The Effective Executive

Peter F. Drucker
1966

Effectiveness

Executive must manage themselves for effectiveness if they expect

others to follo

!ntelligence" har# ork an# knole#ge are not enough" others must
use our output $results%

Effectiveness often goes opposite the flo of events

Effective results alays external impact

&urvival of the organi'ation #epen#s on pro#ucing the maximum

contri(ution ith the minimum of effort

Focus on maximum contri(ution imposes relevance on events.

To focus on contri(ution is to focus on effectiveness

!t )an *e +earne#

Don,t #o things right" #o the right things

Effectiveness converts intelligence" imagination an# knole#ge into

results
-
can,t (e measure# (y tra#itional metrics
-
orks from changes in tren#s not from events
-
others must make use of hat e contri(ute

Efficiency $manual ork% #o things right

-
.ot applica(le to knole#ge ork
-
There are no results ithin an organi'ation
-
/rgani'ations are measure# (y their contri(ution to outsi#e orl#
-
.ee# for resources gros ith the cu(e of the si'e

0 Practices

1% 1no here time goes

2% Focus on results" not effort

3% *uil# on strengths $4rant%

5% Do hat counts $Priorities%

0% 6ake effective #ecisions $page 25%

-
7u#gement (ase# on 8#issenting opinions9
-
Focus on a fe right strategies
-
6inimi'e ra''le:#a''le tactics

Time
;ecor# it
6anage it
)onsoli#ate it
This is the ultimate finite limiting factor
6emory is not an accurate ay to recor# time
!t takes a long time to make people #ecisions $1 year%
Time in long continuous uninterrupte# units is nee#e# to #eci#e ho to group for
pro(lems $1st <ear%
The more physical ork you ant to eliminate the more mental ork you must
#o
;ecurrent crisis is la'iness
Don,t overstaff
Don,t have too many meetings

;esults

! must make a significant contri(ute to the positive external results of my

organi'ation.

=hat is the unuse# potential in my >o(?

! must pro#uce knole#ge" i#eas" information an# concepts.

The must make my specialty useful.

! must take responsi(ility for (eing un#erstoo#

! must (e sure to provi#e that hich others nee#

@ 8generalist9 is a specialist that is universally un#erstoo#.
!t is the focus on 8contri(ution9 that lea#s to the communication that creates
synergy.
Effective ork comes from the #iscipline necessary to (len# #iverse
knole#ge into a collective success

Effective 6eeting

=hy are e having this meeting

Decision? !nform? !ncrease Focus?

=hat is the purpose an# contri(ution

<ou can listen an# #irect a meeting

<ou can take part

<ou can,t #o (othAAAAAA

@lays focus on the expecte# contri(ution

&trengths are /pportunities

Bnifie# strengths make in#ivi#ual eaknesses irrelevant

&taff to maximi'e strengths

-
8Fin# out hat 4rant is #rinking an# sen# a (arrel to the other generals9
+incoln
-
8Cere lies a man that ho kne ho to (ring into his service men (etter
than he as himself9 epitaph for @n#re )arnegie

Design >o(s that are #oa(le" #eman#ing an# large

-
must have enough challenge to (ring out un#iscovere# strengths

&tart ith hat they can #o rather than hat the >o(
reDuires

+ea# from personal strengths

First Things First

Do one thing at a time

Executives not pressure shoul# make the #ecisions

=e often a(an#on that hich e postpone

@chievement #oes not #epen# on a(ility" it #epen#s on the courage to go

after the opportunity.

&et your priorities (y opportunities presente# not (y the likelihoo# of

Duick success.

!t is >ust as risky to #o something small an# ne as it is to #o something

(ig an# ne
)oncentration : the courage to impose #ecisions on time an# events

Focus on the completion of the one task no an# let the situation to
#eci#e hat is next

Decision 6aking

The specific executive task

Effective executives make effective #ecisions

Effective executives concentrate on the important

#ecisions
-
The #ecision is strategic
-
The #ecision is (ase# on a(stractions at the highest level of
conceptual un#erstan#ing
-
The #ecision lea#s to real" effective simple action
-
The #ecision is (ase# on a fe important varia(les
-
The #ecision is soun# an# makes a real impact

Elements of the Decision

!s the pro(lem the symptom or the #isease

*oun# the #ecision

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6ost #ifficult step
-
Exercise in >u#gement
-
Even rong #ecisions shoul# fill (oun#ary con#itions
- 1E2 loaf an# 1E2 (a(y one fills (oun#ary con#itions
=hat is right verse hat is accepta(le
- postpone the compromise until the en#
*uilt in @ction
- most time consuming
-
ho nee#s to kno" hat action" (y ho

Fee#(ack

Effective Decisions
Decision is a >u#gement
*alance (eteen 8@lmost right9 an# 8Pro(a(ly =rong9
;ight #ecisions gro out of the clash an# conflict of #ivergent opinions
;ight #ecisions gro on the consi#eration of competing alternatives
Events are not facts" e must have a criterion of relevance
People alays start ith an opinion
6ost look for facts that alrea#y fit the conclusions that they have reache#.
Tra#itional measurements are often not the right measurements
+ook for #ifferent ays to measure success.
Don,t make a #ecision until there is #isagreement.
The right #ecision #eman#s a#eDuate #isagreement.
Disagreements is the (irth of alternatives
Disagreement is nee#e# to stimulate the imagination

Effective Decisions

.ot going to (e pleasant

.ot going to (e popular

.ot going to (e easy

Decision making takes as much courage as it #oes

>u#gement

The cry of the coar# 8+et,s make another stu#y9

Decisions on the operating level are a#aptations an#

reDuire no real knole#ge.

Effectiveness 6ust (e +earne#

;ecor# your time

Focus on your contri(ution

6ove forar# (ase# on your strengths

Do first things first

6ake effective #ecisions