channeling Peter Drucker
stem from early in my career – the fi rst time I
spoke on a panel with him, more than 25 years ago
in Brussels. They extend beyond his death to the
Drucker fi ngerprints I found in my multinational
research for my latest book, SuperCorp. Managers
everywhere, especially in Asia, described Drucker
encounters as pivotal in making their enterprises
well run and helping their countries develop.
Drucker’s Early Warnings
In the process of identifying the tasks of managers,
Drucker laid out their responsibilities in guiding
organizations to endure in a world of change. Here
are some of the critical issues he anticipated.
The bonus brouhaha. Drucker would not have
been surprised that incentives to take excessive
risks contributed to the recent global fi nancial
meltdown. Back in the mid-1980s, he warned about
a.
Eclectic Reading List by Professor Nader Tavassoli – London Business School BSRLondon Business School
What are London Business School lecturers interested in reading? Professor Nader Tavasoli takes us through his diverse reading list, including wide ranging topics such as consumer behaviour across cultures and communication effectiveness.
Criteria for a great marketing book: ideas from psychology, behavioral economics, marketing, advertising, and business about how to influence behavior and buying patterns at the edges of bounded rationality
Leveraging Human experience into Customer experience
Book Review The Definitive Drucker by E H Edersheim
1. The
Definitive
Drucker
“The story of Peter Drucker is the
story of Management itself.”
New York Times
Book Review
Submission by
MaheshShinde
Date : 15th
Feb 2014
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Challenges for Tomorrow’s Executive –
Final Advice from the Father of Modern Management
“ Management has mostly to do with people not techniques and procedure.
Their engagement is what matters.”
“ The purpose of a Business is to Create and Server a Customer ”
“ The Assumption on which most Businesses are being run today; do not fit the reality.”
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Table of Content
1. About Peter Drucker
2. About The Author - Elizabeth Edersheim
3. Chapter Narratives ‘Biography of Peter Drucker’s Ideas rather than of his Life
a. FOREWORD by AG Lafley, Chairman, Proctor & Gamble
b. INTRODUCTION
c. ONE | Doing Business in the Lego World
d. TWO | The Customer: Joined at the Hip
e. THREE | Innovation and Abandonment
f. FOUR | Collaboration and Orchestration
g. FIVE | People and Knowledge
h. SIX | Decision Making
i. SEVEN | The Twenty-First-Century CEO
4. The Final WORD
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About Peter Drucker
“The Warren Buffet of Management Gurus”
Peter Ferdinand Drucker (November 19, 1909 – November 11, 2005)
was an Austrian-born American management consultant, educator, and
author, whose writings contributed to the philosophical and practical
foundations of the modern business corporation. He was also a leader
in the development of management education, and he invented the
concept known as Management by Objectives.
Drucker's books – 39 in all and scholarly and popular articles explored how humans are organized
across the business, government, and nonprofit sectors of society. He is one of the best-known
and most widely influential thinkers and writers on the subject of management theory and
practice. His writings have predicted many of the major developments of the late twentieth
century, including privatization and decentralization; the rise of Japan to economic world power;
the decisive importance of marketing; and the emergence of the information society with its
necessity of lifelong learning. In 1959, Drucker coined the term “knowledge worker" and later in
his life considered knowledge worker’s productivity to be the next frontier of management.
He counseled Chiefs of GM, FORD, GE & World Bank and many more. Over 75 years he worked
with great leaders and liberated them. Winston Churchill went so far as to say that the amazing
thing about P.F. Drucker was his ability to start our minds along a stimulating line of thought.
He inspired many; which includes the likes of Akio Morita founder of Sony, Andy Grove founder
of Intel, Bill Gates of Microsoft and Jack Welch of GE
http://en.wikipedia.org/wiki/Peter_Drucker
“Peter Drucker is the Father of Management… I regard it as a compliment
when some people call me the Father of Marketing. I tell them that if this
is the case, then Peter Drucker is the Grand Father of Marketing”
Philip Kotler – Kellogg Business School.
“Father of Marketing “
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About The Author - Elizabeth Edersheim
Was Partner at Mckinsey and author of McKinsey’s Marvin Bower
Elizabeth Haas Edersheim is a strategic consultant who works both with
Fortune 500 companies and private equity investors. Prior to founding
her own firm, New York Consulting Partners, Edersheim was one of the
first female partners at McKinsey & Company.
Her previous book, McKinsey’s Marvin Bower, illustrates the business
life and ideals of the founder of McKinsey, her mentor, who was a close
friend and peer of Dr. Drucker. Aside from her numerous publications, Dr.
