Management as a Liberal Art Research Institute

Peter Drucker’s Most Frequent Comment

William A. Cohen Ph.D.

PUBLISHED:

November 17, 2023

Drucker said and wrote so much that was wise, profound, valuable, and witty that he may have more quotes attributed to him than any other management thinker of modern times. However, the most frequent comment he made during my acquaintance with him was “What everyone knows is usually wrong.” His continued use of this phrase clearly meant that he not only believed it strongly, but considered it important. Yet until I wrote it in my first book about Drucker, A Class with Drucker, I never saw it in print.

 

Drucker was Right


Through repetition I finally began to think more deeply about what his words really meant. This simple statement is not only true; it is immensely valuable in a variety of instances, especially now when various questionable comments are expressed as fact on TV and elsewhere. What Drucker wanted to emphasize was that we must always question all assumptions no matter from where they originate or how obvious they may first appear. This is especially true regarding anything that a majority of people “know” or assume without analysis or further questioning. This “knowledge” should always be suspect and needs to be examined much more closely, because in a surprisingly high percentage of cases, the information “known to be true” will turn out to be only partially true, inaccurate, or a complete falsehood. This is especially true during a war when one side or another may falsify information to put themselves in a more favorable light, and their adversary in a poor one. If you can get many people to announce something as fact repeatedly, many will believe it because “everyone knows it to be true.”

 

The current war which Israel is fighting with Hamas terrorists is an example. Hamas terrorists attacked an Israeli group of several thousand partying men, women, and children in a peace celebration without warning, shooting parents in front of their children, raping women, even murdering children by beheading, burning others alive and taking over 200 hostages. We know this to be true, and not only from survivors because Hamas filmed these actions themselves, thinking to intimidate Israelis and others and so released the films of their actions to be shown to the world.

 

Hamas later announced that Israel had intentionally bombed a major hospital causing hundreds of deaths. The Israelis denied this. They said that likely an errant rocket fired by the Palestinian terrorist group the Islamic Jihad had fallen short and caused the hospital explosion. This was confirmed several days later after U.S. experts and others had examined the data. However, many countries and even many entities in the U.S. including students and professors at prominent universities believed this false information, repeated it, and demonstrated in favor of the terrorists and the false information quickly spread around the world with most  never waiting for  the results of a close examination of the facts by other parties. By the time the truth of Israel’s complete innocence was known definitively, “everyone knew” that Israel was guilty even though that was false.

 

 

Is What Everyone Knows Usually, Sometimes, or Never Wrong?


Of course there are many old “truisms” once thought by everyone to be true, which we laugh at today. “The world is flat” or “The earth is the center of the universe” are typical. If you publicly doubted some of these false facts which “everyone knew” in past centuries, you could be sent to prison or burned as a witch. Many were. The French heroine Joan of Arc is a well-known example.

 

The ancient Greeks knew that everything was made up of only four elements: earth, air, fire, and water. I don’t think that you got imprisoned or killed for believing otherwise, but you were at the very least thought ignorant.

 

In modern times we learned that these views were mistaken. When I took chemistry in high school, I learned that a Periodic Table of Elements had been formulated by the Russian chemist and inventor, Mendeleev and that it had been established that there were exactly 93 elements which were arranged by atomic mass. You got an “A” if we could name them all.  Had we proposed that there could be more, I am certain that we would have been immediately corrected by our teachers. In the words of Richard Rodgers and Oscar Hammerstein in Oklahoma, things “had gone about as far as they could go.” Today, there are 102 elements, maybe even more --- I didn’t check this morning.  And they forgot to tell is that Mendeleev had only envisioned 63 elements . . . the other thirty hadn’t been discovered yet in his time.

 


Elementary, my dear Watson


For over sixty years we’ve seen a lot in the movies or TV regarding Arthur Conan Doyle’s famous detective, Sherlock Holmes. Everyone knows Sherlock’s most famous utterance was a sentence consisting of only the four words, “Elementary, my dear Watson.” Everyone knows that the famous detective would respond with these words on Dr. Watson’s surprise at a particularly shrewd and unexpected deduction made by Holmes. Maybe everyone knows this, but everyone is wrong. As pointed out by Paul F. Boller, Jr. and John George in their book, They Never Said It (Oxford University Press, 1989), Holmes didn’t utter the immortal words in a single instance in anything ever written by Doyle, not in any of Doyle’s four published novels and fifty-six short stories about the adventures of Sherlock Holmes and his side-kick and physician friend, Dr. John H. Watson. Wherever then did people ever come up with such universally believed, but incorrect bit of knowledge?  If not Doyle’s literary character, who did utter these immortal words? It was the English actor, Basil Rathbone playing the part of Sherlock Holmes in Hollywood movies that responded with the famous sentence, not Doyle’s character in anything he ever wrote. These words seemed to fit the character of Holmes perfectly in those days on the silver screen, and though not emanating from Doyle’s creation, it became a known “fact” that it did.

