Peter Drucker Quotes

Management and the Liberal Arts Management is a liberal art. Management is what tradition used to call a liberal art — “liberal” because it deals with the fundamentals of knowledge, self-knowledge, wisdom, and leadership; “art” because it deals with practice and application. Managers draw upon all of the knowledges and insights of the humanities and social sciences — on psychology and philosophy, on economics and history, on the physical sciences and ethics. But they have to focus this knowledge on effectiveness and results — on healing a sick patient, teaching a student, building a bridge, designing and selling a “user-friendly” software program. ACTION POINT: What is your plan to develop yourself in the humanities and social sciences? Develop such a plan today. The New Realities

a well-managed organization is a “dull” organization. The “dramatic” things in such an organization are basic decisions that make the future, rather than heroics

The effective executive knows that it is easier to raise the performance of one leader than it is to raise the performance of a whole mass.

demand that their subordinates take responsibility too. They will tend to ask their men: “What are the contributions for which this organization and I, your superior, should hold you accountable? What should we expect of you?

A DECISION IS A JUDGMENT. It is a choice between alternatives.

Exploiting opportunities produces results.

The idea that growth is by itself a goal is altogether a delusion. There is no virtue in a company’s getting bigger. The right goal is to become better. Growth, to be sound, should be the result of doing the right things. By itself, growth is vanity and little else.

Stop squandering resources on obsolete businesses and free up your capable people to take advantage of new opportunities.

It is as important to decide when to abandon an innovative effort as it is to know which one to start. In fact, it may be more important. Successful laboratory directors know when to abandon a line of research which does not yield the expected results. The less successful ones keep hoping against hope, are dazzled by the “scientific challenge” of a project, or are fooled by the scientists’ repeated promise of a “breakthrough next year.” And the unsuccessful ones cannot abandon a project and cannot admit that what seemed like a good idea has turned into a waste of men, time, and money.

the effective decision does not, as so many texts on decision-making proclaim, flow from a consensus on the facts. The understanding that underlies the right decision grows out of the clash and conflict of divergent opinions and out of the serious consideration of competing alternatives.

That one can truly manage other people is by no means adequately proven. But one can always manage oneself.

An essential step in deciding what our business is, what it will be, and what it should be is, therefore, systematic analysis of all existing products, services, processes, markets, end uses, and distribution channels. Are they still viable? And are they likely to remain viable? Do they still give value to the customer? And are they likely to do so tomorrow? Do they still fit the realities of population and markets, of technology and economy? And if not, how can we best abandon them — or at least stop pouring in further resources and efforts? Unless these questions are being asked seriously and systematically, and unless managements are willing to act on the answers to them, the best definition of “what our business is, will be, and should be,” will remain a pious platitude. Energy will be used up in defending yesterday. No one will have the time, resources, or will to work on exploiting today, let alone to work on making tomorrow.

capital in a dependable, steady supply

A company that is not able to attract, motivate, and hold men of talent and competence will not survive. Increasingly, this will mean attracting, motivating, and holding the knowledge worker. Unlike the manual worker of yesterday, the knowledge worker does not, however, look just for a job. He looks for a career. He looks for an opportunity.

The last question (ii) is the only one which is not primarily concerned with strengths. Subordinates, especially bright, young, and ambitious ones, tend to mold themselves after a forceful boss. There is, therefore, nothing more corrupting and more destructive in an organization than a forceful but basically corrupt executive.