The Essential Drucker by Peter Drucker - Book Review

40
Book Review on 'The Essential Drucker'

description

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!!!

Transcript of The Essential Drucker by Peter Drucker - Book Review

Page 1: The Essential Drucker by Peter Drucker - Book Review

Book Review on 'The Essential Drucker'

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Introduction

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BornNovember 19, 1909 (Died

 November 11, 2005)

Place of Birth Kaasgraben, Austria

Graduated from University of Frankfurt

OccupationManagement consultant,

educator and author

Number of Books Written 39

Awards and Honors

Presidential Medal of Freedom (2002), Grand Silver Medal for

Services to the Republic of Austria (1974), Grand Gold

Decoration for Services to the Republic of Austria  (1991)

Worked at

Bennington College (1942 - 1949),  Professor of

Management at New York University (1950 - 1971),

Founder of Claremont Graduate University

About Peter F. Drucker

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The Essential Drucker

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Selection of 26 chapters from Drucker’s sixty years of work

Compiled by Drucker’s Japanese friend Atsuo Ueda

Edited by Cass Canfield Jr. for USA and UK

Aim of the book is to provide an introduction to management via Drucker’s work

About The Book

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Origins of Management

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The World War II – First Example of Management in Action

Troops

• One fifth of the Population of all other belligerents combined

• Had almost as many men in uniforms

War Material

• Produced more war material than others combined

Transportation

• Managed to transport men and arms on fighting fronts as far as China, Russia, India, Africa and western Europe

Allies Won – Their

Victory Achieved by Manageme

nt

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Accountability in Management

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Peter Drucker Believes That Management…

Is not Solely about Short Term gains to Stakeholders

It has to be accountable for Performance

Should be in charge of defining Performance

Should be in charge of measuring Performance

Should Ensure that Performance is enforced

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Dimensions of Management

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Dimensions of Management

Establish Mission or Objective

for a Business

Make work

Productive and Worker Effectiv

e

Manage Social

Impacts and

Social Responsibilities

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Purpose & Objective of a Business

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Purpose of a BusinessMarketing

Innovation

Main Purpose

is to Create a Customer

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What it takes to Define Objectives

Objectives are needed in all areas on which survival

of business depends

Objectives must make possible concentration of

resources and efforts

Objectives must be operational and capable of being converted

into specific targets

Objectives must be driven from What our Business is , what it will be and what it should be

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Objectives Must Be Set in Following Keys

Marketing

Human Resources

Physical Resources

Social Responsibility

Innovation

Financial Resources

Productivity

Profit Requirement

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Social & Environmental Impacts

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Social & Environmental Impacts

Responsibility for Impacts – The First Job of Management

is to Identify Impacts.

Deal with Impacts – Elimination of Impact

into opportunity should be attempted. If it

cannot be done, find a regulation.

Social Problems Business Opportunities – Social Problems represent

challenges and are a source of opportunity.

Limits of Social Responsibility – Social

responsibility cannot be fulfilled by a business

without minimum profitability.

Limits of Authority – Management should resist responsibility of a social

problem that would compromise the

performance of the business.

Ethics of Responsibility – The social responsibility should be taken up in everyday honesty and

social responsibility should not be forced upon anyone.

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Information Executives Need Today

• Traditional cost accounting measure what it cost to do something.• Activity based costing also records the cost of not doing.

Traditional to activity based cost accounting

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Management by Objectives & Self-Control

Objective

Multiple People have different contributions

towards…

Should be derive from goals of the business enterprise

Manager must be able to measure his performance

against his business goals.

Management should utilize reports and

procedures to ensure self-control

towards…

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Picking People – The Basic RulesThink through the assignment and understand the job description.

Look at a number of potentially

qualified people.

Think hard about how to look at the

candidates and if they fit into the

assignment.

Discuss each of the candidate with

several people who have worked with

them.

Make sure the appointee

understands the job..

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The Entrepreneurial Business

“Entrepre

neurial

business

es tre

at

entrepre

neurship as a

duty. They are

disciplin

ed about it,

they w

ork at i

t and th

ey

pract

ice it

.”

The Don’ts on an Entrepreneurial Businesses

Do not mix management

units and entrepreneurial units together

Innovation better not be

diversification. An existing business

must innovate where it has

expertise

Avoid making one’s own business

entrepreneurial by acquisition as the managers of

the acquired company are more likely to

leave.

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New Venture

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A New Venture has Following Requirements

Focus on The Market •The new venture needs to build in systematic practices to remind itself that a product or a services is defined by the customer not by the producer. It needs to work continuously in respect to the utility and value that its product or services contribute to customers.

Financial Foresight •The new venture needs cash flow analysis, cash flow forecasts and cash management. A growing new venture should know twelve months ahead of time how much cash it will need, when and for what purposes.

Building a Top Management •Once the business starts growing, it needs a management team at the top. Goal and objectives for each area needs to be set. Also founder has to learn to be become leader of a team rather than star with helpers.

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Effectiveness

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Effectiveness Must be Learned

Why we need Effectiveness?

Who is an executive?

Executive Realities

The Promise of Effectiveness

Can Effectiveness be learned?

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Contribution

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OWN COMMITMENT CONTRIBUTION OF KNOWLEDGE

RIGHT HUMAN RELATION

Focus on Contribution

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Concentrate on your Strengths

Work on improving your strengths

Identify where intellectual arrogance causes disabling ignorance

Remedy your Bad Habits

Waste as little effort as possible on improving areas of low competence

What are My strengths

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One is a Reader or listener?

How one learns?Whether one

perform well under stress?

Do not try to change yourself!!

HOW DO I PERFORM??How do I Perform

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What are my Values?

Where do I belong?

...this is who I am!!!

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Record time

Manage time

Consolidate Time

Know Your Time

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Effective Decisions

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The Decision ProcessR

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Converting the decision into action.

The Decision Process

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Communications

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Fundamentals of Communication

Communication

Communication is

Perception

Communication Makes Demands

Communication and

Information

Communication is

Expectation

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Leadership

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Qualities of a LeaderThe foundation of effective leadership is thinking through the organization's mission, defining it and establishing it clearly. The leader sets goals, defines priorities and maintains the standards.He makes compromises with constraints of reality which are compatible with mission and goals.

The leader sees leadership as responsibility rather than rank and privilege.

Effective leader encourages his subordinates, pushes them and glories them.

He sees subordinates as his triumphs rather than threats.

Effective leader hold himself ultimately responsible for the mistakes of his subordinates.The final requirement of leadership is trust. The only definition of a leader is someone who has followers. Trust is the conviction that the leader means what he says.

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Innovation

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Principles of Innovation

Systematic Innovation begins

with the analysis of the opportunities.

An Innovation to be effective has to be simple and it

has to be focused.

Effective Innovation start small. It should try to do one specific thing. It may

be to enable a moving train draw electric power while it runs along rails

Innovation is work. It requires knowledge. Innovators rarely work more than one area. An Innovator in financial area is unlikely to bring innovations

in healthcare.

To succeed innovators must build on their strengths.

Innovators look at opportunities that fits the

company, puts to work what it is good at and have shown capacity for performance.

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Thank You

Name Roll Number

Almog Ramrajkar 41

Vaibhav Sawant 55

Naresh Naik 31

Preeti Patel 33