Great Throughts Treasury

This site is dedicated to the memory of Dr. Alan William Smolowe who gave birth to the creation of this database.

Peter F. Drucker, fully Peter Ferdinand Drucker

American Business Consultant, Professor of Philosophy and Politics, Social Ecologist and Author

"The productivity of the newly dominant groups in the work force, knowledge workers and service workers, will be the biggest and toughest challenge facing managers in the developed countries for decades to come. And serious work on this daunting task has only begun. "

"The organizations of the society of organizations are special-purpose organs. Each is good at only one task; and this specialization alone gives them their capacity to perform."

"The proper social responsibility of business is to tame the dragon–that is, to turn a social problem into economic opportunity and economic benefit, into productive capacity, into human competence, into well-paid jobs, and into wealth. "

"We know now that the source of wealth is something specifically human: knowledge. If we apply knowledge to tasks we already know how to do, we call it 'productivity'. If we apply knowledge to tasks that are new and different we call it 'innovation'. Only knowledge allows us to achieve these two goals. "

"This society in which knowledge workers dominate is in danger of a new 'class conflict'; the conflict between the large minority of knowledge workers and the majority of people who will make their living through traditional ways, either by manual work, whether skilled or unskilled, or by services work, whether skilled or unskilled. "

"Use feedback analysis to identify your strengths. Then go to work on improving your strengths. Identify and eliminate bad habits that hinder the full development of your strengths. Figure out what you should do and do it. Finally, decide what you should not do."

"It takes far less energy to move from first-rate performance to excellence than it does to move from incompetence to mediocrity."

"A man should never be appointed to a managerial position if his vision focuses on people’s weaknesses rather than on their strengths. The man who always knows what people cannot do, but never sees what they can do, will undermine the spirit of the organisation. Of course, a manager should have a clear grasp of the limitations of his people, but he should see these as limitations on what they can do, and as a challenge to them to do better."

"In what area would excellence really have an extraordinary impact on the economic results of our business, to the point where it might transform the economic performance of the entire business?"

"Any organisation develops people; it either forms them or deforms them... it has no choice. It either helps them grow or stunts them."

"The task of an executive is not to change human beings. Rather as the Bible tells us in the parable of the talents, the task is to multiply the performance capacity of the whole by putting to use whatever strength, whatever health, whatever aspiration there is in individuals."

"Know your strengths. Apply them to areas in your organisation where you can make a contribution. Make sure your values and the values of the organisation are compatible."

"What would happen if this were not done at all?"

"Can we take action on this idea? Or can we only talk about it? Can we really do something right away to bring about the kind of future we desire? Will it 'produce economic results? Do we really believe in the idea? Do we really want to be that kind of people, do that kind of work, run that kind of business?"

"The first – and usually the best – opportunity for successful change is to exploit one’s own successes and build on them. Problems cannot be ignored. And serious problems have to be taken care of. But to be change leaders, enterprises have to focus on opportunities. They have to starve problems and feed opportunities."

"Performing organisations enjoy what they’re doing."

"The most important thing in communication is hearing what isn’t said."

"Leadership is the lifting of a man’s vision to higher sights, the raising of a man’s performance to a higher standard, the building of a man’s personality beyond its normal limitations."

"We now accept the fact that learning is a lifelong process of keeping abreast of change. And the most pressing task is to teach people how to learn."

"There is only one valid definition of business purpose: to create a customer… Because it is its purpose to create a customer, any business enterprise has two — and only these two—basic functions: marketing and innovation… Marketing is so basic that it is not just enough to have a strong sales department and to entrust marketing to it. Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of its final result, that is from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise."

"Deal-making beats working. That's why there are deals that make no sense. "

"Success always obsoletes the very behavior that achieved it."

"The most important thing in communication is to hear what isn't being said."

"The strength of the computer lies in its being a logic machine. It does precisely what it is programed to do. This makes it fast and precise. It also makes it a total moron; for logic is essentially stupid. "

"Most management people I know still believe that the Bible begins with the words: 'In the beginning God created stable exchange rates.'"

"For centuries, we have attempted communication "downward". This however, cannot work, no matter how hard and how intelligently we try. It cannot work, first, because it focuses on what we want to say. It assumes, in other words, that the utterer communicates. There can be no communication if it is conceived as going from "I" to "thou." Communication works only from one member of "us" to "another.""

"The information revolution. Almost everybody is sure ...that it is proceeding with unprecedented speed; and ...that its effects will be more radical than anything that has gone before. Wrong, and wrong again. Both in its speed and its impact, the information revolution uncannily resembles its two predecessors ...The first industrial revolution, triggered by James Watt's improved steam engine in the mid-1770s...did not produce many social and economic changes until the invention of the railroad in 1829 ...Similarly, the invention of the computer in the mid-1940s, ...it was not until 40 years later, with the spread of the Internet in the 1990s, that the information revolution began to bring about big economic and social changes. ...the same emergence of the “super-rich” of their day, characterized both the first and the second industrial revolutions. ...These parallels are close and striking enough to make it almost certain that, as in the earlier industrial revolutions, the main effects of the information revolution on the next society still lie ahead."

