A Year with Peter Drucker - 52 Weeks of Coaching for Leadership Effectiveness

Week 45

The Power of Purpose

Rick Warren on Peter Drucker

Introduction

Rick Warren’s development of purpose-driven ministries is an elaboration and application of Peter Drucker’s work on the “theory of the business” (THOB). This is at the heart of Drucker’s management system for all organizations. The THOB for an organization requires executives to specify the mission of the organization, how the mission fits assumptions about the specific environment facing it, and the core competencies possessed by it that are needed to accomplish its mission in the specific environment. (Drucker and Maciariello, Management: Revised Edition, 2008, pp. 85–96).

A valid THOB is a hypothesis about the mission required to succeed given the realities ...