Peter Drucker Economist, publicist, management theorist Date of Birth: 19.11.1909 Country: USA

1. Peter F. Drucker: The Innovator of Modern Management
2. Early Years and Influences
3. The Advisor to the Executives
4. Legacy and Reflection

Peter F. Drucker: The Innovator of Modern Management

Peter F. Drucker, an economist, publicist, and management theorist, had a revolutionary impact on the development of business in the twentieth century. He transformed management, an unpopular and disrespected profession in the 1950s, into a scientific discipline. Drucker holds 19 honorary doctorates from various universities in the United States, Belgium, the United Kingdom, Spain, Japan, and Switzerland. Business schools and foundations have been named after him.

Early Years and Influences

Born in Vienna, Austria, Drucker worked as a journalist before moving to the United States in 1937. He believed that the failure of European capitalism to assign "status and function" to the individual paved the way for fascism. This idea influenced Drucker's love for large corporations, which he saw as "representative organizations" for building citizenship in American society. In 1943, during World War II, Drucker gained access to General Motors and conducted a comprehensive analysis of its structure and management.

The Advisor to the Executives

For six decades, Drucker was the most sought-after advisor to CEOs, including Walter Wriston of Citicorp, David Rockefeller of Chase Manhattan Corp., Henry Luce of Time Inc., and Mark Willes of Times Mirror Co. He coined the term "management by objectives" and helped develop objective measures for salary and promotion. He recognized the importance of the "knowledge worker" - the white-collar elite - before anyone else. Drucker advocated for companies to focus on customers rather than just technology. He employed a psychoanalytic style, probing deeply, asking questions, and tracking connections. He lectured on topics such as demographic changes in Latin America, the migration of peasants from rural to urban areas, and how it affected GE's business. Drucker's ability to grasp new ideas and instill confidence in GE executives crystallized in his role in helping revolutionize the commercial aviation sector within GE's jet engine department. He had to convince aircraft manufacturers, who primarily supplied planes for the military, that it made sense to invest in the development of civilian aircraft. Drucker's role involved assisting managers in the jet engine department at GE.

Legacy and Reflection

Drucker occasionally made mistakes, and the long-term consequences were significant. "We developed the most scientific compensation system in the world, and it almost destroyed GE," Drucker admits with a self-deprecating sense of humor. At the age of 90, Drucker continued to consult, although he rarely left his modest home in Claremont, California. He still worked at the Drucker School of Management at Claremont University. However, he was no longer certain that corporations were organizations for "building citizenship" and worried that today's mobility in the scientific community was creating new social problems. "Corporations, which were once built to stand like pyramids, now resemble tents," he said.