Drucker, P F, The Effective Executive, Harper Busi.ppt
/56Elektrotehnicki fakultet, Beograd1Drucker, P. F., The Effective Executive,Harper Business,NY, NY, USA,1966/56Elektrotehnicki fakultet, Beograd2 Get the right things done! Be effective!Essence/56Elektrotehnicki fakultet, Beograd3nLittle correlation between a mans effectiveness, and his intelligence, imagination, and knowledge!nBrilliant men are often strikingly ineffectual!?nBrilliant insight is not by itself an achievement, and definitely not the effectiveness.Mind Impact/56Elektrotehnicki fakultet, Beograd4 Effectiveness efficiency ability to do things right.nKnowledge work = effectiveness ability to get the right things done! nManual worker can be judged based on quantity and quality of a defined discrete output. Producing a lot is what makes the manual worker effective!nKnowledge work can be judged based on the direction of the output generating activity.nWorking on the right things is what makes the knowledge worker effective!/56Elektrotehnicki fakultet, Beograd6Types of Work (2)nIn the past, manual workers predominated in every organization.nNow,the center of gravity has shifted to the knowledge worker!nEvery knowledge worker is an executive,and most, but not all, managers are executives./56Elektrotehnicki fakultet, Beograd7 A non-effective knowledge worker has a tendency to become a manual worker, and to rush around w/o much thinking.Philosophy/56Elektrotehnicki fakultet, Beograd8nIn every organization, there are four realities over which the executive has no control, and has to “cooperate with the inevitable”:a. The executives time tends to belong to everybody else.b. The executive has to keep on operating, unless they take positive action to change the reality.c. The executive is effective only when other people make use of what he produces.d. The executives view of outside is limited, as much as his subordinates tell him.Important Realities/56Elektrotehnicki fakultet, Beograd9Effectiveness Can Be Learned!nEffectiveness is a series of practices.nPractices can be learned./56Elektrotehnicki fakultet, Beograd10The Five Major Practices ofEffective Management:1. Effective executives know where their times goes, and they manage carefully the little time that is under their control.2. Effective executives focus on “What results are expected of me?” rather than on “What I have to do?”.3. Effective executives build on the strengths (on what they can do), and not on the weaknesses (what they can not do).4. Effective executives concentrate on the few major areas where superior performance will produce outstanding results.5. Effective executives judge based on options, which are defined carefully./56Elektrotehnicki fakultet, Beograd11Effective Executives (1) - Do not start with their tasks, but with their time! - Do not start with their plans, they start with where their time actually goes. Then they cut back the unproductive demands on their time. - Plans always remain on paper, always remain good intentions. They seldom turn into achievements!/56Elektrotehnicki fakultet, Beograd12Effective Executives (2)nTime is the most critical resource of an Effective Executive.nIf we rely on our memory, we do not know how our time was spent.nConsequently, an Effective Executive must record his time, to know where it actually goes,in order to be able to rationalize its future time spending.nEvery executive has to spend a great deal of its time on things that do not contribute at all (e.g. official dinners or when the best customer calls).nPeople around us are time consumers,and most people are time wasters./56Elektrotehnicki fakultet, Beograd13Effective Executives (3)nOn the other hand, things get done if one dedicates non-trivial amounts of time to them.nIf executive wants to get to the point where he wants to have an impact, he needs to spend at least an hour in a meeting with his subordinates.nIf one wants to establish a human relationship, one needs infinitely more time!nRelationships with other knowledge workers are especially time consuming. nWithout this, knowledge workers loose their enthusiasm, and either become time servers, or they direct their talents to activities outside the company. /56Elektrotehnicki fakultet, Beograd14 Several hours of continued and uninterrupted thought the main prerequisite for right decision making (e.g., Sloan says, “The first thought is always wrong”)./56Elektrotehnicki fakultet, Beograd15Time Influence (1)nTime has to be recorded in real-time, not from memory.nOnly when one records time, one can become aware of the fact that most of it leaked away on trivia.nSystematic managing of time implies that one gets rid of time-wasting activities, if one possibly can./56Elektrotehnicki fakultet, Beograd16 Time Influence (2) This requires asking oneself a number of diagnostic questions:a.What would happen if this were not done at all?This is a way to identify things that need not be done!One has to learn how to say NO!Often, people expect you to say no