The Drucker Society of Los Angeles Blog

Five Nuggets of Life Advice from Peter Drucker - October Speaker

noreply@blogger.com (Ray) — Fri, 09 Oct 2009 08:28:09 PDT

October Speakers Series - Bruce Rosenstein

Five Nuggets of Life Advice from Peter Drucker

Author of Living in More Than One World: How Peter Drucker’s Wisdom Can Inspire and Transform Your Life

In his presentation, Bruce Rosenstein, who interviewed and wrote extensively about Peter Drucker for USA TODAY will share Drucker’s secrets for leading a profoundly fulfilling life including.

Living in more than one world; with diverse people, activities and pursuits
Developing your core competencies
Creating your future through what you do today
Exercising your generosity through work with nonprofits, social entrepreneurship and mentoring
Teaching and Learning
Event Information

Date: October 31st, 2009
Time: 2:00-4:00 p.m.
Place: The Drucker School of Management (Burkle 16)
Claremont Graduate University
1021 N. Dartmouth
Claremont, California 91711

Please RSVP to druckerla@gmail.com

Annual membership is $30 and $20 for students. If you purchase an annual membership you admission to this event will be free. Make check payable to: CGU/Drucker Institute, and please write 'Drucker Society of Los Angeles' in the notes line. Send your check to Edie Young, Treasurer, Drucker Society of Los Angeles, P.O. Box 2125, Upland, CA 91785 or bring it to this event.

Flyer Attached

If your interested in being a board member please send an E-Mail to druckerla@gmail.com

Industrialization of groceries

noreply@blogger.com (Ray) — Tue, 16 Jun 2009 18:44:55 PDT

My first visit to a super walmart, located in Orlando. Wow! Everything is on wheels in their grocery area. And they bin every thing in the fruit/vegetable area, so reduced labor. I can see why grocery stores in California are afraid of walmart. They also have ready to eat stuff too!

Why are these type of efficiecies not seen in grocery stores in the los angeles area? The video on the checkout stands is a change at albertsons, which is why I only shop there when I have to. Versatel machine at their store in Rowland heights isvso low I need to bend down to use it (both machines).)

I remember peter Drucker's point of looking outside your business. Are grocery stores?

Hiring Ethnical and Projects

noreply@blogger.com (Ray) — Tue, 12 May 2009 10:45:40 PDT

A friend of mine just went through a grueling interview and was asked to do a design for the company to show his skill in the area. Unfortunately the company did not ask him to come in to explain his design, and did not pay him for the time to do that.

This happened to me, where I developed a business plan and gave a presentation for a company that was supposedly looking to hire a person. No offer, so the company got some very good free consulting. I heard later they hired no one for the position...

So when I later got in a position to do hiring, when I asked a person to do some analysis I actually paid them for the hour they spent doing it if they did not get the job. I felt it was ethical to do, I wish more companies did this.

Drucker and Verizon SPAM Calls

noreply@blogger.com (Ray) — Mon, 02 Mar 2009 09:04:30 PST

I just received a call from Verizon. It went like this.

1. Can I talk to the person in charge of your phone plan.
That's me...

2. What is your name
Ray

3. This call may be recorded.

4. This call is to discuss your phone plan options.
Please put me on your do not call list.

Drucker's three questions:

1. Who is your customer
Me

2. What do they want.

a. Be treated with respect.
b. Save money.

3. What can you provide of value

a. Lower prices
b. Treat with respect (Calling me up with an unfriendly call, you may be recorded, which caused a bit of anxiety)

3+ How do you measure this?

I would treat the call as a failure since I asked to be put on their do not call list.

Billboards and the Economy

noreply@blogger.com (Ray) — Fri, 27 Feb 2009 20:46:32 PST

Internet Bubble
In 1998 I graduated from the Drucker School and got a job up in Silicon Valley. Lots of billboards of Internet and Technology firms along Highway 101. The company I was with, Amdahl, was so proud when the got a billboard. All the billboards were taken by technology companies.

