Club’s Thought Leader of the Week Nov2010,W02 – Dr. Peter Drucker

Dr. Peter Drucker (1909-2002)

Strategy Management can’t be introduced without its pioneer, Peter Drucker. He was a writer, management consultant and “social ecologist”. His writings have predicted many of the major developments of the late twentieth century,

  • privatization and decentralization
  • the rise of Japan as an economic power
  • the decisive importance of marketing
  • the emergence of the information society with its necessity of lifelong learning

Being groomed in a field of sociology and new horizon of politics he always had the interest in innovation and entrepreneurship.  In his book Management: Tasks, Responsibilities, Practices, he wrote that “that in modern society there is no other leadership group but managers. If the managers of our major institutions, and especially of business, do not take responsibility for the common good, no one else can or will.”

Peter Drucker ha­­­­s written more than 30 books and each book came out with phenomenal ideas.

  • Decentralization; Drucker discounted the command and control model and asserted that companies work best when they are decentralized.
  • Simplification; according to Drucker, corporations tend to produce too many products, hire employees they don’t need, and expand into economic sectors that they should avoid.
  • Central to Drucker’s philosophy is to think people as most valuable asset which will be prepared and freed for the job by the managers.
  • The Sickness of Government“; Drucker made nonpartisan claims that government is often unable or unwilling to provide new services to people, though he believed that this condition is not inherent to the form of government.
  • Businesses and governments have a natural tendency to cling to “yesterday’s successes”. There is need for what he called “planned abandonment“.
  • Drucker predicted the “end of economic man” and advocated the creation of a “plant community” where individuals’ social needs could be met. Later he suggested that volunteering in the nonprofit sector was the key to fostering a healthy society where people found a sense of belonging and civic pride.
  • Management By Objectives (MBO); The need to manage business by balancing a variety of needs and goals, rather than subordinating an institution to a single value.
  • A company’s primary responsibility is to serve its customers rather than making money. But it is necessary for its continuous existence.
  • An organization should have a proper way of executing all its business processes.

“I never predict,” he told a writer at Forbes. “I just look out the window and see what’s visible – but not yet seen.” In an interview in Training and Development, it was said that Drucker “sees what others overlook.” He always believed that curiosity is the father of all knowledge. So as a strategist the interest in various subjects and various genres should be there to be successful in life. That is why he always claimed that he has “not found a subject yet that is not sparkling with interest.”

Source – Wikipedia & related articles

Authored by Arun Marik, PGP01014


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