THE EFFECTIVE EXECUTIVE

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The Definitive Guide to Getting the Right Things Done

BY PETER F. DRUCKER

The book, Effective Executive, written by a renowned management specialist and a classic theorist is best pick for working professionals who want to elevate their effectiveness a million, and one notches higher. The author, Peter Drucker, began by explaining the importance of effectiveness to an executive. An executive in this context includes both manager and leaders who is expected to make a decision by virtue of their position, and have significant impact on the performance or result of the company. An executive is expected to be better equipped with the right knowledge and competence that can help make the right decision at the right time. Effectiveness is the primary function of the executive. It is a habit that can be learned, moreover; Peter Drucker points out seven  habits of the mind that must be learned and acquired to be an effective executive. These habits include:

1. KNOW THY TIME: Executives start their day off by planning their task, but effective executive starts their day off by recording actual time use and disposing of this little time in large chunks. Also, of high importance is the ability to fish out unproductive, time-wasting activities and possibly get rid of them knowing that time is a limiting factor; it has to be managed effectively. This can be done by asking oneself, “what do I do that wastes your time without contributing to your effectiveness.” If this question can be answered truthfully, a chunk of your time will be retrieved.

2. WHAT CAN I CONTRIBUTE?: This is a question that stresses on responsibility. Most executives focus on what the organization owes then or should do for them. Any professional that emphasizes his downward authority is a subordinate no matter how exalted his rank is. On the other hand, any professional who takes responsibility and focuses on contributions no matter how junior is an effective executive. To be an effective executive, you must always ask yourself what you can contribute to avoiding aiming at the wrong things. Every organization needs performance in three major areas: it needs direct results, the building of values and their reaffirmation, building, and developing people of tomorrow. All these three organization needs have to be built into the contribution of every executive.

3. MAKING STRENGTH PRODUCTIVE:  An effective executive maximizes all available strength: the strength of subordinates, strengths of associates, the strengths of a superior, and one’s own strength. They understand that where there is strength, there will always be weaknesses; therefore, focuses more on strength than weaknesses. They delegate the task to individuals base on what they can do best and taking into account their functional qualities. 

4. FIRST THING FIRST: Effective executives tend to focus on one thing at a time and understand the need to concentrate time, effort, and resources at greater and major opportunities. The author made his readers understand that the more you can concentrate resources, strength, and time on a singular point of application, the more you can achieve a number of important tasks at a much less time. The secret of focus is to establish posteriorities. Establishing posteriority means choosing tasks that should not be done and sticking to it. This can be done by choosing the future over the past, focusing on possibilities rather than problems, and aiming at something significant rather than a goal that is easy and safe to achieve.

5. THE ELEMENT OF DECISION: Effective executives think clearly and deeply before making a decision. They understand that problems are symptoms of underlying situations; therefore, one of the great strategy an effective executive implements is understanding the leading cause of a problem. Also, they understand that the thing one worries about never happens.

6. EFFECTIVE DECISIONS: Effective executives understand that to decide is based on choosing from opinions, then measuring the effectiveness of the action based on one or more predetermined criteria or feedback. 

7. UNDERSTAND MANAGEMENT VS. LEADERSHIP: Effective executives understand that management its a tool for accountability for the day to day operations, and leadership is the road to build a better future for the organization and the people trusted to them. An effective executives, build trust and guidance for the day to day management, but his attention should be fully focused on the future.

In conclusion, to be an effective executive, one must record where the time goes, focus your vision on contribution, focus on using your strength and making it productive, prioritize the most important task first and take rational action. 

 

THE BIG THREE – KEY POINTS

Key point #1: Effectiveness can be learned

Key point #2: Effective executive record, manage, and consolidate time.

Key point #3: The effective executive does not focus on minimizing weakness but maximizing strength.

One Last Thing

“Most effective executive is entrepreneurs, entrepreneur, and entrepreneurship – the entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” -Peter Drucker

 

Innovation and Entrepreneurship

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Peter Drucker is known to be the most famous management author of the century. This book does not treat innovation as an academic subject but outstandingly written with rich organizational life examples using management view. The author focuses on how innovation and entrepreneurship can be learned and applied by anyone. He wants everyone to have the mindset of changing how they do things to make a massive difference.

This book gave a meaningful and provocative definition of innovation. Peter Drucker began by teaching innovation and entrepreneurship in the mid-1950’s putting into writing his experience from the past three decades of testing his ideas. He derived his examples from the experiences he had as a consultant and the experience of people he mentored and taught.

He started by drawing his readers attention to a mystery: why in the American economy between 1965-1988, despite the recession, oil shock, inflation in some government and industry, there was still a massive job growth. Most people describe the growth as “hi-tech”. The key technology driving job growth is not widget or gadget but entrepreneurship management. The force of entrepreneur is always more significant than the current state of the economy suggest Drucker. Huge successes recorded by great influencers such as Mc Donald was majorly due to better management of a service previously run by mom and pops owners.  Everything, from the production of the product, selling technique, the way it was served, and the package was refined beyond belief. It was not the ‘hi-tech’ thing but doing things in a different, better and meaningful way and in the process creating new value.