Silicon Valley Today
Apple has a great billboard off the 101 Freeway for the iPod, I can't think of any other technology companies when I visited Silicon Valley a couple of months ago. More consumer companies.

San Gabriel Valley Last Year
At the 605 and 60 Freeway, a big billboard advertising home loans and the current interest rate.

San Gabriel Valley Today
At the 10 and 605 Freeway, a billboard advertising bankruptcies for $799.

Dell Customer Service

noreply@blogger.com (Ray) — Tue, 24 Feb 2009 16:35:04 PST

Dell is an amazing company, but in the area of customer service I have been surprised at how inefficient they are. They seem to just throw resources at a problem in my two experiences with them, one still ongoing. I appreciate how they are focused on fixing problems, but if I was a Dell shareholder I would worry about the cost.

First Incident
The first case was with a laser printer I bought. The printer crumpled the paper, so Dell sent another one. This one the door on the side would not close I think. So they sent another one. Finally my Mother just took the part from one Dell Printer and switched it out with the part on the original printer to fix the problem. While I was going through the Dell Tech. Support, I asked about my laptop that had been having three issues, I figured why not ask since I was already on the phone.

Second Incident
The three problems were silk screen on the keyboard had come off (minor, but since I was on the phone. My IBM think pad did not have this issue), the track pad was not 100% working, and while I was on the phone, the computer shut off due to heat issues. A band aid on the heat issue was put something under the computer on the back to improve the ventilation to prevent over heating. So Dell sent a box to return the laptop and finally I returned it.

Double Checking:
Before returning it I chatted with Dell tech support to make sure they knew about all three issues. I was assured they did. Then inside the box it said include the HD, but the tech. said not to. So again I did a chat and was told I did not need to include the HD. So finally after finding the right size screw driver I removed the HD and dropped it off at FedEx.

Checking Status Problem:
So I went online to Dell.com to find out the status. Spend a while looking around and can't find anything. Do another chat and find out the unit arrived, but there is no way for me to find out online the status directly.

Redundant Communication:
Then I get an E-Mail unit is being returned. Then I also get a call saying the same thing while I was on the phone with a customer (wonders of call waiting).

Units Arrives Home:
Then today the unit finally arrives back. I get the repair sheet, and all the had been check marked was the keyboard and track pad. So I call up and ask what had been worked on. My answer was only those two items were noted. Argh!!! I looked and found my chat transcript where I had contacted Dell to make sure of the three things. I was told the Dell person did not have access to this. But I should check out my Dell and see if it has a heating problem, and they would call back tomorrow morning. So I install the HD, and find out for some reason Dell used two different size screws for securing the HD.

3 Failure Points:
My opinion there were at least 3 failure points on this:

1. Original contact with Dell, Technician should have typed in Heat Issue.
2. When I contacted Dell to double check it should have been entered.
3. Ability to see issues on my laptop online could have caught this in time.

Future:
Now to see if the laptop overheats tonight or not.

IBM Service
My one interaction on my wife's ThinkPad, when it was still IBM doing the service was amazing. We had bought the laptop used ad the CD Rom on it failed. I called up IBM, they took the S/N and mailed out a new part. Amazingly smooth operation. I wonder how the support is with Lenovo, and if they still have the quality on the ThinkPads that IBM did (wonderful keyboard).

Why a Microsoft Physical Store?

noreply@blogger.com (Ray) — Sun, 15 Feb 2009 21:34:05 PST

Peter Drucker has 3 famous questions that I would suggest Microsoft should apply to it's project to open 25 Physical Microsoft stores.

1. Who is your customer (everyone selling through reseller channels).

2. What do they value (something that helps them do what they need to do effectively/efficiently).

3. What can your provide of value (good products & reseller support).

My guess is Microsoft is copying Apple's stores. Apple had the challenge that few resellers were carrying their product limiting their distribution
channel.

