The Executive PhD program that Peter Drucker, “the Father of Modern Management,” and his dean, Paul Albrecht, developed at Claremont Graduate University in 1975 was the first accredited PhD intended for future top executives. According to Albrecht, this PhD taught the “Drucker Difference” for those “with top management potential.” It was and is expensive. There were only ten students in the first cohort, and only one of the ten completed the program. This individual eventually rose to the rank of major general in the U.S. Air Force, and, after retirement, founded The California Institute of Advanced Management with Minglo Shao, a Chinese billionaire who had earlier founded Drucker Academies across China. Others graduated in later cohorts and became senior corporate executives, presidents of colleges and universities, and entrepreneurs. Was Drucker Really Different? Most professors built their careers on conventional research and publication in academic journals. Drucker didn’t. His numerous articles were written for practitioners, not primarily researchers. They appeared in the Harvard Business Review, the Wall Street Journal and other journals read primarily by practitioners. In June 2004, Harvard Business Review honored Drucker with his seventh McKinsey Award for his article, "What Makes an Effective Executive. Drucker’s 39 books were written for practitioners as well. They won and received numerous accolades. Yet Drucker did not write synthetic research typical in academia, where one or more hypotheses based on multiple inputs are tested for significant differences. Drucker used a different research model. He declared, “corporations are my laboratories.” His conclusions from observation are the basis of the Drucker Difference. They were explained first by Einstein who used the method and explained it in an article in the London Times. Drucker’s Research Model Asked in class where he got his vast knowledge and extensive experience to help organizations in so many different industries, Drucker answered: “I have no vast knowledge nor extensive experience on any specific topic. I have only ignorance and lack of experience. Therefore, all I can do is to ask questions. Clients have the knowledge and experience which I lack; they are the real experts on the topics they hire me for.” He then gave examples of his questions, beginning with “What business are you in?” “Who is your customer” “What does your customer value? “What are your objectives” and “What is your plan for getting those results?” Other Questions General Electric’s former CEO Jack Welch, who retired with the largest retirement package ever awarded, significantly increased GE’s wealth. He credited Drucker’s consulting. Welch said that Drucker had asked him two questions: “If you have a choice, which GE businesses would you discard?” and “If this is true, what are you going to do about it?” Welch explained that he made the decision to sell or liquidate even profitable GE businesses, which were not number one or two in their markets and were unlikely to attain these positions. He used the funds to invest in businesses with better potential. Over nine years this increased GE’s wealth by 4000 percent. This became known as Drucker’s Abandonment Theory. Another former client explained: “Drucker got us thinking through our problems and applying our own knowledge and experience in a way we had never considered previously. This was amazingly effective, and we found solutions to our problems with his guidance that we had overlooked.” Drucker was Different Here was an expert who not only did not claim special talents but rejected the title “guru.” Drucker made no claim as being an extraordinary management researcher. When not at the university, Drucker used his home as his office. He practiced without a staff or even a secretary. He even answered his own phone. He did not claim any special expertise or experience. Yet he reportedly received as much as $10,000 for a few hours work. Few complained. He taught a simple procedure to students. It began with defining the problem and determining the relevant factors including facts, estimates, speculations, assumptions, time available and financial limitations. Only then did he advise clients to identify, discuss, compare, and analyze possible solutions. Strategy, not Formulae Drucker refused to develop strategy by formula. There was no BCG nor GE/McKinsey chart with cash cows or dogs. He believed that each situation was so unique, that a manager must know as much as possible to determine strategy. There was no common element of identical importance for all situations. What was decisive and important in one situation might be totally unimportant in another. Decisive elements might not even be quantitative or directly associated with profit. While profitability was deemed as necessary to a business as oxygen to breathing, he said that profit maximization was not, and noted that transistor radios were developed in the U.S., but lost the market to the Japanese because American developers tried to maximize profit. Drucker described management as a liberal art and suggested that liberal arts should be employed in developing strategies and management decisions. He noted economics, ethics, history, humanities, philosophy, social science, physical sciences, and psychology, as all being useful in a variety of managerial and business situations. He noted that in addition to external knowledge, self-knowledge of the organization and its people and available resources might be of even greater importance. Drucker also wrote that 50% of the outcome of any project was due to its leadership. Once invited by an organization to explain the latest leadership techniques, he rejected the