Scientific Management Approaches

Managing for Results

Peter F. Drucker

Professor: Dr. Peter Mattheis

Student: Tran Lam Tuyen - 15291
Cao Duc Thang - 15465
 • Introduction
• Peter F. Drucker
• Managing for Results
• Understanding the Business
• Business Realities
• Results Areas
• Customer is the business
• Knowledge is the business
Agenda • Focus on Opportunity
• Building on Strength
Managing for Results • Finding Business Potential
• Making the Future
• A Program for Performance
• The Key Decisions
• Business Strategies
• Building Economic Performance
• Management by Objectives
• Summary
• Reference
Managing for Results 2
 • Objectives
Introduction
• Peter F. Drucker
• Managing for Results

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Managing for Results
Reference 3
 Introduction

• Objective:
o Managing for Results was the first book to address itself to what is now called “business
strategy.”
o It took the first step toward a discipline of economic performance in business enterprise.
o If you’re responsible for the performance of any part of a business, it will give you the
knowledge and insight to do a better job.
• Interaction: We’re welcome to have the your questions during the
Presentation

• Time frame: 30-40 mins

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 4
 Peter F. Drucker

• Peter Ferdinand Drucker

• November 19, 1909 - November 11, 2005
• American, born in Austria, educated in Austria
and England.
• Was a leader in development of management
education
• Invented the concept of management by
objectives and self-control.
• Described as "the founder of modern
management"

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 5
 Managing for Results

• Originally published in 1964

• First book to address itself to what is now called “business strategy.”
• Book’s premise:
o Businesses exist to produce results on the outside, in the market and the economy.
o On the inside there are only costs.
• To explain:
o Analyze of markets, products, environment and how to position a business in it
o Organized abandonment of old, the obsolete, the no-longer productive
o Rewards for leadership, objectives of innovation
o Balance managing today’s business with making the business of tomorrow

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 6
 Understanding the • Business Realities
Business • Results Areas
• Customer is the business
• Knowledge is the business

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 7
 Business Realities

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 8
 Results Areas

Products/ Production lines

(or Services)

Markets
(including customers and end-users)

Distributive Channels

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 9
 Customer is the business

• MARKET REALITIES
o There is only one person who really knows: the customer.

o Nobody pays for a “product.” What is paid for is

satisfactions.

o Not “who pays” but “who determines the buying decision”

is the “customer.”

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 10
 Customer is the business

• HOW TO SEE THE UNEXPECTED

o Who is the non-customer ? And can we find out why he is a non-
customer?
o What does the customer buy altogether? What does he do with his
money and with his time?
o What do customers - and non-customers - buy from others? And
what value do these purchases have for them? What satisfactions do
they give?
o What product or service would fulfill the satisfaction areas of real
importance - both those we now serve and those we might serve?

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 11
 Customer is the business

• UNDERSTANDING THE CUSTOMER

o What in the customer’s behavior appears to me totally irrational? And what
therefore is it in his reality that I fail to see?

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 12
 Knowledge is the business

• WHAT CAN WE DO WELL?

o What have we done well while somebody else has failed to do the same job?
o What do we do poorly - while someone else seems to have no difficulty with it?

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 13
 Knowledge is the business

• KNOWLEDGE REALITIES
o It takes practice to do a knowledge analysis well.
o Every knowledge eventually becomes obsolete. What else do we need? Or do we need
something different?
o No company can excel in many knowledge areas.

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 14
 Knowledge is the business

• HOW GOOD IS OUR KNOWLEDGE?

o Do we have the right knowledge? Do we concentrate where the results are?
o Are we actually getting paid for the knowledge we contribute?
o Is our knowledge sufficiently built into our goods and services?
o How can we improve? What are we missing? And how do we go about supplying it?

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 15
 • Building on Strength
Focus on Opportunity
• Finding Business Potential
• Making the Future

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 16
 Building on Strength
• 3 Approaches:
o Ideal business model; Maximize opportunities; Maximize resources.
• Targets and Time
• Design ideal business:
o Start, correct, refine, get major results fast.
o 3 categories of business to analysis: real push, abandonment, also-ran
• Upgrading the existing business:
o 2 categories of opportunities: Replacement and Innovations
• Staffing for performance
o Allocated major opportunities to first-class people

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 17
 Finding Business Potential

• Vulnerability as an Opportunity
• Turning Weaknesses into Strengths
• Hidden opportunities threat a business or an industry

Making the Future

• Future: cannot be known, different from what exists and what we expect
• Future that has already happened
• Power of an idea

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 18
 A Program for • The Key Decisions
Performance
• Business Strategies
• Building Economic Performance

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Managing for Results
Reference 19
 The Key Decisions

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 20
 Business Strategies

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 21
 Building Economic Performance

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 22
 Management by Objectives (MBO)

• Agreement on common goals by all levels

• Specific goals and responsibilities of each
level
• Monitor and evaluate performance
• MBO goals are expected to be SMART

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 23
 Summary

• The important economic decisions today are mainly made by executives.

• Organized business has become entrepreneurial center of modern
economy and society.
• The man of knowledge in business has to impose 3 commitment:
o Contribute knowledge and efforts to economic results.
o Concentrate, take his responsibility for allocating to opportunities and results
o Systematic, purposeful, and organized discharge of the economic tasks
• The economic task, if done purposefully, responsibly, with knowledge
and forethought, can indeed be exciting and stimulating.

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Reference 24
 Reference

• Managing for results, Peter F. Drucker

• The practice of management, Peter F. Drucker
• Management, Peter F. Drucker

Understanding the A Program for Management by

Introduction
Business
Focus on Opportunity
Performance Objectives
Summary Topic 12: Ethernet
Reference 25
Q&A
Thank you!