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Monday, May 16, 2011

Drucker Was Right!! And He Still Is!

Peter Drucker has taught us a lot about the development of management – and by extension, leadership.

Here's his view of what management must do to lead an organization, which he wrote in 1974 (for more, click, beginning at page 39).

Management has three tasks of equal importance which it must to create a successful organization:
    • Establish the specific purpose and mission of the institution;
    • Make the work productive and the workers effective;
    • Manage the social impact and social responsibility.

This was the foundation for successful traditional organizations 40 years ago, but it also fostered some successful non-traditional ones as well.

Look closely at Apple and Southwest Airlines in the '70s -

Purpose and mission were simple and broadly communicated - useful computers for everyone and inexpensive air travel which is fun, respectively.

Their employees were highly productive and innovative - engaged in supporting the mission.

Both embraced social responsibilities and their impact on the community and nation – conserving resources in pursuing the mission, reducing wastage and trash, and working in the community for improvement and progress. Apple was noted for supplying schools with computers at little to no cost; Southwest was the first airline to recycle drink cans and research the optimal altitude and speed for the most economical fuel usage.

They remain in the forefront of their industries today.

The New Normal of doing business continues to evolve and the successful firms continue to incorporate the three tasks – lots of communication about purpose and mission to the market, media, and employees; workers are more engaged in supporting the mission and being innovative in ways to do things better; and conservation of resources and materials is the rule rather than an afterthought.

Drucker's three tasks of leadership remains valid after almost 40 years and they're a trait of the New Normal successful organizations - Google; Zappos.

Do you agree? Share some examples so we all can learn more.

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