Peter Drucker

A senior executive, we are told, should have extraordinary abilities as an analyst and as a decision-maker. He should be good at working with people and at understanding organization and power relations, be good at mathematics, and have artistic insights and creative imagination. What seems to be wanted is universal genius, and universal genius has always been in scarce supply.

organization is not, like an animal, an end in itself, and successful by the mere act of perpetuating the species. An organization is an organ of society and fulfills itself by the contribution it makes to the outside environment. And yet the bigger and apparently more successful an organization gets to be, the more will inside events tend to engage the interests, the energies, and the abilities of the executive to the exclusion of his real tasks and his real effectiveness in the outside.

An organization is not, like an animal, an end in itself, and successful by the mere act of perpetuating the species. An organization is an organ of society and fulfills itself by the contribution it makes to the outside environment. And yet the bigger and apparently more successful an organization gets to be, the more will inside events tend to engage the interests, the energies, and the abilities of the executive to the exclusion of his real tasks and his real effectiveness in the outside.

The truly important events on the outside are not the trends. They are changes in the trends.

qualitative change—the shifting of American consumer-buying of automobiles from income-determined to taste-determined market-segmentation—no statistical study could possibly have shown.

The computer only makes visible a condition that existed before it

“You will never play Mozart the way Arthur Schnabel does, but there is no reason in the world why you should not play your scales the way he does.”

1. Effective executives know where their time goes. They work systematically at managing the little of their time that can be brought under their control.

2. Effective executives focus on outward contribution. They gear their efforts to results rather than to work. They start out with the question, “What results are expected of me?” rather than with the work to be done, let alone with its techniques and tools.

3. Effective executives build on strengths—their own strengths, the strengths of their superiors, colleagues, and subordinates; and on the strengths in the situation, that is, on what they can do. They do not build on weakness. They do not start out with the things they cannot do.

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

5. Effective executives, finally, make effective decisions. They know that this is, above all, a matter of system—of the right steps in the right sequence. They know that an effective decision is always a judgment based on “dissenting opinions” rather than on “consensus on the facts.” And they know that to make many decisions fast means to make the wrong decisions. What is needed are few, but fundamental, decisions. What is needed is the right strategy rather than razzle-dazzle tactics.

These are the elements of executive effectiveness—and these are the subjects of this book.

Finally they consolidate their “discretionary” time into the largest possible continuing units. This three-step process:

• recording time,

• managing time, and

• consolidating time is the foundation of executive effectiveness.

The effective executive therefore knows that to manage his time, he first has to know where it actually goes.