The document provides a summary of Peter Drucker's background and two of his influential books on management: The Practice of Management (1954) and The Effective Executive (1966). It summarizes some of Drucker's key ideas from these works, including his view that management is a distinct function, focusing on objectives, organizing work, and motivating employees. It also outlines five practices of effective executives according to Drucker: allocating time well, focusing on outward contribution, building on strengths, setting priorities, and making effective decisions.

1. Peter F. Drucker Larry Sayler

2. Life Born in Vienna in 1909 Educated in Austria and England Doctorate in Law in Germany Came to the US in 1937 Taught and Consulted Bennington College New York University Claremont Graduate School (Since 1971)

3. The Practice of Management Peter Drucker 1954

4. The Practice of Management 1954 The first true management book Depicts management as a distinct function Management has distinct responsibilities

5. Three Roles of Management Managing a Business Managing Managers Managing Workers and Work

6. Managing a Business

7. Managing a Business Purpose of Business To Create Customers Functions of Business Marketing Innovation Profit is result, not a cause, of business activity

8. “What is Our Business?” Who is the Customer? What does the Customer Buy? What is the Value to the Customer? What will our Business Be? What SHOULD our Business Be?

9. Business Performance Objectives Market Share Innovation Productivity Physical and Financial Resources Profitability Manager Performance and Development Worker Performance and Attitude Public Responsibility

10. Principles of Production Three Systems of Production Unique Product Production Mass Production Old style New style Process Production

11. Managing Managers

12. Three Stonecutters “I am earning a living” “I am being the best stonecutter I can be” “I am creating a cathedral”

13. Misdirection by the Boss Sometimes Management Directions are Not Clear Henry II King of England Thomas Beckett Archbishop of Canterbury Mid 1100s Sack cloth and ashes

14. Management by Objectives (MBO) Prepared by Employee (In Consultation with His/Her Manager) Includes Objectives and Measurement Standards Facilitates “Management by Self Control”

15. Other Topics Span of Managerial Responsibility The Manager and his Superior The Spirit of an Organization Appraisals, Compensation, Promotions CEO and the Board Developing Managers

16. Managing Workers and Work

17. Managing Workers and Work Personnel Management Taylor, Fayol, Gilbreth Organizing for Peak Performance Engineering the Job Motivating for Peak Performance Communication; Vision Supervisor / Foreman Professional Employee

18. Summary and Conclusions

19. The Work of the Manager Set Objectives Organize Motivate and Communicate Measurement Develop People

20. 5 Steps in Making Decisions Define the Problem Analyze the Problem Develop Alternative Solutions Find the Best Solution Implement the Decision

21. The Manager of Tomorrow Must manage by objectives Must take more risks and have a longer time frame Must be able to make strategic decisions Must be able to build an integrated team Must be able to communicate fast and clear Must see the business as whole Must relate to total environment

22. Responsibilities of Mgmt Operate at a Profit and Grow Social Impact “Our Lord’s Parables of the Talents Management as a Leading Group

23. The Effective Executive Peter Drucker 1966

24. Two major assumptions The executive’s job is to be effective Effectiveness can be learned

25. Three interesting quotes There are few things less pleasing to the Lord, and less productive, than an engineering department that rapidly turns out beautiful blueprints for the wrong product. (p. 4) People decisions are time consuming, for the simple reason that the Lord did not create people as “resources” for organization. (p. 33) There is little danger that anyone will compare this essay on training oneself to be an effective executive with, Kierkegaard’s great self-develop-ment tract, Training in Christianity. (p. 169)

26. Executives tend to have high levels of  Intelligence  Imagination  Knowledge But often lack  Effectiveness Intelligence, Imagination, and Knowledge are essential But only Effectiveness converts them to Results An Executive is To Execute EFFECTIVE EXECUTIVES

27. EFFECTIVE EXECUTIVES Executive and Manager are not synonymous An executive is those knowledge workers, individual professionals, and managers who are expected by virtue of their position or their knowledge to make decisions in the normal course of their work that have significant impact on the performance and results of the whole.

28. EFFECTIVE EXECUTIVES Effective executives have certain practices in common that make them effective. In other words, effectiveness is a set of practices; a habit Practices can be learned. Therefore, effectiveness can be learned As with all practices (such as playing the piano) anyone with normal aptitudes may become competent. Mastery may elude a person, but with effectiveness, what is needed is simply competence.