Haas Edersheim has provided expert testimony to the U. S. Congress on Industrial Networking
and Industrial Manufacturing policy.
She holds a Ph.D. in Operations Research and Industrial Engineering from the Massachusetts
Institute of Technology.
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FOREWORD
AG Lafley, Chairman, Proctor & Gamble
Seldom one mentions foreword in a book review but here it becomes essential ; simply since the
content and it’s learnings outcome is equivalent if not more than what one gets by reading a
major management book, many a times.
AG Lafley introduces briefly the moments of his encounter with Peter Drucker interlacing it with
the learnings, the application and the influence of the same at P&G and on himself.
5 Golden Rules learnt from Peter Drucker
1. Importance of Serving Consumers
“The purpose of a business is to create and serve a customer.”
2. Insistence on the Practice of Management
“Plans are only good intentions unless they immediately degenerate into hard work’”
“Belief in the power of strategic ideas and making clear choices”
“Execution is the only strategy customer and competitors ever see.”
3. Reducing Complexity to Simplicity
“Management is doing things right; leadership is doing the right things.”
“The only way to manage change is to create it”
“The Marketer is Consumer’s representative”
4. Focus on the responsibility of leaders. “The CEO,”
“CEO is the link between the inside, where there are only costs, and the outside, which
is where the results are.”
5. Humanity
“Management is about human beings,”
Peter Drucker helped many see what he described as “Visible, but not yet seen.”
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Introduction
This chapter describes the DNA of the thought process with which the author - Elizabeth
Edersheim- approached the book. The Page on Drucker Philosophy is stand out special- covers
Drucker’s perspective; On Money – On Management – On Knowledge – On Individual; highlights
that Strategy being more important than Ownership and signs off stating Management is
Leadership.
“HELD on to Yesterday” is the key behavior singled out as the root cause because of which
since 2000, management at 18 different public companies destroyed MORE than 50 billion USD
in share value. Doing Business the way they always had – and didn’t know how to free their
organizations to embrace tomorrow proved fatal. 21
st
Century Management faces a fundamental
challenge of interpreting the size and scope of OPPURTUNITY. Appropriately highlights that “The
assumptions built into business today are not accurate.”
Time to wake-up and smell the coffee as goes an old age saying. Seldom one comes across such
profound impact literature on business management.
Moving further the Author underlines her focus to capture not just the knowledgebase of
Drucker’s 39 books but also the meaning of 7 decades of discovery, insight, ideas and most
significantly the essence of the man Peter Drucker. The book captures experience based on
interviews of over 50 clients, student and colleagues who had experienced Drucker’s work.
“His most endearing gift to future generations is that he taught so many others how to ask the
right questions. He liberated many by forcing them to think.” Definitive Drucker definitely forces
every business person to think hard of the assumptions built into their business.
We also see 2 fundamentally challenging ideologies being put forth to Modern Managements
1. About People Management
Today the corporation needs the (Knowledge workers) more than they need the corporation
2. About Leadership
Most leadership fails because they go by what they want, rather than what needs to be done.
Peter Drucker’s insights and ideas, as incisive as ever, have much to offer the 21
st
century –
modern organizations seeking to liberate itself ; in fast moving borderless world – to create
Tomorrow. To free yourself from constraints; to think creatively, and to act.
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ONE | Doing Business in the Lego World
“The assumptions on which most businesses are being run no longer fit reality.”
In this chapter we experience the Demystification of Silent revolution and its impact, the
approach to embrace the Future of Business in 21
st
century, the primacy of knowledge – the
knowledgebase economy build up, the Lego World way of doing Business ;its need ; its Power ,
its Dynamics and its scope , the emergence of new solution space – selling experiences, the deep
impact and implication for Business Managers in modern days and focus on new age business
strategy leading eventually to one of the most defining statement “ Business isn’t just Business.
It’s the economic engine of Democracy”
The core focus of this part of the book is on two areas
1 Understanding the Silent Revolution.—The Disruption
2 Doing Business the Lego way – The Connection
The 2 areas are complementary.
The breakdown of silent revolution leading to new approach in doing business has primarily
occurred in a big way on the following fronts
Speed of Information flow
Geographic reach of companies/businesses and customer explosion
Demographic changes
Customers control over companies
Boundary Walls of companies and businesses.
In the twenty-first century, businesses exist in a Lego world. Companies are built out of Legos:
People Legos, Product Legos, Idea Legos, and Real Estate Legos. And these aren’t just ordinary
Legos; they pass through walls and geographic boundaries, and they are transparent. Everything
is visible to everyone all the time. Collaboration and Integration are the fundamental aspects of
Global businesses.
