Management as a Liberal Art Research Institute

Michele Buck: Pioneering Management as a Liberal Art at Hershey

Robert Kirkland Ph.D.

PUBLISHED:

March 20, 2024

Michele Buck’s ascension to the role of CEO at The Hershey Company represents a significant milestone, not only as the first female to hold this position in the company’s storied history but also as an embodiment of the principles of management as a liberal art (MLA). Her leadership journey combines the practicality of business management with the broad, humanistic perspectives of the liberal arts, offering a blueprint for modern corporate leadership that is both effective and ethically grounded.


Early Life and Career Development

Buck's narrative begins in the humble settings of central Pennsylvania, where her early life shaped the principles she would later apply in her corporate journey. Her upbringing, characterized by modesty and hard work, laid the foundation for a leadership style that values integrity, humility, and the contribution of each individual. Buck’s educational and career journey also offers valuable insights into her grounding in principles aligning with management as a liberal art (MLA). Her academic path took her through Shippensburg University for her undergraduate degree, followed by an MBA from UNC Chapel Hill, a choice influenced by the institution's emphasis on teamwork. While her education may not be in the liberal arts directly, the values and skills emphasized in her MBA program—teamwork, ethical leadership, and holistic problem-solving—mirror the multidisciplinary, human-centered approach central to MLA. This background, rich in lessons of resilience and tenacity, directly influenced her approach to navigating the complexities of leading a global corporation like Hershey.


Leadership Innovations and Internal Change

Upon assuming the role of CEO, Buck introduced significant leadership innovations at Hershey. One notable strategy was her initiative to tap into internal change agents, a move that underscores the MLA principle of recognizing and harnessing the intrinsic value and potential within an organization. This approach not only facilitated transformative growth within Hershey but also fostered a culture of empowerment and creativity, aligning with the liberal arts tenet of encouraging diverse and critical thinking.


Steering Through the Pandemic: A Community-Focused Approach

During the COVID-19 pandemic, Buck's leadership at Hershey exemplified the MLA principle of considering broader societal impacts. One specific instance was the company’s decision to prioritize employee well-being while also ensuring product availability to consumers seeking comfort during uncertain times. Hershey quickly adapted its production lines to ensure safety and meet changing consumer demands, notably shifting focus to products like Twizzlers and S’mores kits that were more suited to home consumption. This not only kept the business resilient but also supported the community by providing familiar comforts during lockdowns, demonstrating a balance between business acumen and societal empathy.


Empowerment of Women in the Workforce

Buck’s advocacy for female progression in the workforce reflects her broader vision of an inclusive and diverse corporate culture. Under her leadership, Hershey has been recognized as a female-friendly employer, a testament to the company’s initiatives to promote gender diversity and equality. Buck's efforts in this area are indicative of the MLA philosophy, which promotes fairness, inclusivity, and the development of environments where diverse talents and perspectives can thrive.


Vision for the Future: The New World of Work

In her interview with Adi Ignatius in the Harvard Business Review, Buck articulated her vision for the future of work, characterized by adaptability, innovation, and a deep understanding of societal changes. Her strategies for Hershey’s growth and transformation are imbued with MLA principles, emphasizing the need for foresight, ethical decision-making, and a holistic approach to business challenges. Buck's leadership philosophy aligns with the notion that success in the new world of work requires a blend of traditional business strategies and the nuanced, ethical, and human-centered approach of the liberal arts.


Transformative Strategies and Corporate Growth

Under Buck's leadership, Hershey embarked on significant transformative strategies that catalyzed corporate growth. A prime example is the acquisition of healthier snack brands like SkinnyPop and Pirate’s Booty, reflecting Buck’s vision of Hershey as an innovative snacking powerhouse. This strategic expansion beyond traditional confectionery into the broader snacking market capitalized on consumer trends towards healthier options, showcasing Hershey’s adaptability and Buck’s forward-thinking leadership.


Cultural and Ethical Considerations

A distinctive aspect of Buck’s leadership is her focus on cultivating a corporate culture that aligns with ethical and societal values. This emphasis on culture and ethics resonates with the MLA framework, which advocates for organizations to operate in a manner that is not only economically viable but also socially responsible and ethically sound.


