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Drucker on Leadership: New Lessons from the Father of Modern Management

Book Description

A fresh look at vital lessons from "The Father of Modern Management"–exploring Peter Drucker's teachings on leadership

As we approach what would have been his 100th birthday, the late Peter Drucker's management principles continue to be studied and applied by managers all over the world. Though many seek his lessons on the central element of management-leadership-he in fact wrote relatively little under this actual subject heading. Now, for the first time, William A. Cohen, a former student of Drucker's and a leadership expert and author in his own right, brings together Drucker's reflections on leadership, culled from his 40 books and hundreds of articles. Explaining why there is so little know about Drucker's ideas on leadership, this book is a must-read for students and fans alike looking to lead better in today's world.

Table of Contents

  1. Copyright
  2. Praise for Drucker on Leadership
  3. Foreword
  4. Introduction: Peter Drucker and Leadership
    1. Drucker's Evolving Attitudes Toward Leadership
    2. Drucker's Model for Effective Leadership
      1. The Leader's Role in Strategic Planning
      2. Business Ethics and Personal Integrity
      3. Modeling Military Leadership
      4. The Psychological Principles of Motivation
      5. The Marketing Model and Leadership
  5. I. The Leader's Role in Shaping the Organization's Future
    1. 1. The Fundamental Decision Determining the Business of the Organization
      1. 1.1. Defining Your Business Is No Small Thing
      2. 1.2. How to Obtain Commitment to the Mission Throughout the Organization
      3. 1.3. Why Everyone Should Be Heard
      4. 1.4. How to Answer the Question, What Is Our Business?
        1. 1.4.1. Who Exactly Is Your Customer?
        2. 1.4.2. Where Is Your Customer Located?
        3. 1.4.3. What Does Your Customer Buy and Why?
        4. 1.4.4. How Does Your Customer Define Value?
      5. 1.5. When Should You Define Your Business?
      6. 1.6. Drucker's Advice on Defining the Business of the Organization
    2. 2. The Process Creating a Strategic Plan
      1. 2.1. Drucker's Vision of Strategic Planning
      2. 2.2. The Function of a Strategic Plan
      3. 2.3. Drucker's Three Questions to Determine an Organization's Future
      4. 2.4. Moving Forward on the Strategic Plan
      5. 2.5. The Impossibility of Accurate Forecasting
      6. 2.6. Drucker's Secret (Which Violated His Own Rule)
      7. 2.7. Drucker's General Directions Lead to New Ideas
        1. 2.7.1. Baseline Assumptions
        2. 2.7.2. Delphi Method
        3. 2.7.3. "What If" Questions
      8. 2.8. Fine-Tuning and Judging the Future You Have Selected
      9. 2.9. Drucker on the Process of Creating an Organization's Future
    3. 3. Look, Listen, and Analyze The Information the Leader Needs
      1. 3.1. Looking Out the Window: A Carefully Chosen Metaphor
      2. 3.2. The First Thing You See When You Look Out the Window: The Broad Environment
      3. 3.3. Keeping Your Focus While Looking Out the Window
      4. 3.4. The Second Thing You See When You Look Out the Window: Specific Targets
        1. 3.4.1. Target Market
        2. 3.4.2. Cultural, Ethnic, Religious, and Racial Groups
        3. 3.4.3. Social Class
        4. 3.4.4. Demographics
        5. 3.4.5. Organizational Buyers and Other "Buyers"
        6. 3.4.6. Competitors
        7. 3.4.7. Technology
        8. 3.4.8. The Economic Environment
        9. 3.4.9. The Political Environment
        10. 3.4.10. The Legal and Regulatory Environment
