This audiobook was
created based on Peter Drucker’s long business, consulting, and writing career.
He focuses on what to do, what not to do, and how to keep a clear corporate
identity and mission.
He addresses how
all organizations eventually go obsolete and their theory of their business no
longer works. It addresses how GM did not move from income based to lifestyle
based marketing for their cars, thus hastening their demise after seven decades
of success betting on incomes only. He also points out, though, that the GM
theory of the business still worked for Hughes and EDS, which GM bought. He
describes how organizations must choose how to do things. This, he says, is why
IBM was paralyzed by the different requirements of a PC versus Mainframe
business.
He states there are
four specifications for a valid theory of a business: assumptions must fit
reality; these assumptions about the environment, mission, and core
competencies must fit together; the entire organization must know and
understand the theory of the business and act accordingly; and the theory of
the business must be tested constantly to be kept up to date. When testing the
theory of the business, three things must be done if there is an issue:
preventive care, early diagnosis before the problem becomes fatal, and applying
the cure.
This is a must read
for all managers and entrepreneurs in all types of organizations: nonprofit,
educational, governmental and companies.
Download and start listening now!