The Drucker Difference: What the World's Greatest Management Thinker Means to Today's Business Leaders

Why Drucker's Ideas Matter More Now than Ever

"This book is an excellent way to understand how Drucker's ideas apply to today's dilemmas, be they the problems faced by organizations, by governments, or by individuals." "-from the Foreword, by Charles Handy"

"This compilation of smart essays on the 'Drucker difference' illustrates how astonishingly wide the wings of Drucker's wisdom have spread. We all stand gratefully in his shadows, silent in awe." —Warren Bennis, Professor Emeritus, University of Southern California

"Peter Drucker is more than a 'management writer.' He literally created the foundation on which a Functioning Society rests. In "The Drucker Difference", Peter's closest colleagues extend and amplify his "tour de force" body of ideas and ideals. It is the next step forward." —Bob Buford, Chairman, The Drucker Institute, and Founder, Leadership Network

"Much has been written by and about my friend and mentor, Peter Drucker. But this book is different. It is written by those who knew and understood him as friends and faculty colleagues and reflects his thoughts and principles as they are currently being taught to those who will be making a difference for tomorrow." —C. William Pollard, Chairman Emeritus, The ServiceMaster Company

"Hats off to the Drucker faculty members for putting the tacit knowledge they gained from working together with Peter Drucker into explicit knowledge through the publication of this book." —Ikujiro Nonaka, Professor Emeritus, Hitotsubashi University, Japan, and Xerox Distinguished Faculty Scholar, University of California at Berkeley

""The Drucker Difference" is a unique book that enables present and future executives to capitalize on Peter Drucker's wisdom and to comprehend that knowledge from an entirely new perspective." —Minglo Shao, Chairman, Bright China

About the Book:

Peter F. Drucker was one of the most influential business thinkers in history. Considered the father of modern management, he was concerned not only with the human side of management, but also with the larger societal roles played by both companies and the individuals within them.

If there has ever been a time when such thinkers are relevant, it is now.

"The Drucker Difference" casts new light on Drucker's business philosophy, analyzing his most important ideas in the context of today's business world. Through individual contributions by professors from The Peter F. Drucker and Masatoshi Ito Graduate School of Management, it combines expert insight and current scholarship to reveal how organizations and executives can interpret and apply Drucker's timeless ideas.

Today's top business thinkers provide sixteen chapters analyzing Drucker's views on the most critical issues of our time, including:

• Government, business, and civil society (Ira Jackson)

• The interplay of values and power within companies (Karen E. Linkletter and Joseph A. Maciariello)

• Applying collaboration to "knowledge work" (Craig L. Pearce)

• Drucker's management vision (Richard Smith)

• Economic environment, innovation, and industry dynamics (Hideki Yamawaki)

Each contributor explains a single, classic aspect of Drucker's work, examines its implications in today's business environment, and applies an up-to-date and contemporary interpretation of Drucker's wisdom.

Covering everything from marketing and leadership to strategy and governance, "The Drucker Difference" is both a timely new assessment and a valuable addition to the canon of Drucker literature.

• Foreword by Charles Handy

• Introduction: The Drucker Living Legacy, by Craig L. Pearce, Joseph A. Maciariello, and Hideki Yamawaki

• 1 Management as a Liberal Art, by Karen E. Linkletter and Joseph A. Maciariello

• 2 Drucker on Government, Business, and Civil Society: Roles, Relationships, Responsibilities, by Ira A. Jackson

• 3 Leading Knowledge Workers: Beyond the Era of Command and Control, by Craig L. Pearce

• 4 Value(s)-Based Management: Corporate Social Responsibility Meets Value-Based Management, by James S. Wallace

• 5 Drucker on Corporate Governance, by Cornelis A. de Kluyver

• 6 Corporate Purpose, by Richard R. Ellsworth

• 7 Strategy for What Purpose? by Vijay Sathe

• 8 The Twenty-First Century: The Century of the Social Sector, by Sarah Smith Orr

• 9 Economic Environment, Innovation, and Industry Dynamics, by Hideki Yamawaki

• 10 A Pox on Charisma: Why Connective Leadership and Character Count, by Jean Lipman-Blumen

• 11 Knowledge Worker Productivity and the Practice of Self-Management, by Jeremy Hunter with J. Scott Scherer