Store Opportunity

Opportunity	Apple	Microsoft
Distribution Channels	Few resellers and poor distribution channels.	A+ distribution channels and reseller network
Profit Margin	High on Hardware and Software	High on Software, poor on PC Hardware
Channel Issues	Minimum since Apple produces Hardware and Software	Challenge which PC Manufacturer to have in store. Hp, Sony, Dell, Gateway, Toshiba, Acer, Lenovo, or ? Any decision will upset part of Microsoft's channel.
Brand	A+	Poor
Revenue Potential	Excellent	Poor (what are they selling and they are competing with their existing reseller channel).
Reseller Channel Power	Low	High including hp, Dell, etc.
MP3 Players	iPod	Zune
Mobile Phone	iPhone	Windows on phones for other manufacturers.
Games	iPhone	XBox

SWAT Teams and Totalitarism

noreply@blogger.com (Ray) — Sun, 01 Feb 2009 07:30:39 PST

Deadly Force - Washington Post.

A SWAT Team invaded the house of the mayor of a city, broke down the door after the mayor's wife screamed, shot their two dogs, ransacked the house, and then claimed it was the fault of the mayor's wife for screaming.

What would Peter Drucker say about SWAT Teams that act in such a totalitarian manner?

Claiming their actions are justified by the "war on drugs" for their actions. This reminds me of how totalitarian regimes justified their actions that everything had to be given to the nation, including freedom. By protecting our nation from drugs, the SWAT teams with their paramilitary culture act against it.

The key here is the incentive that police get for the war on drugs, anything they confiscate goes to fund their department. So if your found guilty of being a drug dealer, the police can seize all your property. The police department that did the raid last year got $2.5 Million dollars from drug related property seizures.

noreply@blogger.com (Elisa Mann) — Tue, 13 Jan 2009 20:34:01 PST

Dear Drucker Society of Los Angeles Members and Friends,

Thank you for the many opportunities to learn and enjoy as the Drucker Society of Los Angeles has grown. As co-founder and co-president, I have had the pleasure of seeing the Society blossom from a few dedicated people to over a hundred, and growing.

We have had exciting speakers, instituted a pro bono think tank on the recommendation of a member, and will soon be giving a special presentation on teamwork and the fulfillment of dreams to high school students. Our website has showcased the thought of Doris Drucker and other excellent thinkers, and we initiated the Inspiration Awards to show appreciation to people who make a truly Druckeresque difference in the world.

I have spent over a year seeing the Drucker Society of Los Angeles bloom. It has been immensely gratifying to meet or interact with many of the kind members of the Society, and to be in close contact with Rick Wartzman and Zachary First at the Drucker Institute.

This year, my schedule has changed to the point that I will not be able to attend our events, and from experience the Society needs and deserves great focus and time. Luckily, we have a full board in place, and in October we will have elections for those who will serve for the next two years (board members may serve up to two, two-year terms in a given office. Bylaws are posted on the website in the About Us section.). I have had the honor to serve alongside Gus Bojorquez as co-founder and co-president, and now Gus will continue to serve as sole president with the same verve he has shown throughout.

Thank you again for your insights, enthusiasm and dedication to the ideas of Peter Drucker. The renowned guru wrote of the importance of feeling that one has made a contribution. I am happy to have been one small part of a team that is itself engaged in keeping his great legacy alive. I know that the Drucker Society of Los Angeles will continue to bring fine thoughts to the community, and to participate in meaningful dialogue regarding the excellent principles of Peter Drucker.

Best wishes for a wonderful and fulfilling 2009, and beyond.

Respectfully,

Elisa Mann

The Best to You in 2009

noreply@blogger.com (Elisa Mann) — Sun, 11 Jan 2009 19:04:40 PST

The Drucker Society of Los Angeles wishes you and your loved ones the best of all that is most important in life. Peter Drucker studied and influenced business, as well as other sectors of society such as government and the nonprofit world. At the end of the day, he noted that people are the most important element in effective organizations. May you and those about whom you care have a safe and fulfilling year.