 

In this book, Drucker sees entrepreneurship has a way of doing things differently. It is not a personality trait but a feature to be observed in people’s actions and functionality. Entrepreneurs are made to upset and disorganized. He/she is a wild card that generates wealth through creative destruction. They deal with uncertainty but still have the ability to explore change and respond positively and intelligently to change.  Embracing changes and trying out different things is the best way to invest resources. Entrepreneurship becomes risky when simple and well-known rules are violated. They become less risky when it is systematically managed and purposeful.

 

Innovation, on the other hand, is simple and often has nothing to do with technology or inventions. Science and technology are the least promising of all sources of innovation, Drucker suggests. He says in reality, innovation result to success when you take advantage of an unexpected change in the society. Innovation becomes a great deal when it meets the market through the catalyst of entrepreneurial management then your start creating things of great value.  Good innovation is always much focused. It is not about trying to do many things but just one thing excellently well. The most successful products are those that save effort, time, money and save their users from thinking. People do not purchase a product but what the product does for them. The bigger picture of innovation is to provide satisfaction where there was none before. The book concludes with Drucker giving a clearer picture of what the future holds.

The Big Three – Key points

Key Point #1: Entrepreneurship and it advises to invest in resources, explore change and respond positively to it.

Key Point #2: Innovation and it advises to innovation should save time, energy and provide satisfaction where there is none.

Key Point #3: People do not purchase a product but what the product does for them. The bigger picture of innovation is to provide satisfaction where there was none before.

 

One Last Thing

“Entrepreneurs, by definition, shift resources from areas of low productivity and yield to areas of higher productivity and yield. Of course, there is a risk they may not succeed. But if they are even moderately successful, the returns should be more than adequate to offset whatever risk there might be.”

― Peter F. Drucker, Innovation and Entrepreneurship

Innovation and Entrepreneurship

/0 Comments/in , , /by

Peter Drucker is known to be the most famous management author of the century. This book does not treat innovation as an academic subject but outstandingly written with rich organizational life examples using management view. The author focuses on how innovation and entrepreneurship can be learned and applied by anyone. He wants everyone to have the mindset of changing how they do things to make a massive difference. ​

This book gave a meaningful and provocative definition of innovation. Peter Drucker began by teaching innovation and entrepreneurship in the mid-1950’s putting into writing his experience from the past three decades of testing his ideas. He derived his examples from the experiences he had as a consultant and the experience of people he mentored and taught. ​

He started by drawing his readers attention to a mystery: why in the American economy between 1965-1988, despite the recession, oil shock, inflation in some government and industry, there was still a massive job growth. Most people describe the growth as “hi-tech”. The key technology driving job growth is not widget or gadget but entrepreneurship management. The force of entrepreneur is always more significant than the current state of the economy suggest Drucker. Huge successes recorded by great influencers such as McDonald were majorly due to better management of a service previously run by mom and pops owners.  Everything, from the production of the product, selling technique, the way it was served and the package was refined beyond belief. It was not the ‘hi-tech’ thing but doing things in a different, better and meaningful way and in the process creating new value. 

In this book, Drucker sees entrepreneurship has a way of doing things differently. It is not a personality trait but a feature to be observed in people’s actions and functionality. Entrepreneurs are made to upset and disorganized. He/she is a wild card that generates wealth through creative destruction. They deal with uncertainty but still have the ability to explore change and respond positively and intelligently to change.  Embracing changes and trying out different things is the best way to invest resources. Entrepreneurship becomes risky when simple and well-known rules are violated. They become less risky when it is systematically managed and purposeful.

​Innovation, on the other hand, is simple and often has nothing to do with technology or inventions. Science and technology are the least promising of all sources of innovation, Drucker suggests. He says in reality, innovation result to success when you take advantage of an unexpected change in the society. Innovation becomes a great deal when it meets the market through the catalyst of entrepreneurial management then your start creating things of great value.  Good innovation is always much focused. It is not about trying to do many things but just one thing excellently well. The most successful products are those that save effort, time, money and save their users from thinking. People do not purchase a product but what the product does for them. The bigger picture of innovation is to provide satisfaction where there was none before. The book concludes with Drucker giving a clearer picture of what the future holds.

The Big Three – Key Points ​

Key Point #1: Entrepreneurship and it advises to invest in resources, explore change and respond positively to it. ​

Key Point #2: Innovation and it advises to innovation should save time, energy and provide satisfaction where there is none. ​

Key Point #3: People do not purchase a product but what the product does for them. The bigger picture of innovation is to provide satisfaction where there was none before.

One Last Thing

“Entrepreneurs, by definition, shift resources from areas of low productivity and yield to areas of higher productivity and yield. Of course, there is a risk they may not succeed. But if they are even moderately successful, the returns should be more than adequate to offset whatever risk there might be.”

― Peter F. Drucker, Innovation and Entrepreneurship