Management as a Liberal Art Research Institute

Peter F. Drucker’s management philosophy and life coaching are interchangeable

Michael Cortrite, Ph.D.

PUBLISHED:

March 22, 2024

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.                                          

CHART 1:  Intersections of coaching and Peter Drucker leadership philosophy: Management as a Liberal Art.


REFERENCES:


Atkins, Andy (2009) Trust and Collaboration: A Virtuous Cycle. Management Issues Nov. 16. 

2009. https://www.management-issues.com/opinion/5782/trust-and-collaboration-a-

virtuous-circle/

 

Bendix, Reinhart (1956) Work and Authority in Industry. University of California Press


(coachingfederation.org) Official website of The International Coaching Federation


Cohen, William A. (2008) A Class With Drucker: The Lost Lessons of the World’s Greatest

 Management Teacher. AMACON


Csikszentmihalyi, Mihaly and Hooker, Charles 2003 Flow, Creativity, and Shared Leadership:

 Rethinking the Motivation and Structuring of Knowledge Work. Chapter 10 in Shared

 Leadership: Reframing the Hows and Whys of Leadership, edited by Craig Pearce and Jay 

A. Conger. Sage Publications 2003


Drucker, Peter (1954) The Practice of Management, William Heinemann Ltd.


Johnson, J. Richard (2023) What’s New About Quiet Quitting (and What’s Not)? The 

Transdisciplinary Journal of Management. February 28, 2023

 https://tjm.scholasticahq.com/article/72079-what-s-new-about-quiet-quitting-and-what-s-not


Grant, Anthony M. (2003) The Impact of Life Coaching in Goal Attainment, Metacognition, and 

Mental Health. Social Behavior and Mental Health Vol. 31, Iss.3 (pp.253-264) (2003)


McGregor, Douglas (1960) The Human Side of Enterprise. McGraw-Hill


Pink, Daniel (2009) Drive: The Surprising Truth About What Motivates Us. Penguin Group


Platis, Magdalena (2016) Leadership and Life Coaching.  Manager. Iss. 24 (2016) pp. 173-179


Swain, Robert W. (2019) What Motivates the Modern Worker?  Peter Drucker on Leading Millenials

https://www.corporatelearningnetwork.com/leadership/articles/what-motivates-the-modern-worker-peter-drucker-on-leading millennials#:~:text=They%20are%20motivated%20by%20achievement,have%20a%20positive%20organizational%20environment

The Future of Knowledge Work: What Drucker can teach us

By Karen Linkletter Ph.D. • November 19, 2024
Interview with Karen Linkletter at the 16th Global Peter Drucker Forum 2024  Video Interview

