Who was Peter Drucker?

Drucker's
childhood and youth in Vienna

Peter F. Drucker was born in Vienna on
November 19, 1909 in Vienna, when the city was still the vibrant
centre of the Habsburg monarchy. He grew up in Kaasgrabengasse, a
tranquil avenue in the Viennese suburb of Döbling. His
father Adolph was a high government official, his "strong-willed,
argumentative and independent" mother Caroline, a former medicine
student with an interest in psychiatry, ran the household. Peter
and his younger brother Gerhard were surrounded by their adored
Grandmother and by any number of uncles and cousins and family
friends who were university professors – in law, in economics,
medicine, chemistry, biology, art history and music.

The Druckers lived in a semi-detached house
designed by renowned architect Josef Hoffmann, shared by the
family of the music historian and composer Egon Wellesz who
belonged to the intimate circle of the poet Hugo von
Hofmannsthal. Two or three times a week Drucker's parents hosted
soirées at their home. State officials, lawyers, doctors,
psychologists, scientists and philosophers met there for dinner
and debated all sorts of hot topics – from economics to
psychoanalysis. Already at an early age, Peter was allowed to
participate. "That was actually my education", he states
later.

Regular guests of the Druckers included the
economists Schumpeter, Hayek and Mises, with whom Drucker's
father had professional relations in his function as director of
the K. & K. Commercial Museum (the forerunner of what would
later become the Austrian Ministry of Economics). Hans Kelsen,
who was married to the youngest sister of Drucker's mother,
practically belonged to the family, even if Peter Drucker did not
have a very good relationship to him: "I couldn't stand the
ultra-rationality of my Uncle Hans." More cordial were Drucker's
father's relations with the Czech top politicians Tomas and Jan
Masaryk, who were also regular visitors.

In his book "Adventures of a Bystander"
Peter Drucker describes his early years in Vienna, the cultural
and intellectual environment in which he was brought up by venue
of the individuals who fascinated him in the way they reflected
their society: his Grandmother, Dr. Eugenia and Dr. Hermann
Schwarzwald, amongst many others.

Drucker's parents belonged to the
"Schwarzwald Circle" around the social reformer Eugenia "Genia"
Schwarzwald. She came from the far end of Austrian Poland to the
University of Zurich, graduated with the degree of Doctor of
Philosophy in 1900, and made it straight to Vienna, determined to
raise the flag for equal education for girls: Genia opened a
college-preparatory girl's school, than the first full-scale
women's Gymnasium in Austria. She also set up the first
coeducational primary school in Austria, which Peter Drucker
attended in fourth grade. His two classroom teachers were able to
pass on to him lifelong lessons: "I took from Miss Sophy a
lifelong appreciation for craftsmanship.. and respect for the
task…". "And Miss Elsa had given me a work discipline and
the knowledge of how one organizes for performance".

When the famine years hit Genia also
organized co-op restaurants ("Gemeinschaftsküchen") and it
was at the co-op restaurant at Thurngasse 4 (near Berggasse)
where the eight or nine years old Peter was asked by his parents
to shake hands with "the most important man in Austria and
perhaps in Europe"- Dr. Freud.

Genia also ran and managed a very puzzling,
talk show like Salon in her home in Vienna and up from the 1920s
in her recreation resort, the summer villa "Seeblick" in
Grundlsee, (on the Alpine lake Grundlsee in Styria, near the
Freuds summer villa). She invited "guest stars" such as Thomas
Mann and "fixed stars" such as Count Hellmuth Moltke (who in the
Third Reich would become the wisest and most visionary head of
the German resistance). She also invited guests whose job was to
listen and to ask the right questions, mostly university
professors, such as Ludwig Rademacher, who rebuilt the University
of Vienna after World War II, and their wives. Peter was not only
admitted to the Salons since he was a teenager, but also
encouraged to speak out.

Apprenticeship in
Hamburg

Austria of the inter-war period offered
Drucker a good education, but no perspectives, and in 1927, after
graduating from the Döbling Gymnasium, he left for Hamburg
to complete a one-year apprenticeship at an old-established
trading company.

