There are three different dimensions to the economic task. The present business must be made effective. The present business's potential must be identified. The effective business, Peter Drucker observes, focuses on opportunities rather than problems. How this focus is achieved in order to make the organization p. Peter Drucker on the Profession of Management. Managing in a Time of . Corporation (); Managing for Results (; the first book on what is now called.
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managing for results [Peter F. Drucker] on cafweedenosi.ml *FREE* shipping on qualifying offers. The effective business, Peter Drucker observes, focuses on. Managing for Results history. □ MFR is based on key management concepts from authors like Deming and Drucker, Osborne and Gaebler. □ City's MFR. PETER F. DRUCKER. TRUMAN Drucker, Peter Ferdinand, .. cury and Pan paperbacks); Managing for Results (New York, Harper & Row, ; Lon-.
Business Realities 2. The Result Areas 3. Revenues, Resources, and Prospects 4. How Are We Doing? Cost Centers and Cost Structure 6.
The Customer Is the Business 7. Knowledge Is the Business 8.
Building on Strength Finding Business Potential Making the Future Today. The second one, "Focus on opportunity", is focused on opportunities and how to capitalize on them. This includes topics such as: Finally the last section, "A program for performance", focuses on the "conversion of insights This includes discussing: What sets this book apart from others is its thoroughness in addressing the various aspects that affect the company's current and future results.
Numerous examples of companies are also presented to illustrate the material presented. Highly Recommended!
Below are some excerpts from the book that I found particularly insightful: In other words, results and costs stand in inverse relationship to each other. Costs vary enormously in their character - as do products. The cost system that needs to be analyzed is therefore the entire economic activity which produces economic values. It first tries to look at the entire business.
And second, it tries to look not at our customer, our market, our products, but at the market, the customer, the downloads, his satisfactions, his values, his downloading and spending patterns, his rationality. But a business that has no potential cannot survive. And a business that fails to search for its potential leaves its survival to chance. It is always different. And then even the mightiest company is in trouble if it has not worked on the future.
It will have list distinction and leadership - all that will remain is big-company overhead. It will neither control nor understand what is happening. Not having dared to take the risk of making the new happen, it perforce took the much greater risk of being surprised by what did happen.
These decisions are: But the wrong structure aborts results and smothers even the best-directed efforts. Above all structure aborts results and smothers even the best-directed efforts. Above all structure has to be such that it highlights the results that are truly meaningful; that is, the results that are relevant to the idea of the business, its excellence, its priorities, and its opportunities. View 2 comments. This book is a result oriented business bible.
An MBA full course in one book. Whether you're building, managing, scaling, pivoting, consulting or working for the business, this book is a must read.
I read Drucker regularly on Harvard Business Review and started to collect any books by him. Such a greatest business and management thinker and his writing is straightforward and fundamentally profound. I literally highlighted every pages on this book. Feb 06, Steve rated it really liked it. Drucker provides a concise, comprehensive overview of designing and making decisions in a company to achieve results.
He covers topics from understanding the business and its strategy, to marketing aspects of understanding the customer and product distribution across the market, to making decisions to cut resources or businesses that require the tough decision. He finishes with chapters on executive leadership and the direction of the company. It was somewhat textbookish in many parts, but he als Drucker provides a concise, comprehensive overview of designing and making decisions in a company to achieve results.
Nov 18, Cameron rated it it was amazing Recommends it for: Business folks. It's easy to see why this is one of the all-time business classics.
I think this was really the first book to discuss strategy the author says that the term wasn't in use when he wrote it, as hard as that is to see. Anyway, this is a pretty amazing book as far as breaking business down into something that is very non-mysterious. It's actually pretty thoughtful and philosophical - Drucker was the first person to really understand the movement towards a knowledge economy.
If you are really into It's easy to see why this is one of the all-time business classics. Which in turn focuses executives to look for opportunities for innovation. The theory of a business is often not obvious, nor can it be for- mulated without controversy. Formulating a theory of business requires executives first to look beyond the walls of the organiza- tion to the external environment. This means that formulating a theory of the business must be a forward- looking exercise—creating a mission that compels it to systemati- cally evaluate emerging trends, future changes in its environments, and current or emerging social problems that may be turned into business opportunities.
In determining core competencies, an organization must ask, What are we really good at? Assumptions about mission, core competencies, and customers not only must fit reality, but also must be consistent with each other. Leaders must be able to recognize when to give up products, processes, and customers and reallocate resources toward more promising opportunities.
Their codes of professional ethics must be to not know- ingly do harm. Legal and ethical violations should be met with stiff penalties for those who break the law and who otherwise knowingly do harm. Detrimental impacts to society created in this process must be minimized because they are harmful to the common good and are also outside the proper mission of any organization.
In the latter case, it is in the interest of executives in an industry for example, the accounting profession to agree upon appropriate regulation that is, to avoid auditing scandals such as those involving Enron, WorldCom, and so on that minimizes negative impacts and simul- taneously eliminates undue disadvantages among competitors.
Organizations must focus on their missions, minimize negative social impacts, and take a proactive interest in the common good. Institutions are organs of society. As such they are significantly dependent upon the welfare of society for their own welfare. To this end, management must work to obtain appropriate regulations so as to level the competitive playing field within its industry when executive insiders know that substantial negative social impacts are present.
The difficulty and expense executives are now incurring com- plying with the requirements of the Sarbanes-Oxley Act of , enacted as a result of the public outcry over numerous accounting scandals of the s, were preventable. All that was needed was self-regulation by members of the accounting profession as repre- sented by the American Institute of Certified Public Accountants and the Financial Accounting Standards Board.
