A Class with Drucker - Headway | Work on yourself

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I t C H A P T E R S I X T E E N The Management Control Panel was an early spring day in Southern California in May of 1977. Strangely, spring in Southern California is not what you might expect if you watch the Rose Parade on television on New Year’s Day. Contrary to popular opinion, it is not sunny in Southern California all year around. While it does rain in the winter months, for some reason the Rose Parade is generally dry. However, beginning about April and extending through early June, additional rains are sometimes evident. This particular day in Southern California the sky was overcast and it was raining—heavily. You could see the results in Peter’s classroom. Raincoats were draped over the classroom chairs and umbrellas were laid out of the way in the hallway. A damp smell pervaded everything. Peter entered the classroom and immediately began discussion of a case study he had mentioned in a previous class.
190 ■ A CLASS WITH DRUCKER The case concerned the president of a company who had recently learned about the capabilities of new computers and their application. After giving this some serious thought, he called for a meeting of the management hierarchy of the company. He wanted their input for a new management control system to help run the company and told them of his plans. He called it a “Management Control Panel.” Using Technology to Its Fullest “Management is getting more and more complex in our industry,” the company president told his top management staff. “Recently I’ve learned of the capabilities of the latest computers. I think we can be the first in our industry, maybe in the whole business world, to implement a new concept which can give us a significant competitive advantage.” “The idea,” he continued, “is to list all of the primary factors which affect our business. We’ll use computers to see how these factors work individually and together to create various quantified outputs. For example, if the economy changes, it may increase demands for certain of our products. No doubt our competitors will see the same changes and increases. The difference will be in response. Do we lower price? Do we raise it? Do we increase our research and development expenditures? Decrease them? Perhaps some combination of these options? “Every change we make affects other important aspects of running our business,” the company president said. “We’ll be able to immediately see the changes in output caused by the external environmental or changes we cause ourselves. We can take advantage of these opportunities to best achieve our business objectives and to affect our overall performance positively. Most importantly, the computers will generate an array of correct actions for us, according to whatever objectives we set and the resources available. All we will need to do is to implement these actions. We’ll have the edge over all of our competitors.” Then he outlined his ideas for implementation. “First, we need to decide which factors primarily affect what we do,” he said. “I know there are many, and they affect all of the functional areas, including finance, marketing, manufacturing, and more. Of course, there are external factors as well, including our competition, the state of the economy, and the business in our industry. We’ll need to list them as well. Then, we’ll turn all of this data over to computer experts to develop the program. It may take us some time and cost us some money, but it will be well worth it.
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A C L A S S W I T H D R U C K E R
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A Class wi
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C O N T E N T S Acknowledgments and
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A C K N O W L E D G M E N T S A N D
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F O R E W O R D Bill Cohen was the
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core competencies, and we also chal
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I N T R O D U C T I O N Peter <stro
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C H A P T E R O N E How I Became th
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HOW I BECAME THE STUDENT ■ 3 retu
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HOW I BECAME THE STUDENT ■ 5 doct
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HOW I BECAME THE STUDENT ■ 7 “I
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HOW I BECAME THE STUDENT ■ 9 Duri
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C H A P T E R T W O Drucker
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DRUCKER IN THE CLASSROOM ■ 13 Mos
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DRUCKER IN THE CLASSROOM ■ 15 <st
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DRUCKER IN THE CLASSROOM ■ 17 ant
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C H A P T E R T H R E E What Everyb
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WHAT EVERYBODY KNOWS IS FREQUENTLY
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SELF-CONFIDENCE MUST BE BUILT STEP-
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IF YOU KEEP DOING WHAT WORKED IN TH
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C H A P T E R S I X Approach Proble
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APPROACH PROBLEMS WITH YOUR IGNORAN
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C H A P T E R S E V E N Develop Exp
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DEVELOP EXPERTISE OUTSIDE YOUR FIEL
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OUTSTANDING PERFORMANCE IS INCONSIS
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THE OBJECTIVE OF MARKETING ■ 97 A
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THE OBJECTIVE OF MARKETING ■ 99 T
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THE OBJECTIVE OF MARKETING ■ 101
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The assembly line, especially the m
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ETHICS, HONOR, INTEGRITY, AND THE L
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C H A P T E R E L E V E N You Can
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YOU CAN’T PREDICT THE FUTURE ■
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experience, and know-how, financial
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C H A P T E R T W E L V E We’re A
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WE’RE ALL ACCOUNTABLE ■ 135 “
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WE’RE ALL ACCOUNTABLE ■ 137 wor
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As I mentioned in an earlier chapte
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DRUCKER’S PRINCIPLES OF SELF-DEVE
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AFTERWORD ■ 247 articulate truths
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N O T E S CHAPTER 2 1. Simon London
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NOTES ■ 251 4. David A. Kaplan,
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Aburdene, Patricia, 221 accountabil
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Grant, Ulysses S., 166 growth, 229
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professional journals, 158 professi
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