"Human beings need community. If there are no communities available for constructive ends, there will be destructive, murderous communities... Only the social sector, that is, the nongovernmental, nonprofit organization, can create what we now need, communities for citizens... What the dawning 21st century needs above all is equally explosive growth of the nonprofit social sector in building communities in the newly dominant social environment, the city."

"Too many mergers resemble the marriage of two cripples who become twice as old, twice as bureaucratic and twice as undynamic."

"Universities won't survive. The future is outside the traditional campus, outside the traditional classroom. Distance learning is coming on fast."

"Thirty years from now the big university campuses will be relics. Universities won't survive. It's as large a change as when we first got the printed book. Do you realize that the cost of higher education has risen as fast as the cost of health care? And for the middle-class family, college education for their children is as much of a necessity as is medical care—without it the kids have no future. Such totally uncontrollable expenditures, without any visible improvement in either the content or the quality of education, means that the system is rapidly becoming untenable. Higher education is in deep crisis. "

"One of the great movements in my lifetime among educated people is the need to commit themselves to action. Most people are not satisfied with giving money; we also feel we need to work. That is why there is an enormous surge in the number of unpaid staff, volunteers. The needs are not going to go away. Business is not going to take up the slack, and government cannot."

"What's absolutely unforgivable is the financial benefit top management people get for laying off people. There is no excuse for it. No justification. This is morally and socially unforgivable, and we will pay a heavy price for it."

"For the social ecologist language is not "communication." It is not just "message." It is substance. It is the cement that holds humanity together. It creates community and communication. ...Social ecologists need not be "great" writers; but they have to be respectful writers, caring writers."

"Increasingly, politics is not about "who gets what, when, how" but about values, each of them considered to be absolute. Politics is about "the right to life"...It is about the environment. It is about gaining equality for groups alleged to be oppressed...None of these issues is economic. All are fundamentally moral."

"This society in which knowledge workers dominate is in danger of a new "class conflict" between the large minority of knowledge workers and the majority of workers who will make their livings through traditional ways, either by manual work...or by service work. The productivity of knowledge work--still abysmally low--will predictably become the economic challenge of the knowledge society. On it will depend the ability of the knowledge society to give decent incomes, and with them dignity and status, to non knowledge people."

"The postwar [WWII] GI Bill of Rights--and the enthusiastic response to it on the part of America's veterans--signaled the shift to the knowledge society. Future historians may consider it the most important event of the twentieth century. We are clearly in the midst of this transformation; indeed, if history is any guide, it will not be completed until 2010 or 2020. But already it has changed the political, economic and moral landscape of the world."

"That knowledge has become 'the' resource, rather than 'a' resource, is what makes our society 'post-capitalist.'"

"Once a year ask the boss, "What do I or my people do that helps you to do your job?" and "What do I or my people do that hampers you?""

"Sören Kierkegaard has another answer: human existence is possible as existence not in despair, as existence not in tragedy; it is possible as existence in faith... Faith is the belief that in God the impossible is possible, that in Him time and eternity are one, that both life and death are meaningful."

"The individual needs the return to spiritual values, for he can survive in the present human situation only by reaffirming that man is not just a biological and psychological being but also a spiritual being, that is creature, and existing for the purposes of his Creator and subject to Him."

"We no longer even understand the question whether change is by itself good or bad, ...We start out with the axiom that it is the norm. We do not see change as altering the order... We see change as being order itself--indeed the only order we can comprehend today is a dynamic, a moving, a changing one."

"Throughout the ages to be educated meant to be unproductive. ...our word "school"--and its equivalent in all European languages--derives from a Greek word meaning "leisure.""

"A manager sets objectives--A manager organizes--A manager motivates and communicates--A manager, by establishing yardsticks, measures--A manager develops people."

"In the modern corporation the decisive power, that of the managers, is derived from no one but the managers themselves controlled by nobody and nothing and responsible to no one. It is in the most literal sense unfounded, unjustified, uncontrolled and irresponsible power."

"Ideas are somewhat like babies--they are born small, immature, and shapeless. They are promise rather than fulfillment. In the innovative company executives do not say, "This is a damn-fool idea." Instead they ask, "What would be needed to make this embryonic, half-baked, foolish idea into something that makes sense, that is an opportunity for us?""

"Fascism is the result of the collapse of Europe's spiritual and social order. ...catastrophes broke through the everyday routine which makes men accept existing forms, institutions and tenets as unalterable natural laws. They suddenly exposed the vacuum behind the facade of society."

"In the political, the social, the economic, even the cultural sphere, the revolutions of our time have been revolutions "against" rather than revolutions "for"... On the whole throughout this period the man--or party--that stood for doing the positive has usually cut a pathetic figure; well meaning but ineffectual, civilized but unrealistic, he was suspect alike to [by both] the ultras of destruction and the ultras of preservation and restoration."

"We have only one alternative: either to build a functioning industrial society or see freedom itself disappear in anarchy and tyranny."

"Capitalism as a social order and as a creed is the expression of the belief in economic progress as leading toward the freedom and equality of the individual in a free and open society. Marxism expects this society to result from the abolition of private profit. Capitalism expects the free and equal society to result from the enthronement of private profit as supreme ruler of social behavior."