Such self-regulation would have led to far more effective legislation for preventing accounting abuses, because it would have been developed by the professional groups best informed to propose the regulation to Con- gress and later to enforce the regulation on their members.
Peter F. Drucker on Executive Leadership 11 The second type of social impact, social ills or dysfunctions, should be thought of as challenges and treated as potential business oppor- tunities.
Organizations should aggressively pursue activities that turn the elimination of social dysfunctions into business opportunities for example, Branch Rickey, general manager of the Brooklyn Dodgers, breaking the color line by bringing Jackie Robinson into Major League Baseball.
Finally, management must also support the common good by helping community organizations financially—personally, in the form of corporate donations and by encouraging employees to donate money and volunteer their time supporting the work of community, and professionally, by lending their executive exper- tise to help these community groups address major social problems in one example, the revitalization of downtown Cleveland, Ohio, was aided by the executive expertise of local CEOs.
Executive Practices, Skills, and Tasks Executive leadership and effectiveness consist of three intercon- nected areas, as shown in Figure 1. Executive practices begin with the need to perform time man- agement. Time is our most limiting resource; once used it is irre- placeable. We can acquire more of every other resource. The way we use our time may seem obvious at first. But how many executives think they spend most of their time on strategic planning and deci- sion making only to find out, upon careful study of their actual time use, that they are mostly occupied with the repetitive and unpro- ductive demands of others?
Setting priorities—doing the most important things first, one at a time—gives the executive the best opportunity to achieve superior performance.
Superior performance is achieved by focusing effort on the performance areas. People decisions are among the most important decisions execu- tives make—one of the three key performance areas. These deci- Peter F.
Drucker on Executive Leadership 13 sions should attempt to match the strengths of a person with the specific assignments of a position. These decisions have their own rules, including understanding the specific assignment, considering a number of qualified candidates, examining the performance records of candidates, and making certain the selected candidate understands the new assignment. An effective executive builds on the strengths of employees, overlapping responsibilities and thereby covering weaknesses.
In this way each member of an organization can be made productive. Concentration on superior performance also requires that execu- tives abandon unproductive activities. They should ask themselves, If we were not doing a particular activity, making a particular prod- uct, or participating in a particular process already, would we do it now? And if they would not, then they should ask, What should we do about it now?
Should we attempt to make it more effective, abandon it, or, in the case of a product line, sell it? The final practice of the effective executive is making effective decisions. Making effective decisions is both a skill—following the right steps in the right order—and the specific practice of the exec- utive.
Only executives make decisions that affect the result areas. Decision making thus distinguishes the work of the executive lead- ers from all others in the organization. Decision making is in this way the link between individual exec- utive practices and executive skills.
There are six steps of effective decision making and five characteristics of effective decisions, which may require certain questions to be asked. Briefly, regarding the steps, effective decision makers start by defining and classifying the problem. These are almost simultaneous steps in the decision-making process. Defining the problem requires making sure that all observed symptoms of the problem are taken into account in the definition.
It is much easier to fix the wrong solution to a problem if the prob- lem has been defined correctly than it is to fix a correct solution to a problem that has been defined incorrectly! If a problem has been defined incorrectly, no proposed solution to that problem can be found. Conversely, if a problem is defined correctly, then an incor- rect solution will provide useful feedback information, leading the executive closer to the right solution.
If a decision is classified as unique, the decision maker next deter- mines the boundary conditions that have to be satisfied for the deci- sion to be effective. Establishing boundary conditions requires an answer to the question, What does the decision have to accomplish to be effective in solving the problem?
Once these boundary conditions are defined, the decision maker then asks what is the right solution given these conditions? Next—and this is where a great many decisions fail—the decision maker must convert the decision into action by assigning responsibilities for carry- ing out the decision and by eliminating any barriers faced by those who must act.
Finally, the effective decision maker follows up on the decision and obtains feedback on what actually happened as a result of the decision and compares this with intended or desired results. Effective decision makers encourage dissent on alternatives and then act on the chosen alternative if the potential benefits of doing so outweigh costs and risks.
Dissent, properly carried out, taps the imagination of the parties involved to find an appropriate decision and leads to a more complete understanding of what the problem is all about.
And if a decision should fail to meet the boundary con- ditions after vigorous debate, the decision maker will have a better understanding of the possible causes of failure having considered other alternatives. Finally, effective decision making takes courage, since, as with many effective medicines, effective decisions can sometimes have side effects or unintended outcomes.
Next we turn to a discussion of the remaining skills that execu- tives must acquire to carry out their tasks. First, executives must be good communicators. Effective executives must engage in upward communication, in which communication is initiated as well as received by the recipient. Information and communication are different. Communication does not take place unless the emitter is sure that the receiver understands what action is to be taken as a result of, say, a conversation or a memo.
The most effective way to ensure that real communication has taken place is to ask the receiver to describe what he or she has heard from the conversation, including the demands for action required, and to make sure it is what the emitter implied. Budgets are revenue and expenditure plans developed for each unit to help management decide where to apply the financial and human resources of an organization. In estimating revenues and expenses, executives are able to establish communications with each part of the organization and integrate the objectives, plans, and expendi- tures of each part with the whole of the organization.
Budgets, cor- rectly used, are thus major tools for integrating the plans and performance of the organization—upward, downward, and sideways.
By holding each unit responsible for the plans and expenditures in the budget, the budgeting process provides a framework for achiev- ing accountability for performance for each unit and person in the organization.
Operating and capital budgets are established to maintain cur- rent operations. For these budgets, the appropriate question is, What is the minimum amount of resources necessary to keep exist- ing operations going?