Posts Tagged ‘Built to Last’

In 100 Words: The Influence of Peter Drucker

Friday, February 1st, 2013 by Troy Schrock

Amidst the plethora of new business writing published each year, it’s easy to lose sight of Peter Drucker’s significant influence.  Jim Collins said in a May 2006 speech that Drucker had a formative influence on every company he and Jerry Porras profiled in Built to Last.  In the introduction to his book, Go Put Your Strengths to Work, Marcus Buckingham notes that many people trace the “strengths movement” back to Drucker, who for years encouraged both individuals and organizations to focus on areas of strength.

Business advisors benefit greatly from a liberal sprinkling of Drucker’s writing in their reading regimen.

“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 Grandfather of Marketing.”  (Philip Kotler)

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The Importance of Peter F. Drucker

Wednesday, January 9th, 2013 by Troy Schrock

Amidst the plethora of new business writing published each year, it’s easy to lose sight of Peter Drucker’s significant influence.  Known as the “father of modern management,” his writing provides the central themes of much of the current management, marketing, and general business writing.

Marketing guru Philip Kotler states, “…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 Grandfather of Marketing.”  Jim Collins said at a dinner speech in May 2006 that Drucker had a formative influence on every company he and Jerry Porras profiled in Built to Last.  In the introduction to his most recent book, Go Put Your Strengths to Work, strengths guru Marcus Buckingham notes that many people trace the “strengths movement” back to Drucker, who for years encouraged both individuals and organizations to focus on areas of strength.

Business advisors benefit greatly from a liberal sprinkling of Drucker’s writing in their reading regimen.

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The Halo Effect

Thursday, May 31st, 2012 by Troy Schrock

One of the more challenging books I’ve read in recent years is Phil Rosenzweig’s The Halo Effect.  I call it challenging not because it was difficult to read, but because it strongly confronted some assumptions about good business that I have rallied around for a long time.  Starting with the “mother of all business questions” (What leads to high performance?), Rosenzweig strongly criticizes the methods of several well-known business researchers, including Jim Collins (Good to Great, Built to Last).  “This book is…written to help managers think for themselves,”  he writes, “rather than listen to the parade of management experts and consultants and celebrity CEOs, each claiming to have the next new thing.”

Buttressed by his own research, Rosenzweig claims financial results drive our impression of every aspect of a company.  Thus, when a company is performing well, employees love working for the company and speak glowingly of superiors, executives are thought to have brilliant strategy, customer focus is considered top-notch, and so on.  When financial results drop, those same employees change their tune, and those same executives are criticized for their strategic mistakes.

Rosenzweig does not say that Collins and others are wrong; in fact, he concedes that they point us in the right direction.  Yet, he cautions against treating their advice as automatic cause-and-effect formulas.

As much as The Halo Effect challenged me to rethink some things, it also reinforced the importance of disciplined strategy execution.  Writing about Logitech CEO Guerrino de Luca:

De Luca emphasized the importance of execution.  Once strategic choices were made, the focus shifted to getting things done.  “We learned many times,” he said, “modestly defined strategies have given dramatic success through great execution.” …Did Logitech’s CEO think he was following a blueprint for enduring success?  No.  But he made thoughtful decisions about strategic choices – deciding what not to do as much as what to do – followed up with disciplined execution based on clear priorities and explicit measures.  (p. 171-2)

Clear priorities.  Explicit measures.  They may not guarantee success, but they will greatly increase its likelihood.

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In 100 Words: Positive Tension

Monday, June 14th, 2010 by Troy Schrock

Do you like tension?  When it comes to executing your strategy, you should.

Positive tension yields excellent results.  The tension of opposing ideas generates the debate that produces a solution.  The tension of self-imposed financial/time limits on new projects (what Michael Eisner called “creativity in a box” at Disney) drives efficient innovation.  The tension of preserving the core while stimulating progress (Jim Collins in Built to Last) builds great and enduring organizations.

Q2 is almost done, and you have rocks to complete.  Push to get them done while exhibiting the patience to get them right.  That’s positive tension.  Embrace it.

“The test of a first-rate intelligence is the ability to hold two opposing ideas in mind at the same time and still retain the ability to function.”  (F. Scott Fitzgerald)

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