opportunity with the explanation that the latest techniques were known to the ancients and recommended that his inquirer read “the first systematic book on leadership and still the best” which had been written 2000 years earlier by Xenophon, an ancient Grecian general and author. Drucker and Research Most controversial was Drucker’s approach to research, yet it was also employed by Einstein who’d been a researcher in theoretical physics. In the single year, 1905, Einstein produced four papers, winning the Nobel Prize for theoretical physics. All four were written a year after earning his PhD at the University of Zurich while he was working at the only job he could obtain: as Assistant Patent Examiner in the Swiss Patent Office in Bern. Like Drucker, he had no conventional laboratory or computers. The Theory of Relativity Einstein himself described the development of one of his most famous theories, the Theory of Relativity. He imagined himself traveling along side of a moving beam of light. Einstein may have provided Drucker with ideas of research. Drucker observed people in companies in action as Einstein had observed his imaginary beam of light. He used analysis and development of what he observed to develop his theories of management. Einstein Reveals His Research Methodology Einstein described his research methodology in an article in the London Times in 1919, discussing what he called his “Theories of Principle.” Einstein wrote “these theories employ the analytical, not the synthetic method of research. Their starting-point and foundation are not hypothetical components, but empirically observed general properties of phenomena, principles from which mathematical formulae are deduced of such a kind that they apply to every case which presents itself.” Synthetic research is what most use in research. It starts with the known and proceeds to the unknown, beginning with a hypothesis or hypotheses. It then tests these hypotheses by proving or disproving each usually by examination of a sufficient number of examples and testing mathematically for significant differences. Einstein’s analytical research starts with the unknown and proceeds to the known. There is no hypothesis. One definition of analytical research is “a specific type of research that involves critical thinking skills and the evaluation of facts and information relative to the research being conducted.” This analytical process is how Drucker arrived at his theories and is part of the Drucker difference. This research approach comes from a simple model: 1. Observation, either real or even imagined 2. Analysis of the observation or imagination 3. Construction of theory based on this analysis A sampling of Drucker’s theories derived analytically include: · That marketing and selling are not the same. · Moreover, selling is not a subset of marketing and marketing and selling could be adversarial. Since, if the product or strategy chosen by the company were better, with the same effort and ability, the same salesmen might sell more product with less effort. · What everyone knows (or think they know) is usually wrong. This short statement was the one most uttered by Drucker in the classroom. · Social Responsibility and Ethics are part of good leadership. · Society demands that an organization be profitable, but not the maximum profit attainable. · Many managerial decisions are made from the gut, and these may be optimal despite complex analyses. · Managers must ultimately make decisions from the gut.  What Drucker taught, worked, and the “Drucker Difference” produced many successful leaders using “Drucker Difference” skills. While other factors influence results and other research methods are still valuable, researchers using primary analytical research including Einstein confirm the value of the “Drucker Difference” confirming Drucker’s conclusion that Management is a Liberal Art.

The formal study of entrepreneurship begins with the works of Richard Cantillon and Adam Smith in the 18th century. Cantillon's (1755) Essai Sur La Nature Du Commerce En Général is considered by many an important early treatise on enterprise economics and entrepreneurship. In this work, Cantillon provides his conception of the entrepreneur as a risk-bearer - someone whose acceptance of risk allows them to pursue entrepreneurial activities. Two decades later, Adam Smith in his (1776) An Inquiry into the Nature and Causes of the Wealth of Nations explains that nations grow wealthy through changes in the division of labor. Smith describes how human actions lead to changes in the division of labor, economic outcomes, and subsequent new venture formation. Smith suggested that division of labor (implicitly entrepreneurship) was the driver of wealth in society. The French economist, Jean-Baptiste Say in his (1803) Traité d'économie politique ou simple exposition de la manière dont se forment, se distribuent et se composent les richesses posits that the entrepreneur, who he also refers to as the ‘undertaker’, is someone who takes upon himself the immediate responsibility, risk, and conduct of a concern of industry, whether upon his own or on borrowed capital. Say argued: “The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield” (Say 1803). By pursuing areas of greater yield, Say argues, the entrepreneur is effectively taking on greater risk. Accordingly, the entrepreneur is also receiving a higher return on investment. Although entrepreneurial activities continued for two hundred years, the study of entrepreneurship remained largely ignored by academics until the early 20 th century. An economist by the name of Joseph Schumpeter in the 1930s,and other Austrian economists such as Carl Menger, Ludwig von Mises, and Friedrich