What Makes an Effective Executive: Drucker's 8 Practices

Introduction

The maxim "Great leaders are born, not made" holds some truth — at some level, the capacity for great leadership may be innate. Nonetheless, learning to be an effective executive is within the grasp of everyone, whether one is leading multiple teams, a single staff member, or an entire company. Intelligence, imagination, and knowledge are essential resources, but effectiveness is what converts all of these into results. Knowledge authority is as legitimate as positional authority, and the realities of an executive's situation both demand effectiveness and make it exceedingly difficult to attain.

An effective executive is fundamentally about managing oneself, and the learning process involves eight core practices. The first two practices were framed as questions: What needs to be done? and What is the right thing for the enterprise? The third practice involved developing action plans, while the fourth and fifth focused on effective executives taking responsibility for their decisions and their communication. The sixth practice directed executives to focus on available opportunities rather than problems. Finally, effective executives ran productive meetings and habitually used "we" rather than "I" in both thought and speech.

This area of study is important because it helps executives manage time, focus on contributions and results, build on strengths, set the right priorities, and make effective decisions. Through competent executives, modern society becomes more economically productive and more socially visible.

Summary of the Article

"What Makes an Effective Executive" by Peter Drucker was published in the June 2004 issue of the Harvard Business Review. The article focuses on effective executives, and Drucker draws on decades of consulting experience across a wide range of businesses and nonprofit organizations. His experience with the CEOs of these organizations revealed that effective executives rarely fit the mold of the stereotypical leader. They range from demonstrative to nearly reclusive, from generous to stingy, and from easygoing to controlling.

For example, unit heads who internalize these practices will look to redefine the relationship of their units with headquarters. As a result, priorities are reset rather than merely reshuffled, leading to priorities that are genuinely new and different. Of the eight practices, the first two help executives acquire the knowledge they need. The next four help them convert that knowledge into effective action, while the final two ensure that the entire organization feels accountable and responsible.

Drucker concludes that effective executives are mindful of their authority because the organization has placed its trust in them. Consequently, they must consider the needs and opportunities of the organization before considering their own. Beyond the eight practices, Drucker offers a ninth practice, which he elevates to the level of a rule: "Listen first, speak last." He argues that the demand for effective executives is far too great to be met by the few individuals who are born to lead — effective discipline must therefore be cultivated, because it is learned and earned.

References

Drucker, P. F. (2004). What makes an effective executive? Harvard Business Review, 82(6), 58–63.