• 12 Labor Markets and Human Resources: Managing Manual and Knowledge Workers, by Roberto Pedace

• 13 Peter Drucker: The Humanist Economist, by Jay Prag

• 14 The Drucker Vision and Its Foundations: Corporations, Managers, Markets, and Innovation, by Richard Smith

• 15 Drucker on Marketing: Remember, Customers Are the Reason You Are in Business, by Jenny Darroch

• 16 A Closer Look at Pension Funds, by Murat Binay

• Notes

• Sources

• Index

Detailed Contents

• Foreword

• Introduction: The Drucker Living Legacy

  • The Contributions in This Book

  • Tying It All Together

• Management as a Liberal Art

  • The Liberal Arts: A Historical Tradition

  • Applying Management as a Liberal Art for Today's Executives

  • Conclusion

• Drucker on Government, Business, and Civil Society: Roles, Relationships, Responsibilities

  • The Need for Government to Steer, Not Row

  • Putting It All Together

  • It's Called Responsibility, Stupid!

  • Looking Out the Window to See What Is Visible but Not Yet Seen Today

• Leading Knowledge Workers: Beyond the Era of Command and Control

  • What Is Knowledge Work?

  • The Challenge of Leading Knowledge Workers

  • Leadership in Historical Context

  • How to Lead Knowledge Work—It Is All in the Recipe

    • Directive Leadership

    • Transactional Leadership

    • Transformational Leadership

    • Empowering Leadership

  • Scientific Evidence on Shared Leadership

  • Is Shared Leadership a Panacea?

  • The Future of Leading Knowledge Work

• Value(s)-Based Management: Corporate Social Responsibility Meets Value-Based Management

  • Adam Smith, the Invisible Hand, and Value-Based Management

  • A Stakeholder Perspective

  • Value(s)-Based Management: A Marriage of Value-Based Management and Stakeholder Theory

  • Value(s)-Based Management—The Evidence

  • Conclusion

• Drucker on Corporate Governance

  • Boards: The Perennial Villain

  • The 2002 U.S. Governance Reforms

  • The Board's Role

  • Management versus Governance

  • Director Independence versus Board Independence

  • The New Focus: Board Leadership

  • Should Directors Engage with Stakeholders?

    • Globalization

    • Loss of trust

    • Civil society activism

    • Institutional investor interest in CSR

  • Conclusion

• Corporate Purpose

  • What Is Corporate Purpose?

  • Why a Customer-Focused Purpose Is Superior

    • Balancing Stakeholders' Interests Is a Vacuous Purpose

    • Why Not an Employee-Focused Purpose?

    • Why Not a Shareholder-Focused Purpose?

      • Shareholder Wealth Maximization Measures a Company's Wealth Producing Capacity Too Narrowly

      • Wealth Capture Is Not Wealth Creation

      • Current Shareholder Value Does Not Equate to Future Competitiveness

      • Managers of Financial Institutions Are at a Disadvantage in Making Resource Allocation Decisions

      • Shareholders Are Not a Monolithic Body

    • What Is the Role of Profits?

    • Purpose and the Making of Meaning

    • Purpose and Strategy

      • Purpose and Strategic Orientation

    • Purpose and the Way of Managing

      • Purpose and the Strategy Formulation Process

      • Reflecting Purpose in Operational Goals

      • Managerial Influence through Shared Values Grounded in Purpose

      • Managing Change with Purpose

    • The Responsibilities of Leadership

• Strategy for What Purpose?

  • Figure 7-1: "POSE" (Purpose > Objectives > Strategy > Execution) Framework for Assessing and Diagnosing the Success or Failure of Strategy

  • Purpose

    • Traps

      • 1. Believing that strategic decisions can come only from the top

      • 2. Going to an executive retreat and coming down with the answer

      • 3. Becoming obsessed with numbers

      • 4. Letting your need for growth drive your thinking

    • Stakeholders

    • 1. For whose benefit does the enterprise exist?

    • 2. To what extent are the expectations of each stakeholder being met?

    • 3. What is the priority among stakeholders?

