Reviewed Jan 08 M Rhodes The Effective Executive Harper Collins ISBN: 0-06-053768-X Author: Peter Drucker Overview This is perhaps the seminal work on how an executive should manage his self to be both efficient and effective. effective. Although a relatively small book, Drucker Drucker has presented the essential elements of executive effectiveness effectiveness in a clear, no nonsense nonsense way. His points are well made and well supported by short case studies and clear examples developing into a clear and concise discussion discussion of how an executive executive can become more effective. effective. Essential reading from one of the premier management thinkers of our time. Chapter 1 – Effectiveness Can Be Learned The executive's role is to 'effect' and' execute' but most executives although intelligent and knowledgeable seem to lack the ability to put that knowledge and intelligence to real effect. Brilliant men are often strikingly strikingly ineffective. ineffective. Intelligence, imagination and knowledge are essential resources but only effectiveness converts them into results. In the modern economy, the knowledge organisation or ganisation is the central reality where the centre of effort is about applying applying knowledge and maximising maximising its usage. Working on the right things is what makes makes knowledge work effective. This can be measured measured as we used to measure output or quality. quality. A knowledge worker cannot however be supervised supervised closely or in detail, he must be motivated and allowed to direct himself himself toward performance and contribution. Drucker therefore suggests that every knowledge worker in a modern organisation is therefore an executive by virtue of his position or his knowledge. It matters not whether he manages staff, he manages information and himself and this can add significant contribution. There are four major factors over which an executive has no control and conspire to make him less effective: 1. The The exe execu cuti tive ve's 's time time is not not his his own own,, but but ten tends ds to to belo belong ng to ever everyb ybod ody y else else.. He seem seemss always to be at the behest of someone or some project rather than applying himself to where he can be most effectiveness. 2. Exec Execut utiv ives es are are forc forced ed to to keep keep on ope opera rati ting ng in the the dom domai ain n from from whic which h they they are are familiar unless they make a complete change and focus on running the whole business. 3. The exec xecutiv utivee is is forc forced ed to work work wit within hin the organisation, organisation, which means that he is only effective by directing what others in the organisation organisation contribute. Organisation is about
multiplying the strength strength of the individual. Unless the executive can can reach these people, he will have no effectiveness. 4. The The exe execu cuti tive ve is within the organisation which means he limits his vision and reality to the confines of that that organisation. It becomes a distorting distorting or limiting lens that that stops him seeing the real situation clearly. These factors are constraints that limit the executive unless he can learn to become more effective. What seems to be required is universal genius but this is scarce. Therefore we should staff or organisations with people who excel in one key ability. Effectiveness can can be learned, however, as it is a habit or rather a set of simple simple practises. Practises that need to be repeated until they become ingrained habits. There practises or 5 essential habits of Effective Executives are: 1. They They kno know w wher wheree thei theirr tim timee goe goes. s. They They mana manage ge sys syste tema mati tica call lly y the the sma small ll amo amoun unts ts of discretionary time they have. 2. They They focus focus on outward outward contri contribut bution ion.. They They focus focus on result resultss rather rather than than effort effort.. They They constantly ask 'What results are expected of me?' 3. They They buil build d on on thei theirr own own streng strengths ths,th ,thee stre strengt ngths hs of their their super superior iors, s, collea colleagu gues es and subordinates. They do not build on weakness and do not start things they cannot complete. 4. They They focu focuss on on a few few maj major or area areass whe where re supe superi rior or perf perfor orma manc ncee adds adds valu value. e. They They set set priorities and stay with those priority decisions. First things first and second things things not at all. 5. They They mak makee effe effect ctiv ivee deci decisi sion ons. s. Thes Thesee are are mad madee on judg judgem emen ents ts base based d on diss dissen enti ting ng opinions rather than consensus consensus on the facts. What is needed is the right strategy strategy rather than flash tactics. Chapter 2 – Know Thy Time Effective executives executives know that time is a limiting factor. factor. It is an inelastic resource that is irreplaceable and despite the demand the supply will not go up. The key to time effectiveness is a 3-step process:
Record the use of time Manage time Consolidate time
There are many demands on an executives executives time. Many of these demands are time wasters rather than being productive. Additionally, most executive executive tasks require significant significant blocks of time to complete. To begin a task task without the the time to complete it is pointless. It leads to ineffectiveness and can lead to poor decisions and error. Strategic and people decisions decisions are time consuming. consuming. Thy are never simple and finding a fit in a complex situation needs care and consideration.
Firstly, we need to record actual time usage. The method is unimportant, unimportant, but the identification of where time is spent is essential and is best done in real time. With an idea of what you are doing with your time you can then ask some investigative questions: 1.
Iden Identi tify fy what what does does not not nee need d to to be be don donee and and is only only wast wastin ing g tim time? e?
2.