Global Perspective and Community Engagement

Buck's approach extends beyond the confines of Hershey, demonstrating a global perspective and a commitment to community engagement. Her leadership in initiatives aimed at sustainable practices and social responsibility projects reflects an understanding of the interconnectedness of global business operations and their impact on communities and the environment.


Challenges and Opportunities in the Modern Business Landscape

In navigating the modern business landscape, Buck has confronted challenges such as the COVID-19 pandemic, supply chain disruptions, and the evolving expectations of employees and consumers. Her responses to these challenges, grounded in MLA principles, highlight the importance of adaptive leadership, strategic foresight, and a commitment to the well-being of all stakeholders.  Hershey faced supply chain disruptions during the pandemic, as did many global companies. The company navigated these challenges by leveraging its strong relationships with suppliers and by increasing inventory levels to buffer against disruptions. Hershey's proactive approach ensured a steady supply of raw materials, minimizing production delays and maintaining product availability. This strategy not only mitigated the immediate impact of supply chain issues but also reinforced Hershey's reputation for reliability and operational excellence.



The Role of Education and Continuous Learning

Buck’s emphasis on education and continuous learning, as evidenced by her own journey and her initiatives at Hershey, underscores the MLA principle that ongoing personal and professional development is crucial for effective leadership. Her support for programs that foster learning and skill development aligns with the liberal arts tradition of cultivating well-rounded, critical thinkers who are equipped to navigate complex challenges.


Conclusion

Michele Buck’s leadership at The Hershey Company epitomizes the application of management as a liberal art. Her journey from humble beginnings to the helm of a global corporation, her innovative leadership strategies, her commitment to ethical and inclusive practices, and her vision for the future of work collectively illustrate how the principles of MLA can be effectively integrated into corporate management. Under her stewardship, Hershey has not only achieved impressive business success but has also advanced a model of leadership that is ethical, humanistic, and forward-looking, setting a benchmark for others to follow in the evolving landscape of global business.


Sources:


5 CEOs who Champion Corporate Social Impact,” Everfi, accessed at:  https://everfi.com/blog/community-engagement/5-ceos-who-champion-social-impact/


“Cocoa for Good,” Hershey Company, accessed at:  https://www.thehersheycompany.com/en_us/home/sustainability/sustainability-focus-areas/cocoa.html


“Hershey’s CEO Knows How to Get Americans to Indulge,” The New York Times, October 10, 2019, accessed at:  https://www.nytimes.com/2019/10/10/business/michele-buck-hershey-corner-office.html?searchResultPosition=1


“Hershey CEO Michele Buck on Empowering Internal Change Agents,” Harvard Business Review, April 29, 2022, accessed at:  https://hbr.org/2022/04/hershey-ceo-michele-buck-on-empowering-internal-change-agents