The otherwise staid world of business in today’s context has been turned upside down –
Disintegrated to be reintegrated to create more value and deliver better customer experience.
Understanding the Silent revolution and Doing Business the Lego way are 2 specific attributes of
Businesses – rather every Global Businesses which wasn’t the case before. Two global businesses
exemplifying lego style approach of doing business are Amazon and DELL. The chapter crafts the
lego approach with simplicity of these 2 global businesses.
The silent revolution and the lego world is built around human assets. It’s all about knowledge,
information, and collaborative connections and partnerships-the powerful new tools driving our
future. With so much interdependence amongst various businesses it’s critical to understand in
the 21
st
century something that Peter Drucker loved to say:
“There are no longer competitors, just better solutions.”
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TWO | The Customer: Joined at the Hip
“An enterprise’s purpose begins on the outside; with the customer.”
“It is the prospect of providing a customer with value that gives the corporation purpose, and
it is the satisfaction of the customer’s requirement that gives it results”.
Well the theme of this chapter is best defined by this very Drucker’s statement. His conviction
that the customer is at the center of it all; shaped his thought from very start. This chapter
primarily sheds light on; as to “what customer focus is all about in the silent revolution”
The chapter begins with reference to Drucker crediting Alfred Sloan Chief Executive of GM for his
unique understanding of the customers in bringing huge success to GM. There after moves to
explain how to be connected with your customer -INSIDE THE CUSTOMER- MEDITRONICS
approach- lesson for all businesses in Medicine science from a leader with annual revenue of 11b
USD. Essential outcome of the case is that, even if you’re an engineering corporation
understanding your customer is as vital as the Process, the Engineering Science and your R&D.
Questions for creating Framework of Connecting with your Customer
WHO is Your Customer?
WHAT does the customer consider value?
WHAT are your results with customer?
DOES your customer strategy work well with your business strategy
Questions as WHO should be included in your definition of the customer? And WHO is not your
customer? Sends Business Manager in deep reflection & introspection mode to argue and come
out clear with its Definition of WHO IS MY CUSTOMER actually and DO I really know them.
For a Medical equipment company the answer whether its equipments have to be Doctor
focused or end user focused is pivotal to its overall business existence.
The next 2 Questions are probably the most difficult to articulate in the form of an answer
1. How does you customer’s perception of value align with your own?
2. How do connectivity and relationship influence value?
The answers will directly show its impact on market share, pricing and differentiation in market
place.
A unique proposition argued in this chapter is Bundling. A very different approach to
understanding and meeting customer needs is in bundling capabilities, product and services to
meet those needs. The master bundler is of course Bill gates with its Windows Operating System.
Next a very interesting matrix for investigating customer strategy reflecting level of
integration and scope of offering has been introduced. Defines where a business decides to
play defines on customer service engagement. This Outside- In approach can be translated into
meaningful differentiated value for its customer.
In a world where the customer has become a key controlling force, the importance and knowing
and working with your customer has never been greater. Results happen customer by
customer.
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THREE | Innovation and Abandonment
“The best way to predict the future is to create it.”
“Tomorrow is an Opportunity” – the most important measure of a company is its ability to
anticipate and invest in tomorrow’s opportunity. Seed thought for Innovation. As Drucker stated
conventional view of innovation focused solely on product development and brand extension but
to truly innovate; businesses need to radically change customer’s experience and expectations.
To substantiate Drucker’s Principle on Innovation in this chapter we can experience the Starbucks
business story. It’s a must read for one to understand what innovation means and how it impacts
customer experience and expectation and creates differentiator in customer mind and allows the
business to command value for its offering . It just didn’t offer a better cup of coffee; it made it
easy to relax with a comfortable, “stay as long as you like” setting. Starbucks did much more than
simply crush, boil and filter a sack of coffee beans; it changed expectations. One should note but
that much of Starbucks innovation has to do with marketing, not the product. “If you don’t
understand innovation, you don’t understand business.” So if that’s the case with you then
you as a business manager are sure to struggle and may be you’ll exit eventually. The narration in
this chapter further captures the Apple story which is classic Product innovation example. The
iPod totally changed customer’s expectation of quality music on the move vis-à-vis what a
walkman could offer. 20 songs on a CD was no comparison to 1500 songs on an iPod.
Innovation is about shaking loose from yesterday’s world so that we gain the freedom to create
tomorrow. Drucker once explained, “There’s [probably] nothing more expensive, nothing more
difficult, than to keep a corpse from stinking!” Most corporations waste time, energy and
precious resources on keeping their corpses-their old products- from stinking. Signifying
Abandonment – to let go the old; you cannot manage everything in business; you always have a
cap on the resources available to you; don’t you?