von Hayek begun to increasingly discuss entrepreneurship in their works. Schumpeter would argue that the innovation and technological change of a nation stem from the efforts of entrepreneurs. Schumpeter even devised the term Unternehmergeist , German for entrepreneur-spirit. Schumpeter suggested in his 1942 book Capitalism, Socialism and Democracy , that “creative destruction” represents the disruptive process of transformation that accompanies innovation. Moreover, he argued that the innovative entry by entrepreneurs into a market was the disruptive force that sustained economic growth. Schumpeter contended that entrepreneurship drives economic growth by disrupting existing industries and creating new ones. Thereupon, the entrepreneur challenges the status quo, leading to the replacement of older technologies, businesses, and economic models with new, more efficient ones. Schumpeter maintained that entrepreneurship is a dynamic force of change which drives progress and societal advancement. Ergo, as agents of change, entrepreneurs introduce new products, services, and market structures that generate economic growth and influence society. Schumpeter argued that entrepreneurship involves introducing new and different combinations of resources, technologies, and organizational methods that create value. Yet, he emphasized the importance of having an entrepreneurial spirit and mindset in fostering economic dynamism. He believed that entrepreneurship is supported by a mindset which is characterized by initiative, ingenuity, and a yearning to challenge the status quo. A few decades later, Peter F. Drucker would also discuss entrepreneurship in his writings. In his 1985 book titled: “ Innovation and Entrepreneurship ”, Drucker states: “Entrepreneurship rests on a theory of economy and society. The theory sees change as normal and indeed as healthy. And it sees the major task in society – and especially in the economy – as doing something different rather than doing better what is already being done” (Drucker, 1985, p. 26). Drucker opined that entrepreneurs introduce changing, newer ways of doing things, and hence fulfill an important role in the market, economy, and society. By addressing needs, solving problems, and offering innovative solutions, entrepreneurs contribute to economic growth and development. In his Innovation and Entrepreneurship , Drucker also dissects the practice of entrepreneurship, highlighting the importance of establishing systematic, organized, and purposeful management. He describes entrepreneurship as “not natural”, nor “creative”. Instead, Drucker argues that entrepreneurship is work. And entrepreneurship must be consciously driven for, thereby it requires effort. Drucker explains that entrepreneurial management requires policies and practices that support four key areas: (1) fostering an entrepreneurial climate – the organization must be receptive to innovation and be willing to perceive change as an opportunity rather than a threat; (2) developing systematic measurement of performance and learning to improve performance; (3) adapting organizational structure – adjusting staffing, managing, compensation, incentives, and rewards; and (4) recognizing that trying to become “entrepreneurial” without changing basic policies and practices that support those efforts, could lead to entrepreneurial failure. Drucker believed that entrepreneurs are constantly seeking opportunities for innovation and change. Hence, they have a keen ability to recognize market needs and identify existing inefficiencies. He also believed that entrepreneurs have the courage to step outside of traditional boundaries and challenge the status quo. Yet, Drucker emphasized the importance of taking disciplined initiative in entrepreneurship. Without consistency, discipline, and initiative, the entrepreneur cannot develop new products, services, or solutions that address societal challenges. Drucker highlighted the criticality of results-oriented thinking and of measuring performance. He opined that entrepreneurs must constantly seek ways to improve, and that continuous learning is essential to evolve and deliver value. Hence, entrepreneurs are lifelong learners who are adaptable and resilient, able to pivot and adjust their approaches and strategies in response to varying market conditions and unanticipated challenges. Through their works, Joseph Schumpeter and Peter Drucker have influenced our perspective of entrepreneurship, and the way entrepreneurship is practiced. Schumpeter and Drucker possessed some similar views on who entrepreneurs are, and what they do. Perhaps, one of the key differences between Schumpeter and Drucker, is that the former considered that “creativity” contributes to and supports entrepreneurship, while the latter argued that entrepreneurship is not about creativity, but rather work and effort. Notwithstanding this notable difference, both Schumpeter and Drucker envisioned the entrepreneur as an agent of change, someone who is willing and able to change the way things are done, challenging the status quo, and delivering value to society. As such, entrepreneurs do not solely create new products or services, they have the ability to profoundly impact society. References Cantillon, R. (1755). Essai sur la nature du commerce en général. INEd. Drucker, P. (1985). Innovation and entrepreneurship: practice and principles. New York, NY: Harper Business. Say, J. B. (1846). Traité d'économie politique: ou simple exposition de la manière dont se forment, se distribuent et seconsomment les richesses (Vol. 9). O. Zeller. Schumpeter, Joseph A. (1942), Capitalism, socialism and democracy. London: Unwin. Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations.