Along with Drucker, seven other Gymnasium
graduates began their merchant's apprenticeships – a novelty for
the company, which specialized in the export of cotton, as until
then, positions within the business had been inherited. The
managing director, "Herr Simonis, the Twelfth" however, did not
think much of this innovation and took little care of the
trainees:

"We learned nothing, absolutely nothing. It
was terribly boring." Yet he does not consider his time in
Hamburg a lost year: "I read a lot – novels and history,
especially nineteenth century. Also a lot of English, French,
Spanish, and Italian literature." And he discovered the work of
the Danish philosopher Kierkegaard, who would have a lasting
influence on him.

Peter Drucker As
Journalist

Peter Drucker's first journalistic attempts
were also made at this time. He began writing his first articles,
such as for Der Österreichische Volkswirt (The Austrian
Economist). Moreover, though more as a gesture to his father that
out of his own interest, he began his studies of law, which he
continued after moving to Frankfurt the following year. In
Frankfurt he found a post at the daily Frankfurter
General-Anzeiger, a regional rival newspaper to the famous
Frankfurter Zeitung.

The Frankfurter General-Anzeiger, which
according to its own definition was "by far [the] most read daily
newspaper and most-used advertising organ in Frankfurt a.M. and
the Rhine-Main economic area" had a circulation of half a million
and an editorial staff of fourteen people. The generation before
him had remained in the trenches of the First World War so that
Peter Drucker quickly rose to a position as one of the three main
editors.

He was primarily responsible for the
foreign affairs and economic departments, but in practice, all of
the editors were, under editor-in-chief Erich Dombrowski,
responsible for all of the departments. When there was a shortage
of personnel, Drucker also had to attend to the music and women's
departments. Or he visited the mass rallies of the political
parties for his newspaper, or went to press conferences "if a
Brüning or Hitler came to Frankfurt."

As a journalist, Peter Drucker experienced
firsthand the crises and decline of the Weimar Republic. He had
no illusions about the intentions and danger of the National
Socialists – in contrast to many others he took Hitler and his
statements seriously.

Drucker's
emigration to England

Immediately after Hitler took power in 1933
Drucker left Germany for London, where he found work first as a
trainee with an insurance company, and then as chief economist of
a private bank. Through the director of the bank, who was also
from Austria, Drucker secured in 1934/35 a place in the legendary
seminar of John Maynard Keynes in Cambridge, which he remembers
as a theatrical one-man show.

In London Drucker reconnected with Doris
Schmitz, born in Mainz, whom he had gotten to know at his
international law seminar at the University of Frankfurt. They
married in 1934.

Already immediately after the takeover of
the National Socialists, Drucker began to record and analyse the
experiences he had in Germany. In 1936 a first version was
published with a Viennese publisher; then, in the spring of 1939,
Drucker's analysis appeared in an enlarged edition and in
English, with the title The End of Economic Man.

Drucker's analysis met with a broad and
positive response, including from Winston Churchill, who praised
the book and its author in the Times Literary Supplement. Hayek,
in his own analysis of totalitarianism, The Road to Serfdom,
referred in two places to Drucker's book.

How Drucker 'invented' management at
GM

Already in 1937, Drucker had emigrated to
the USA, where he worked first as a free-lance journalist,
chiefly for Harper's, but also for the Washington Post. At the
beginning of the forties, he also began teaching political
science and philosophy at Bennington College in
Vermont.

At this time, Drucker also began his
activities as a business consultant: In 1942, in his book The
Future of Industrial Man, he had dealt with the development of
society in the twentieth century and had come to the conclusion
that the society of industrialized states had been transformed
into a "society of organizations." Drucker was thereby primarily
interested in the political aspect, as the decision-makers in
these organizations exercised social power, which Drucker did not
see to be defined and legitimated. But an historically novel
phenomenon also caught his interest: the large-scale corporation.
As a result of his book, Drucker was invited by General Motors in
1943 to conduct a two-year social-scientific analysis of the – at
that time world's largest – corporation. For almost two years, he
took part in every board meeting, analysed decision-making and
production processes, and conducted countless interviews with top
managers, department heads, and simple workers. In 1946 Drucker
published the results of this study in his Concept of the
Corporation, thereby laying the foundations of management as a
scientific discipline.