The Specifics of Management of the Knowledge Worker

By Ryan Lee • November 7, 2024
Nowhere is management theory demanded more than in managing the knowledge worker, and yet nowhere is management theory more inadequate in addressing a field’s issues than in knowledge work. This is the point Peter Drucker posited in his work Management Challenges for the 21st Century (1991), and to resolve it he came up with six factors that determine the productivity of the management worker. Among these, his final point that management workers “must be treated as an ‘asset’ rather than a ‘cost’” by any given organization is an important concept1. While it only gradually emerged within management theory over the century, it is crucial for any employer and any government to understand and apply if they are to retain a competitive advantage going into the future. Historically, management theory has been about improving the output of the worker through banal efficiency: how to increase the production of steel per head, how to increase the production of cars per hour, how to minimize deficient products, etc. In all these considerations, the worker is a disposable resource. When he is hired, he is set to a particular task that is typically repetitive and thus easily taught, and when he is not needed because of shortcomings in his work, company difficulties, or automation, he is laid off. Referred to as “dumb oxen”, workers were seen in management theory as machines to have productivity squeezed out of. The shift from a majority manufacturing to service-based economy during the first half of the twentieth century changed this dynamic to some extent. The American postwar economic boom introduced the office worker as a common source of employment. This trend continued throughout the conglomerate era of the 1960s and was helped by the decline of the American manufacturing industry in the 1970s. Now in a stage dominated by service and knowledge work, the American economy must approach management differently. The aforementioned cost-asset shift is a demonstration of why this is so, as Drucker’s emphasis on the knowledge worker’s autonomy means that they wield control, not only within their job but over who they should work for as well. This in addition to the high-capital nature of knowledge workers means that the old management theory approach to labor as disposable will backfire catastrophically for any company that tries it with their knowledge workers. It is also important to remember the demographic trends of the United States, and more so the world, in considering why the cost-asset shift is vital. For all of human history until some fifty years ago, population was considered to be in tandem with economic power, given larger populations yielded larger labor forces and consumer markets. Economic growth was thus also correlated with population growth, demonstrated by the historic development of Europe and the United States and the more recent examples of the developing world. Consequently, the worldwide decline in fertility rates, and the decline in population numbers in some developed countries, signals economic decline for the future. In the labor market, smaller populations mean fewer jobs that produce for and service fewer people. Although the knowledge worker has grown in proportion to the total labor market, these demographic declines will affect knowledge workers as well, meaning employers will have a vested interest in retaining their high-capital labor. To enforce this, the cost-asset shift will have to come into play. The wants and needs of the knowledge worker pose a unique challenge in the field of management. Autonomy, for the first time, can be regarded as a significant factor affecting all other aspects of this labor base. What good does a large salary provide a knowledge worker if they don’t feel that they are welcome at an institution? How would they perceive that their work is not being directed towards productive pursuits at their corporation, especially given the brain work and dedication given to it? Of course, the fruits of one’s labor has been a contentious issue in management ever since compensation and workers’ rights became a universal constant with the Industrial Revolution, but this is augmented by the knowledge worker’s particular method of generating value. Given that Drucker poses their largest asset and source of value as their own mind, they will intrinsically have a special attachment to their work almost as their brainchild. Incentivizing the knowledge worker is also only one part of this picture. Per Drucker, the knowledge worker’s labor does not follow the linear relationship between quantity invested and returned. The elaborate nature of knowledge work makes it heavily dependent upon synergy: the right combination of talent can grow an organization by leaps and bounds, while virtually incompatible teams or partnerships can render all potential talent useless. And the human capital cost of the knowledge worker, both in their parents and the state educating them and in cost to their employers, is astronomical compared to all previous kinds of labor. In conclusion, the needs and wants of the knowledge worker must be met adequately, especially in the field of management. Management must almost undergo a revolution to adapt to this novel challenge, for the knowledge worker is the future of economic productivity in the developed world. Those employers that successfully accommodate the demands of this class of talent will eventually reign over those that do not accept that this is the direction economic productivity is headed.  References Drucker, P. F. (1991) Management Challenges for the 21st Century. Harper Business.