For over a decade, Dan Solin's wisdom has shaped my understanding of management philosophy profoundly. Dan Solin, celebrated for his bestselling 'Smartest' series on investing and his widely read work 'The Smartest Sales Book You'll Ever Read' and 'Ask: How to Relate to Anyone', connects with readers weekly through his blog on Advisor Perspectives, drawing in a devoted audience. His background as a securities attorney, along with his academic path through Johns Hopkins University and the University of Pennsylvania Law School, underscores his expertise. I've personally drawn a great deal from Solin's focus on the human side of business — it's redefined how I see leadership and the way we connect with others. He champions the idea that it's not just what we say but how we listen and empathize that forges strong relationships and drives successful enterprises. Solin's approach echoes the human-centric principles of Management as a Liberal Art (MLA), a concept promoted by Peter Drucker that suggests management is more art than science, calling for a profound engagement with personal relationships. I am convinced that merging Solin's insights with the MLA philosophy can guide us toward more effective, reflective, and compassionate management methods. In the article that follows, I'll delve into how Solin's writings harmonize with MLA's values. Emphasizing Human Interactions and Development Both Drucker and Solin recognize the significance of human development and interactions within organizations. In Solin's work, the recurring theme is the emphasis on understanding and empathizing with others rather than simply imposing one's own viewpoints. A hallmark of Solin's philosophy is the power of asking questions. Moreover, Solin advises managers to guide change with empathy and understanding, acknowledging the impact on individuals. This method aligns with MLA's view of management as an art that requires practice, reflection, and the pursuit of knowledge. By asking questions, managers can elicit deeper insights and foster a culture of curiosity and continuous learning, which is at the core of MLA. Managing Change and Leading by Example Dan Solin's forward-thinking approaches, especially his pioneering use of artificial intelligence for small businesses and financial advisors, aligns well with the ethos of Management as a Liberal Art (MLA). Solin offers practical, actionable advice, making complex technology approachable for his readers. Similarly, MLA, as conceptualized by Peter Drucker, stresses the importance of anticipating and navigating change — a skill ever so crucial in today's dynamic business landscape. Solin’s writing emphasizes the practical application of knowledge, resonating with Drucker's belief that true wisdom in management emerges from an integrated understanding of our experiences, leading with both discernment and insight. Transdisciplinary Perspective and Holistic Understanding Solin’s work on avoiding the heuristics trap and naïve realism echoes MLA's transdisciplinary perspective. Drucker believed that a manager should not rely solely on a single framework or heuristic but should integrate knowledge from various disciplines. Drucker's notion that management is both a liberal art and a practice suggests that effective managers blend empathy and analysis to make well-rounded decisions. Solin's advocacy for a broad-based approach to understanding others reinforces this principle, highlighting the importance of a holistic understanding in management. Encouraging Self-Reflection and Growth MLA posits that self-reflection and personal growth are central to effective management. Solin’s writings often touch on the benefits of self-awareness and the pursuit of personal development, paralleling the MLA belief in the necessity of continuous learning and the cultivation of self-knowledge for managers. Solin's reflections on the impact of our actions and advice demonstrate an acute awareness of ethical responsibility—a key component of MLA. Solin emphasizes that financial advisors (as well as managers) should be cognizant of how their interactions affect their clients, teams, and the larger community, advocating for responsible action and ethical management in line with MLA’s ethos. Conclusion Dan Solin's writings provide a rich resource of present practical, everyday applications of the broader and more philosophical principles of Management as a Liberal Art. His focus on empathetic communication, ethical decision-making, and continuous personal and professional growth offers a nuanced take on the MLA framework, exemplifying how management is not just a business function but a holistic and humane pursuit. Solin's work and Drucker’s MLA together provide a roadmap for managers who aspire to lead not only with competence but with wisdom, empathy, and a deep understanding of the multifaceted human experience within organizations. They teach us that to manage effectively is to navigate the delicate balance of advancing organizational goals while fostering an environment where individuals can pursue meaningful development and contribute to the larger societal good. Selected Dan Solin Books Ask: How to Relate to Anyone. Silvercloud Publishing LLC, 2020 The Smartest Sales Book You'll Ever Read: The Truth about Successful Selling. SilverCloud Publishing, 2013