Drucker as
management consultant

Since the 1940s, Drucker did consulting
work for nearly every major corporation, including General
Electric, Coca-Cola, Citicorp, IBM and Intel, but also for
numerous governmental and non-governmental organizations both
home and abroad. And he made the personal acquaintance of, as
well as advised, nearly every key figure of the American economy
in the second half of the 20th century: starting with Alfred
Sloan, the legendary first general director of General Motors,
and his colleague Charles E. Wilson, who with GM developed the
model of retirement funds, to contemporary captains of industry
like Jack Welch of General Electric and Andrew Grove of Intel.
Both expressed the highest praise for Drucker in a 1997 cover
story of the American economic magazine Forbes. Grove was quoted
as saying: "Drucker is a hero of mine. He writes and thinks with
such exquisite clarity – a standout among a bunch of muddled fad
mongers."

Peter Drucker's consultations had an almost
legendary reputation in business circles. With his detailed
knowledge of history, Drucker was able to illuminate questions of
company structures and business strategies in broad
economic-historical contexts. As in his lectures and books,
Drucker did not limit himself to purely scientific contexts, but
would on occasion also quote literary figures like Henry James or
Jane Austen, both of whom he especially valued. Or he illustrated
his considerations with current events or anecdotes from Old
Vienna.

But to Drucker management was "no specific
peculiarity of business enterprises, but rather the specific
organ of all institutions of modern society." One of his personal
concerns was the sponsorship of non-profit organizations,
especially in the social sector. For a long time, he did
consulting free of charge for social welfare and charitable
organizations, among them CARE, the Salvation Army and the
American Red Cross, which he considered to make essential
contributions to the functioning of a civil society of
solidarity.

Especially in his later years, Drucker
became concerned about the development of an aggressive
capitalism which disregards social aspects: "Free enterprise
cannot be justified as being good for business. It can be
justified only as being good for society."

Peter Drucker:
The Father of Management Theory

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Peter Drucker: The Father of Management
Theory

His legacy thrives in the commonplace and the
extraordinary.