The Wisdom and Continuing Relevance of Peter Drucker

By Michael Cortrite Ph.D. • November 7, 2024
What is wisdom? The dictionary says it is knowledge of what is true and right coupled with just judgment as to action. Jennifer Rowley reports that it is the “ability to act critically or practically in a given situation. It is based on ethical judgment related to an individual's belief system.” (Rowley 2006 p. 255). So, wisdom seems to be about deciding on or doing an action based on moral or ethical belief in helping other people. This clearly describes Peter Drucker and his often prescient ideas For the 100 th anniversary of Peter Drucker’s birth, Harvard Business Review dedicated its November 2009 magazine to Drucker. In one of the articles about Drucker by Rosabeth Moss Kanter (2009 p. 1), What Would Peter Say? Kanter posits that, Heeding Peter Drucker's wisdom might have helped us avoid—and will help us solve numerous challenges, from restoring trust in business to tackling climate change. He issued early warnings about excessive executive pay, the auto industry’s failure to adapt and innovate, competitive threats from emerging markets, and the perils of neglecting nonprofit organizations and other agents of societal reform. Meynhardt (2010) calls Drucker a towering figure in Twentieth Century management. He says no other writer has had such an impact. He is well-known to practitioners and scholars for his practical wisdom and common sense approach to management as a liberal art. Drucker believed that there is no how-to solution for management practice and education. Doing more of “this” and less of “that” and vice versa is not how Drucker suggests managers do their work. Rather, Drucker relies more on morality and the virtue of practical wisdom to solve problems related to organizations. The virtue that Drucker talks about cannot be taught. It must be experienced and self-developed over time. A good example of this is Drucker’s Management by Objectives (MBO). Drucker does not give technical advice on how to initiate MBO. Rather he wisdomizes his moral convictions that integrating personal needs for autonomy with the quest of submitting one’s efforts to a higher principle (helping people) ensures performance by converting objective needs into personal goals. (Meynhardt, 2010). Peter Drucker published thirty-eight articles in the Harvard Business Review (HBR) and seven times won the McKinsey Award presented annually to the author of the best article published during the previous year in HBR. No other person has won as many McKinsey awards as Drucker The former editor-in-chief of Harvard Business Review, Thomas A. Stewart, quotes Peter Drucker; “The few of us who talked of management forty years ago were considered more or less deranged.” Stewart says that this was essentially correct. Harvard Business Review's very mission is to improve management practice. Stewart says this mission is inconceivable without Drucker’s work. Drucker’s work in management planted ideas that are as fruitful today as they ever were. Stewart posits that each year, managers discover extraordinary and immediate relevance in articles and books that were written before they were born or even before their parents were born. Stewart (2016) tries to answer the questions: Why does Drucker’s work endure? and Why is Drucker still relevant? First, was Drucker’s talent for asking the right questions. He had an instinct for being able to not let the urgent drive out the important, for seeing the trees, not just the forest. This allowed him to calmly ask pertinent questions that encouraged clients to find the proper course to take. Secondly, Drucker was able to see whole organizations. Instead of focusing on small particular problems. Ducker had the ability to find the overarching problem as well. Stewart uses Drucker’s 1994 HBR article, The Theory of the Business to make this point. Many people were trying to analyze the problems of IBM and General Motors by looking for root causes and trying to fix the blame. Drucker, on the other hand, argued correctly that the theories and assumptions on which they had managed successfully for many years were outdated. This article is as relevant today as it was in 1994 because Drucker took the “big picture view.” And no one else has ever been so skillful at describing it. Thirdly, starting in 1934, Drucker spent two years at General Motors with the legendary Alfred P. Sloan, immersed in the workings of the automaker and learning the business from within. This allowed him to talk with authority, but he has always stayed “street smart and wise.” This mentoring helped give Drucker the gift of being able to reason inductively and deductively. He could infer a new principle or a theory from a set of data or being confronted with a particular problem; he could find the right principle to apply to solve it. Drucker’s first article published in HBR, Management Must Manage, challenged managers to learn their profession not in terms of prerogatives but in terms of their responsibilities, to assume the burden of leadership rather than the mantle of privilege. Many in the management/leadership field probably found Drucker to be “deranged,” but in 2024, this is important advice for leader (Stewart 2006). Just a few more of Drucker’s ideas that seemed well outside the mainstream when he proposed them but are standard practice today include: Managing Oneself, Privatization, Decentralization, Knowledge Workers, Management by Objectives, Charismatic Leadership Being Overrated, CEO Outsize Pay Packages, and Enthusiasm of the Work of the Salvation Army (Rees, 2014). Clearly, Drucker remains relevant! References: Kanter, R. 2009. What would Peter say? Harvard Business Review. November, 2009. Meynhardt, T. 2010. The practical wisdom of Peter Drucker: Roots in the Christian tradition. Journal of Management Development Vol. 29. No. 7/8. Rees, M. 2014 The wisdom of Peter Drucker. Wall Street Journal. Dec. 12, 2014. Rowley, J. 2006. Where is the knowledge that we have lost in knowledge? Journal of Documentation. Vol. 62, Iss. 2. 251-270. Stewart, T. 2006. Classic Drucker. Editor Thomas A. Stewart. Harvard Business School Publishing Corporation.
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