Organizations face unprecedented challenges in today's rapidly changing business landscape, characterized by Volatility, Uncertainty, Complexity, and Ambiguity (VUCA). To effectively navigate this VUCA world, leaders must draw upon the teachings of Peter Drucker and his concept of Management as a Liberal Art. Drucker believed that Management is not merely a set of technical skills but a liberal art containing a broad range of disciplines, including psychology, philosophy, economics, and history (Drucker, 1989). He argued that effective Management requires a deep understanding of human nature, social systems, and the broader context in which organizations operate. To thrive in a VUCA world, leaders must cultivate knowledge, self-knowledge, wisdom, and leadership skills.Knowledge is essential for making informed decisions and adapting to change (Drucker, 1999). By stayinginformed about industry trends, technological advancements, and societal shifts, leaders can better anticipateand respond to the challenges posed by VUCA. Self-knowledge is equally crucial. Leaders must deeply understand their strengths, weaknesses, values, and biases. This self-awareness enables leaders to make more authentic and principled decisions, even amid uncertainty and complexity. As Drucker stated, "The most important thing in communication is to hear what isn't being said" (Drucker, 2001, p. 145). Wisdom goes beyond mere knowledge and involves applying knowledge contextually and appropriately. In a VUCA world, leaders must exercise wisdom in decision-making, considering their actions' long-term consequences and ethical implications. Drucker emphasized the importance of judgment and the ability tobalance competing priorities, noting that "Management is doing things right; leadership is doing the right things" (Drucker, 2004, p. 22). Effective leadership is paramount for navigating the challenges of a VUCA world. Drucker (1999) believedleadership is about setting direction, aligning people, and inspiring them to achieve common goals. In a VUCA world, leaders must be adaptable, resilient, and able to communicate clearly and authentically. They must foster a culture of innovation, collaboration, and continuous learning to help their organizations thrive in uncertainty. Drucker's insights and recent research have shed light on strategies for managing in a VUCA world. Adam (2024) discusses how antifragile systems recover in VUCA situations and improve and outperform the statusquo. Adam suggests that organizations strive to build resilience and adaptability into their systems and processes to thrive in uncertainty. Anand and Nandedkar (2024) compile key findings on strategic leadership to meet the demands of the VUCAworld. They emphasize the importance of agility, innovation, and collaboration in organizational Management, aligning with Drucker's principles of fostering a culture of continuous learning and adaptability. To implement these principles, organizations should encourage ongoing education and knowledge sharing, provide opportunities for self-reflection and personal development, foster a culture of ethical decision-making and long-term thinking, and develop adaptable and resilient leadership capabilities at all levels. By embracing Peter Drucker's concept of Management as a Liberal Art and integrating knowledge, self-knowledge, wisdom, and leadership, organizations can develop a holistic approach to navigating the VUCAworld. This approach, combined with insights from recent research on antifragility and strategic leadership, emphasizes the importance of drawing from a broad range of disciplines and considering Management's human and social dimensions, ultimately enabling organizations to create sustainable value for all stakeholders in the face of unprecedented challenges. References: Adam, P. A. (2024). Integrated risk and opportunity management-implementing clause 6.1. Hannover University of Applied Sciences and Arts. Anand, G., & Nandedkar, T. (2024). A smart leader in VUCA world: Presenting key components of strategic leadership using SLR method. Indonesian Management and Accounting Research. Drucker, P. F. (1989). Management as a liberal art. New Management, 6(2), 5-15. Drucker, P. F. (1999).Management challenges for the 21st century. HarperCollins. Drucker, P. F. (2001). The essential Drucker: The best of sixty years of Peter Drucker's essential writings onManagement. HarperCollins.  Drucker, P. F. (2004). What makes an effective executive. Harvard Business Review, 82(6), 58-63.

Today, we find ourselves at the intersection of multiple technological revolutions. Artificial intelligence, robotics, blockchain, biotechnology, and quantum computing are just a few technological disruptive forces reshaping industries, economies, and societies. As we grapple with the profound implications of these technologies, it is worth turning to the wisdom of management thinker, Peter Drucker, to gain knowledge and self-knowledge. While Drucker passed away in 2005, his insights on navigating change and preparing for the future remain as relevant as ever. Drucker was a keen observer of societal trends and their implications for leading, managing, and organizing. Rather than making specific predictions, he studied emerging patterns to gain insights about the challenges and opportunities ahead. Central to his thinking was that change is not an episodic event to be weathered but a constant reality to be embraced (Drucker, 1999). Let us explore some of Drucker's fundamental ideas about technology and societal transformation and what they mean for us now. Technology as an Integral Process In his 1969 book "The Age of Discontinuity," Drucker (1969) argued that technology should not be viewed as a foreign, disruptive tool, but as an integral process that has always been part of human existence. He noted that while technological change can be highly disruptive in the short term, it is a regular and ongoing part of societal evolution. This perspective is worth considering as we confront the dizzying pace of technological change today. Drucker's vision of technology as deeply intertwined with everyday life seems more apt than ever as artificial intelligence, as well as virtual and augmented reality, become embedded in everything from our smartphones to our financial markets. The lines between the digital and physical worlds have been blurred. Navigating the Knowledge Society Alongside his insights on technology, Drucker was among the first to identify the shift from an industrial economy based on manual labor to a "knowledge society" based on intellectual capital and the service sector. In his 1993 book Post-Capitalist Society, he argued that knowledge was becoming a critical resource and that "knowledge workers" would be the dominant group in the workforce (Drucker, 1993). This shift has profound implications for educating, training, and managing people in an age of accelerating technological change. With many traditional jobs being automated or augmented by AI, Drucker’s counsel to pursue continuous learning and adaptability will be essential for individuals and organizations (Drucker, 