  • Objectives

  • Strategy

  • Execution

    • Skills and Fit

    • Policies

    • Responsibility and Accountability for Results, Not for Activities

  • Conclusion

• The Twenty-First Century: The Century of the Social Sector

  • Drucker and the Social Sector

  • The Social Sector Defined

  • Leading Social Change: Innovation and Entrepreneurship through the Social Sector

  • Creating the Tomorrow of the Social Sector

• Economic Environment, Innovation, and Industry Dynamics

  • Industrial Environment

  • National Environment

  • Global Environment

• A Pox on Charisma: Why Connective Leadership and Character Count

  • Charisma versus Character and Performance

  • The End of the Geopolitical Era; the Emergence of the Connective Era

  • Challenges of the Connective Era: Diversity and Interdependence

  • Integrating Diversity and Interdependence

  • Authenticity and Accountability: Hallmarks of Connective Leadership

  • Denatured Machiavellianism: Ethical Instrumentalism

  • Achieving the Mission through Connections: A Repertoire of Achieving Styles

    • The L-BL Achieving Styles Model

    • The Direct Achieving Styles Set: Intrinsic, Competitive, and Power

    • The Instrumental Achieving Styles: Personal, Social, and Entrusting

    • The Relational Achieving Styles Set: Collaborative, Contributory, and Vicarious

  • Inventories for Measuring Connective Leadership: Individual, Organizational, Situational, and 360° A

  • Leadership for What? Dealing with the Serious Issues of Life

    • The Dangerous Trade-Off

    • One Critical Leadership Contribution

• Knowledge Worker Productivity and the Practice of Self-Management

  • Productivity from the Inside Out

  • Creating the Practice of Self-Management

  • Self-Management Means Managing Your Nervous System

  • Attention Is the Foundation for Self-Management

    • Drucker and the Vital Need to Train Perception

    • Concentrated Attention: Focus Is Power

    • Multitasking Damages Your Productivity, Your Relationships, and Your Brain

    • Breaking the Cycle of Multitasking

    • Concentration Meditation: Strengthening the Inner CEO

  • Attention, Mindfulness, and Systematic Abandonment: Learning to See in Order to Change

    • Neuroplasticity: Rewiring the Network

    • Mindfulness Means Directing Attention

    • Mindfulness and Adam Smith

    • Employing the Impartial Spectator

    • Mindsets for the Status Quo and Mindsets for Growth

    • Being Mindful of Reactive Emotions

    • The Case of the Anxious Engineer

  • Drucker, the Great Liberator

• Labor Markets and Human Resources: Managing Manual and Knowledge Workers

  • Conceptual Foundations and the Importance of Labor Markets

  • Human Resources and the Role of Management

  • Using Drucker's Insights to Understand the Labor-Market Impact of Immigration in the United States

  • Conclusion

• Peter Drucker: The Humanist Economist

  • Introduction

  • Peter Drucker: The Early Years

  • Peter Drucker: Groups and Governments

• The Drucker Vision and Its Foundations: Corporations, Managers, Markets, and Innovation

  • On the Foundations of the Drucker Vision

    • Historical Context

    • Economic Foundations

      • Carl Menger

      • Eugen von Bšohm-Bawerk

      • Friedrich von Hayek

      • Joseph Schumpeter

    • Synthesis

  • The Drucker Vision

    • Classical Economics and the Profit Motive

      • On Keynesian Macroeconomics

      • On the Profit Motive

    • Corporate Social Purpose and the Value Imperative

      • Early Views on the Plant Community

      • Later Views on the Plant Community

      • Later Views on Purpose and Performance

      • Pension Funds and the Market for Corporate Control

    • Corporate Social Responsibility and Managerial Ethics

      • On Responsibility for "Impacts"

      • On the Social Responsibility and Ethics of Managers

    • Corporate Purpose and Innovation

      • On the Importance of Innovation

      • On the Role of Profit in Innovation

      • Recap

      • A Conjecture on Drucker's View of the Economic Collapse of 2008-2009

• Drucker on Marketing: Remember, Customers Are the Reason You Are in Business

  • The History of Marketing

  • Drucker on Marketing

    • Looking at the Organization from the Customers' Point of View

    • Are Customers Rational or Irrational?

    • The "Total Marketing Approach"

    • Market Boundaries and Changing Markets

  • Drucker on Innovation, Organizational Performance, and Societal Welfare

    • Marketing in Different Contexts

    • Marketing and Innovation: The Good and the Bad

  • Conclusion

• A Closer Look at Pension Funds

  • The U.S. Investment Market

  • Anatomy of Pension Fund Investors

• Notes

• Sources

• Index