 

Analyze Every Assumption


Many years ago, I was involved in the selection of one of two designs for a new aircraft from two different companies for the Air Force. The companies were The Boeing Aircraft Company and McDonnell-Douglas Aircraft Company. Those who know this industry also know that the former company eventually acquired the latter, but this has nothing to do with my story here. Both companies proposed modifying one of their standard airline designs, which was already in production and in use.

 

Periodically we would meet with each aircraft company’s design team individually to assess progress on each company’s proposals, the acceptance of which would be worth hundreds of millions of dollars to the winning contractor.

 

On one occasion we met to discuss ways in which we might lower the cost of each aircraft. The suggestion came from the McDonnell-Douglas manager (although, getting ahead of my story, it was the other contractor who ultimately won the contract). He said: “You can save several million dollars for each aircraft produced if you will allow us to deviate on the size of the escape hatch by about two inches. That would be the standard size of the hatch of current airliners. They successfully passed all FAA tests with no problems.” I promised to look into his request as it could save a lot of money.

 

Is the Source Valid?


Both reliability and validity are concepts that come from testing. The validity of a test tells us how well the test measures what it is supposed to measure. It is a judgment based on evidence about the appropriateness of inferences drawn from test scores. But we’re not looking at test scores here, we’re looking at assumptions. So where did this specification in the aircraft design handbook come from? Knowing that source could help me decide whether this specification was valid for the aircraft we now wanted to build. We still hadn’t located the original source for this information.

 

So, I looked further. I knew that every specification in the aircraft design handbook was referenced as to where it came from and what it was based on. Making this a requirement was good thinking. Usually, they were based on the original tests performed. I asked the engineer to do the necessary research to find out what tests this design specification was based on and when they were accomplished. Surprise, surprise, this specification was based on an aircraft test done with propeller-driven aircraft almost thirty years earlier. That aircraft traveled at about 120 miles per hour. The aircraft we were working on traveled at about 500 miles per hour. Obviously, in this instance, the design specification was not valid. We turned it over to one of our aeronautical designers. He advised us to forget what everyone knew (the design handbook) and the two inches at the air speeds we were anticipating for an emergency bailout would make no difference at all. We took his advice and saved the money. We need to do this with all claims that come with no proof other than “everybody knows.”


