The Effective Executive

Book Author: Peter F. Drucker
Report Author: Johnnie Young

Book Summary
In the course of seven chapters, Drucker presents the definition of what effectiveness is, who the executives are within any organization, how to become effective executives, what executives do to demonstrate effectiveness, and what is expected of executives by the organization. He uses situations and executives from a cross-section of various organizations and businesses, to include the medical field, government, and the military, to present argument to fortify his main points. In his conclusion, the author reiterates the process of how to achieve effectiveness and how to be an effective executive. I do not have critical counter argument to present against any of the points presented by Drucker in this book.

Major Points Made By Author

-Effectiveness can be learned
--Effective: “get the right things done”
--Executives in the organization are expected to be effective
--Imagination, knowledge, and intelligence contribute little to being effective.
--Why do we need effective executives?
---Use knowledge, skill, theory and concept, rather than physical force or manual skill to contribute to the organization.
---Add to the bottom line
--Who is an executive?
--Knowledge workers, managers or individual professionals, responsible for actions and decisions which are meant to contribute to the performance capacity of the organization.
--Not just at the top – but all echelons of the organization
--Four major realities over which executives essentially have no control
---His/her time – it belongs to everyone else
---Executives are forced to keep on operating unless they take positive action to change the reality in which they live and work
----Unless he/she changes it by deliberate action, the flow of events will determine what he/she is concerned with and what he does.
---Executives are within an organization.
----Effectiveness occurs when other people make use of what he/she contributes
----Forced in the direction of ineffectiveness
---Executives are within an organization
----Organization is an abstraction
----Effectively, the results occur outside the organization (business) with the customer
---Promise (benefits) of effectiveness
----Only area where hope exists to raise the level of executive performance, achievement, and satisfaction
----No such thing as “effective personality”
----Not dependant upon intellect, imagination or knowledge
----The only way to become effective is through learning
----Effectiveness is a habit learned through practice
----Five essential mind practices (habits) that need to be acquired to be an effective executive:
1. Know where your time goes
2. Focus on outward contribution
3. Build on your own strength, the strengths of others and the strengths of the situation
4. Concentrate on the few major areas where superior performance will produce outstanding results
5. Make effective decisions

-Know Thy Time (Know where your time goes)
--Effective executives attempt to manage their time and cut back on unproductive demands and consolidate “discretionary” time into the largest possible continuing units through a three-step process:
---Record time
----Keep logs to track time
---Manage time
----ID and eliminate things that need not be done at all
----Delegate tasks
----Don’t waste other people’s time
----Eliminate time wasters
---Consolidate discretionary time
--Time is the most limited resource
--Most of an executive’s time is spent on things that don’t contribute to the organization
--Relationships (customers, superiors, staff, peers) require huge amounts of time
--The higher your are in the organization, the greater the demand on your time
--To be effective, time should be disposed of in fairly large chunks (several hours)
--Most people are time-wasters (hence most people must be ineffective)
--Effective decisions require time

-What can I contribute?
--Effective executives focus on the contributions that they can make that will significantly affect the performance of the organization.
--Requires commitment to the organization and takes focus off of self
--Commitment to contribution satisfies organizational needs in three areas
---Direct results
----Economic: sales and profits
---Builds and reaffirms organizational values
---Builds and develops people for tomorrow
--Focus on contribution supplies the four basic requirements of effective human relations:
---Communications
---Teamwork
---Self-development
---Development of others

-Making Strength Productive
--Strength is the building block of performance
--Build on all the available strengths
--Strengths of associates
--Strengths of superiors
--One’s own strengths

-First Things First
--Concentration is the “secret” of effectiveness
--Effective executives do first things first and they do one thing at a time
--Prune yesterday’s successes to keep them from draining the organization
--Set priorities and employ self-discipline and flexibility

-The Elements of Decision-Making
--Only executives make decisions
--Effective executives make effective decisions
--Effective executives do not make a great many decisions – they concentrate only on the important ones
--Effective executives are not overly impressed with speed in decision-making
--Decisions must become work in order to be a decision
--Elements of the decision process
---Clear realization that the problem was generic and could only be solved through a decision which established a rule or principle
---Boundary conditions (definition of the specifications which the answer to the problem had to satisfy)
---Thinking through what is “right” (the solution which will fully satisfy the specifications with giving attention to compromise, adaptation, or concession)
---Action to carry out the decision
---Feedback to test decision validity and effectiveness

-Effective Decisions
--A decision is judgment of the best choice between almost right and probably wrong
--Effective executives start with opinions (unproved hypothesis) rather than facts to make effective decisions
--Thinks through the situation to determine what needs to be looked at, studied and tested
--Asks the critical question “What is the criterion of relevance?”
--Uses feedback to find the appropriate measurement before the decision is made – a risk-taking judgment
--First rule of decision-making: don’t make a decision unless there is a disagreement
--Reasons for disagreement: 1)safeguards against becoming a prisoner of the organization; 2)provides alternatives to a decision; and 3)stimulates the imagination
--The effective executive is first concerned with understanding rather than who is right or wrong
--Decision-making cannot be confined to a small group at the top

-Conclusion
--The author presented this book to be based upon two premises
---It is the executive’s job to be effective
---Effectiveness can be learned

How Are Major Points Applicable To Group

• Defines us as executives and provides explanation of what being effective executives really mean and what it requires in terms of self-discipline, self-development, contributions, and time management.


• Effective executives take advantage of individual strengths to build strong teams


• Sets the expectations for what will happen as we move up the corporate ladder

Recommended Other Readings

• The Seven Habits of Highly Effective People – Steven Covey


• Execution: The Discipline of Getting Things Done – Larry Bossidy/Ram Charan