By Byron Ramirez Ph.D. February 11, 2025
Peter Drucker escribió extensamente sobre las funciones y responsabilidades de los gerentes y sobre los principios que podrían ayudar a mejorar el desempeño organizacional. En sus obras, Drucker infiere que los individuos que conforman la organización deben cultivar el autoconocimiento, la autoconciencia y desarrollar sus habilidades a través de la aplicación. Aprendemos por primera vez sobre el concepto de la gestión como arte liberal en el libro de Drucker, "The New Realities". En este texto, Drucker se refiere a la gestión como arte liberal: "La gestión es, por lo tanto, lo que la tradición solía llamar un arte liberal - 'liberal' porque trata con los fundamentos del conocimiento, el autoconocimiento, la sabiduría y el liderazgo; 'arte' porque trata con la práctica y la aplicación. Los gerentes recurren a todos los conocimientos e ideas de las humanidades y las ciencias sociales - en la psicología y la filosofía, en la economía y la historia, en las ciencias físicas y la ética. Pero deben enfocar este conocimiento en la efectividad y los resultados." (Drucker, 1989) Drucker argumentó que debemos reconocer que la naturaleza humana es imperfecta, pero que, a través de la observación y la contemplación, y mucha, mucha práctica, la toma de decisiones puede mejorarse. Con el tiempo, a medida que las personas practican la gestión de manera ética y responsable, la comunidad en general se beneficia de las decisiones tomadas en organizaciones responsables y socialmente conscientes. La gestión como arte liberal es un concepto que caracteriza una filosofía, una que se basa en los elementos del conocimiento, el autoconocimiento, la sabiduría y el liderazgo. Esta filosofía implica que cualquier individuo tiene el potencial de crecer y desarrollarse, y convertirse en un gerente efectivo, siempre y cuando este individuo se tome el tiempo para reflexionar, desarrollar habilidades y conocimientos, y adquirir continuamente experiencias que enriquecerán su perspectiva sobre cómo liderar eficazmente a otras personas. Sin embargo, Drucker reconoció que el interés propio interrumpe y, en los peores casos, impide y restringe los esfuerzos de los demás. Como tal, el gerente debe desarrollar la capacidad de observar lo que está ocurriendo dentro y fuera de la organización. Al mismo tiempo, la persona debe desarrollar la autoconciencia y la capacidad de reflexionar sobre su propio comportamiento y las decisiones que toma. Esto incluye analizar cómo las decisiones pueden influir en las acciones y el comportamiento de los demás. Es a través de la autorreflexión y la conciencia que podemos notar lo que ha funcionado, lo que no y lo que podríamos hacer de manera diferente la próxima vez que surja otra situación. Un gerente puede desarrollar inteligencia emocional, utilizando el concepto de Daniel Goleman. Y en el contexto de la gestión como arte liberal, esto es lo que llamaríamos autoconocimiento. Un gerente puede volverse más efectivo y llegar a apoyar el crecimiento y desarrollo de los demás, siempre que aprenda a valorar a las personas por quienes son, y les permita espacio para ser ellos mismos. Pero para hacer esto, el gerente debe aprender a escuchar a los demás, respetarlos y reconocer sus preocupaciones y necesidades. También es importante aprovechar las ideas y sugerencias de las personas para ayudar a encontrar soluciones. Esta es un axioma importante dentro de la gestión como arte liberal. Otro elemento clave de la gestión como arte liberal es la noción de que el individuo debe construir conocimiento. Como tal, la persona debe buscar activamente información, datos, hechos e historias que puedan ayudar a aumentar el conocimiento. Además, podemos mejorar nuestras habilidades gerenciales y decisiones aplicando una perspectiva transdisciplinaria para resolver problemas. La perspectiva transdisciplinaria proporciona al individuo una visión integrada y más holística que combina diferentes puntos de vista de las artes, las humanidades y la ciencia. Drucker postuló que podemos aprender leyendo historia, filosofía y economía, y que la reconciliación de ideas de múltiples disciplinas puede ser beneficiosa para determinar el mejor curso de acción. Drucker sugirió que la consideración cuidadosa de diferentes alternativas y efectos posteriores, contingencias y resultados potenciales, mejoraría las decisiones y permitiría que el individuo se convierta en un tomador de decisiones más efectivo. Según la gestión como arte liberal, es importante que consideremos cómo nuestras acciones influirán en los demás y que asumamos la responsabilidad de nuestras acciones. La gestión como arte liberal postula que las personas se definen a sí mismas (y sirven a la sociedad) a través de la acción responsable. Esto significa que los gerentes efectivos actuarán de manera responsable y con ética, y utilizarán su estatus y poder para promover el bienestar de la organización y su gente. Esto infiere que el individuo actuará con el mejor interés de la organización (y sus partes interesadas) en mente. Actuar con buen juicio, tener lucidez y una mejor comprensión de las situaciones y contextos es lo que llamaríamos ejercer la sabiduría. Para involucrar a las personas y construir mejores organizaciones, y en última instancia contribuir a lo que Drucker llamó una "sociedad funcional", es vital que tratemos a todas las personas dentro de la organización con respeto y dignidad. Y que ayudemos a las personas a crecer y desarrollarse y a encontrar significado en lo que hacen. Así es como se construyen las grandes organizaciones. Esto es lo que llamaríamos liderazgo. Y los líderes dentro de la organización deben ser conscientes de que el mundo evoluciona y que algunas cosas deben cambiar, mientras que otras deben mantenerse. Esto significa equilibrar el cambio y la continuidad y reconocer qué proceso o actividad necesita ser renovado, y cuál otra práctica necesita ser preservada.  