Panda CEO Tom Davin to Speak January 10, 2009

noreply@blogger.com (Elisa Mann) — Thu, 25 Dec 2008 20:51:19 PST

Hosted by the Drucker Society of Los Angeles, CEO Tom Davin of Panda, Inc., the Chinese restaurant chain, will be speaking on business principles from 2-4 p.m. on January 10, 2009 at the Mahalo Building at 902 Colorado Boulevard, Santa Monica, CA 90401. Panda, Inc. has used the teachings of Peter Drucker to help instill a strong ethic in the organization.

The admission price is $25 ($15 for students), and includes one year of membership in the Drucker Society of Los Angeles. To attend, send a check payable to "CGU/Drucker Institute," with "Drucker Society of Los Angeles" in the notes line, to Abraham McNiel, Associate Board Member, Drucker Society of Los Angeles, P.O. Box 6029, Alhambra, CA 91802.

In times when the need for excellence and integrity in management is clearer than ever, leaders must work with their organizations to prove their value to customers, again and again. Find out what is important during a challenging economy and how principles of ethics are translated into action.

Observer

noreply@blogger.com (Elisa Mann) — Sat, 20 Dec 2008 06:40:31 PST

Drucker Society of Los Angeles member Tony Morales, a graduate of the Peter F. Drucker and Masatoshi Ito Graduate School of Management who lives in Portland, Oregon and works for Nike, thought of the one best word to describe Peter Drucker:

"Observer."

Writes Tony, "It is the most difficult thing -- to observe without judgment. By observing we can take action. Without action, there are no results. That is what I am doing. I am taking action and making a difference. This takes courage. In the end, we must reflect and do it all over again to innovate and bring something new into the world."

What is your one best word to describe Peter Drucker or his ideas?

Inspiration Award Winner Judy Vaughan of Alexandria House

noreply@blogger.com (Elisa Mann) — Mon, 08 Dec 2008 12:12:02 PST

The winner of the first Drucker Society of Los Angeles Inspiration Award is someone who is a daily inspiration to people who need someone unflinchingly on their side.

Judy Vaughan is a Catholic nun with a 10-year-old adopted daughter. Eleven years ago, after a careful effort to ask people in a Los Angeles neighborhood what kinds of services they would want in a nearby shelter, she founded Alexandria House, a transitional shelter for women and children who are emerging from extremely difficult circumstances. Unlike short-term shelters which give people a place to sleep for up to three days, Alexandria House shelters otherwise homeless women and their children for months, and helps them to find jobs and places to live. Alexandria House also provides after-school tutoring and enrichment programs for children in the neighborhood, functioning as a safe, warm point of learning and development.

When accepting the Inspiration Award, Judy shared her leadership principles, such as, "never ask people to do what you yourself would not do," and "always say thank you." She said that she was constantly learning, and asked that people consider getting involved with helping teens to find the "step up" that would help them blossom.

To learn more about the many warm, caring facets of Alexandria House, visit http://www.alexandriahouse.org/. Toys for the holidays and volunteer time throughout the year are much needed and appreciated.

Peter Drucker stressed the importance of innovation, responsibility and effectiveness. In constantly finding new ways to give, unfailingly supporting people in bettering their lives, and creating a center for positive change in a dynamic neighborhood, Judy Vaughan together with her staff and volunteers at Alexandria House exemplify the best of Peter Drucker's ideals.

Managing Conflict in the Workplace

noreply@blogger.com (Elisa Mann) — Tue, 18 Nov 2008 11:32:00 PST

By Elisa Akiko Mann

On Saturday, November 15, 2008, consultant and executive coach Hugh Leonard gave a talk to the Drucker Society of Los Angeles. His topic was conflict resolution in the workplace.