1999). He also predicted a move away from hierarchical command-and-control structures towards flatter, more collaborative networks that leverage expertise across boundaries (Drucker, 2002). This transformation is unfolding today, with the rise of agile methodologies, design thinking, and interdisciplinary teams combining diverse skill sets to solve complex problems. At the same time, as Drucker noted, the knowledge society also brings new challenges around issues like intellectual property rights, data privacy, considerations for ethical interactions surrounding new technologies, and the distribution of economic gains (Drucker, 1999). Addressing these issues will require technological innovation and social and political adaptation. Leading in Times of Change For Drucker, the key to thriving in a world of rapid technological and societal change was not clinging to yesterday's strategies but constantly questioning assumptions and adapting to new realities. As he wrote in his 1985 book Innovation and Entrepreneurship, "The greatest danger in times of turbulence is not the turbulence itself, but to act with yesterday's logic" (Drucker, 1985, p. 25). This advice feels particularly apt as we navigate the uncharted territory of a post-COVID world, grappling with the long-term impacts of the pandemic alongside the ongoing march of technological disruption. In such times, Drucker would counsel us to embrace change as an opportunity for innovation, experiment with new ways of working and organizing and cultivate a lifelong learning mindset. At the same time, he would likely caution against getting caught up in the hype around any particular technology or trend. For Drucker, the key was always to stay focused on the fundamentals - understanding customer needs, developing people, and building sustainable organizations that create societal value (Drucker, 1999). By grounding ourselves in these timeless principles while remaining open to new possibilities, we can chart a course through even the most turbulent of times. Conclusion As we navigate the technological and societal transformations of the 21st century, Peter Drucker's insights offer a beacon of clarity and wisdom. We can survive and thrive in an age of disruption by viewing change as a constant, embracing the knowledge society, and leading with a spirit of innovation and adaptability. As Drucker put it, the challenge is to "convert change into opportunity" (Drucker, 1999, p. 57) to harness the power of technology and human ingenuity to create a better future for all. It is a challenge that will require the best of our imagination, courage, and collaboration in the years ahead. References: Drucker, P. F. (1969). The age of discontinuity: Guidelines to our changing society. Harper & Row. Drucker, P. F. (1985). Innovation and entrepreneurship: Practice and principles. Harper & Row. Drucker, P. F. (1993). Post-capitalist society. HarperBusiness. Drucker, P. F. (1999). Management challenges for the 21st century. Harper Business. Drucker, P. F. (2002). Managing in the next society. Butterworth-Heinemann.

Peter Drucker, throughout his long and distinguished career, advocated for the rights and well-being of all people. Drucker wanted all people to have respect, dignity, a meaningful place in society, and a degree of autonomy. Drucker also made sure to tell managers that even though caring for people is important, productivity and success are essential to the longevity of organizations (Murphy 2023). According to Drucker successful entrepreneurs have a commitment to the successful practice of innovation and, in fact, innovation is the specific foundation of entrepreneurship. He believed that innovation is not so much about genius, but finding and taking advantage of opportunities for innovation (Drucker 2013 p.156). Friesen uses the Drucker quote, “Stressing output is the key to increasing productivity while looking to increase activity can result in just the opposite.", to point out Drucker’s belief that successful organizations are innovative and productive. Drucker defines entrepreneurship, not just in terms of small or start-up businesses, but as “any business that engages in innovation. Innovation is defined as “the effort to create purposeful, focused change in an enterprise’s economic or social potential.” (Drucker 2013 p.143). In other words, innovation is change to create better results. One might say that Drucker thinks of innovation and entrepreneurship as synonymous. In his essay titled, The Discipline of Innovation (Drucker 2013), Drucker says that most successful innovations result from a conscious, purposeful search for innovation opportunities, Drucker lists seven areas of opportunity that exist within a company or industry. They are:  1. Unexpected occurrences 2. Incongruencies 3. Process needs 4. Industry and market changes 5. Demographic changes 6. Changes in perception 7. New knowledge An example of unexpected occurrences is when IBM developed the first modern accounting machine in the early 1930s. It was designed with banks in mind, but banks were not buying new equipment at the time. Fortunately, the New York Public Library bought one of the machines. This led to more than 100 machines being sold to other libraries. Instead of IBM losing money, they became even more successful. Drucker cites other examples of unexpected occurrences that led to successful innovations. Drucker suggests that organizations focus their monthly and quarterly reports as much on problems that arise as on potential opportunities because problems or mistakes can turn into profitable innovations. One of the examples Drucker recounts to show his second area of opportunity, incongruities, is the shipping industry using ocean freighters. Drucker explains that for the first part of the twentieth century shipbuilders and shipping companies kept trying to boost their sagging profits by looking at what turned out to be two incongruous ideas—either making ships faster or making them more fuel efficient. If they made ships faster, then fuel costs skyrocketed. If they made them more fuel efficient, it took too long for them to arrive at their destination. They finally realized that ships sitting idle in ports being loaded or