La gestión como arte liberal está arraigada en la práctica y la aplicación, en la autorreflexión, en tratar a las personas con dignidad y respeto, y en usar un lente transdisciplinario para ayudar a mejorar las decisiones. Se necesita tiempo para lograr resultados y construir grandes organizaciones. Pero se puede lograr. Y las organizaciones cuyos gerentes pueden practicar y aplicar, y reflexionar y aprender continuamente de sus acciones, tienen más probabilidades de ayudar a construir una mejor comunidad y una sociedad funcional y próspera. Referencias Drucker, Peter F. (2003) A Functioning Society (Routledge, London and New York) Drucker, Peter F. (1989) The New Realities: in Government and Politics, in Economics and Business, in Society and World View (New York: Harper & Row) Goleman, Daniel. (2007) Emotional Intelligence. 10th ed., Bantam Books.
By Karen Linkletter Ph.D. February 7, 2025
“What does ‘Capitalism’ mean when Knowledge governs – rather than Money? And what do ‘Free Markets’ mean when knowledge workers – and no one else can ‘own’ knowledge – are the true assets?” (Peter Drucker, 1999). This issue of my newsletter focuses on features of today’s knowledge work, and what knowledge work might look like in the future. In part one, I discussed some of the challenges associated with measuring knowledge worker productivity. In this installment, I’ll take up Drucker’s concept of “Post-Capitalist Society” and what it might mean for knowledge work in the 21st century. Fear not; this will not be an academic treatise on Marx or Marxism. But central to an understanding of our knowledge-based society is some sense of how previous industrial society was configured and structured. As I argued in the last installment of this newsletter, part of our difficulty with measuring knowledge worker productivity is that we still use the language of industrial capitalism: we measure productivity in terms of output, particularly in quantity. We lack a more modern understanding of what productivity looks like. Why? Marx and Capitalism Marx saw capitalism as a stage in history, as part of a larger pageant of human conflict. In The German Ideology (1845), Marx critiques the idealism of German philosophy as locked in the realm of thought instead of material reality. It is time, he argues, for German philosophers to stop simply criticizing each other regarding implications of spiritual matters (the nature of knowledge, etc.) but rather to address the realities of material life. Marx was reacting to the decline of Hegelian thought, and transformed Hegel’s spiritual dialectic model into dialectical materialism. For Hegel, human development was a process of conflict at the spiritual level, when human understanding is challenged by contradicting experiences and events, leading to a new level of awareness, all guided by “Geist”. Marx took this out of the spiritual realm and grounded it in worldly events; his dialectic model was still one of human transformation and development, but it morphed into a model of class conflict. Dialectical materialism involved observable conflicts in social conditions and economic status that would then be acted upon to create a new social order. Like Drucker, Marx was a social theorist, and was reacting to the dramatic changes he saw happening in his time. Marx and his associate Engels observed the transformation from a rural to an industrial society and the associated social upheavals. Marx and Engels focused on the shift from an economy where value was derived from labor to one that relied on machines and money (capital) to produce the material needs of human beings. The culmination of their efforts was Marx’s massive work, The Capital (Das Kapital), published in three volumes in 1867, 1884, and 1894. The work is an intricate analysis of capitalism as an economic system as well as a social structure. There is no substitute for actually reading the text, but, for our purposes here, Marx had several key points that are germane to our discussion of today’s knowledge society: 1. Labor theory of value : Marx challenged utilitarian viewpoints of value, stating that the value of products lies not in their satisfaction of human wants, but in the human labor used to produce them. Value is in production, not in the end-user’s perception of value. 2. Ownership of means of production : In earlier rural societies (at least those with free labor), labor owned the means of production (its own work). Under capitalism, a ruling class owned the machinery and financial instruments (the capital) necessary to production. They also, in fact, own the labor, as workers no longer have a say in their hours, working conditions, etc. Owners derive unearned income from the labor of workers who are under their control. 3. Alienation: The process of industrial production involves an increasing deskilling of work, meaning workers have less of an association with the larger purpose of the process or output. As labor is divided into more specialized functions, there is increased alienation. 