Drucker, the man who invented management
theory, put great currency in listening, asking questions and
letting natural patterns emerge from the answers.The author
of 39 books during his long career, and counselor to titans of
business and rulers of nations, Drucker championed the powers of
observation, often formulating simple ideas that triggered
startling results. The Practice of
Management (1954) and The Effective
Executive (1966) are considered his landmark works.
Part of Drucker"s genius lay in his ability to find patterns
among seemingly unconnected disciplines. "The most important
thing in communication is to hear what isn"t being said," he once
said."Whether it"s recognized or not, the organization and
practice of management today is derived largely from the thinking
of Peter Drucker," BusinessWeek reported
shortly after his death at 95 in 2005. "What John Maynard Keynes
is to economics or W. Edwards Deming to quality, Drucker is to
management."The magazine called Drucker"s teachings "a blueprint
for every thinking leader," noting that Drucker taught
generations of managers the importance of picking the best
people, of focusing on opportunities and not problems, of getting
on the same side of the desk as their customer, of the need to
understand their competitive advantages and to continue to refine
them.During the inaugural Peter Drucker Forum in Vienna
celebrating Drucker"s 100th birthday in 2009, Rick Warren, author
of The Purpose Driven Life and founding pastor
of the Saddleback Church in Lake Forest, Calif., talked about his
mentor"s breadth of influence."I"m often embarrassed at how often
I quote Peter Drucker," Warren said. "He had a way of saying
things simply. Peter was far more than the founder of modern
management, far more than a brilliant man, one of the greatest
minds of the 20th century. He was a great soul. If I summed up
Peter"s life in three words, it would be integrity, humility and
generosity…. Peter was the only truly Renaissance man I"ve ever
known. He had a way of looking at the world in a systems view
that said it all matters."High-Octane TestimonialsMany of
Drucker"s notions might be considered common sense today, but
they broke considerable new ground when he first started studying
and writing about them in the 1940s. His work, and personal
contact, shaped the thinking of the top management minds in the
world."He was the creator and inventor of modern management,"
management expert Tom Peters toldNewsweek in 2005. "In the
early 1950s, nobody had a tool kit to manage these incredibly
complex organizations that had gone out of control. Drucker was
the first person to give us a handbook for that."Drucker, born in
Austria in 1909, gained his first experience in this
listening-and-learning approach from his parents, Adolph and
Caroline, highly educated professionals who reveled in inviting
cadres of intellectually stimulating characters into their Vienna
home for broad discourses on medicine, politics and music.Drucker
earned a doctorate in public and international law from Frankfurt
University in Frankfurt, Germany. He toiled as an economist and
journalist in London before moving in 1937 to the United States
as a correspondent for the Financial Times, along
with his new wife, the former Doris Schmitz, whom he had met in
Frankfurt and married in London.Making His MarkDrucker"s
first book, The End of Economic Man, published in
1939, attracted the enthusiastic praise of British Prime Minister
Winston Churchill. That same year, he began teaching part time at
Sarah Lawrence College and, in 1942, joined the faculty at
Bennington College in Vermont. While at Bennington, Drucker got
the chance to study General Motors Corp., which led to his
groundbreaking book, Concept of the Corporation. In
1950, he joined the faculty of New York University"s Graduate
Business School as professor of management.He moved to California
in 1971 as the Clarke Professor of Social Science and Management
at the Claremont Graduate University in Claremont, Calif., where
he taught for 30 years. During that time, the Druckers received
corporate and social-sector leaders from around the world in
their modest home in Claremont, where they also raised four
children and lived for nearly four decades. In 1987, the
university named its management school after him.Drucker called
himself a "social ecologist," a close observer of the way humans
are organized across all sectors—in business, but also in
government and in the nonprofit world."None of my books or ideas
means anything to me in the long run," he said. "What are
theories? Nothing. The only thing that matters is how you touch
people. Have I given anyone insight? That"s what I want to have
done. Insight lasts; theories don"t. And even insight decays into
small details, which is how it should be. A few details that have
meaning in one"s life are important."Although many MBA programs
ignored his texts because administrators felt his work was short
on pure research, he had great impact on the business world
through his books and consulting work with dozens of
organizations—including the world"s largest corporations,
entrepreneurial startups, and various government and nonprofit
agencies. He was a Wall Street
Journal columnist from 1975 to 1995, and contributed to
such publications as the Harvard Business Review, The
Atlantic Monthly andThe Economist.Ahead of
His TimeDrucker"s track record is impressive,
as BusinessWeek succinctly summarized upon his
death in 2005. Among his accomplishments:–He introduced the idea
of decentralization—in the 1940s—which became a
bedrock principle for virtually every large organization in the
world.–He was the first to assert—in the 1950s—that
workers should be treated as assets, not as liabilities to be
eliminated.–He originated the view of the corporation as a human
community—again, in the 1950s—built on trust and
respect for the worker and not just a profit-making machine, a
perspective that won Drucker an almost godlike reverence among
the Japanese.–He first made clear—still the
"50s—that there is "no business without a customer," a
simple notion that ushered in a new marketing mindset.–He argued
in the 1960s—long before others—for the importance of
substance over style, for institutionalized practices over
charismatic, cult leaders.–He wrote about the contribution of
knowledge workers—in the 1970s—long before anyone
knew or understood how knowledge would trump raw material as the
essential capital of the New Economy.Beyond Words on a
PageAs he aged, Drucker appeared to assume more gravitas,
slowing his speech, projecting a more authoritative presence,
allowing his audience to hang on his words. He expressed dismay
with the greed and self-interest that pervaded corporate America
in his later years, shifting his focus to nonprofits. In writings
and speeches during the 1980s, Drucker emerged as one of
corporate America"s most important critics, preaching against
reckless mergers and acquisitions. He warned that CEO pay had
rocketed out of control and implored boards to hold CEO
compensation to no more than 20 times what the rank and file
made.In The Definitive Drucker: Challenges for
Tomorrow"s Executives—Final Advice from the Father of
Modern Management (2007), author Elizabeth Haas
Edersheim wrote, "Peter"s ideas were the catalyst that freed
people to pursue opportunities they had never expected to have.
He liberated people by asking them questions and eliciting a
vision that just felt right. He liberated people by getting them
to challenge their own assumptions. He liberated people by
raising their awareness of, and their faith in, things they knew
intuitively. He liberated people by forcing them to think. He
liberated people by talking to them. He liberated people by
getting them to ask the right questions."For his many
contributions, President George W. Bush awarded Drucker the
Presidential Medal of Freedom on July 9, 2002.A Lifelong
StudentDrucker was all business, but he never lost his
humanity or good sense of humor. He once said people use the word
"guru" only because they do not want to say "charlatan.""He had
kind of a stern, formidable image, but he also had a funny, warm
side," writer Bruce Rosenstein tells SUCCESS. "He
wanted to be relevant and productive deep into old age, and he
certainly didn"t take his readers for granted."Rosenstein
interviewed Drucker several times for USA
Today and his book, Living In More Than One
World: How Peter Drucker's Wisdom Can Inspire and Transform Your
Life, published in 2009 by Berrett-Koehler Publishers
Inc.One of the fruits of his work is that it remains relevant,
Rosenstein notes. "During the GM bankruptcy, for example,
his Concept of a Corporation book, which was
published in 1946, was referenced a number of times," he says. "I
think a whole-new generation of students can really learn a lot
from Drucker"s work."One notable disciple summed up the Drucker
persona in the following way shortly after his death:"For me,
Drucker"s most important lessons cannot be found in any text or
lecture but in the example of his life," wrote Jim Collins,
best-selling author of Good to
Great and Built to Last. "I made a
personal pilgrimage to Claremont, Calif., in 1994 seeking wisdom
from the greatest management thinker of our age, and I came away
feeling that I"d met a compassionate and generous human being
who—almost as a side benefit—was a prolific
genius.… Peter F. Drucker was driven not by the desire to
say something, but by the desire to learn something from every
student he met—and that is why he became one of the most
influential teachers most of us have ever known."