The narration moves on to illustrate how to balance abandonment and innovation. You do get
your regular dose of Drucker questions again here about Innovation and Abandonment. Makes
you reflect on the way ahead and helps you chose the right actionable.
The very critical piece of this chapter; are the pages on OPPURTUNITIES. The 7 key sources for
Opportunity are again a MUST READ for an entrepreneur.
The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.
This narration provides you a very simple framework using which each one of us will have an
identification tool for spotting opportunity. Continuously seeking opportunity; converting them
into value for customer and strategically allocating resources is the way an entrepreneur creates
wealth. Validate this perspective in context of Apple; where would Apple be ranked? Had it not
seeked the opportunity to innovate on devices for entertainment and utility beyond conventional
Personal Computer. Reflection here can be an eye opener for you.
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FOUR | Collaboration and Orchestration
“Often the most profitable way to organize is to disintegrate and to partner”
Collaboration and Orchestration: Modern Age of Co-Creation.
“To give your customers what they need, you must follow two rules: first, you must do only what
you do best, that is, play to your strengths; and second, to meet the full range of customer needs
beyond your strongest capabilities, you must collaborate with other players, sometimes even
those whom you consider competitors, who can complement your strengths with what they do
best.”.
This is how the fundamental aspect of Collaboration and Orchestration; gets driven into the Lego
World of doing Business. This is also the fundamental in delivering maximum value “Bundle” to
your global customers maintaining efficiency and effectiveness.
The narration of this chapter truly integrates the content experienced so far in the previous
chapters. The Silent revolution; doing Business in the Lego world , customer centricity, Innovation
and abandonment all find fit once you embrace collaboration and orchestration to meet your
customers demand optimally; creating value not just for your customer but also for the
corporation.
After detailing Collaboration, you get your customary questions on collaboration and
orchestration. Forcing one to think and reflect. In this chapter you have examples of DELL and ITC
to reflect upon and envision CO-Creation.
The narration on Front Room and Back Room is fundamental to you knowing what Business you
are in; if not know or not clear you will struggle. Front Room defines your strength; activity most
important for you to do – Something that stirs your passion and shows off excellence. Incase of
Apple it would be Product Design and R&D- Innovation and then Marketing. Everything else can
be outsourced to partner i.e. its back room- something its customer does not see it doing.
As the narration in the chapter moves ahead highlighting details of maintaining effective
communication and measuring results in Lego world of doing Business while using collaboration
and orchestration partners ; it brings the focus on the need of Agile decision making.
As an ultimate statement for Business purpose “Imagine yourself bringing together the best
capabilities from across the globe to cost effectively and efficiently deliver maximum value to
every customer across the globe.
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FIVE | People and Knowledge
“Management is about human beings. Its task is to make people capable of joint
performance, to make their strengths effective and their weaknesses irrelevant.”
People First - employees and customer, as well as shareholders and stakeholders; is what was
always stressed by Peter Drucker. The narration in this chapter focuses right in the beginning on
ALCOA and how it vested in people. An Amazing story of the firm, lead by Drucker’s former
student Paul O’Neill.
Peter believed and evangelized - “Management is primarily about human beings,” that a
company is really its people, specifically their knowledge, capabilities, and relationship. In the
same breath Drucker shares a highly contentious truth -The old idea about employee loyalty and
retention no longer applies.
The narration further moves to explain the requirements and expectation of modern day
employee “the knowledge worker”. While they expect to be well compensated for their work,
they also insist on greater degree autonomy, self management, and respect. They respond better
to the standards of excellence associated with their expertise rather than to the discipline
imposed by traditional management practices. As part of narratives we also get briefs on another
category of modern day employee termed as Service Worker.
Investing in people and knowledge: Five Drucker questions; highlights the need to have a
structured mechanism to mature the workers be it Knowledge worker or service worker; in
respective work areas. Another interesting aspect shared is identification of right people for your
organization- the Question set is simple and real- ready to be put to use.
One of the greatest insight shared by Peter Drucker on people is the cost of wrong hire - “The
only thing that requires even more time than putting the right people into a job is unmaking a
wrong people decision”. Organizations stretch wrong people hire decision for way too long
period; isn’t it? A lesson better learnt faster and implemented for better of the corporation.
What is the Task? What knowledge and working style will help an individual WIN? Get
appropriately explained. Subsequent portion of the chapter further raises questions like is there a
clear mission and direction that builds commitment and priorities? – “Every enterprise and team
requires simple, clear and unifying objectives.”