when they invite you.b.Which activity in my time log could be done by someone else just as well or better?This is a way to move the burden onto someone elses shoulder.Do not forget that delegation exists in management, too.c.What do I do that wastes your time, without contributing to your effectiveness?This is a way to determine what and how much of the time of our subordinates we waste.Very few executives dare to ask this question, because they are afraid of the truth./56Elektrotehnicki fakultet, Beograd17Time Influence (3)nMuch of the time loss results from poor management and deficient organizationnPoor management wastes everybodys time, but above all, it wastes the managers time.nHow to identify time-wasters that follow from lack of system or look-ahead? The first symptom to look for is the recurrent crisis (a crisis that comes back time after time). As soon as it happens, mechanisms have to be established, which make it manageable by a low level clerk (so it becomes a routine job).nRoutine is what makes unskilled people without judgment able to do what it took a near-genius to do before.However, to turn such a job into a step-by-step procedure often times needs an almost-genius./56Elektrotehnicki fakultet, Beograd18nA clear sign of overstaffing is when management spends more than 10% of its time on HR issues!nDo not bring in a specialist unless he is used day in and day out. Otherwise, he better stays outside!Tips!/56Elektrotehnicki fakultet, Beograd19MalorganizationnSymptom excess of meetings!nOne either meets or one works. Can not do both at the same time.nIt is not brainstorming or asking for help.nIn a good organization, there would be no meetings.nMeetings have to be purposely directed.nAn undirected meeting is not just a time sink. It is a danger!nMeetings have to be an exception, rather than the rule.nOrganization in which one meets all the time is an organization in which no one gets any work done.nIf the time log tells that more than 10% of time was spent in meetings, one has to start thinking./56Elektrotehnicki fakultet, Beograd20Malfunction of InformationnIt is the best if there is only one item on the agenda of the meeting.n90 minutes (Why)? Attention span is that long and serious meters can not be explained/considered in less time! An Effective Executive never allows an interrupt within these 90 minutes. Why? Secretary holds each call for 90 minutes, and the boss schedules 30 minutes of free time, after each 90 minute meeting slot, to respond to all calls and emails./56Elektrotehnicki fakultet, Beograd21How to Get Rid of Nuisance?nOne day per week, work from home invisible till 10am.nWake up hours before work, to study important issues!nTime is the scarcest resource, and unless it is managed, nothing else can be managed./56Elektrotehnicki fakultet, Beograd22How Can I Contribute? (1)nMost executives tend to concentrate on the efforts, rather then on the results.nTo give my managers the right info, so they can make right decisions!nTo find out what products will our customers need tomorrow!/56Elektrotehnicki fakultet, Beograd23How Can I Contribute? (2)nWhat is the right answer to the following question: What do you do to justify being on the payroll? 1. I run the accounting department! 2. I have 800 people working under me! Wrong!nThe man who focuses on his position (1st answer) and on his downward authority (2nd answer) is not an Effective Executive, and is a subordinate, no matter how exalted his title and rank!nTo ask “What can I contribute?” is to look for unused potential of the job. /56Elektrotehnicki fakultet, Beograd24How Can I Contribute? (3)nEffective Executive can contribute in three different areas:1.Building direct results, mostly profit (before all, profit).2.Building of values and their reaffirmation(e.g., family farm versus industrial agriculture).3.Building and developing people for tomorrow(people adjust to the level of demand made on them).nThe most common cause of executive failure is inability or unwillingness to change with the demands of a new position./56Elektrotehnicki fakultet, Beograd25How to Make the Specialist Effective? - For the knowledge worker to be effective, he has to be specialist. - Generalists are those who are specialized in several areas, and know how to generate synergistic effects. - Most specialists in several areas are not generalists!/56Elektrotehnicki fakultet, Beograd26Impact of Human Relationship (1)nThe right human relationship.nIf a good human relationship is developed in a company, this is because the executive focuses on his contribution,and not because he has a “talent for people”.nWarm feelings and pleasant words are meaningless, if there is no achievement!/56Elektrotehnicki fakultet, Beograd27Impact of Human Relationship (2)nFour basic requirements of effective human relations:a.Communicationsb.Teamworkc.Self-developmentd.Development of others/56Elektrotehnicki fakultet, Beograd28CommunicationsnTypical questions that induce a strong bottom-up communication:- What is the best utilization of your knowledge and ability? - What should we expect of you? - How can I be useful to you?