brainroads-toward-tomorrows mental patterns


pyramid to dna

The Practice of Management




#Note the number of books about Drucker ↓


Inside Drucker's Brain World According to Drucker

My life as a knowledge worker

Drucker: a political or social ecologist ↑ ↓


“I am not a ‘theoretician’;

through my consulting practice

I am in daily touch with

the concrete opportunities and problems

of a fairly large number of institutions,

foremost among them businesses

but also hospitals, government agencies

and public-service institutions

such as museums and universities.


And I am working with such institutions

on several continents:

North America, including Canada and Mexico;

Latin America; Europe;

Japan and South East Asia.


Still, a consultant is at one remove

from the day-today practice —

that is both his strength

and his weakness.

And so my viewpoint

tends more to be that of an outsider.”

broad worldview ↑ ↓


Most mistakes in thinking ↑seeing only part of the picture


#pdw larger ↑ ::: Books by Peter Drucker ::: Rick Warren + Drucker

Peter Drucker's work

Books by Bob Buford and Walter Wriston

Global Peter Drucker Forum ::: Charles Handy — Starting small fires

Post-capitalist executive ↑ T. George Harris


harvest and implement

Learning to Learn (ecological awareness ::: operacy)

The MEMO “they” don’t want you to SEE




Practice of Management (by Peter Drucker)

Introduction: The Nature of Management

The Role of Management

    * The dynamic element in every business  
    * A distinct and a leading group  
    * The free world's stake in management  

The Jobs of Management

    * Management the least known of our basic institutions  
    * The specific organ of the enterprise  
    * The first function: economic performance  
        * Supply of goods and services desired by the consumer at the price the consumer is willing to pay  
        * Maintain or improvement of wealth producing  resources  
    * The first job: managing a business  
        * The ultimate test of management is business performance  
        * It enable the successful business performer to do his work — whether he be otherwise a good manager or a poor one.  
    * Managing as creative action  
        * Means taking action to make the desired results come to pass  
        * It is a creator  
    * Management by objectives  
        * Masters the economic circumstances, and alters them by conscious, directed action  
    * Managing managers  
        * The second function to make productive enterprise out of human and material resources  
        * A transmutation resources  
    * The enterprise as a genuine whole  
    * Managers must manage  
    * "It's the abilities, not the disabilities, that count"  
    * Managing worker and work  
    * The two time dimensions of management  
    * The integrated nature of management

The Challenge to Management

    * The new industrial revolution  
    * Automation: science fiction and reality  
    * What is automation  
    * Conceptual principles, not techniques or gadgets  
    * Automation and the worker  
    * Automation, planning and monopoly  
    * The demands on the manager  

Managing a Business

The Sears Story

    * What is a business and how it is managed—Unexplored territory  
    * Sears, Roebuck as an illustration  
    * How Sears became a business  
    * Rosenwald’s innovations  
    * Inventing the mail-order plant  
    * General Wood and Sear's second phase  
    * Merchandise planning and manager development  
    * T.V. Houser and the challenges ahead  

What is a Business?

    * Business created and managed by people, not by forces.  
    * The fallacy of “profit maximization”  
    * Profit the objective condition of economic activity, not its rationale  
    * The purpose of a business: to create a customer  
    * The two entrepreneurial functions: marketing and innovation  
        * Marketing not a specialized activity: the entire business as seen from the point of view of the customer  
            * The General Electric solution  
        * The enterprise as the organ of economic growth  
        * The productive utilization of all wealth-producing resources  
            * What is productive labor?  
            * Time, product mix, process mix, and organization structured as factors in productivity  
        * The function of profit  
            * How much profit is required?  
        * Business management a rational activity.  

What is Our Business—and What Should it be?

