Author: Peter Drucker

• Assumptions to change:

  • Management is the specific and distinguising organ of any and all organisations
    • Not just Biz orgs
  • There are many ways to organise
    • Each has strengths and limitations → Depends on task
    • There are overall Principles
      • Transparency
      • Authority
      • Fewer Layers / "Flat"
  • There are diff ways to manage ppl
    • Increasingly workers are knowledge workers → not subordinates but associates
    • Knowledge workers must know more about their job than their boss does
    • Knowledge workers have mobility and options, and should be treated as if they were "volunteers"
    • Bosses are like "conductors of an orchestra", to lead and not to manage → make productive the strengths and knowledge of the individual
  • All technologies are capable and will impact any industry
    • Non-customers will be increasingly important
    • Starting point is value to customers, not products or services
  • Management is not legal, but operational
  • Management is not political (or nationally bounded)
  • Management has to work for results (external)

• Strategy

  • 5 New Certainties
    1. Collapsing Birthrate in Developed World
       • Shrinking Population
       • Aging Population with increased life expectancies
       • Increasing birthrate in developing world
       • Expect to see issue in politics, and immigration
       • Productivity needs to increase rapidly
    2. Income Distribution
       • Beware shifts in shares of disposable income
       • Is your industry - growing, mature or declining? → Strat
    3. Defining Performance
       • Increase in dependence on economic investment will emphasise performance of companies
    4. Global Competitiveness
       • Global Competitiveness needs to be strategic goal for all institutions
       • Labour Productivity > Labour Cost
    5. Economic vs Political Reality
       • Globalisation & National Boundaries
       • Spheres to balance (overlaps)
         1. Global Economy: Money & Info
         2. Regional Economy: Goods and Services
         3. National & Local Economy: Economic & Political

• Change

  • In rapid structural change period, survivors are Change Leaders
  1. Policies for future → Structure and Change Leadership
     • Organised Abandonment
       • Schedule end of life reviews
       • Pilot or small scale abandonment
     • Organised Improvement
       • Kaizen
     • Exploiting Success
  2. Systematic Methods to anticipate changes → Innovation
     • Review windows of opportunity
     • Not to do
       1. Not in tune with strategic realities
       2. Innovation ≠ Novelty
       3. Motion ≠ Action
  3. Ways to introduce change → Piloting
     • Best test is reality
  4. Policies to balance change and contiunity
     • Keiretsu - partnership in change (relationships)

• Information

  • Concepts and Data centricity
  • Abundance from data and reduction in marginal cost
  • Biz
    • Cost Accounting to Result Control
    • Legal Fiction to Economic Reality
      • Cost of economic chain > Who owns what, structure
    • Foundation Info (basic)
    • Productivity Info (ops)
    • Competence Info (strengths and comp)
    • Resource Allocation Info
  • Info for Executives to work
    • What info do i owe others and whom? what form ? what time frame?
    • What info do i need and from whom? what form? what time frame?

• Knowledge-worker Productivity

  • Most important contribution for 21st century manager is increasing productivity of knowledge work and knowledge worker

  • Productivity ≠ Labour

  • Manual Productivity → Process Analysis and Improvement, TQM & Lean

  • Knowledge Productivity

    • 6 Major Factors
      1. Task definition and scope
         • Not How, but What
      2. Autonomy
      3. Continuous Innovation (by knowledge worker)
      4. Continuous Learning
      5. Quantity AND Quality
         • Define results
      6. Treatment as Asset, not Cost
    • How
      • Change organisational attitude → Pilots
      • Get supply of knowledge workers, and educate

  • Managing Oneself

    1. Self Assessment
       1. Identity
       2. Strengths
          • Feedback Analysis
          • Concentrate & improve strengths
          • Acquire other skills to make strengths fully productive
          • Remedy bad habits
       3. Work Style
          • Reader vs Listener
          • Learning Method
          • Stress vs Structure
          • Leader vs Advisor vs Follower
          • Small vs Large Org
       4. Values
          • Mirror test
    2. Organisation / Community
       • Decide where you don't belong
    3. Contribution
       • What does the situation require?
       • How can make greatest contribution with strengths?