What What can can be be don donee by by som someo eone ne else else and and pro proba babl bly y bet bette ter? r?
3.
What What do I do do tha thatt use usess tim timee wit witho hout ut be bein ing g eff effec ecti tive ve??
These questions help identify the time leaks. These normally fit into 4 categories: 1.
Time Time is wast wasted ed due due to to lac lack k of of pla plann nnin ing, g, fore foresi sigh ghtt or or a sys syste tem. m.
2.
Time Time was waste ted d due due to ove overr staf staffi fing ng and and thi thing ngss ther theref efor oree take takein ing g long longer er than than requ requir ired ed..
3. Time Time is is wast wasted ed due due to to mal-o mal-org rgan anis isat atio ion n lead leadin ing g to havi having ng too too man many y meet meetin ings gs and and discussions. 4.
Time Time is waste wasted d due due to poor poor info inform rmat atio ion n flo flow, w, form format at or avai availa labi bili lity ty..
Having established where the time leaks are, an effective executive can now reduce the leaks and build more discretionary time. Now that time needs to be used effectively! Chapter 3 – What Can I Contribute Effective executives focus focus on contribution. What is the content, level, standard, quality and impact in your work or your relationships? The executive needs to identify where his narrow skill, his speciality and his department adds most to the performance performance of the whole organisation. They ask how can I contribute contribute here and to what standard do I need to complete it? This is a particularly important factor in motivating a knowledge worker. Focusing on contribution supplies four basic requirements of effective human relations: 1. Comm Commun unic icat atio ion n is is imp impro rove ved d bec becau ause se team team me memb mber erss und unders ersta tand nd what what thei theirr contribution is towards the whole. 2. Team Teamwo work rk is is enh enhan ance ced d beca becaus usee the the foc focus us on cont contri ribu buti tion on dri drive vess team teamss to to collaborate and communicate communicate their contribution to to that whole. They ask, 'who needs my my output for it to be effective?' 3. Self Self develo developme pment nt benefi benefits ts becaus becausee a execut executive ive focus focusing ing on contri contribut bution ion will will often often identify additional knowledge or skills they need to better contribute.
4. Indi Indivi vidu dual al deve develo lopm pmen entt ofte often n impro improve vess beca becaus usee the the exec execut utiv ivee sets sets the the sel self f development standard for the organisation. To focus on contribution is to focus on effectiveness! Chapter 4 – Making Strength Productive The effective executive makes a personal, a team or an organisational strength as productive as possible. They identify personal, team and organisational strengths strengths and apply them effectively. If a strength isn't present, the executive needs to identify strength in an external person and hire them. The key is to find someone who can contribute contribute strongly to the output and then give then a good job. So what constitutes a good job? 1. Each Each job job mus mustt be well well des desig igne ned d so that that it it can can be ach achie ieve ved d by one one appr approp opri riat ately ely skilled person. 2.
Each Each job job mus mustt be be big big and and dem deman andi ding ng so as to chall challen enge ge the the per perso son n in in it. it.
3.
Each Each job job mus mustt be be des desig igne ned d by by what what the the man man can can do do not not what what is requ requir ired ed..
4. Each Each job job needs needs to reflec reflectt a releva relevant nt stren strength gth withou withoutt succ succum umbin bing g to to a weakne weakness ss in the person completing it. The executive then takes responsibility for the performance performance of the individual. They guide the individual to use their strength and make the best contribution. This approach is also useful useful when managing upwards. upwards. Identify the contribution contribution and strengths of a senior manager and adapt your contribution to meet their needs. As to the executive himself, he needs to also provide contribution through his personal strengths. He also needs to have a more strategic strategic view and identify how best best the contributions of all can can benefit the organisation. organisation. The key principle being to to feed the opportunities and starve the problems. The task of the executive therefore is not to change individuals but to multiply output and performance by applying each person to his strength and aspirations. Chapter 5 – First Things First If there is one 'secret' of effectiveness then it is the ability to concentrate. Effective executives do first things things first and one at a time. They do this with passion, discipline and focus. It is necessary, particularly with the executive executive because so many elements are demanding his his time. The more he can concentrate his his effort and resources, the more that can be achieved The key elements of putting the first thing first are: 1. Pick Pick fut futur uree pote potent ntia iall over over poo poorr past past per perfo form rman ance ce,, focu focuss on what what may may be be produ product ctiv ivee rather than what you know hasn't been!