By Byron Ramirez Ph.D. March 7, 2025
Motivation and performance in the workplace have been the subject of extensive research, yet a comprehensive understanding of their complexities remains elusive. While many organizations recognize the importance of motivation in driving employee performance, a significant number still approach motivation through simplistic, linear models that fail to capture its depth. Traditional methods, such as annual performance reviews with occasional praise or monetary bonuses, may have some impact, but they are often insufficient in fostering long-term employee engagement and sustained productivity. The relationship between motivation and performance is intricate, requiring a more nuanced and strategic approach from organizations. Motivation plays a crucial role in organizational sustainability. When employees are motivated, they exhibit higher levels of productivity, creativity, and commitment, all of which contribute to an organization’s long-term success (Ryan & Deci, 2000) and sustainability. However, many organizations continue to rely on outdated methods that focus primarily on the provision of extrinsic rewards. While financial incentives, such as salary increases and bonuses, can have a positive impact, research indicates that their effect on motivation is often temporary (Deci, Koestner, & Ryan, 1999). Once the external reward is removed, motivation levels tend to return to their previous state, highlighting the limitations of this approach. In contrast, organizations, and more specifically managers who have invested in fostering an environment that develops genuine engagement and trust, thus increasing motivation within their teams, have recognized the importance of intrinsic rewards. Intrinsic motivation, which arises from within the individual, is driven by factors such as personal growth, job satisfaction, and a sense of purpose (Pink, 2009). Employees who find meaning in their work and feel a sense of autonomy are often more engaged and perform better than those who are solely motivated by external incentives. This aligns with Self-Determination Theory, which emphasizes the role of autonomy, competence, and relatedness in fostering motivation (Deci & Ryan, 1985). Moreover, this also is consistent with the philosophy of Management as a Liberal Art which highlights the importance of independent decision-making. Despite the emphasis on extrinsic rewards, research suggests that human beings are only driven by them to a certain extent. Herzberg’s Two-Factor Theory (1959) highlights this by distinguishing between hygiene factors (such as salary and job security) and motivators (such as achievement and recognition). While hygiene factors can prevent dissatisfaction, they do not necessarily lead to increased motivation. Instead, true motivation stems from intrinsic factors that align with an individual's values, aspirations, and personal goals. Not every employee seeks to climb the corporate ladder; some may find fulfillment in mastering a specific skill, contributing to a meaningful project, or maintaining a healthy work-life balance. As a result, managers must move beyond a one-size-fits-all approach and develop a deeper understanding of the psychology behind motivation. Recognizing individual differences and tailoring motivation strategies to align with employees’ unique needs can lead to greater job satisfaction and improved performance (Gagné & Deci, 2005). This means fostering a work environment that promotes autonomy, provides opportunities for growth, and acknowledges employees’ contributions in meaningful ways. Organizations should also consider the long-term implications of their motivation strategies. Rather than merely offering short-term incentives, they should invest in creating a workplace culture that values intrinsic motivation. This can be achieved through leadership development programs, mentorship opportunities, and fostering a sense of community within the organization. When employees feel valued and supported (and listened to), their motivation is more likely to be sustained, ultimately benefiting both the individual and the organization as a whole. One effective strategy is providing employees with opportunities for continuous learning and professional development. Organizations can offer training programs, workshops, and tuition reimbursement to help employees acquire new skills and expand their expertise. When employees see that their company is invested in their growth, they are more likely to remain engaged and committed to their work. Furthermore, providing employees with challenging yet attainable goals can foster a sense of accomplishment and reinforce their intrinsic motivation. Additionally, fostering a culture of recognition and meaningful feedback is essential. While monetary rewards can provide temporary satisfaction, genuine appreciation and acknowledgment of employees' contributions create a lasting impact. Managers can implement regular check-ins, peer recognition programs, and public acknowledgments of achievements to make employees feel valued. When employees receive positive reinforcement for their efforts, they are more likely to stay motivated and take pride in their work.  While financial incentives and extrinsic rewards have their place in workplace motivation, they are not a panacea for enhancing performance. Motivation is a complex and deeply personal phenomenon that requires organizations to adopt a more holistic approach. By understanding the interplay between intrinsic and extrinsic motivation and recognizing the unique aspirations of employees, organizations can create an environment that fosters sustained motivation and long-term success. Investing in the psychological and professional well-being of employees is not just a moral imperative but a strategic necessity for organizational sustainability. References Deci, E. L., Koestner, R., & Ryan, R. M. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125(6), 627-668. Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behavior. Springer Science & Business Media. Gagné, M., & Deci, E. L. (2005). Self-determination theory and work motivation. Journal of Organizational Behavior, 26(4), 331-362. Herzberg, F. (1959). The Motivation to Work. John Wiley & Sons. Pink, D. H. (2009). Drive: The surprising truth about what motivates us. Riverhead Books. Ryan, R. M., & Deci, E. L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. American Psychologist, 55(1), 68-78.
By Michael Cortrite Ph.D. February 26, 2025
