Drucker is called as the father of Modern Management, MBO.

1. presenting the The Essential Drucker

2. 1 2 The book Key Insights

4. 39 books

5. Presidential Medal of Freedom

6. Presidential Citation, NYU

8. 1 The Management

9. What is management? Enabling people to perform Set the culture Training & development Measure performance of self and the organization Result is always outside (no perpetual motion machines )

10. Dimensions of management Economic performance and improve /maintain wealth producing capability of the organization Work and worker productive Social responsibilities

11. Purpose of business Marketing and innovation What is our business and what should it be? Objectives should be Operational Selective Multiple Should cover areas of survival

12. Market standing regardless of sales New markets New products and services in existing markets Optimum market standing as the goal Product Innovation Social innovation Managerial innovation Productivity and improvement of productivity should be a key focus

13. Lessons from non-profits Starts with their customers Zeal to accomplish mission Effectiveness of boards – CEO and board as colleagues Meaningful achievement Transformation from non-profit volunteer to non-paid professional

14. New Paradigms –Searching for the holy grail One right org structure One right way to manage people Per Drucker - The organization that fits the task Manage for results Flat hierarchy

15. New paradigms Practice of management – assumptions Technology and end use are fixed and given Technologies mesh and can impact any industry i.e. the definition “electronics company” is a limitation rather than foundation Management’s scope is legally defined. Economically linked keiretsu

16. Information Yield control instead of cost control Activity based accounting Price lead costing Total factor productivity Economic value added Benchmarking ROI / Payback period/Cash flow / Discounted present value Outsourcing and consulting of information

17. Why MBO Un-spelt objectives causes misdirection Management by drives MBO Organizational goals spelt out clearly Departmental /bu goals are arrived from org goals Mgr / individual goals are arrived from BU/Org goals Tools like manager’s letter Self control rather than control from above

18. Forms and reports Should Focus on performance Should Focus on self monitoring Control & controlling the irrelevant should be avoided

19. Staffing & Promotion Manager to be blamed for putting a wrong person in a spot Soldier has a right to competent command People decisions impact the performance capacity of an organization New people in established slots

20. Staffing & Promotion

21. Staffing & Promotion Widow maker People decisions as a tool of control as a tool for organizational culture as strategy

22. The entrepreneurial business Special handling for new innovative ventures Separate new businesses from established ones Provide executive cover Build the desire to innovate in the organization rather than trying to acquire it

23. 2 The Individual

24. Effectiveness Contribution Know thyself Time Effective Decisions Functioning communications Leadership as work Principles of Innovation The second half-life The Educated person

25. Effectiveness Operations research and the efficiency of the chef’s kitchen Effectiveness - Doing the right thing Effectiveness is a habit and could be practiced

26. Contribution Results Direct results Building of values and reaffirmation Building and developing people of tomorrow Making the result effective

27. Know thyself Personal strengths should match assignment More than that personal values should match with the assignment

28. Time 80-20 – where should I contribute What could be delegated -- the recurrent fire fighting Overstaffing – mal-organization Consolidating discretionary time

29. Characteristics of an entrepreneur Decisive Decisive even with insufficient data Decisive even when mistake prone Decisive but learns from mistakes even when mistake prone Tradition counts only when it makes sense Owns the result

30. Effective decisions Right and the wrong compromise – baby and the loaf Translation to work Generic problem or exceptional problem Start with what is right and make your compromises Do not hedge

32. Define and establish it clearly…. and visibly

33. Leadership as Responsibility and not as rank or privilege

34. Hold ultimate responsibility for subordinates actions

35. Promote / praise / groom subordinates

36. Earn trust= be an effective manager

37. Innovation Dos Analyze opportunities Unexpected success or failures Incongruity in customer behavior Positioning Keep it simple to make it effective Aim at leadership Donts Too clever Innovate for the present Innovators are opportunity focused and successful ones become one by defining and containing the risks

38. 3 The Society

39. Organizing principles of Production

40. Transformation of society

41. Some blurred distinction between Socialism! Humanism! And Druckerism Universal rights and responsibility Flat structures Ownership of the means of livelihood and production Need of the commune to be productive

42. Challenging the statusquo Welfare state is past --?? Scenario post 2009 Mega state vs. non-profit social sector Mega state vs. youtube / twitter / facebook Learning & constant relearning -> outliving obsolescence Drucker hedging ?! his bets ?? Government will NOT become less pervasive, less powerful, less expensive but will depend more on individuals / organizations to be effective

43. From chimney monkeys to the era of Rugmark and beyond Time Affluence Move from subsistence production to services So called evils of modernity – is it just widespread reporting of it? And change in our sensibilities?

44. Key Insights

45. Purpose of Business Purpose of the business is to satisfy the needs of its customers Some of the questions an organization need to ask frequently are Who is our customer? What should our business be? Planned abandonment -“If we did not do this already, would we go into it now?” The Purpose of a business is to create a customer

46. Role of Management Everything that affects the performance of the organization is a concern for the management and its responsibility. Traditional models perceive the role of management is internal which is a fallacy The best way to predict the future is to create it.

47. On Marketing Market standing is important irrespective of increase in sales Market standing to aim for should be optimum and not maximum Technology and End-use are limitations. Customer value and customer decisions to dispose their disposable incomes should be the focus for management The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.

48. 5 bad habits of organizations Not Invented Here Creaming a market Quality as perceived by self Illusion of a premium price Maximize rather than optimize Until a business returns a profit that is greater than its cost of capital, it does not create wealth — it destroys it.

49. Effective Decision Making Making good decisions is a crucial skill at every level.

50. Organization as a human community One does not manage people. They should lead the people. Values are and should be the ultimate test.. Knowledge workers are dependent on the organizations to make their work productive. Organizations also take over some of the aspects of a commune as knowledge workers interact, bond and flock together. Rank does not confer privilege or give power. It imposes responsibility.

51. Management by Objectives Specific Measurable Achievable Realistic Timely SMART goals should be derived from corporate vision and should be set for individuals, teams and departments. Manage for Results Management by objective works - if you know the objectives.

52. Management by Objectives Jointly Plan Individually Act Management by objective works - if you know the objectives. Jointly control Managers Team Members

53. Effectiveness vs efficiency Processes and procedures typically help in increasing efficiency but only when the right things are done results are achieved. Efficiency is doing things right; effectiveness is doing the right things.

54. Knowledge workers Knowledge workers own the tools of their trade. Knowledge society allows upward mobility. What is measured improves

55. Communications Communication is perception Communication is expectation Communication makes demands Communication and information are different and mostly opposite – yet inter-dependent The onus of making himself/herself understood is on the specialist. The important thing in communication is to hear what is’nt being said