LEADERSHIP LIBRARY
The Effective Executive
Peter Drucker
IN BRIEF
Peter Drucker’s book was originally published in 1967, but the lessons are still relevant. Whereas most executives are stretched thin, Drucker says the most effective executives orient their time and attention to the most important opportunities (not problems), which drive disproportionate value over time.
Key Concepts
Practices of effective executives (p. xi):
They asked, “What needs to be done”
They asked, “What is right for the enterprise?”
They developed action plans.
They took responsibility for decisions.
They took responsibility for communicating.
They were focused on opportunities rather than problems.
They ran productive meetings.
They thought and said, “we” rather than “I.”
Practices and habits of the mind that have to be acquired to be an effective executive (pp. 23–4)
Effective executives…
“…know where their time goes.”
“…focus on outward contribution. They gear their efforts to results rather than to work.”
“…build on strengths — their own strengths, the strengths of their superiors, colleagues, and subordinates; and on the strengths of the situation, that is, on what they can do. They do not build on weakness. They do not start out with the things they cannot do.”
“…concentrate on the few major areas where superior performance will produce outstanding results.”
“…make effective decisions. They know that this is, above all, a matter of system — of the right steps in the right sequence.”
Quotables
“The answer to the question ‘What needs to be done?’ almost always contains more than one urgent task. But effective executives do not splinter themselves. They concentrate on one task if at all possible.… However, after completing the original top-priority task, the executive resets priorities rather than moving on to number two from the original list.” (p. xiii)
“The greatest wisdom not applied to action and behavior is meaningless data.” (p. 4–5)
“What happens inside any organization is effort and cost. To speak of ‘profit centers’ in a business as we are wont to do is a polite euphemism. There are only effort centers.” (p. 14)
“The effective executive therefore knows that he has to consolidate his discretionary time. He knows that he needs large chunks of time and that small dribblers are no time at all.” (p. 49)
“For every organization needs performance in three major areas: It needs direct results; building of values and their reaffirmation; and building and developing people for tomorrow. If deprived of performance in any one of these areas, it will decay and die.” (p. 55)
“Warm feelings and pleasant words are meaningless…. On the other hand, an occasional rough word will not disturb a relationship that produces results and accomplishments for all concerned.” (p. 64)
“The effective executive fills positions and promotes on the basis of what a man can do. He does not make staffing decisions to minimize weaknesses but to maximize strength.” (p. 71)
“If there is any one ‘secret’ of effectiveness, it is concentration. Effective executives do first things first and they do one thing at a time.” (p. 100)
“Effective executives do not make a great many decisions. They concentrate on the important ones. They try to think through what is strategic and generic, rather than ‘solve problems.’” (p. 113)
“They know that the most time-consuming step in the process is not making the decision but putting it into effect.” (p. 114)
“To determine what is a fact requires first a decision on the criteria of relevance, especially on the appropriate measurement. This is the hinge of the effective decision, and usually its most controversial aspect.” (p. 143)
“The first rule in decision-making is that one does not make a decision unless there is disagreement.” (p. 148)
“Effectiveness is, after all, not a ‘subject,’ but a self-discipline.” (p. 166)
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