By the time a consultant gets called in to help a company resolve issues, there is a palpable set of feelings in the workforce and/or managerial ranks of unhappiness, disgust, frustration and anger. A careful set of protocols are applied to understand what is happening, find the causes, generate plans for likely solutions, and then take action to change. The whole process takes about a year, if not more.

Hugh first hears from management, who hire him to help. They share their view of the problem, and he takes a careful approach to discovering if there are more dimensions to the issues. Almost invariably, there are. He interviews several people at many levels of the company, then painstakingly crafts a document, using people's own words without attribution or hints as to their roles, to accurately express what he finds. Often, much is unsaid, and he adds his analysis of underlying concerns, while being sure to relay why his conclusions are drawn from the interviews.

A process then unfolds in which he shares the findings with all of those concerned, both managers and employees, and gets feedback. He lets both sides know that this ultimate sense of discord has been the result of decisions over time -- it is theirs; they "own" it. He is clear that he is not going to "solve" the issues -- only the people involved can make direct changes that will impact the organization and their own quality of life.

Those involved are then asked to take part in a process of letting go of behaviors that have led to the difficulties. They are asked to create new beginnings, new ways of approaching their work and each other. They learn new skills to manage conflict, skills they might not have ever been exposed to before.

Hugh also analyzes the system of work, the set of businesses and departments interlocking, as a whole. He understands that often structural elements must change so that people can do their own work better, day to day. He reports to management on which structural forces may be making the problem worse, or helping to create it.

He then coaches supervisors and sets up a system of mentoring for employees. They have been asked to "own" the problems they are facing during the feedback session, and have been asked to make productive changes. Hugh gives them more ways to institute positive behaviors that replace the negative ones.

He follows up periodically to see how the company and the people within it are doing. Like Peter Drucker, Hugh believes that a company is a linked set of people, and that people are the most important element. He quotes Drucker, "A company is really its people -- their knowledge, capabilities and relationships." Also, regarding the issue of management responsibility, "Management is about human beings and its task is to make their strengths effective and their weaknesses irrelevant."

When Hugh is called in, emotions run high, people are angry and bitter, and work is suffering noticeably. At times his analysis brings forth a recommendation for firing someone or several people; other times he might find that individuals are best referred to counseling for underlying anger that is masked as resentment at the company situation. Mainly he believes that work is sacred, and that people have a natural call to do their best, and find fulfillment through it. He appreciates when disentangling the negative emotions that have sprung up around dysfunctional systems and counterproductive behaviors, leads to a renewed vigor at work.

Hugh led teams in the audiences through a simulation of a counselor listening to a person with a problem. The process mostly involved listening to understand, with two or so questions asked at each of four stages: gathering data, identifying the cause of anger, planning for productive change, and acting. Sample questions for the first stage included, "Describe what happened?" or "How do you feel in that situation?" For identifying the cause, questions included, "How would you characterize this issue?" and "What motivates him/her?" For productive change, a plan created by the person who is frustrated, questions included, "What are your plans?" and "What outcomes do you expect?" Finally, for the action phase, when the impacted person is dealing with the need for change, questions included, "What are you doing now?" and "If you decide to do nothing, why?" There are more questions in each category, but a key point was to not focus too much on one part of the process rather than another. Usually two questions or so are enough to understand fairly well what is happening, and to move to the next stage.

To contact Hugh Leonard, email hleonard@msn.com.

Elegant Gathering, December 7, 2008

noreply@blogger.com (Elisa Mann) — Fri, 14 Nov 2008 01:28:29 PST

Dear Drucker Society of Los Angeles Member,

Celebrate an evening of enjoyable company and fine dining with the Drucker Society of Los Angeles. Share conversation and laughter in a relaxed and elegant setting. Bring friends and family for an end-of-year gathering at Shiro Restaurant in South Pasadena, for a three-course meal you will long remember.

Sunday, December 7, 2008
8 p.m.