4. Dialectical materialism : As capitalism increases social conflict (class conflict), it sows the seeds of its own demise. It is part of Marx’s historical theory of capitalism as one stage in human development. Eventually, socialism will replace capitalism, and workers will own the means of production, ushering in a new social order. Post-Capitalist Society In 1993, Drucker published Post-Capitalist Society, a book that advances a bold argument about Marx’s theories and the trajectories of history. It was one of his more successful books, and I think he left us with much to think about as we navigate the waters of the new or next knowledge society. Drucker looks back on Marx’s evaluation of capitalism with an historical view, much like Marx looked at Hegelian and other assessments of society in his time. In this sense, Drucker follows in the tradition of European theorists critiquing the ideas of the past, using an historical argument. According to Drucker, the manufacturing economy framed the conversation around society, economics, and politics from the late 1800s to the 1950s. Marx’s labor theory of value dominated discussions, as workers competed to have equal power and voice with owners (capitalists). However, as Drucker argues, the owners of capital (the financial titans of industry) peaked by the First World War, and were replaced by professional managers by the 1950s. The classic dialectic between labor and capital was no longer relevant by the 1950s, as “capitalists” no longer existed. Drucker posits that by the 1970s, “capital” would be in the hands of the workers themselves in the form of pensions, mutual funds, and other collective methods of corporate ownership. According to Drucker, the factors of production were no longer labor or capital, but knowledge by the mid-20thcentury. Knowledge workers owned the capital (pension funds, and later 401ks) and also owned the means/tools of production (knowledge). This perspective upended not only traditional notions of capitalism as viewing labor and capital as the primary inputs for production, but also upset the social order. Moreover, we faced a new economic challenge of measuring productivity in a new way (related to knowledge) but also a social challenge as the old service (manual labor) workers would be left behind. Furthermore, we would face a dichotomy between intellectuals and managers. Both of these conflicts are akin to what Marx alluded to in his reference to dialectical materialism. In essence, while highly critical of Marx, Drucker used a version of Marxist theory to postulate the existence of a “post-capitalist society.” Drucker was no fan of Marx but uses an historical argument and similar language about analysis of inputs (labor and capital, but in Drucker’s case, knowledge). The difference is that Drucker is not engaging in a dialectical process (and not one focused on material concerns alone). According to Drucker, one of the primary reasons that Marx’s worldwide proletarian revolution failed to materialize was the inadequacy of his model of “economic man” (his sole emphasis on material satisfaction as an indicator of society’s wellbeing). Drucker rejected this model of society, arguing for an industrial model of society where the manufacturing plant community provided meaning to the worker. Crucial to defeating the forces of totalitarianism (and Marxism, for that matter) was providing individuals in society with status and function . Status gives people a place in the social structure, whereas function provides individuals with a purpose. Economic meaning was not enough; people needed this larger sense of individual and community meaning. In the early twentieth century, because of the incredible gains in manufacturing productivity, capitalism emerged as the dominant system. However, as society moved away from industrial employment towards knowledge work, this new post-capitalist society presented new challenges – including the possibility for social disorder. Thus, Drucker turned to understanding the “ knowledge society ”, a new stage in human development. According to his analysis, what were the new challenges inherent in this new knowledge society? As we saw in the previous installment of this issue, knowledge worker productivity and its measurement represented one such challenge – one we still face. Drucker also wrestled with questions of worker motivation, social disorder, and compensation disparities. In our next installment, we’ll expand on Drucker’s concerns and see how they might help us understand where we are with our current knowledge society and the challenges we face. 
By Michael Cortrite, Ph.D. February 7, 2025
One cannot manage change. One can only be ahead of it…In a period of upheavals, such as the one we are living in, change is the norm. To be sure, it is painful and risky, and above all, it requires a great deal of very hard work. But unless it is seen as the task of the organization to lead change, the organization…will not survive. Peter Drucker in Management Challenges for the 21 st Century (2001) Alan George Lafley was the CEO of Proctor and Gamble (P&G) from 2000 to 2010 and 2013 to 2016. The Proctor and Gamble Company is a consumer goods corporation headquartered in Cincinnati, Ohio. It was founded in 1837. Today, Proctor and Gamble is healthy and is ranked 55 th in the Forbes Global 2000. In 2000, just before Lafley was appointed CEO, P&G stock dropped by almost 30% in one day, and the next week, it dropped another 11%. P&G lost $85 billion in market capitalization a few months later. Lafley described it as a crisis of confidence; inside the organization, employees were blaming each