The IDB Project | Chapter 2

The IDB Project is a series of posts sharing summaries, snippets, and takeaways from INSIDE DRUCKER’S BRAIN (Jeffrey Krames)

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CHAPTER TWO
Execution First and Always

“Management must always, in every decision and action, put economic performance first. It can only justify its existence and its authority by the economic results it produces.” — Peter Drucker

Larry Bossidy and Ram Charan wrote the best-selling business book, EXECUTION: The Discipline of Getting Things Done (2002). As Jeffrey Krames points out, “Execution” was a concept Peter Drucker wrote about extensively and much of the Bossidy/Charan book is a rehash of earlier Drucker writings.

Peter Drucker failed to give his concepts catchy names. Instead, he was more concerned about bringing new and worthwhile business concepts to light. Drucker wrote extensively about “execution” … he just didn’t call it that.

Krames summarizes Drucker’s thoughts on execution by sharing six ways managers fail to execute consistently.

1. Failure to Abandon Bad Projects
Drucker once said, “There is nothing so useless as doing efficiently that which should not be done at all.” He was a strong believer in having managers conduct regular performance reviews of products. And an even stronger believer in abandoning projects that fail to meet objectives.

2. Too Much Management Bureaucracy
Having to navigate through unnecessary corporate red tape will stifle the ability of any manager to execute upon good ideas.

3. Poorly Defined Objectives and Business Values
Effective and efficient execution is helped greatly when a business outlines clear project objectives and when the values of a business are not just articulated, but lived.

4. Inappropriate Management Structure
“The right [management] structure does not guarantee results. But the wrong structure aborts results and smothers even the best direct efforts.” (MANAGING FOR RESULTS (1964), Peter Drucker)

5. Poorly Communicated Strategies
If employees do not understand how their individual contributions fit into the overall company strategy, execution will suffer.

6. Not Embracing a Customer-First Point-of-View
In THE PRACTICE OF MANAGEMENT (1954), Drucker wrote, “There is only one valid definition of business purpose: to create a customer.” Companies that embrace and foster an insular corporate culture will result in having employees lose focus of what matters most — the customer.

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Next, Chapter Three of the The IDB Project.

Comments

[Barchbo]

I think American managers forgotten that economic performance is paramount - we have spent so much time focusing on employee retention, employee happiness, etc. This post is a great reminder to get back to basics.

[Mike Wagner]

John, thanks for taking on this project and generously sharing your learnings.

Drucker has been a long time favorite of mine since a mentor introduced me to The Effective Executive.

The last point in today's post, "Not Embracing a Customer-First Point-of-View" continues to be the biggest sticking point for many of the folks I work with.

Why? That's the question I frequently ask.

And then I wonder, sometime out loud, what's it going to take to shock these leaders and their organizations into focusing on customers.

See what you've stirred up!

Keep creating...it's good for business,
Mike

[johnmoore (from Brand Autopsy)]

Killer ... glad this post stirred things up with ya. INSIDE DRUCKER'S BRAIN is a very worthwhile book chock-full of great insights. I'm only sharing a smidgen of the great insights.