Shiro Restaurant
1505 Mission St
South Pasadena, CA 91030
(626) 799-4774
www.restaurantshiro.com

Presentation of the first Drucker Society of Los Angeles Inspiration Awards.

Featuring a three-course meal with salad, your choice of entree, and dessert.

Parking is free.

The cost is $45 per person, including tax and tip. The cost, however, does not include alcohol, although iced tea, hot tea, soft drinks and coffee are included. Payment is in advance.

RSVP by Wednesday, November 26, 2008 with the number of people attending and with your check made out to "Shiro Restaurant," to our Treasurer Edie Young. Her address is,

Edie Young

Treasurer

Drucker Society of Los Angeles

P.O. Box 2125

Upland, CA 91785

Space is limited, and reservations will be accepted on a first-come, first-served basis, including receipt of advanced payment.

We hope to see you there!

Cordially,

The Drucker Society of Los Angeles Board

Peaceful Transfer of Power

noreply@blogger.com (Elisa Mann) — Wed, 05 Nov 2008 11:00:02 PST

by Elisa Akiko Mann

Every election is historic; it ushers in new ideas, continues building on past power, or some uneasy amalgam of both. The 2008 election of Barack Obama to the United States Presidency unleashed a catharsis among many, while others still felt caution about what the future would bring.

The nation has many deep issues to continue to grapple with, including access to jobs, improvement of infrastructure, the accessability and affordability of health care, and nightmare scenarios such as nuclear war. No one doubts that despite the powerful rise of Barack Obama, that racism still exists, that civil rights are still unevenly applied, that sexism, ageism, homophobia and more barriers exist -- even in a country that wants to pride itself on holding a light up to the world.

Yet it is undeniable that the promise of democracy shows itself at its best when those who strongly believe they have the best answers for difficult times urge cooperation for the sake of the nation as a whole. John McCain, Obama's rival, gave a gracious and thoughtful speech conceding the election. Earlier in the election cycle, Hillary Clinton gave a masterful speech urging her supporters to give their energy to Barack Obama's campaign. For all that the Presidency of George W. Bush has been marked by extreme controversy, no one doubts that he will stand behind the new president when it is President Bush's time to step down.

Barack Obama and all of us in this nation have a lot of work to do, to increase health, decrease crime and drug use, change the perception of our nation in the eyes of other powers (through our actions), and move forward with constructive policies in the Middle East. The economy needs help and increased confidence, in a context where the thought processes that led to its painful spasms are often looked to in order to help it get better.

The media at times mention the fear that expectations placed on one man are too great, as though they would like to cushion Barack Obama from effects of euphoria from the election, or from aspects of the reality of the job that he strove mightily, with an incredible organization across the country, to earn. Expectations are the least of it. People in the United States, and in other countries around the world, need to see sustained actions that add to the common good.

In the meantime, the fact that contention can be resolved, that an election once again can express change without violence, and that people with widely different beliefs can coexist or even unite for the sake of greater ideals, gives real hope. Far from audacious, such hope is workaday.

Peter Drucker wrote that even the best plans have to eventually "degenerate" into work. As many points of light as it takes, as many dreams.

What does this say about Education

noreply@blogger.com (Ray) — Fri, 24 Oct 2008 22:05:37 PDT

A recent WSJ article, For Argument's Sake referenced a video on YouTube of two college professors screaming at each other. These article has more background on what happened:

The background of the argument say so much about our society.

Resolving Conflicts

noreply@blogger.com (Elisa Mann) — Wed, 05 Nov 2008 09:59:36 PST

(The talk by Hugh Leonard is filled to capacity. We are unable to accept further reservations at this time. Please see below for ways to contact Hugh Leonard directly if you would like him to speak at another event.)

The Drucker Society of Los Angeles presents speaker Hugh Leonard, consultant and executive coach, on the topic of conflict resolution in the workplace.