unloaded by hand was a large waste of money. They started using roll-on roll-off containers that truckers and railroads had been using for 30 years. This innovation solved their money problem. Drucker’s third opportunity for innovation, process needs, is explained by using the example of what we call “the media.” Two innovations were used to create the innovation of the modern media. The first was the linotype, which made it possible to produce newspapers quickly and in large volume. The second was that newspaper publishers Adolph Ochs, Joseph Pulitzer, and William Randolph Hearst started selling advertising in their papers. These two innovations combined so that news could be widely distributed almost free of charge. To explain Industry and market changes, Drucker points out that even though change is usually disliked, change happens and often things change overnight. And these changes can be opportunities for innovation. The brokerage firm Donaldson, Lufkin, and Jenrette (All Harvard graduates) was started in 1960. They discovered that things were changing in the financial industry—institutional investors were rapidly becoming dominant. They started the concept of negotiated commissions and quickly became one of Wall Street’s stellar performers. Demographic Changes. The Japanese lead the world in robotics because they pay attention to demographics. Around 1970 everyone in the developed world knew that there was both a baby bust and an education explosion going on. About half of the young people were staying in school past high school. Consequently, the number of people available for blue-collar work in manufacturing was bound to decrease and become inadequate by 1990. The Japanese were ready with the answer to this problem. It was robotics and Japan had a large head start on the rest of the world in this area. Drucker uses the examples of “The glass is half full” and “The glass is half empty” to introduce changes in perceptions since these two similar statements have vastly different meanings. Drucker points out that Americans’ health has never been better. But for some reason, Americans seem to be suddenly obsessed with it. They want healthcare magazines, health foods, home exercise equipment, and gym memberships. And even though the crime rate is the lowest it has been in 40 years; Americans are buying up the latest alarms and home surveillance systems. And entrepreneurs are taking advantage of, not facts, but perceptions that crime is a problem. New knowledge innovation is what people generally think of as innovation. It’s big, useful, and important stuff, but Drucker says there is a protracted span (somewhere around 50 years) between emerging new knowledge and when it becomes usable technology. For example, some of the knowledge that was ultimately used to create modern banking goes back to the era of Napoleon. The same can be said of the innovation of computers. For example, the precursor of the modern computer, the punch card, was invented in 1890. Conclusion Peter Drucker has often been described as “prescient” and “decades ahead of his time.” (Ambachtsheer 2005). Drucker’s work on innovation, management by objectives, entrepreneurship, and results is another example of Drucker’s work staying relevant and of his ability to foresee the future. A new leadership model, Objectives and Key Results (OKR) is described by Keryn Gold in the July 2023 issue of Leadership Excellence. This model was created by Andy Grove of Intel and has been adopted by organizations including Netflix, Amazon, Facebook, Adobe, and Linkedin. It links, among other things, clarity, innovation, empowerment, and employee engagement to success (Gold 2023). In the book Measure What Matters, John Doerr writes about “MBOs,” or Management by Objectives. MBOs were the brainchild of Peter Drucker and provided Andy Grove a basis for his eventual theory of OKRs. In fact, Grove’s name for them originally was “iMBOs,” for Intel Management by Objectives (Doerr 2018). References: Ambachtsheer, Keith. The Unseen Revolution. Pensions and Investments Vol. 33 Iss. 24 p.12 2005 Doerr, John. Measure What Matters: How Google, Bono, and The Gates Foundation Rock The world with OKRs 2018 Drucker, Peter. The Discipline of Innovation Chapter in On Innovation, Harvard Business Review 2013 Friesen, Wes. Measure What Matters Business Credit, Volume 125 Issue 8 (Sept. 2023) Gold, Keryn. OKR Best Practices That Promote a Culture of Empowerment and Innovation Leadership Excellence. Vol. 40, Issue 7 July 2023 Murphy, Glenn. Delivering on Drucker’s Call to Action. Strategic Finance, Volume 104, Issue 7 Jan. 2023

Tell me and I forget. Teach me and I remember. Involve me and I learn. Benjamin Franklin Life coaching, including leadership/executive coaching, team coaching, relationship coaching, health and wellness coaching, and others, has been around for about 40 years. The International Coaching Federation (ICF) started in 1995 and is the only international organization that certifies coaching schools and coaches. It is the world’s largest organization of professionally trained business and personal coaches. ICF defines coaching as “partnering with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential.” According to the ICF, a coach must develop a mindset that is open, curious, flexible, and client-centered. A coach always acknowledges that clients are responsible for their own choices. (coachingfederation.org). So coaching is a process that focuses on the client and encourages client autonomy and decision-making. This should result in more cognitive clarity, better decision-making, and the client being completely confident in his or her decisions. Platis (2016) states that the coach must listen to the client, even in the case where the client does not know exactly where he or she wants to go. I earned an Associate Certified Life Coach Credential 4 years ago from an ICF-certified school and recently completed ICF training for an International Coaching Federation Professional Coaching Credential. I was taught that asking the right questions is the main tool of an effective coach. A coach is not a counselor or a therapist and does not make decisions for a client. A coach rarely even gives advice to a