    * What is our business, neither easy or obvious  
    * The telephone company example  
    * Failure to answer the question a major source of business failure  
    * Success in answering it a major reason for business growth and results  
    * Question most important when business is successful  
    * Who is the customer?  
        * What does the customer buy?  
            * Cadillac and Packard  
        * What is value to the customer  
    * What will our business be?  
    * What should our business be?  
    * Profitability as an objective  

The Objectives of a Business

    * The fallacy of the single objective  
    * The eight key areas of business enterprise  
    * “Tangible” and “intangible” objectives  
    * How to set objectives  
    * The low state of the art and science of measurement  
        * Market standing  
        * Innovation  
        * Productivity and “contributed value”  
    * The physical and financial resources  
    * How much profitability  
    * A rational capital-investment policy  
    * The remaining key areas  

Today’s Decisions for Tomorrow’s Results

    * Management must always anticipate the future  
    * Getting around the business cycle  
    * Finding the range of fluctuations  
    * Finding economic bedrock  
    * Trend analysis  
    * Tomorrow's managers the only real safeguard  

The Principles of Production

    * Ability to produce always a determining and a limiting factor  
    * Production is not the application of tools to materials but  
    * Production is the application of logic to work  
    * Each system of production has its own logic  
    * Each system of production makes it own demands on business and management  
    * The systems of production  
        * Is mass production “new style” a forth?  
        * Unique-product production  
        * Mass production, “old style” and “new style”  
        * Process production  
    * What management should demand of its production people  
    * What production systems demand of management  
    * “Automation”; revolution or gradual change?  
    * Understanding the principle of production required of every manager in the decades ahead.  

Managing Managers

The Ford Story

    * Managers the basic resources of a business, the scarcest, the most expensive and most perishable  
    * Henry Ford’s attempt to do without managers  
    * The near-collapse of the Ford Motor Company  
    * Rebuilding Ford management  
    * What it means to manage managers  
    * Management not by delegation but by the task  
    * The six requirements of managing managers  
        * Management by objectives and self-control  
            * Vision of the individual managers must be directed toward the goals of the business  
            * Their wills and efforts be bent toward reaching those efforts  
        * Proper structure of the manager's job  
            * Must allow maximum performance  
        * The right spirit in the organization  
        * An organ of overall leadership and final decision—a chief executive  
        * An organ of overall review and appraisal—a board of directors  
        * Must make provision for its own survival and growth—provision for tomorrow’s managers  
        * A sound structural principles of management organization  

Management by Objectives and Self-Control

    * The forces of misdirection  
    * Workmanship: a necessity and a danger  
    * Misdirection by the boss  
    * What should the objectives be?  
    * Management by “drives”  
    * How should managers’ objectives be set and by whom?  
    * Self-control through measurements  
    * The proper use of reports and procedures  
    * A philosophy of management  

Managers must manage

    * What is a manager’s job  
    * Individual tasks and team tasks  
    * The span of managerial responsibility  
    * The manager’s authority  
    * The manager and his superior  

The spirit of an organization

    * To make common men do uncommon things: the test of performance  
    * Focus on strengths  
    * Practices, not preachments  
    * The danger of safe mediocrity  
    * “You can’t get rich but you won’t get fired”  
    * “We can’t promote him but he has been here too long to get fired”  
    * The need for appraisal  
    * Appraisal by performance and for strengths  
    * Compensation as reward and incentive  
    * Does delayed compensation pay?  
    * Overemphasizing promotion  
    * A rational promotion system  
    * The “life and death” decisions  
    * Manager’s self-examination of the spirit of their organization  
    * Whom not to appoint to management jobs  
    * What about leadership?  

Chief Executive and Board

    * The bottleneck is at the head of the bottle  
    * How many jobs does the chief executive have?  
    * How disorganized is the job?  
    * Need for work simplification of the chief executive’s job  
    * The fallacy of the one-man chief executive  
    * The chief executive job a team job  
    * The isolation of the top man  
    * The problem of his succession  
    * The demands of tomorrow’s top-management job  
    * The crisis of the one-man chief-executive concept  
    * Its abandonment in practice  
    * How to organize the chief-executive team  
    * Team, not committee  
    * No appeal from one member to another  
    * Clear assignment of all parts of the chief-executive job  
    * How many on the team?  
    * The Board of Directors  
        * Why a Board is needed  
        * What is should do and what it should be  

Developing Managers

    * Manager development a threefold responsibility  
        * To the enterprise  
        * To society  
        * To the individual  
    * What manager development is not  
    * It cannot be promotion planning or finding “back-up men”  
    * The fallacy of the “promotable man”  
    * The principles of manager development  
    * Developing the entire management group  
    * Development of tomorrow’s demands  
    * Job rotation is not enough  
    * How to develop managers  
    * The individual's needs  
    * Manager manpower planning  
    * Manager development not a luxury but a necessity.  