29. EFFECTIVE EXECUTIVES There are 5 practices/habits that have to be acquired to be an effective executive – Time allocation Focus on outward contribution Build on strengths, own and others Establish Priorities Concentrate on a few major areas where superior performance will produce outstanding results Make effective decision Effective decision making is a system – a series of correct steps in the correct sequence

30. TIME Output is limited by the scarcest resource Time is the limiting factor, the most scarce resource Can always acquire more money or people But one cannot obtain more time The Supply of Time is totally inelastic No matter how high the price, the supply cannot increase

31. TIME Three Step Process Record Time Manage Time (Prune the time wasters) Consolidate Time

32. TIME WASTERS Identify time wasters which follow from lack of system or foresight Recurring crisis Time waste often results from overstaffing Another common time waster is mal-organization. Its symptom is an excess of meetings People can either meet or work, but they cannot do both at the same time Meetings should never be allowed to become the main demand on an executive’s time Another major time waster is malfunction in information

33. TIME Three Step Process Record Time Manage Time (Prune the time wasters) Consolidate Time

34. OUTWARD CONTRIBUTION Key Question - “ What do you do that justifies being on the payroll Answer must be outward focused, not inward

35. BUILD ON STRENGTHS Promote people based on what they can do Make staffing decisions to maximize strengths, not minimize weaknesses

36. BUILD ON STRENGTHS Four rules for staffing based on strengths Don’t make jobs impossible Do make jobs demanding and big Know employee’s strengths Know that to get strengths, one must put up with weaknesses Logical consequence - It is the duty of the executive to remove ruthlessly anyone who consistently fails to perform with high distinction.

37. BUILD ON STRENGTHS Effective executive must also maximize his/her own strengths Must ask oneself, “What are the things that I seem to be able to do with relative ease, while they come rather hard to other people?”

38. PRIORITIZE Sloughing off Yesterday Continuously ask, “If we did not already do this, would we go into it now.” Priorities and Posteriorities Priorities - Decide what you will do Posteriorities - Decide what you will not do

39. PRIORITIZE Rules for identifying priorities Pick the future instead of the past Focus on opportunity rather than problems Choose your own direction, rather than climb on the bandwagon Aim high for something that will make a difference rather than for something that is safe and easy to do

40. EFFECTIVE DECISIONS To make decisions is the specific executive task Effective executives do not make many decisions. They concentrate on the important ones

41. EFFECTIVE DECISIONS Elements of the Decision Making Process Is this a generic situation, or a special situation? What must the solution accomplish? Build into the decision the action to carry it out Determine feedback which tests the actual results against the desired results

42. EFFECTIVE DECISIONS The effective executive does NOT start with the facts, but with opinions The effective executive encourages differences of opinions Don’t foster consensus, but dissension

43. EFFECTIVE DECISIONS “Executives are not paid for doing things they like to do. They are paid for getting the right things done - most of all in their specific task, the making of effective decisions.”

44. Managing the Non Profit Organization Peter Drucker 1990

45. I. The Mission Development of the Mission The mission is forever and may be divinely ordained; the goals are temporary Leadership is a Foul-Weather Job Interview - Exec. Director of Girl Scouts Setting New Goals

46. I. The Mission Interview - Max De Pree, chairman of Herman Miller and Hope College Leadership Action Implications Never start with tomorrow to reach eternity Think long range, then figure out today

47. II. From Mission to Performance Converting Good Intentions into Results Need Plan, Marketing, People, Money Winning Strategies “ Pray for Miracles; Work for Results” How to Innovate Common Mistakes Interview – Prof. at Northwestern Defining the Market Interview – CEO, American Heart Assoc. Building Donor Constituency Action Implications

48. III. Managing for Performance What is the Bottom Line? Basic Do’s and Don’t’s Effective Decisions Interview – President of American Federation of Teachers How to Make Schools Accountable Action Implications

49. IV. People and Relationships People Decisions Key Relationships Interview – Vicar for Social Ministry From Volunteers to Unpaid Staff Interview – President of Fuller Theological Seminary The Effective Board Action Implications

50. V. Developing Yourself As a Person, as an Executive, as a Leader You Are Responsible What do You Want to be Remembered For Interview – Founder of 2 NFPOs Non-Profits: The Second Career Interview – VP of Hospital Chain The Woman Executive Action Implications