In 1995 Daniel Goleman published a groundbreaking book which introduced the leadership/management discipline to emotional intelligence.The book is Emotional Intelligence: Why it can matter more that IQ (Bantam 1995). Over the last 30 years more than 20 book and hundreds of papers have been published on emotional intelligence (abbreviated as EQ) extolling its effectiveness as a leadership concept. Many of the books were authored by Goleman with his co-writers Richard Boyatzis and Annie McKee. Given the current political climate in the United States and the world, the concept of EQ may be even more relevant today than it was 30 years ago. EQ shows an incontrovertible link between a leader’s emotional maturity and their performance as a leader. In the words of Daniel Goleman, “The research on EQ shows that the ‘good guys’—emotionally intelligent men and women—finish first” (Goleman, et al. p.169. 2001). Just as Peter Drucker’s insistence on self-knowledge and the knowing of one’s strengths and weaknesses is the starting point in his essay, Managing Oneself (1999), EQ starts with knowing yourself, including your weaknesses and strengths, and especially your emotions. Drucker also talked about values and manners. Manners is all about people working in close contact with each other and therefore naturally causing friction. He said that workers must be able to cooperate and treat each other with courtesy and respect. In order to do this, they must look inward to make sure they use words like thank-you and please and they know their co-workers’ names and even the names of their family members. He didn’t specifically use the word emotions but was writing about a basic form of emotional intelligence. Goleman, et al. (2001) lists the four components of emotional intelligence in action: 1. Self-awareness: The ability to read your own emotions. Knowing how your moods are affecting others. 2. Self-management: The ability to control your emotions. Don’t let bad moods seize the day; leave them outside the office. 3. Social awareness: The ability to sense other people’s emotions and show that they care. Understand how your words and actions affect other people and be able to change them when their impact is negative. 4. Relationship-management: The ability to build strong personal bonds and use these skills to spread their enthusiasm and solve disagreements, often with humor and kindness. It should be noted that Diamantidou et al. (2024) found a strong link between emotional intelligence and transformational leadership that translates to a positive organizational culture and thus increased organizational effectiveness. In late 2024, Pixar released an animated movie, Inside Out 2. It is a sequel to the movie Inside Out. It is already the highest grossing animated movie in history. The movie is based on emotional intelligence. Daniel Goleman praised the movie and said, it is clever and moves the field of social-emotional learning forward. The leadership literature cites many examples of the value of using films to teach leadership. Wiliams (2006) posits that because films are memorable and a catalyst for thought and discussion, there is always rich dialogue generated, and a better understanding of the concept being taught after watching the movie. The characters in the movie are Riley (the human) and Joy, Sadness, Anger, Fear, Disgust, and Anxiety (the emotions). Chatbot (2024) explains that watching the movie can help leaders by dramatically showing how emotions influence both personal and social interactions. The movie also depicts such emotional intelligence concepts as self-awareness, self-management, building empathy, the power of vulnerability, leading by example, and the benefits of transparency. REFERENCES: Chatbot, H. How Inside Out 2 Can Improve Your Leadership Skills. Entrepreneurial Leadership. July 30, 2024. Diamantidou, V., Kaitelidou, D., Kalakairinou-Anagnostopoulou, A., and Galanis, P. Organizational Culture, Transformational Leadership and Emotional Intelligence. Journal of International Caring Services Vol. 17 (2). May/August 2024. 1190-1196. Drucker, P. Managing Oneself. (1999) In HBR book, On Managing Yourself. pp. 13-32. Goleman, D., Boyatzis, R., and McKee, A. (2001). Primal Leadership: The Hidden Driver of Great Performance. In HBR book, On Managing Yourself. pp. 169-188. Wiliams, J. Pirates and Power: What Captain Jack Sparrow, His Friends, and His Foes Can Teach Us About Power Bases. Journal of Leadership Education Vol. 5 (2). Fall 2006. 
By Mehak Suri February 25, 2025
Drucker’s claim that “reliance on the expert to predict the outcomes of technology is born out of hubris” (Drucker, 1969, p. 524) still holds and will likely continue to be the same. Each development is caused by and leads to several factors, “each independent in its origins,” with the “outgrowth of a separate discipline with its own experts” (Drucker, 1969, p. 524). Aristotle’s syllogisms (a kind of logical argument) are the reason ChatGPT exists today. The statement above sounds bizarre, but Boolean logic was invented in the 1800s to mathematically represent syllogisms. Claude Shannon, in 1937, demonstrated the use of Boolean algebra in designing electrical circuits, which paved the way for GPUs, programming, digital computers, and AI systems like ChatGPT. Claude Shannon could not have predicted that his design of electrical circuits would someday contribute to the fragmentation of human interaction (social media), digital overload and decision fatigue (social media), erosion of creativity through AI-assisted writing, and increased energy consumption and pollution (large AI models lead to high electricity usage and carbon emissions from data centers). This indicates that “the impacts of technology are often quite indirect and by-products rather than main products” (Drucker, 1969, p. 524). Sometimes, even the most direct use cases of modern technology have unintended adverse consequences, leading to “the cost being more than the worth” (Drucker, 1969, p. 523). The Computerized Provider Order Entry (CPOE) systems in healthcare were designed to reduce medical errors and improve the quality of patient care. However, studies have shown unintended net adverse effects due to clinicians’ overreliance on this technology and diminished critical thinking. CPOE systems with inbuilt clinical decision support (CDS) help clinicians by providing “notifications of drug-drug interactions, warnings about allergies, recommendations for clinical guideline compliance, and more” (Campbell et al., 2007, p. 96). For example, anticoagulants and aspirin are usually not prescribed together. However, this combination is often used for heart protection benefits in coronary care. In this context, using these two drugs together would be helpful, but the CPOE system would trigger an alert warning the clinician. If the clinician relies exclusively on CPOE, they may remove one of the two drugs from the therapy, increasing the potential risk to the patient (Campbell et al., 2007). Going back to the previous example, even if Claude Shannon could foresee all the negative impacts of technological advancements stemming from his invention, he would not have stopped his development, as there were foreseeable immediate and long-term net-positive outcomes, too. As Drucker puts it, in this new age of technology, we need new decision-makers and decision-making processes built on understanding the history and dynamics of technology instead of focusing on predicting the outcomes of technology or determining what is right or wrong (Drucker, 1969).  References Drucker, P. F. (1969). Comment: Is Technology Predictable? Technology and Culture, 10(4), 522-527. https://doi.org/10.2307/3101571 Campbell, E. M., Sittig, D. F., Guappone, K. P., Dykstra, R. H., & Ash, J. S. (2007). Overdependence on technology: an unintended adverse consequence of computerized provider order entry. AMIA Annual Symposium Proceedings, 2007, 94-98.
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