Conclusions

Peter F. Drucker, author of many works
including MANAGING FOR RESULTS and MANAGEMENT: TASKS,
RESPONSIBILITIES, PRACTICES has now written a work on innovation
and entrepreneurship. This book, whose primary focus is on the
actions and behavior of entrepreneurs, presents innovation and
entrepreneurship as a practice and a discipline.

INNOVATION AND ENTREPRENEURSHIP is divided
into three main sections: "The Practice of Innovation," "The
Practice of Entrepreneurship," and "Entrepreneurial Strategies."
The introduction describes innovation and entrepreneurs in
relation to the economy; the conclusion describes them in
relation to society.

In Part 1, Drucker defines innovation as a
means by which entrepreneurs may exploit change in order to
create new service and business opportunities. Entrepreneurial
enterprises by their nature create a market niche and fill a
consumer need. These enterprises include small businesses, large
enterprises, and nonbusiness service institutions. Sources for
innovative opportunities in enterprises include new knowledge
(scientific and non-scientific) and changes in industry
structure, demographics, and perceptions.

Drucker"s principles of innovation require
analysis of opportunities, receptivity to new opportunities,
starting small, looking to the simple, and achievement of
leadership.

Part 2 focuses on managerial strategies for
the new venture, the existing business, and the public service
institution. All organizations must acquire entrepreneurial
competence to keep pace with changes in economy and society.
Leaders in the three types of organizations must become skilled
in entrepreneurial management.

Part 3 examines practices and policies that
entrepreneurs should follow in the marketplace. Drucker"s
strategies involve aiming for leadership and/or dominance of a
new market or existing market, finding and occupying a
specialized niche, and changing the economic characteristics of a
product, market, or industry.

In concluding, Drucker stresses the need
for innovation and entrepreneurship in society. To obtain this,
entrepreneurial executives must make innovation and
entrepreneurship "a normal, ongoing, everyday activity, a
practice in their own work and in that of their organization."
This treatise on innovation and entrepreneurship should be
required reading for today"s business people.

