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The Effective Executive

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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.

Although Drucker wrote EFFECTIVE EXECUTIVE more than 30 years ago, the principles of decision making are still relevant today, if not more so. The effective executive. . .

1) Knows where their time goes. Time is the most valuable resource and is inelastic. It must be managed. What has priority? What is better left undone? What can be outsourced?

2) Focuses on results (not effort) by asking:
"What do I do that justifies my being on the payroll?" (pg 53).

3) Staff to people's strength (not the absence of weakness).
There is no such thing as a "good man". Good at what? Likewise, a person is hired to produce results, not to please a superior, or blend in.

4) Fills the job with the right person (not fits the job to the available person). Jobs in the organization are interdependent; if one changes, it will affect another. Also, "To tolerate diversity, relationships must be task-focused rather than personality focused." (pg 77)

5) Tries to be himself / herself (not someone else). (S)He looks for patterns in their performance, and focus on their strengths. "Feed the opportunities and starve the problems." (pg 98)

6) Concentrates on one effort at a time. (not multi-tasking)
It is hard enough to do one thing right.

7) Concentrates on important and strategic decisions (not a great number of small, reactionary decisions). Many problems were created in the past, and solving them only re-establishes the status quo. It is better to seek opportunities than just fix problems.

8) Makes decisions based on dissenting opinions (not pseudo facts and pre-judgements) Use other's opinions to form a case for each side.

9) Acts or does not act (no hedging or compromise)

"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 All the Rules"; confirming that Drucker was right all along.
Drucker proceeds to outline four rules for staffing from strength:
a. Make sure the job is well designed
b. Make the job challenging to bring out strengths
c. Have an appraisal policy to measure performance
d. Put up with weaknesses - the exception is a weakness in character and integrity, which causes disqualification.
4. Set the right priorities:
Chapter 4, First Things First, deals with concentration. Drucker explains that effective executives set the right priorities and stick to them. They concentrate on the areas where superior performance will produce outstanding results. They also set posteriorities - tasks not to tackle. In the section "sloughing off yesterday", Drucker states that effective executives ask "If we did not already do this, would we go into it now?" If the answer is no, the activity is dropped or curtailed. This concept is explained in more detail in Drucker's book titled "Managing For Results" (1964) as purposeful abandonment in chapter 9. America's best known CEO, GE's Jack Welsh, followed this practice when he got rid of GE businesses that could not be number one or two in their industries.
5. Make effective decisions:
"No decision has been made unless carrying it out in specific steps has become someone's work assignment and responsibility. Until then, there are only good intensions" (page 136).
In chapter 6, The Elements of Decision Making, Drucker explains his five step decision process:
a. Determine whether the problem is generic or unique
b. Specify the objectives of the decision and the conditions it needs to satisfy
c. Determine the right solution that will satisfy the specifications and conditions
d. Convert the decision into action
e. Build a feedback process to compare results with expectations
In chapter 7, Effective Decisions, Drucker states that a decision is a judgment, a choice between alternatives. He explains the importance of creating disagreement, rather than consensus. Drucker explains that disagreement provides alternatives and stimulates imagination.
"The first rule in decision making is that one does not make a decision unless there is disagreement" (page 148).
In the conclusion, Drucker states that effectiveness can and must be learned and that executive effectiveness is the best hope to make modern society productive economically and viable socially.
If you are an executive, you must read this book.

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 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.

If you liked what Peter Drucker had to say in this book, you may want to read his latest book, Management Challenges for the 21st Century, to get your agenda for using the skills you developed from The Effective Executive.

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

An outstanding book with the key word in the title being "effective". Having spent several years working in large corporations and having dealt with many types of managers and executives I am able to count on one hand the ones I have been associated with who were actually "effective" in their respective positions. A must read for anyone currently in an executive management position or aspiring to become any type of manager.

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.

Peter Drucker died on November 11, 2005 at the age of 95. His life and work spanned sixty years and he left behind a body of knowledge and ideas that continue to influence all knowledge workers today. In this book he demonstrates an uncanny ability to see organizations in all their complexity and reduce management problems to their essentials. Like a virtuoso musician, he rarely hits a wrong note, and each idea blends flawlessly with the next. He provides a complete model for management effectiveness that is theoretically sound and solidly based on his experience. This is perhaps the most useful of his 38 books and distills a lifetime of management consulting into a few concise lessons that get to the root of what managers need to do. It provides a complete course in management in a thin book of just 192 pages.

Drucker starts by arguing that all knowledge workers are executives and that effectiveness should be defined as "getting the right things done." He develops his ideas from real experience, supporting them using real-life stories of successes and failures taken from business and politics. He structures the book around five essential practices, which he found all effective managers have in common: 1) track where your time goes; 2) focus on your outward contribution; 3) build on strengths (yours and others'); 4) do first things first; and 5) -- perhaps most interesting and least intuitive -- follow a decision-making process that builds on opinions and encourages dissent.

In elaborating these five essential practices, Drucker presents many insightful findings. However, what is most impressive about the book is not any particular idea or piece of advice, but how his many ideas are tied together into a coherent whole, leading to practical advice on how to do things better.