client. Potential clients with a psychological condition should be referred to a mental health professional. The beginning of a coaching relationship is when the coach works with the client to create an agreement or contract. This includes what each party agrees to or not to do and, among other things, a pledge of confidentiality. After some trust is established, the coach assumes that the client has the answers to their dilemmas, problems, or difficulties. Peter Drucker said trust is an essential requirement of effective leaders. Without trust, according to Drucker, leaders have no followers. And to build trust, Drucker challenged leaders to go beyond the singular “I” and to lead from a more empowering “we” (Atkins 2009). It is the coach’s job to draw those answers out of the client, much like Peter Drucker, the “father of modern management” and notable consultant, did by asking questions. Cohen (2008 p.205) relates the story of Drucker consulting for General Electric CEO Jack Welch. Drucker asked him two questions: If you weren’t already in a business, would you enter it today?” and If not, what are you going to do about it?”. Ultimately, the client should realize that they are making the decisions and have the power and the knowledge to solve life’s problems (coachingfederation.org). Two concepts that were stressed during my coaching schools are: “Don’t be a fixer.” and “Coach the person, not the problem.” In other words, trying to “fix” someone is telling them they are dependent and unable to help themselves. And people, as individuals, can function independently and should be afforded that dignity. Peter Drucker believed that the economic performance of a company (success) is important, and its social and political roles are equally important; since a company’s power is derived from its ability to allocate resources and manage its behavior (Romar 2014, p.203). The following quotes are from Peter Drucker: “Leaders create spirit” (engagement), and “Leaders care about and have compassion for people.” (Drucker 1954). In many of Drucker’s writings, he discusses wanting individuals to be accorded dignity, function, and status. These are all goals of both leadership and coaching. Drucker, himself, as a highly respected business consultant, often “coached” clients by asking questions of them, prompting them to find their own solutions to their problems (Cohen 2008). Grant (2003) found that despite its high media profile and growing popularity, there had been no empirical investigations of the impact of life coaching on goal attainment and metacognition. Grant, therefore, conducted a study of twenty graduate students over a 13-week period that concluded, “solution-focused, cognitive-behavioral life coaching can facilitate goal attainment, improve mental health and enhance life experience.” (p.263). Peter Drucker, in his 1954 book, The Practice of Management, introduced a (radical, for the time) concept he called Management by Objectives (MBO). This was a type of motivation that gave employees in an organization some autonomy in how their job was done. This autonomy or empowerment has since been studied and written about by countless social scientists. Most notably, Daniel Pink, in his book, Drive, finds that autonomy is an important and effective intrinsic motivator, i.e., an employee will perform at a higher level if he or she has a say in how a task is accomplished (Pink 2009). As previously noted, autonomy and intrinsic motivation is also an important part of coaching. According to Csikszentmihalyi and Hooker (2003) shared leadership is an effective intrinsic motivator when applied to Peter Drucker’s concepts of knowledge work and knowledge workers in their creation of innovation. Drucker (1954) writes that “the purpose of business is to create a customer.” Johnson (2023) argues that intrinsically motivated employees are the way to, “create a customer”. He differentiates between good bosses, who respect employees and gives them autonomy, and bad bosses, who control and command employees. Johnson also quotes Reinhart Bendix (1956); “All authority relations have in common that those in command cannot fully control those who obey.” (p. xiv). Johnson believes that “good bosses” create engaged and intrinsically motivated employees by coaching and listening to employees instead of trying to control them. These employees, among other things, create loyal customers, who increase a company’s success. Swain (2019) reports that, according to Peter Drucker, millennials are primarily motivated by intrinsic rewards. William Cohen (2008) quotes Peter Drucker: “One did not manage workers; one has to lead them. Leadership demands ethical and effective motivation.” Cohen explains that Drucker rejected the Theory X approach (described by Douglas McGregor (1960) as the “carrot and stick method that was used 150 years ago). He said it was definitely not the way to intrinsically motivate employees. Cohen used his relationship with Drucker to help create a list of factors that are most motivational for workers. The list included being respected, having interesting work, working for people who listen to your ideas about the job, and having a chance to think for yourself, rather than just carry out instructions (Cohen p.221).  CONCLUSION: Peter Drucker is still very much relevant. The coaching/client relationship is very much like the leader/follower relationship; to be an effective coach or leader, the client, or the follower should be cared for, respected, listened to, and given autonomy. And whether someone is the coach or the leader, positive results (success) are the desired outcome.

According to estimates from the Financial Times, there are over 500 million entrepreneurs on planet earth. This figure includes new business start-ups that emerged during the Covid-19 pandemic. Since the start of the pandemic, several countries have experienced a boom in new business formation. The US Chamber of Commerce reports that 5.5 million new business applications were filed in 2023 in the United States, setting a new record. The U.S. Census Bureau also indicates a continuous increase in the number of new business applications during the past few years. Entrepreneurship is on the rise.