/56Elektrotehnicki fakultet, Beograd29TeamworknThe more sophisticated the knowledge work,the more is the teamwork needed.nRemember, one bad apple can spoil all good apples!nSo, the more sophisticated the knowledge work,the more carefully one has to select team members!/56Elektrotehnicki fakultet, Beograd30Self-DevelopmentnIf one asks himself: - What is the most important contribution I can make to the performance of the organization I belong to?nHe is actually asking himself: - What self-development do I need?/56Elektrotehnicki fakultet, Beograd31Development of Others/56Elektrotehnicki fakultet, Beograd32The Effective Meeting (1)nEach meeting/presentation/report has a goal/purpose:1.Decision2.Giving information or getting informed3.Making clear to ourselves what we should be doingnThe goal/purpose of the meeting has to be thought through and spelled out before the meeting is called,a presentation is organized,or a report is asked for./56Elektrotehnicki fakultet, Beograd33The Effective Meeting (2)nIf the intention was to make things clear to ourselves,it is a “brainstorming” and the more bright ideas the participants have, the more successful the meeting is.nIf the intention was something else and it turns into everybody having “bright” ideas, it is called a “bull meeting”,and the more “bright” ideas the participants have, the less successful the meeting is!nAt the end of each meeting, one must go again to the “opening statement”, to double-check if the final conclusions are in-line with original intentions!/56Elektrotehnicki fakultet, Beograd34Meetings - Rules of Importance- You either come to listen to important things being said, or you come and take part and you talk; you can not do both!- You must have a wider view!- You must keep the focus from the start to the end! This is the cardinal rule! If a meeting turns into chaos, the top level man is to be blamed!/56Elektrotehnicki fakultet, Beograd35Making Strength ProductivenOne can not build on weaknesses of the organization;one can build only on the strengths of the organization! nMake the weaknesses irrelevant.nMake the strength productive.nDo not hire because of the lack of weaknesses;hire because of an important strength!nThe first approach staffs you with mediocrity;the second one with a winning team!/56Elektrotehnicki fakultet, Beograd36Strong People Always Have Strong Weaknesses, too!nPeople with no weaknesses are often incompetent!nNo executive has ever suffered because his subordinates were stronger than him.nOnly very strong men dare to think that way!nEffective Executive knows that his subordinates are paid to perform, and not to please their superiors!/56Elektrotehnicki fakultet, Beograd37nOf course, everyone knew that these men were better in the following sense: For each activity, Carnegie was able to find a person by far better than him, an the was the master who combined all these activities into a great success story./56Elektrotehnicki fakultet, Beograd38Important QuestionsnEffective Executive never asks himself:“How does he get along with me?” He asks: “What does he contribute?”nEach person can contribute in only one area!nUniversal geniuses do not exist! Effective Executive always checks first what a man can do well,and then demands that to be done./56Elektrotehnicki fakultet, Beograd39Why Executives Pick a Wrong Associate?nThe main reason is that the immediate task of the executive is not to place a man, but to fill a job; then they place the “least misfit” or they change the job description both wrong!nAnother frequent reason: Hiring friends wrong! Even worse to turn colleagues into friends! Successful men like Roosevelt, Sloan, Lincoln had no “friend” in their Cabinet, although they were warm men in need of close human relationships, but they keep it off the job. nA rare reason: because they follow the above rules inflexible!nExceptions always exist!/56Elektrotehnicki fakultet, Beograd40How to Pick a Right Associate?1.Do not start with the assumption that jobs are created by nature of God; instead they have been designed by fallible men. Often they look logical on paper, but can not be filled. Typical for jobs created to match a person. Symptom: Several hires did not succeed. The Effective Executive first must make sure that the job is well designed.2.Make big and demanding jobs. Divide and conquer applies only to non-sophisticated jobs. Only such jobs enable men to rise to the new demands of a changed situation (job requirements keep changing). 3.Effective Executive starts with a what a man can do, and not with what a job requires. Be positive! Work changes people. Work brings health!4.In order to get strength, one has to put up weaknesses!/56Elektrotehnicki fakultet, Beograd41How Do I Manage My Boss?nIf the boss is not promoted, you will be bottled behind him.nIf the boss is fired, it is rarely a young man behind him who comes to
