Posts Tagged ‘Peter Drucker’

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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Organizational Phase Change

Tuesday, September 25th, 2012 by Troy Schrock

As certified CEO Advantage advisors, we generally consider middle market organizations (50-2,500 employees) to be in our sweet spot.  As an organization matures, “midmarket” is an inflection point where entrepreneurial companies must become “professionally managed” entrepreneurial companies (a favorite Verne Harnish term).  The entrepreneurial edge is still vital, but the company will suffer without professional management.

Years ago, Peter Drucker nailed this transition, which he dubbed a “change of phase”.  In People and Performance, Peter Drucker writes:

“The change from a business which the ‘boss’ can run with ‘helpers’ to a business enterprise that requires management is what the physicists call a ‘change of phase’ such as the change from fluid to solid.  It is a leap from one state of matter, from one fundamental structure, to another…The English biologist D’Arcy Thompson showed that animals supported by a hard skin can reach only a certain size and complexity.  Beyond this, a land animal has to have a skeleton.  Yet the skeleton has not genetically evolved out of the hard skin of the insect; it is a
different organ with different antecedents.  Similarly, management becomes necessary when a business reaches a certain size and complexity.  But management, while it replaces the ‘hard-skin’ structure of the owner, is not its successor.  It is, rather, its replacement.  When does a business reach the stage at which it has to shift from ‘hard skin’ to ‘skeleton’?  The line lies somewhere between 300 and 1,000 employees in size.  More important, perhaps, is the increase in complexity of the business; when a variety of tasks have all to be performed in cooperation, synchronization, and communication, a business needs managers and a management.”

In today’s environment, with global supply chains and competition, instant communication, more complex compliance requirements, and knowledge workers increasing relative to administrators and technicians, companies hit the complexity inflection point with fewer employees than in the past.  Rather than 300 employees, the line is probably crossed at 100, if not 50, employees.

This inflection point is an exciting place to be as companies grapple with the changes that accompany growth, but it can be a particularly challenging time for the owner/entrepreneur.  Owners should only manage to the extent that they’re able to do so effectively.  Where necessary, they must be willing to concede control to capable managers and a management team.

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In 100 Words: 3 Ways to Increase Time Efficiency

Wednesday, August 1st, 2012 by Troy Schrock

3 Ways to Increase Time Efficiency*:

  1. Log your actual time to the nearest quarter hour.  I guarantee your time efficiency will be lower than what you think it is.
  2. Begin each day by jotting your 3-5 most important priorities for that day on a note card.  Carry that card with you all day.  It will free your mind from less important to-dos and keep you focused on driving the most pertinent organizational goals.
  3. Each week, look at your time log and identify one activity that should be delegated to someone else.  You might even ask your team what you should not be doing.

*These tips are pulled from “Leveraging Leadership” by Ben Anderson-Ray.

“Management is doing things right.  Leadership is doing the right things.”  (Peter Drucker)

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Why Non-Profits Should Practice “Organized Abandonment”

Tuesday, August 3rd, 2010 by Ellen Bryson

Management Guru, Peter Drucker said, “The one thing non-profits must learn to do is how to kill programs”. Drucker called this process, “organized abandonment”.

In recent months, I have been involved with several non-profit organizations that have seen their funding decreased dramatically from last year’s levels. It has caused intense concern, but contingency plans have been implemented and administrative functions have been reduced in order to continue programming to those they serve in the community.  Based on the projections for the remainder of 2010, this may not be enough. They may need to consider other options.

While extremely difficult, it may be time to consider eliminating some programming in order to ensure survival. This can be a difficult decision for a non-profit because many typically think it is their responsibility to assist all in need.

Following is a suggested process for determining how to achive “Organized Abandonment”.

Step One: Recognize that all programs should be producing positive outcomes.

Step Two:  Evaluate the program’s alignment with the organization’s mission and purpose. If the program is not producing positive results and is not aligned with the purpose  and mission, it should be eliminated.

Step Three:  Identify which programs are critically necessary and how the organization can best meet the needs of those it serves. If the organization is the only provider of the service, then the program should be retained, but steps should be taken to ensure that it successful and produces the desired results. If the organization is not the only provider of the service and there are others that are doing the same thing  with better results and more efficiency, consider joining forces with that group or have them absorb your clients for that particular service. This not only helps your organization, but improves service in the community by concentrating resources where they are most effective.

This is a defining period in the life of non-profits. Many will not survive the economic downturn, but those that do will emerge stronger and more focused. It is the difficulties and challenges in life that define who we are…not our successes. Embrace change, make the difficult decisions, chart a new course and deepen the relationship with your core clients and stakeholders. This will ensure future success.

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In 100 Words: Inviting Dissent

Thursday, July 29th, 2010 by Troy Schrock

According to Winston Churchill, “Criticism may not be agreeable, but it is necessary.  It fulfills the same function as pain in the human body.  It calls attention to an unhealthy state of things.”  The natural response to criticism is to fight back.  The effective response is to pause and consider.  You are not always right; don’t you want to know when you’re wrong so you can correct your course?

Disagreement is good.  Discipline yourself and your team to invite criticism and respond productively.  Choose to pursue the truth rather than defend your turf.

As with any discipline, it takes practice.

“The effective decision-maker, therefore, organizes disagreement.”  (Peter F. Drucker )

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