or bonds in the enterprise. “A healthy enterprise, a healthy university or a healthy
hospital cannot exist in society if the latter is ill. A healthy society is therefore in the
interest of the management, even if the management is not to blame for the illness in
the society,” Drucker claimed.
According to Drucker, management has to deal with expected and unexpected
issues and crises with equal fortitude, leadership and responsibility. He also asks the
question of how the general public and/or specialized clients view the company.
“The question is not whether we manage and lead our company effectively, but
rather do our clients view our company as effective, efficient and customer service-
oriented?” With stiff global competition, Drucker points out that an organization
must maintain economic efficiency, attractive working conditions and great cus-
tomer serve and satisfaction (Drucker 2004, p. 33).
Drucker called for simple, everyday honesty from the management. “Leadership
issues may be subject to problems occurring in the organization, the employee’s
values, education and personal life.” Therefore, not a new set of ethics is needed,
but harsher penalties. And he also demands that leaders take the principle ofprimum
non nocere– “first, do no harm” – to heart.
The three dimensions of management defined by Drucker are:
An organization – this refers to public and non-profit organizations such as hospitals,
universities and businesses that meet a specific need and in the end produce eco-
nomic performance.
An organization must stand for productive work and effective employees. Step one
is to organize the work or service provided by the company. Step two is more
difficult and involves matching the work or service to the employees.
A company has a social effect and social responsibility, which must be controlled by
the upper-level management. In order to succeed and survive, a company must
meet the society’s needs for services. “A business does not exist for shareholders
alone, but exists to offer market goods and services to the paying customer”
(Drucker 2004, p. 33).
According to Drucker, the distinction between “management” and “entre-
preneurship” is an artificial construct; both are needed at the same time.
2.1.1.7 Honest Work
If someone had asked the late Peter Drucker what the quality of leadership depends
on, he would have answered hard work. Effective management will try to minimize
the number of decisions to be made and focus solely on the most important ones.
Drucker explained that though compromises must invariably be found, this should
happen as rarely and as late in the decision-making process as possible, for fear of
weakening the original goal. He also states the problem with many company
mission statements: “they do not contain a roadmap for actual implementation”
(Drucker 2004, p. 292).
26 2 Occupation or Calling: What Makes for Good Leadership?