My own experience of the last 30 years indicates that, in spite of much thought and many advances, management has not improved greatly in the past 100 years. Drucker's lessons haven't got passed on to individual managers in the organizations in which I've worked. These were mostly managed by untrained and inexperienced executives and demonstrated typical levels of dysfunction. In large companies, small companies, failed startup companies, failed acquisitions of entrepreneurial companies by larger companies and failed business reengineering efforts, I've experienced many examples of Drucker's advice not being followed -- including all of the following:
- Managers who consistently spent too much time managing crises and left important work undone
- Culture that evolved into a culture of fear and blame, where heroes were worshipped and winners took all the rewards
- Poor, hasty decisions that were made by high level executives based on insufficient information
- Banishment of dissent and an unwritten policy of "don't ask, don't tell"

Could these failures have been avoided or is managing just too hard? Drucker's criteria for effective management are simple, but not easily followed. Drucker points out that executives tend towards ineffectiveness unless they put energy into the five practices. Although people don't set out to be bad managers, I've frequently seen good people rendered ineffective by the burden of impossible jobs, by mindless assumptions that could not be disputed, and by decisions that could not be questioned. The drive and energy needed to fix this has to come from an extraordinary and dedicated leader -- and this rarely happens. In the same way that entropy dictates that natural systems tend towards disorder, the natural order of organizations dictates that energy drains out of companies and their managers until they become dysfunctional. Hence the frequent rise and fall of our organizations, which are a microcosm for the rise and fall of our nations and civilizations.

It would be hard to read this book and not gain from the experience, but although Drucker was a journalist and his writing is lucid and well-structured, his old-fashioned style makes his book less easy to read than it might be. Also, Drucker's ego sometimes gets in the way. For example, he rarely acknowledges his influences, and when he does, it's usually people he consulted with, like Alfred Sloan, Jr of General Motors, from whom he can claim credit by association. He appears to come up with his huge fund of ideas as if from thin air. This is unfortunate, because there would be great value in understanding where his ideas came from and their links to the ideas of like-minded experts in related areas of thought. For example, one aspect of executive effectiveness that is strikingly missing from his model is motivation. Drucker doesn't address what drives people to excellence and how managers can motivate others.

Drucker may have passed on, but his ideas have not. Minor criticisms aside, this could be the only book you need on your path to becoming a better manager. As Drucker says, "Self-development of the executive toward effectiveness is the only available answer. It is the only way in which organization goals and individual needs can come together." Effectiveness can be learned and the five habits are a good place to start. Certainly Drucker's ideas could be worked into any training program and his book provides the material for a life-time's work of self-improvement. You will learn a great deal by simply reading the book and relating it to your experience and it may inspire you to make some significant changes in the way you do your work.

Graham Lawes

Peter F. Drucker is probably the greatest management thinker of the 20st Century. He has been Professor at New York University and at 83 years old still teaches at the Graduate Management School of Claremont University, California. This book, originally published in 1966, is split up in seven chapters, plus a conclusion.

Effectiveness is not just about intelligence, imagination and knowledge, it is about getting results. And the author believes that "effectiveness can be learned - and it also has to be learned." In Chapter 1 - Effectiveness Can Be Learned, Drucker discusses the five habits of the mind that have to be acquired to be an effective executive: 1. Know thy time; 2. Outward contribution, or what can I contribute?; 3. Making strength productive; 4. First things first; and 5. Effective decision-making. Each of these elements of executive effectiveness are covered in Chapters 2-to-5.

Chapter 6 - The Elements of Decision-Making, which is quite a long chapter is the start of the second part of the book. "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'. So what are the elements of the decision process? 1. "Is this a generic situation or an exception?" Most problems are really generic.; 2. What the decision to accomplish?; 3. What is right, rather than what is acceptable?; 4. Converting the decision into action.; and 5. Feedback has to be built into the decision. This sounds simple, but is rather difficult in practice. But what about the decision itself? "A decision is a judgment. It is a choice between alternatives." And this is the subject of Chapter 7 - Effective Decisions. Contrary to common knowledge one does not start with facts, but one starts with opinions. And the right decision ultimately grows out of the clash and conflict of divergent opinions and out of consideration of competing alternatives. Finally, Drucker concludes with the conclusion that effectiveness MUST be learned. He bases his assumption on the fact that the executive's job is to be effective and that effectiveness can be learned and that effectiveness will/has become more important for the knowledge worker.

As usual, another great book by Peter Drucker. Although the book was originally published in 1966, it still strikes home the simple basic of effectiveness. This book is not only for business executives, but for all people wanting to become effective and in any field required. The author makes use of great examples from the greatest thinkers in time. I recommend this book to readers who did like Larry Bossidy's 'Execution: The Discipline of Getting Things Done' and Stephen Covey's 'Seven Habits of Highly Effective People'. Just one comment: Although Drucker makes it sound easy, it requires a lot of hard work and discipline. The author uses simple business US-English.

If you are ever consigned to that mythical desert island, and can only have one management book, make this the book.

I got my first copy of Peter Drucker's Effective Executive right after I started my first management job after getting out of the Marines in 1968. I read and re-read my hardbound copy, dipping into it again and again for more than three decades until that copy finally fell apart two years ago, and I had to buy another copy. Even though I've read it - cover to cover - several times and dipped into it, literally, hundreds of times, I always find something valuable.

Drucker is one of the most lucid and insightful writers there is. In the Effective Executive, he applies those skills to analyzing the job of anyone who has to do knowledge work. In other words, this isn't for the "executive" in the classic sense. If thinking is a large part of what you do, this is a good book for you. The main points are staggeringly simple. Know thy time. What can I contribute? Making strength productive. First things first. Making effective decisions.

For each key point, Drucker gives you, in his usual straightforward way, both examples and ideas. This
is the book that first taught me to schedule my work in ninety-minute blocks. It's the one that taught me not only about the importance of setting priorities, but how to do it. It's a book that taught me the basics
of decision making, but also that the most important thing about decision making is to have a method for it.

I recommend this to all my students in supervision, management, and leadership classes. I recommend it to you, even if you are not bound for a desert island.