other, and outside the organization, market analysts and investors were surprised and angry. Retirees were angry over losing half of their profit-sharing nest eggs. The news media used headlines such as “P and G Investor Confidence Shot”, “Trouble in Brand City,” and “Does P&G Still Matter?” It appeared that a major, almost 200-year-old company, was in danger of going out of business. Fortunately, Lafley had the advantage of being familiar with Peter Drucker’s writings and was able to talk with him in person. What follows is an accounting of Lafley's actions using his own experience (P&G was his first CEO job) along with Peter Drucker’s writing and personal advice on sustainability. · One of Drucker’s last works was answering the question, “What is the work of the CEO?” Lafley realized that the CEO is singularly held accountable for the performance and results of the company and acted accordingly. · Trust is needed for sustainability. Trust at P&G had evolved to mean that employees could rely on the company for lifetime jobs. Lafley redefined it as consumers’ trust in the company’s brands and shareholders’ trust in its value as a long-term investment. · The consumer is boss. This mindset was emphasized to all employees. Another more famous Drucker Quote is, “The purpose of a business is to create a customer.” Lafley turned around the company-wide habit of losing touch with customers by emphasizing employees at all levels getting closer to customers. · Lafley listened to Drucker that a company must decide what business you are in (or not in). Lafley took the advice and after careful analysis caused P&G to keep some products and businesses, eliminate some products and businesses, and add some products and businesses. This was also the advice Drucker gave to Jack Welch, General Electric CEO, a few years earlier about streamlining the company by focusing on where to compete and where not to compete. Lafley expanded Drucker’s advice by adding his own statement on sustainability; “We must work on the present to earn the right to invest in the future.” · As published in the Wall Street Journal in January 2005 (The American CEO) Drucker observed that we don’t completely understand the unique role of the CEO; What is the work that only they can do and that they must do? The CEO has the power and the ultimate responsibility for business sustainability. The CEO is the link between the inside of the organization and the outside of the organization. He or she alone experiences the meaningful “outside” the organization and is responsible for understanding it, interpreting it, advocating for it, and presenting it in a way that enables sustainable sales, profit, and total shareholder return. For Lafley, “meaningful outside” can include several stakeholder classes, but it emphasizes the idea that the “Consumer is Boss.” Lafely saw that over the years, P&G employees had been drawn to internal interests, and inward focus is the enemy of growth. It is the CEO’s job to deal with outside stakeholders and have a deep understanding of their competing interests, as well as how those interests correspond with the capabilities and limitations of the organization. And Lafley went to work on reinvigorating focus on “outside the organization stakeholders” while keeping in mind that employees are a company’s most valuable asset. Strengthening relationships with analysts and investors resulted in a better understanding of their wants and needs. · Drucker said that effective CEOs make sure that the performing people are allocated to opportunities, rather than only problems. Lafley took this advice to heart and also reiterated the importance of succession planning. · Avoiding complacency in an organization is a must. The CEO should always ask, “Are we winning with those who matter most and against the very best?” The CEO should ensure that the company’s values, purpose, and standards stay relevant for the present and the future and for the businesses the company is in. CODA When looking at overall company sustainability, the difference in governance between Jack Welch of General Electric and A.G. Lafley of Proctor and Gamble is dramatic This is a potential subject for further research on sustainability. In the leadership literature Lafley is generally rated as a hands-on people person who consistently strived to develop leadership in his employees. He was respectful of employees and valued listening to them. He could be described as a servant leader or a follower of Peter Drucker’s management as a liberal art leadership style. Welch was very competitive and was also described as having a combative and aggressive personality. He stressed shareholder value and the absolute necessity of financial performance. In the name of cost-cutting, he would occasionally order massive layoffs, which caused employee resentment and mistrust. His mantra of “Win at Any Cost” has been said to damage the ethical behavior of employees. When Lafley and Welch were CEOs of their respective companies, the companies thrived. When Welch left GE in 2001 the company had “disappointing results for 2 decades.” When Lafley left P&G in 2016 the company continued to thrive and is still highly rated. Bibliography Silva, A. 2015. What Can We Learn from Great Business Leaders? Journal of Leadership Studies. 23 January 2015. Donlon, J. 2007. Proctor and Gamble. Chief Executive. Iss. 30. December 2007. 58-62. Lafley, A. G. (2009) What Only the CEO Can Do. Harvard Business Review, May 2009
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