Are you playing to People strength rather than managing around their problems? An eye opener
for many managers; to extract better contribution from individual talent. Being in knowledge
based economy the chapter poses question on knowledge centricity of the corporation. Is
Knowledge and access to knowledge built into your way of doing business? What is your strategy
for investing in people and knowledge?
Practices and Approach on knowledge and people at Mckinsey, Wal-Mart, Edward Jones and
Google are narrated to deepen the readers understanding in this area of People and Knowledge.
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SIX | Decision Making:
“A decision is a judgment – a choice between two courses of action neither
of which is probably more nearly right than the other.”
Drucker always stood for management effectiveness – setting priorities, managing time, and
making effective decisions.
“A decision is a judgment. It is a choice between alternatives. It is rarely a choice between right
and wrong. It is often a choice between two courses of action neither of which is probably more
nearly right than the other.”
Peter Drucker next set of statements highlights the biggest challenge of modern day managers-
effective decision making. Today’s manager faces a fast moving barrage of apparent knowledge,
some relevant and reliable, some not. Because events shift so quickly, a decision can be obsolete
before it even gets put into action. So ironically, in the information age; in the age of knowledge
workers, intuition and judgment play an even greater role in effective decision making and well
placed strategic bets than ever before. There is no substitute for fact based decision making and
no excuse for managing from the gut.
Management has a stark challenge: It must create a climate with the best chance that everyone in
the organization is making the right decisions about the right issues at the right time. The
narrative as customary states Drucker’s Questions on Decision making – the most striking one is;
is the organization willing to commit to the decision once it is made?
Successful decision-making begins with the recognition that making good decisions is one of
management’s most critical responsibilities. Although the quality of your decision does not
depend on the amount of time you spend arriving at it, it does require that decision making be a
priority and a commitment to spending the time needed. These statements are lifelines to build
the right environment and culture of decision making.
What’s the real Issue? What specification must the solution meet? Have you fully considered the
entire range of alternatives? Have you gained commitment and capacity of the implementers? Do
you have mechanisms to provide tracking and feedback? Are some key questions in building an
effective decision making culture within an organization?
At the end of it the most time consuming step is not making the decision but putting it in to
effect.
The TOYOTA story how it gets it’s EDGE; is essentially embedded into its Decision Making process
as much as it’s connected to its manufacturing agility. WHY 5 times. The Toyota story around this
concept of WHY 5 times makes this chapter far more interesting. It’s a simple concept and results;
effective.
In effective Decision making process never ask who was right only ask what is right.
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SEVEN | The Twenty First Century CEO
“CEOs have work of their own. It is work only CEOs can do, but also work which CEOs
must do…Each knowledge worker must think and behave like a chief executive officer.”
As a company, someone must be in charge- that’s why we have a CEO. This chapter’s narrative is
on ROLE of CEO; which as remarked by Procter & Gamble’s CEO A.G. Lafley, “is Peter’s unfinished
chapter.” Peter believed that the CEO role was the next area of management research.
CEOs as more important than ever; provide leadership – strategic leadership, moral leadership –
and balance. The CEO has to live the purpose, the values, and the principles of the organization.
Good or bad, the CEO sets the tone for an organization, its mission and culture, and its actions
and results during his or her tenure.
To distill into one word Peter Drucker’s thought on what makes a truly great CEO It would be
courage. You need primarily courage to take Big Decisions.
The narrative explains 3 key characteristics unique to a CEO
1. Broad field of Vision
2. Thumbprint on the organization’s character and personality
3. Influence on people-individually and collectively
The narrative that the CEO links the inside – the organization-with the outside-economy, market,
customers, collaborators, technology, media, public opinion etc.
“Inside there is only COST. Outside there are results”
Is Most defining statement about the role of a CEO.
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The Final WORD
The Definitive Drucker captures Peter Drucker’s visionary management concepts, applies them to
the key business risks and opportunities of the 21
st
Century, and imparts Drucker’s views on
current business practices, economic changes, and trends-many of which he first predicted
decades ago.
Drucker’s insights are divided into five main themes that the modern organizations need to, as
Drucker would say, Create tomorrow:
Connecting with Customers
Innovation and abandoning
Developing lasting collaborations
Attracting and growing knowledge workers
Establishing disciplined decision making
Drucker’s penetrating questions helped business, corporate, and political leaders throughout the
20
th
century to see their work in a new perspective. Edersheim’s extensive interviews that include
Jim Collins, Jack Welch, Michael Hammer, and A.G. Lafley, offer compelling commentary on
Drucker’s vast influence.
Delivering keen analysis and revealing insights into business, The Definitive Drucker is a
celebration of this extraordinary man and his life’s work, as well as a unique opportunity to learn
Drucker’s final lessons on how to strategize, compete, and triumph for the long term.