        11. 3.4.11. Social and Cultural Environment
      5. 3.5. Market Research: Acquiring the Information You Need
        1. 3.5.1. How to Think About a Product That Doesn't Yet Exist
        2. 3.5.2. How to Determine What Is Likely to Happen
      6. 3.6. Drucker on the Information the Leader Needs and What to Do with It
    4. 4. Methodology Developing Drucker-Based Strategies
      1. 4.1. Strategy Not by Formula
      2. 4.2. Drucker's View of Strategy
      3. 4.3. Questions Any Company's Strategy Must Answer
      4. 4.4. A Hypothetical Drucker Methodology
      5. 4.5. Principles, Resources, and Fixed Certainties
      6. 4.6. Developing Strategy Based on Drucker's Concepts
    5. 5. Taking Action What It Takes to Implement Your Plan
      1. 5.1. Implementing and Controlling Your Plan
        1. 5.1.1. Controls Can Be Neither Objective Nor Neutral
        2. 5.1.2. Controls Must Focus on Results
        3. 5.1.3. Both Measurable and Nonmeasurable Events Need Controls
      2. 5.2. Drucker's Metrics for Control
        1. 5.2.1. Drucker's Seven Specifications
        2. 5.2.2. The Importance of Periodic Reviews
      3. 5.3. The Ultimate Control
      4. 5.4. Drucker's Concepts on Taking Action
  6. II. Ethics and Personal Integrity
    1. 6. Drucker's Views on Business Ethics
      1. 6.1. The Concepts of Integrity, Ethics, Morality, Honor, and the Law
      2. 6.2. Drucker's Early Struggles with Unethical Leadership
      3. 6.3. Drucker's Analysis of Business Ethics for the Leader
        1. 6.3.1. Drucker on Extortion or Bribery
        2. 6.3.2. The Ethics of Social Responsibility
        3. 6.3.3. The Ethics of Prudence
        4. 6.3.4. The Ethics of Profit
        5. 6.3.5. Confucian Ethics
        6. 6.3.6. Drucker's Conclusions About Business Ethics
      4. 6.4. Drucker on Ethics for Leaders
    2. 7. Effective Leadership and Personal Integrity
      1. 7.1. Integrity in Action
        1. 7.1.1. When No One Knows
        2. 7.1.2. Putting Yourself at Risk
        3. 7.1.3. The Mirror Test
      2. 7.2. My Own Experience of Integrity in Action
      3. 7.3. Drucker on the Need for Personal Integrity
    3. 8. The Seven Deadly Sins of Leadership
      1. 8.1. Why the Seven Deadly Sins?
      2. 8.2. The Leadership Sin of Pride
      3. 8.3. The Leadership Sin of Lust
      4. 8.4. The Leadership Sin of Greed
      5. 8.5. The Leadership Sin of Sloth
      6. 8.6. The Leadership Sin of Wrath
      7. 8.7. The Leadership Sin of Envy
      8. 8.8. The Leadership Sin of Gluttony
      9. 8.9. Drucker on What a Leader Should Avoid
    4. 9. Effective Leadership and Corporate Social Responsibility
      1. 9.1. The Drucker Difference
        1. 9.1.1. Inability of Government to Solve Social Problems
        2. 9.1.2. Corporate Mission First
        3. 9.1.3. Unlimited Liability Clause on Unintended Consequences
        4. 9.1.4. The Ethics of Social Responsibility
        5. 9.1.5. Opportunities for Competitive Advantage in Social Responsibility
        6. 9.1.6. The Critical Importance of Leadership
      2. 9.2. Drucker on Leadership and Social Responsibility
    5. 10. The Responsibility of a Corporation First, Do No Harm
      1. 10.1. The Hippocratic Oath and Primum Non Nocere
      2. 10.2. Ensuring No Harm Is Done
      3. 10.3. Look Before Leaping
      4. 10.4. Never Change for the Good Without First Considering the Future
      5. 10.5. The Great Housing Depression
      6. 10.6. Drucker on Doing No Harm
  7. III. The Military: Drucker's Model Organization
    1. 11. Leadership Lessons from Xenophon
      1. 11.1. Who Was Xenophon?