2. Focu Focuss on on the the oppo opport rtun unit ity y rath rather er than than the the pro probl blem em.. This This make makess you you thin think k of of the the future and what needs to be done first rather than the problem which is rooted in the past. 3. Set your your priori prioritie tiess with with courag couragee rather rather than than intell intellige igent nt analys analysis. is. You will never never have have all the information you need so be brave. 4. Choo Choose se your your own own dire direct ctio ion n rath rather er than than foll follow owin ing g the the cro crowd. wd. They They hav havee diff differe erent nt strengths and resources and so their approach will not be as effective in your hands. 5. Aim Aim high high and and aim aim for for som somet ethi hing ng tha thatt will will mak makee a diff differ eren ence ce rat rathe herr than than som somet ethi hing ng that is safe. Concentration then is the courage to impose on time the decision to act on the things that matter most and make time and events your servant rather than becoming theirs. Chapter 6 – The Elements of Decision-making Decision making is specifically an executive role, one of many but decisions are executive actions! Effective executives make make effective decisions. This requires a systematic approach with clearly defined elements. Focus on these key points to help ensure an effective decision: 1. Is this this a gen generi ericc or or uni uniqu quee dec decis isio ion? n? Ge Gene neri ricc que quest stio ions ns have have norm normal ally ly be been en answered, whereas unique questions have new solutions to be considered. 2. What What doe doess the the dec decis isio ion n have have to to acco accomp mpli lish sh?? What What mus mustt thi thiss deci decisi sion on att attai ain n as a minimum so that we can move forward? 3.
What What are are the the boun bounda dary ry cond condit itio ions ns for for thi thiss dec decis isio ion? n?
4. Aim Aim at at wha whatt is is rig right ht rath rather er than than on what what is acce accept ptab able le.. That That way way you you can can alwa always ys avoid an early or incorrect compromise. 5.
Conv Conver ertt the the deci decisi sion on into into acti action on.. A dec decis isio ion n wit witho hout ut acti action on is just just a wis wish. h.
6. Buil Build d in a feed feedba back ck mec mecha hani nism sm so tha thatt you you can can conf confir irm m the the dec decis isio ion n has has been been correct or make another decision if it is required. These then are the elements of the decisions process. process. But what of the decision decision itself? Chapter 7 – Effective Decisions A decision is a choice between alternatives based on information and judgement Common counsel on decision making making is to first gather all of the information. This is an impossible task to achieve and even more difficult to analyse if it where achievable.
This isn't how effective effective executives normally make make decisions. They normally start with opinions as untested untested hypotheses. These need then to be tested tested against reality and the executive must consider consider facts to test each hypothesis. Each fact must be considered for relevance and for its appropriate measurement. measurement. Decisions then, do not flow from a consensus of facts facts but from the survivor survivor of a number of competing alternatives. So any rigorous method needs to evolve from an awareness that opinions come first and analysis second. The first question to ask is 'Is a decision d ecision really needed?'. Let us assume that one is. The executive then encourages input so that various opinions can be tested against reality. This requires the correct criteria to be investigated and presented and in measures that are appropriate to the problem. This is not a mathematical mathematical exercise because because we cannot always measure the criteria in the the problem domain. It is more a risk-based judgement. judgement. Alternative solutions must must be considered. Unless you consider alternatives alternatives you have a closed mind and may have missed missed a better solution. Beware the intuitive solution. solution. Encourage disagreement. Don't think right or wrong, but make a commitment commitment to identify why people disagree. Insisting on disagreement: 1. Stop Stopss the the deci decisi sion on mak makin ing g bein being g cons constr trai aine ned d to the the lim limit itss of the the orga organi nisa sati tion onss thinking. 2.
Ensure Ensuress you consid consider er altern alternati atives ves.. If we all think think the same same then then no no one one is thinki thinking. ng.
3. stim stimul ulat ates es the the ima imagi gina nati tion on to to find find the the rig right ht sol solut utio ion n rath rather er tha than n just just the the fir first st possible solution. Having made a decision the executive needs to consider the next action.
Act if the benefits outweigh the costs/risks Act or do not act but do not compromise
Conclusion – Effectiveness Must Be Learned This book hangs on 2 assumptions: 1.
The ex executi utives job is is to be be ef effective.
2.
Effectiveness can be learned.
The key points are: 1. Reco Record rd where where the the tim timee is is spe spent nt.. Elim Elimin inat atee was waste ted d tim timee and and lea leaks ks and and spe spend nd time time where it is most effective. 2.
Focu Focuss on on the the cont contri ribu buti tion on.. Wher Wheree is is eff effor ortt be best st spen spent? t?
3.
Make strength productive.
4.
Apply yourself to First things First.
5.
Make Make effe effect ctiv ivee decis decisio ions ns usi using ng a robu robust st sys syste tem m of exp explo lorat ratio ion n and and disag disagre reem emen ent. t.
Summary Conclusion It is not possible to overestimate the impact that Drucker has had on modern management theory. This book in particular has significant lessons lessons for anyone that wants to improve their personal effectiveness. effectiveness. This summary captures captures a little of the knowledge knowledge contained in the original text, in particular the case studies and anecdotes that support Drucker's points. An excellent book, well presented and an essential essential addition to any manager manager or leader's library. Read it often! Rating: 5/5