Many of Peter F.
Drucker´s publications

• The End of Economic Man: The
  Origins of Totalitarianism (1939)

• The Future of Industrial
  Man (1942)

• Concept of the
  Corporation (1945)

• The New
  Society (1950)

• The Practice of
  Management (1954)

• America's Next 20
  Years (1957)

• Landmarks of Tomorrow: A Report on
  the New 'Post-Modern' World (1959)

• Power and Democracy in
  America (1961)

• Managing for Results: Economic
  Tasks and Risk-Taking Decisions (1964)

• The Effective
  Executive (1966)

• The Age of
  Discontinuity (1968)

• Technology, Management and
  Society (1970)

• Men, Ideas and
  Politics (1971)

• Management: Tasks, Responsibilities
  and Practices (1973)

• The Unseen Revolution: How the
  Pension Fund Came to America (1976)

• An Introductory View of
  Management (1977)

• Adventures of a
  Bystander (1979)

• Song of the Brush: Japanese
  Painting from the Sanso
  Collection (1979)

• Managing in Turbulent
  Times (1980)

• Toward the Next Economics and Other
  Essays (1981)

• The Changing World of the
  Executive (1982)

• The Temptation to Do
  Good (1984)

• Innovation and Entrepreneurship:
  Practice and Principles (1985)

• The Frontiers of
  Management (1986)

• The New
  Realities (1989)

• Managing the Non-Profit
  Organization: Practices and
  Principles (1990)

• Managing for the Future: The 1990s
  and Beyond (1992)

• The Post-Capitalist
  Society (1993)

• The Ecological Vision: Reflections
  on the American Condition (1993)

• The Theory of the
  Business (1994)

• Managing in a Time of Great
  Change (1995)

• Drucker on Asia: A Dialogue Between
  Peter Drucker and Isao Nakauchi (1997)

• Peter Drucker on the Profession of
  Management (1998)

• Management Challenges for the 21st
  Century (1999)

• The Essential Drucker: The Best of
  Sixty Years of Peter Drucker's Essential Writings on
  Management (2001)

• Leading in a Time of Change: What
  it Will Take to Lead Tomorrow (2001; with Peter
  Senge)

• The Effective Executive
  Revised (2002)

• Managing in the Next
  Society (2002)

• A Functioning
  Society (2003)

• The Daily Drucker: 366 Days of
  Insight and Motivation for Getting the Right Things
  Done(2004)

• Managing
  Oneself (2005)

• The Effective Executive in
  Action (2006)

Peter Drucker's Life and Legacy

References

*http://www.peterfdrucker.com/

*http://hbr.org/authors/drucker

*http://www.questia.com/library/7445753/the-practice-of-management

*http://www.cgu.edu/pages/3899.asp

*http://www.cgu.edu/pages/292.asp

*http://www.druckerinstitute.com/link/about-peter-drucker/

Publications

*Latin America and Caribbean Economic
Outlook
http://www.zonaeconomica.com/omar-gomez-castaneda/latin-america-and-caribbean-economic-outloo

*International Economic Outlook

http://www.zonaeconomica.com/omar-gomez-castaneda/international-economic-outlook

*The Commodities
http://www.zonaeconomica.com/the-commodities

*GLOBAL ECONOMIC OUTLOOK FOR 2010
http://www.zonaeconomica.com/omar-gomez-castaneda/global-economic-outlook-2010

*Planning your move into Management
http://www.monografias.com/trabajos95/planning-your-move-into-management/planning-your-move-into-management

*Marketing & Advertising

http://www.monografias.com/trabajos97/marketing-advertising/marketing-advertising

Autor:

Post-Doctor Omar Gómez
Castañeda,Senior,Ph.D

Programa en "Business
Management"(Gerencia de Negocios) en La
Salle

Extension University de
Chicago,Estado de Illinois,Estados Unidos.(1981).

La Salle Extension University
Alumni

Chicago, IL-417 South Dearborn
Street

Doctorado
en Administración de
Negocios,Mención:Dirección de Negocios con el
grado de "Magna Cum Laude" de University of Aberdeen
International,Registrar Office 560, South Winchester
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acreditados

University of Aberdeen International
(SD)

Acreditados EE.UU.

University of Arizona
Internacional

Acreditados EE.UU.

University of Central Arkansas
(AR)

Acreditados EE.UU.

University of Central Florida
(FL)

Acreditados EE.UU.

University of Central Oklahoma
(OK)

Acreditados EE.UU.