      2. 11.2. The Consequences of Inaction
      3. 11.3. Leading the Troops: Pointers for Subordinates
      4. 11.4. How to Motivate
      5. 11.5. Reputation Must Be Earned
      6. 11.6. The Value of Worker Health in Leadership
      7. 11.7. Drucker's Thoughts on Xenophon
      8. 11.8. Drucker on What Xenophon's Lessons Meant
    2. 12. Training and Developing Leaders
      1. 12.1. Training Leaders in the Military and Civilian Worlds
      2. 12.2. Leadership Training: Starting on Day One
        1. 12.2.1. Focus on Performance, Not Potential
      3. 12.3. The Need for Continual Evaluation and Feedback
      4. 12.4. Applied and Practical Training
      5. 12.5. The Importance of Follow-Through
      6. 12.6. How to Handle Mistakes
      7. 12.7. Advantages of the Military Model
      8. 12.8. Drucker on Training and Developing Leaders
    3. 13. Promotion and Staffing
      1. 13.1. A Rational Promotion System
        1. 13.1.1. The Military Promotion System
        2. 13.1.2. Written Appraisals
        3. 13.1.3. Getting Promoted
        4. 13.1.4. The Promotion Board
        5. 13.1.5. Where Drucker Differed with the Military System
      2. 13.2. Staffing Decisions
      3. 13.3. Drucker on Promotion and Staffing
    4. 14. The Heart of Leadership
      1. 14.1. Command-and-Control Leadership
      2. 14.2. Leadership in Battle
      3. 14.3. Why Emulate Military Leadership?
        1. 14.3.1. Applying Battle Leadership to Organizational Leadership
        2. 14.3.2. Swords into Ploughshares
      4. 14.4. Drucker and the Eight Principles
        1. 14.4.1. 1. Integrity First
        2. 14.4.2. 2. Know Your Stuff
        3. 14.4.3. 3. Declare Your Expectations
        4. 14.4.4. 4. Show Uncommon Commitment
        5. 14.4.5. 5. Expect Positive Results
        6. 14.4.6. 6. Take Care of Your People
        7. 14.4.7. 7. Duty Before Self
        8. 14.4.8. 8. Get Out in Front
      5. 14.5. Drucker on the Heart of Leadership
    5. 15. Leadership for Upper Management
      1. 15.1. An Old Problem That Has Only Gotten Worse
      2. 15.2. The Leap from Tactical to Strategic
      3. 15.3. The Challenge of Specialization
      4. 15.4. The Responsibility of the Organization for Selection
      5. 15.5. How to Prepare for High-Level Leadership
        1. 15.5.1. Manage Your Own Preparation for Top Management
        2. 15.5.2. Master a Separate Discipline Outside Your Profession
        3. 15.5.3. Read Extensively In and Outside Your Primary Specialty
        4. 15.5.4. Think, Discuss, and Write
      6. 15.6. Drucker on Preparing for Top Management
  8. IV. Motivation and Leadership
    1. 16. Leadership Style as a Motivator
      1. 16.1. Theory X and Theory Y
      2. 16.2. Drucker's Views on Theory X
        1. 16.2.1. Problems with Theory Y
        2. 16.2.2. The Responsibilities of Theory Y Leaders
        3. 16.2.3. When Theory X Leadership Is Acceptable
      3. 16.3. Five Dimensions of Work
      4. 16.4. How to Make Theory Y Work
      5. 16.5. Drucker on Style and Motivation
    2. 17. Motivating to Peak Performance
      1. 17.1. Employee Satisfaction Will Not Motivate Performance
      2. 17.2. Drucker's Four Paths to Creating the Responsible Worker
        1. 17.2.1. Placing Workers Carefully
        2. 17.2.2. Demanding High Standards of Performance
        3. 17.2.3. Providing the Worker with Information Needed
        4. 17.2.4. Encouraging Managerial Vision
      3. 17.3. Drucker on Motivation
    3. 18. Charisma as a Motivator
      1. 18.1. Was Drucker Right?
