The Effective Executive

Read this and then read the compound effect. Youll be set!

"The Effective Executive" (1966) was the first book to define who an executive is and to explain the practices of effective executives. Today there are several in this genre. But this book was the first, as is the case with many of Drucker's masterpieces. Drucker starts the book by stating that this book is about managing oneself and that executives who do not manage themselves cannot possibly expect to manage other people. Efficiency vs. Effectiveness: "Efficiency is doing things right; effectiveness is doing the right things." For manual work, efficiency was enough. In today world, the center of gravity has shifted from the manual worker to the "knowledge worker" (a term Drucker coined in the 60s). For knowledge work, effectiveness is more important than efficiency. Who is an executive? Executive = a knowledge worker who is ... responsible for contributions (decisions, actions) ... that have significant impact on ... performance and results of the whole organization (derived from pages 5 through 9). Effective executives: 1. Manage time 2. Focus on contributions and results 3. Build on strengths 4. Set the right priorities 5. Make effective decisions 1. Manage time: "Time is the scarcest resource, and unless it is managed, nothing else can be managed" (page 51). Chapter 2, Know Thy Time, starts with a three-step process - recording, managing and consolidating time. Drucker then states the factors that make time a unique resource - the supply of time is inelastic, time is perishable and cannot be stored, time is irreplaceable (i.e. has no substitute), all work takes place in and uses up time. Drucker then explains time-diagnosis with questions for the executive: a. What would happen if this were not done at all? b. Which activities could be done by somebody else just as well, if not better? c. (ask others) What do I do that wastes your time without contributing to your effectiveness? Drucker then explains the identification of time wasters caused by - lack of system, overstaffing, bad organization structure, malfunction in information. If you have spent time in meetings, you will surely be able to relate these concepts to your work. This chapter changed my perception of time as a resource. 2. Focus on contributions and results: In chapter 3, What Can I Contribute?, Drucker stresses the importance of focusing outward, on contributions and results; as opposed to downward, on efforts. He proceeds to discussing the four basic requirements of effective human relations: a. Communication b. Teamwork c. Self-development d. Development of others 3. Build on strengths: "In every area of effectiveness within an organization, one feeds the opportunities and starves the problems" (page 98). In chapter 4, Making Strengths Productive, Drucker explains that effective executives build on strengths and make weaknesses irrelevant. Decades after this book was written, researchers from Gallup arrived at the same result, published in the bestseller "First Break A

Have you ever run into executives who create more harm than good? Do you realize that some people may see you that way, at least in some situations. One of the most famous quotes by Peter Drucker is that he sometimes refers to himself as an "insultant" rather than a consultant. His straight talk in this book will direct you onto the right path for helping your organization accomplish more.Peter Drucker begins this book by pointing out that there is no science of how to improve executive effectiveness, nor any naturally-occurring effective executives. The redeeming point of this problem is that he argues that executive effectiveness can be learned.The principles begin with a focus on time management. We can get greater quantities of every other resource we need, except time. Drucker reports that executives spend their time much differently than they think they do and much differently than they would like to. His solution is to begin by measuring how you spend your time, and compare it with an ideal allocation. Than begin to systematically get rid of the unimportant in favor of the important. His suggestions include stopping some things, delegation, creating policy decisions to replace ad hoc decisions, staying out of things that others should do, and so forth. Any student of time management will recognize the list he suggests. One of the best points is to give yourself large blocks of uninterrupted time to do more significant tasks. He also cautions us not to cut down on time spent with other people. If an hour is required, don't try to do it in 15 minutes. Next, Drucker argues that we should focus on what will make a difference rather than unimportant questions. Otherwise, we will fill our time with motion rather than proceeding towards results. Beyond that, he points out that we have to build on our own strengths and those of the people in our organization. That is how we can outperform the competition and accomplish much more.We also need to be systems thinkers, getting to the core of the issue first. If you would like to know more about that subject, look at The Fifth Discipline. For example, if you are weak on new products, you need to work on the new product development process before fine-tuning your marketing. If you reverse the order of these activities, your results will be far less.Perhaps the best section in the book has to do with executive decision-making, when to make a decision, about what, and what principles to apply. If you only read this section, you would be well rewarded for studying this fine book.I especially liked the familiar Drucker use of important historical examples to make his points. You'll remember the principles better because the examples are so vivid. Although this book was written some time ago, it retains the strength of its insight today. Truly , this is a timeless way to achieve greater effectiveness. You may be concerned about how you are going to learn to apply these concepts. That is actually quite ea

Peter Drucker begins this book by pointing out that there is no science of how to improve executive effectiveness, nor any naturally-occurring effective executives. The redeeming point of this problem is that he argues that executive effectiveness can be learned.The principles begin with a focus on time management. We can get greater quantities of every other resource we need, except time. Drucker reports that executives spend their time much differently than they think they do and much differently than they would like to. His solution is to begin by measuring how you spend your time, and compare it with an ideal allocation. Than begin to systematically get rid of the unimportant in favor of the important. His suggestions include stopping some things, delegation, creating policy decisions to replace ad hoc decisions, staying out of things that others should do, and so forth. Any student of time management will recognize the list he suggests. One of the best points is to give yourself large blocks of uninterrupted time to do more significant tasks. He also cautions us not to cut down on time spent with other people. If an hour is required, don't try to do it in 15 minutes. Next, Drucker argues that we should focus on what will make a difference rather than unimportant questions. Otherwise, we will fill our time with motion rather than proceeding towards results. Beyond that, he points out that we have to build on our own strengths and those of the people in our organization. That is how we can outperform the competition and accomplish much more.We also need to be systems thinkers, getting to the core of the issue first. If we are weak on new products, we need to work on the new product development process before fine-tuning our marketing. If we reverse the order of these activities, our results will be far less.Perhaps the best section in the book has to do with executive decision-making, when to make a decision, about what, and what principles to apply. If you only read this section, you would be well rewarded for studying this fine book.I especially liked the familiar Drucker use of important historical examples to make his points. You'll remember the principles better because the examples are so vivid. Although this book was written some time ago, it retains the strength of its insight today. Truly , this is a timeless way to achieve greater effectiveness. You may be concerned about how you are going to learn to apply these concepts. That is actually quite easy. Drucker provides questions in each section that will guide you, step-by-step, to focus your attention on the most promising areas. If you only read one book about how to improve your personal effectiveness as an executive, you will find this to be a rewarding choice.

This book is not just a good read but should be treated as a manual by anyone who wants to get things done in the knowledge based economy. Some of Drucker's advice seems obvious, e.g. that effective executive should play on the strengths of his coworkers. But how often do managers follow this principle in real life? There is plenty of such simple yet profound advice in this book by the world's No. 1 management thinker.

This book has some powerful messages for the modern executive. The difference between being busy and being effective is an important distinction that Drucker highlights. He also highlights some important rules of thumb that are very true but often taken for granted. For example, the fact that any significant innovation requires large chunks of consecutive time spent focused on the issue. Any manager that wants to create a breakthrough change in their organization needs to think through the issues in large chunks. All we can do in small chunks of time is what we did yesterday. He also points out that the critical scarce resource for any executive is time and that some of the most important decisions an executive makes is any honest assessment of what is not going to get done. Too many projects keep moving forward burning up critical time and never reaching critical mass. Drucker provides insight into how to either make something happen or how to be decisive about what you are not going to do which is often even harder