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pyramid to dna

Theory of the business

Theory of the business outline

HBR article

Management Revised Edition    Management Cases Revised Edition

Amazon Links: Management Rev Ed and Management Cases, Revised Edition




The image below merges the theory of the business with
chapter 2, “Strategy — The New Certainties” in Management Challenges for the 21st Century

theory of the business

The Power and Purpose of Objectives: The Marks & Spencer Story and Its Lessons




Communicate and Test Assumptions

The theory of the business must be known and understood throughout the organization.

This is easy in an organization’s early days.

But as it becomes successful, an organization tends increasingly to take its theory for granted, becoming less and less conscious of it.

Then the organization becomes sloppy.

It begins to cut corners.

It begins to pursue what is expedient rather than what is right.

It stops thinking.

It stops questioning.

It remembers the answers but has forgotten the questions.

The theory of the business becomes “culture.”

But culture is no substitute for discipline, and the theory of the business is a discipline.

The theory of the business has to be tested constantly.

It is not graven on tablets of stone.

It is a hypothesis.

And it is a hypothesis about things that are in constant flux—society, markets, customers, technology.

And so, built into the theory of the business must be the ability to change itself.

Some theories are so powerful that they last for a long time.

Eventually every theory becomes obsolete and then invalid.

It happened to the GMs and the AT&Ts.

It happened to IBM.

It is also happening to the rapidly unraveling Japanese keiretsu.

4 JUL The Daily Drucker





theory of the business what remember tob theory of the business drucker on asia mc21c effective mission new paradigm strategy new certainties information challenges change leader knowledge worker productivity managinge oneself profits effective executive managing for results change learn from nonprofits new society of organizations information executives truly need managing oneself they are people

A thought collector



Also or mentioned in

Marketing and Innovation in a society moving in time (part of Management: Tasks, Responsibilities, Practices)

A Century of Social Transformation—Emergence of Knowledge Society

About management — actions, principles, essence

Information challenges

Managing In A Time Of Great Change (by Peter Drucker)

Peter Drucker on The Profession Of Management

The Daily Drucker


“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




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 starting pointThe memo THEY don't want you to see



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