      2. 18.2. Charisma Defined
      3. 18.3. Are Charismatic Leaders "Misleaders"?
      4. 18.4. Researching and Developing Charisma
      5. 18.5. Drucker on Charisma as a Motivator
    4. 19. The Volunteer Paradigm
      1. 19.1. Why People Volunteer
        1. 19.1.1. 1. Work with People Who Treat Me with Respect
        2. 19.1.2. 2. Interesting Work
        3. 19.1.3. 3. Recognition for Good Work
        4. 19.1.4. 4. Chance to Develop Skills
        5. 19.1.5. 5. Working for People Who Listen to Ideas for Improvement
        6. 19.1.6. 6. A Chance to Think for Myself
        7. 19.1.7. 7. Seeing the End Results of My Work
        8. 19.1.8. 8. Working for Efficient Managers
        9. 19.1.9. 9. A Job That Is Not Too Easy
        10. 19.1.10. 10. Feeling Well Informed About What Is Going On
      2. 19.2. Drucker on Treating Employees as Volunteers
  9. V. The Marketing Model of Leadership
    1. 20. Applying Marketing to Leadership
      1. 20.1. The Difference Between Marketing and Selling
      2. 20.2. The Rise of Marketing
      3. 20.3. The Value of Marketing as a Leadership Model
      4. 20.4. How to Adopt Marketing as a Leadership Concept
    2. 21. Applying Segmentation to Leadership
      1. 21.1. Disadvantages of Mass Marketing
      2. 21.2. The Solution for Marketers and Leaders: Segmentation
      3. 21.3. What Segmentation Means for the Leader
      4. 21.4. The Basics of One-on-One Segmentation
      5. 21.5. Interacting with Staff in the Workplace
      6. 21.6. Interacting with Staff Outside the Workplace
      7. 21.7. Off-Duty and Unofficial Meetings
      8. 21.8. The Function of Segmentation in Leadership
    3. 22. Applying Positioning to the Organization and the Leader
      1. 22.1. The Role of Positioning in Communication
      2. 22.2. Case Study: How to Apply Positioning to Leadership
      3. 22.3. Analysis of the Problem and Its Solution
      4. 22.4. The Benefits of Being First
        1. 22.4.1. What to Do If You Can't Be First
        2. 22.4.2. The Positioning Procedure
    4. 23. The Role of Influence and Persuasion on Strategy and Tactics
      1. 23.1. The Mass Mind
      2. 23.2. Strategies of Influence and Persuasion
        1. 23.2.1. Coercion
        2. 23.2.2. Sincerity
        3. 23.2.3. Increasing Commitment
        4. 23.2.4. Referral, Social Proof, and Conformity
    5. Epilogue: Drucker's Legacy
    6. NOTES
      1. 23.3. Introduction
      2. 23.4. Part One
      3. 23.5. Chapter One
      4. 23.6. Chapter Two
      5. 23.7. Chapter Three
      6. 23.8. Chapter Four
      7. 23.9. Chapter Five
      8. 23.10. Part Two
      9. 23.11. Chapter Six
      10. 23.12. Chapter Seven
      11. 23.13. Chapter Eight
      12. 23.14. Chapter Nine
      13. 23.15. Chapter Ten
      14. 23.16. Part Three
      15. 23.17. Chapter Eleven
      16. 23.18. Chapter Twelve
      17. 23.19. Chapter Thirteen
      18. 23.20. Chapter Fourteen
      19. 23.21. Chapter Fifteen
      20. 23.22. Part Four
      21. 23.23. Chapter Sixteen
      22. 23.24. Chapter Seventeen
      23. 23.25. Chapter Eighteen
      24. 23.26. Chapter Nineteen
      25. 23.27. Part Five
      26. 23.28. Chapter Twenty
      27. 23.29. Chapter Twenty - One
      28. 23.30. Chapter Twenty - Two
      29. 23.31. Chapter Twenty-Three
    7. About the Author