Structure of Management

What kind of Structure

    * Organization theory and the “practical” manager  
    * Activities analysis  
    * Decision analysis  
    * Relations analysis  

Building the Structure

    * The three structural requirements of the enterprise  
        * Organization for performance  
        * The least possible number of management levels  
        * Training and testing tomorrow’s managers  
    * The two structural principles  
        * Federal decentralization  
            * Its advantages  
            * Its requirements  
            * Its limitations  
            * The rules for its application  
        * Functional decentralization  
            * Its requirements and rules  
    * Common citizenship under decentralization  
    * The decisions reserved to top management  
        * Company-wide promotions  
        * Common principles  
    * The symptoms of malorganization  
    * A lopsided age structure of the management group  

The Small, The large, the growing business

    * The myth of the idyllic small business  
    * How big is big?  
        * Number of employees no criterion  
        * Hudson and Chrysler  
        * The other factors  
            * Industry position  
            * Capitalization needs  
            * Time cycle of decisions, technology  
            * Geography  
        * A company is as large as the management structure is requires  
    * The four stages of business size  
        * How big is too big?  
            * The unmanageable business  
    * The problems of smallness  
        * The lack of management scope and vision  
        * The family business  
        * What can the small business do?  
    * The problems of bigness  
        * The chief executive and its job  
        * The danger of inbreeding  
        * The service staffs and their empires  
        * How to organize service work  
    * The biggest problem: growth  
        * Diagnosing the growth stage  
        * Changing basic attitudes  
        * Growth: the problem of success  

The Management of Worker and Work

The IBM Story

    * The human resource the one least efficiently used  
    * The one holding greatest promise for improved economic performance  
    * Its increased importance under Automation  
    * IBM's innovations  
        * Making the job a challenge  
        * The worker’s participation in planning  
        * “Salaries” for the workers  
        * Keeping workers employed is management’s job  

Employing the Whole Man

    * The three elements in managing worker and work  
        * The worker as a resource  
            * Human  resource and human resource  
            * Productivity is an attitude  
            * Wanted: a substitute for fear  
            * The worker and the group  
            * Only people develop  
        * The demands of the enterprise on the worker  
            * The fallacy of “a fair day’s labor for a fair day’s pay”  
            * The worker’s willingness to accept change  
        * The worker’ demands on the enterprise  
        * The economic dimension  
            * Wage as seen by enterprise and by worker  
            * The twofold meaning of profit  

Is Personnel Management Bankrupt?

    * Personnel administration and human relations  
        * What has personnel administration achieved?  
        * Its three basic misconceptions  
    * The insight of Human relations  
        * And its limitations  
    * “Scientific Management,” our most widely practiced personnel-management concept  
        * Its basic concepts  
        * Its world-wide impact  
        * Its stagnation since the early twenties  
        * Its two blind spots  
        * “Cee-Ay-Tee” or “Cat”?  
        * The “divorce of planning from doing”  
        * Scientific Management and the new technology  
    * Is personnel Management bankrupt  

Human Organization For Peak Performance

    * Engineering the job  
    * The lesson of the automobile assembly line  
        * Its meaning: the assembly line as inefficient engineering  
    * Mechanize machine work and integrate human work  
    * The rule of “integration”  
    * The application of Scientific Management  
    * The worker’s need to see the result  
    * The worker’s need to control speed rhythm of the work  
    * Some challenge in every job  
    * Organizing people for work  
    * Working as an individual  
    * Working as a team  
    * Placement  
    * “When do ninety days equal thirty years”  

Motivating To Peak Performance

    * What motivation is needed  
    * “Employee satisfaction” will not do  
    * The enterprise’s need is for responsibility  
    * The responsible worker  
    * High standards of performance  
    * Can workers be managed by objectives  
    * The performance of management  
    * Keeping the worker informed  
    * The managerial vision  
    * The need for participation  
    * The C.&O. example  
    * The plant-community activities  

The Economic Dimension

    * Financial rewards not a source of positive motivation  
    * The most serious decisions imminent in this area  
    * An insured expectation of income and employment  
    * The resistance to profit  
    * Profit sharing and share ownership  
    * “No sale, no job”  

