How to Be an Effective Executive: Timeless Lessons from Peter Drucker

Created

Jun 28, 2024 1:01 AM

Manage your time

Effective executives know where their time goes. They systematically record and analyze their time allocation. Then they cut back on unproductive demands and consolidate their "discretionary" time into the largest possible continuing units. Drucker considers time the scarcest resource and unless it is managed, nothing else can be managed.

Focus on contribution and results

Effective executives focus on outward contribution. They gear efforts to results rather than just busyness. They start by asking "What results are expected of me?" rather than focusing just on the work to be done. They constantly raise the question - "What can I contribute that will significantly affect the performance and the results of the institution I serve?"

Make strengths productive

Effective executives build on strengths - their own strengths, the strengths of superiors, colleagues, and subordinates. They do not build on weakness nor do they start out with things they cannot do. They ask "What can this person do uncommonly well?" and put them in positions to leverage their strengths.

Set the right priorities

Effective executives concentrate on the few major areas where superior performance will produce outstanding results. They force themselves to set priorities and stay with priority decisions. They know they have no choice but to do first things first and second things not at all. The alternative is to get nothing done.

Make effective decisions

Effective executives know that decision making has its own systematic process and its own clearly defined elements. They know an effective decision is always a judgment based on "dissenting opinions" rather than "consensus on the facts." And they know to make many decisions fast means to make the wrong decisions. What is needed are few, but fundamental decisions.

In addition to these five habits, Drucker identifies some other key traits and practices of effective executives:

They ask "What needs to be done?" and "What is right for the enterprise?" rather than just what they want to do. They focus on how their organization can make a real contribution.
They develop action plans but are flexible to adapt and change course as needed. They take responsibility for decisions.
They take responsibility for communicating, making sure their action plans and information needs are understood.
They focus on opportunities rather than problems. They run productive meetings.
They think and say "we" rather than "I." They take responsibility for the whole and don't just think in narrow functional terms.

Drucker argues that effectiveness must be learned. It is a discipline and a habit, not an innate skill or personality trait. And while the principles may seem obvious, the fact is that being effective is hard work and something that requires constant practice and self-discipline.

Effectiveness is especially important for knowledge workers and in a knowledge-based economy. Unlike manual work, knowledge work cannot be easily defined or supervised. It requires effectiveness far more than efficiency. Getting the right things done is more important than just doing things right.

Drucker also makes the key point that an executive must be able to manage himself before he can hope to manage others or make his organization effective. Gaining control over one's time is the critical starting point. Executives are beset by constant demands and it takes discipline to consolidate discretionary time for the most important work.

Another critical concept Drucker introduces is "posteriorities" - the deliberate decision to not do certain things in order to focus on priorities. It's not enough to just set priorities, an effective executive must have the discipline and courage to say no and stop doing unproductive things to focus on the areas that will deliver outstanding results.

While Drucker's examples and writing style can feel dated at times, the core ideas he presents remain highly relevant for today's business leaders and knowledge workers. His insights on time management, prioritization, leveraging strengths, focusing on results and opportunities, and effective decision making provide a master class on what it takes to be an effective executive.

Jim Collins, the author of business classics like Good to Great, has called Drucker the "Copernicus of management" and credits The Effective Executive as one of the most influential books in his life. He notes that Drucker's ideas are the foundation for much of his own writing and research on what makes companies and leaders successful.

Other management experts and business leaders from Jack Welch to Jeff Bezos have cited Drucker as a key influence. Amazon's leadership principles, which shape the company's unique culture, echo many of Drucker's ideas around focusing on results, thinking long-term, and making high-quality decisions.

While the central practices outlined in the book may seem like common sense, the reality is that being an effective executive is incredibly hard to do in practice. It takes real work, focus and diligence to manage oneself, leverage strengths, set the right priorities, and contribute to making the whole organization effective.

But for executives and knowledge workers today, effectiveness is an absolutely critical skill to learn. In a world of constant distraction and information overload, the ability to prioritize, focus on results, and get the right things done is more important than ever. Drucker's ideas provide a roadmap.

To put the concepts of The Effective Executive into practice, start by tracking and analyzing how you spend your time over the course of a few weeks. Look for patterns and areas to cut back on unproductive activities and demands. Begin to consolidate discretionary time into blocks for your most important work.

Next, clarify the key results and outcomes you are responsible for delivering. What are the most impactful ways you can contribute to your organization's success? Focus your efforts on these areas.

Evaluate your own strengths and the strengths of your team members. Put people in positions to do what they are best at. Stop trying to put in what was left out and build on what is there.

Force yourself to prioritize. What are the top 3-5 areas that will deliver the greatest results? Commit to these and learn to say no to everything else. Have the courage to make tough choices.

Finally, approach decision making systematically. Know what the decision has to be. Identify the minimum needed to make an informed choice. Seek out dissenting views and conflicting opinions before deciding. Convert decisions into action.

Drucker's ideas in The Effective Executive are simple but not simplistic. Putting them into practice requires real self-discipline and organizational discipline. But for executives and knowledge workers committed to getting the right things done, they provide an invaluable set of practices to learn and live by. Becoming truly effective is a lifelong journey but one with incredible rewards for both the individual and the organization they serve.