The Supervisor

    * Is the supervisor “management to the worker”?  
    * Why the supervisor has to be a manager  
    * The supervisor’s upward responsibility  
    * The supervisor’s two jobs  
    * Today’s confusion  
    * Cutting down the supervisor’s department the wrong answer  
    * What the supervisor needs  
    * Objectives for his department  
    * Promotional opportunities for the supervisor and the worker  
    * His management status  
    * What the job should be  
    * Managers needed rather than supervisors  

The Professional Employee

    * Are professional employees part of management?  
    * Professional employees the most rapidly growing group in the working population  
    * Neither management nor labor  
    * Professional employee and manager  
    * Professional employee and worker  
    * The needs of the professional employee  
    * His objectives  
    * His opportunities  
    * His pay  
    * Organizing his job and work  
    * Giving him professional recognition  

What parts of this can be done by top management and what part by the manager in charge of the operation

What it Means to be a Manager

The Manger and His Work

    * “Long white bread” or “universal genius”?  
    * How does the manager do his work?  
    * The work of the manager  
    * Information: the tool of the manger  
    * Using his own time  
    * The manager’s resource: man  
    * The one requirement: integrity  
    * What makes a manager?  
    * The manager as an educator  
    * Vision and moral responsibility define the manager  

Making Decisions

    * “Tactical” and “strategic” decisions  
    * The fallacy of “problem-solving”  
    * The two most important tasks: finding the right questions, and making the solution effective  
    * Defining the problem  
    * What is the “critical factor”?  
    * What are the objectives?  
    * What are the rules?  
    * Analyzing the problem  
    * Clarifying the problem  
    * Finding the facts  
    * Defining the unknown  
    * Developing alternative solutions  
    * Doing nothing as an alternative  
    * Finding the best solution  
    * People as a factor in the decision  
    * Making the decision effective  
    * “Selling” the decision  
    * The two elements of effectiveness: understanding and acceptance  
        * Participation in decision-making  
    * The new tools of decision-making  
    * What is “Operations Research”?  
    * Its dangers and limitations  
    * Its contributions  
    * Training the imagination  
    * Decision making and the manger of tomorrow  

The Manager of Tomorrow

    * The new demands  
    * The new tasks  
    * But no new man  
    * Exit the “intuitive” manager  
    * The preparation of tomorrow’s manager  
    * General education for the young  
    * Manger education for the experienced  
    * But central will always be integrity  

Conclusion: The Responsibilities of Management

* Enterprise and society

* The threefold public responsibility of management  
    * The social developments that affect the enterprise  
    * The social impact of business decisions  
    * Making a profit the first social responsibility  
* Keep opportunities open  
* Management as a leading group  
* Asserting responsibility always implies authority  
* What is management’s legitimate authority?  
* Management and fiscal policy  
* The ultimate responsibility: to make what is for the public good the enterprises’ own self-interest.


“The greatest danger in times of turbulence is not turbulence;

it is to act with yesterday’s logic”. — Peter Drucker



The shift from manual workers
who do as they are being told
either by the task or by the boss —

TO knowledge workers
who have to manage themselves

profoundly challenges social structure


Managing Oneself (PDF) is a REVOLUTION in human affairs.” …

“It also requires an almost 180-degree change in the knowledge workers’ thoughts and actions from what most of us—even of the younger generation—still take for granted as the way to think and the way to act.” …

… “Managing Oneself is based on the very opposite realities:
Workers are likely to outlive organizations (and therefore, employers can’t be depended on for designing your life),

and the knowledge worker has mobility.” ← in a context



More than anything else,

the individual
has to take more responsibility
for himself or herself,
rather than depend on the company.”


“Making a living is no longer enough
‘Work’ has to make a life .” continue

finding and selecting the pieces of the puzzle


The Second Curve




These pages are attention directing tools for navigating a world moving relentlessly toward unimagined futures.



What’s the next effective action on the road ahead


It’s up to you to figure out what to harvest and calendarize
working something out in time (1915, 1940, 1970 … 2040 … the outer limit of your concern)nobody is going to do it for you.

It may be a step forward to actively reject something (rather than just passively ignoring) and then working out a plan for coping with what you’ve rejected.

Your future is between your ears and our future is between our collective ears — it can’t be otherwise.

A site exploration: The memo THEY don't want you to see



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