Who: Hugh Leonard, Consultant and Executive Coach

What: Conflict Resolution in the Workplace

Where: (A residence), South Pasadena, CA 91030

When: Saturday, November 15, 2008, 7 – 9 p.m.

The talk is complimentary, and refreshments will be served.

Please note that due to space considerations, attendance will be limited to the first 18 people to respond. (The attendance limit has been reached.)

Hugh Leonard is a consultant in human resource development with over 30 years of professional experience working in Europe, Asia, and the United States with a multitude of federal agencies and private corporations. While working in Japan for 17 years, as a Catholic priest and missionary, he founded and directed an industrial counseling venture for the improvement of workplace communications, cross-cultural understanding, teamwork and performance improvement. Also while in Japan, he taught at the university level, conducted a radio program, and wrote five books generally having to do with human communication, in Japanese.

Mr. Leonard has lectured for 6 years on Ethics in Business at Cal State Riverside. For over four years he has conducted a life planning program called Life Integration Quest and Discovery (LIQD). He is presently completing, pro bono, a 6-session, 18-hour workshop for a group of seniors in the Culver City Senior Center, while finishing a book on Work, Interiority and Productivity. The book is the basis of programs for the development of a strong inner life in employees for increased personal satisfaction, creativity, effective working relationships and productivity at work.

Mr. Leonard has masters' degrees in Asian Studies, Human Resource Development, Applied Theology, and Theology. He is also an Executive Coach, with professional qualifications from the Hudson Institute of Santa Barbara. He is a qualified Spiritual Director with certification from the Stillpoint organization, of Pasadena. He is presently midway through a 3-year course in Spiritual Care for Seniors at the Center for Spirituality and Aging of Anaheim. He may be contacted at (323) 299-3224 or by e-mail at hleonard@msn.com; his website is www.nowwebecomeourselves.com.

What Does the Customer Consider of Value?

noreply@blogger.com (Elisa Mann) — Fri, 17 Oct 2008 19:11:01 PDT

by Elisa Akiko Mann

Peter Drucker often taught by sharing stories of real people and the results they had accomplished. At times, though, he shifted to the Socratic method, asking questions to elicit responses. Among the questions he posed to those who would start or revitalize organizations, were “What is our mission?” “Who are our customers?” “What do our customers consider of value?” “What are our results?” and “What is our plan?”

A question he returned to again and again was “What do our customers consider of value?” The most subtle of his questions, the answer depends on the perception of other people’s needs, ideas, and likings.

He wrote frankly of his own. He had a desire to participate fully and to contribute well to his society. He loved teaching, and knew that advising others was his strength. His customers, his clients and his students, valued his intelligence and his willingness to speak about what he considered most important. They valued his honestly.

Listening to what customers consider of value is sometimes straightforward, sometimes a puzzle. Often people say directly what they think – and are not heard. Management often has barriers to hearing, processing or acting upon direct feedback if it contradicts the company environment or their own sense of comfort. Another problem is that there are times when the customer either does not know what he or she wants, or does not know how to express it. The feedback might be too vague to understand.

The art of accepting new ideas – for, after all, “not invented here” syndrome can apply to comments by customers as much as by comments from those inside the company – is not easy to instill. It takes openmindedness and a willingness to learn something that can contradict what someone has already had to “learn” to function within the company, the general ethos. Going a step further and clarifying what is important to a customer, to the customer’s satisfaction, takes a sense of purpose…and courage.

Even if management learns how people feel about the products and the company, they face at times an uphill battle convincing others within the company that change is within the company’s interest. Yet companies that keep trust with their customers earn the right time and again to enjoy their customers’ business. The failure to listen, and eventually to adapt to present and future needs, causes a disconnect between the company and its customer base.

What does the customer consider of value?

What do any of us consider of value? Would we be able to articulate our hopes clearly if we knew that organizational structures, be they companies, nonprofits, or government entities, were honestly listening? And prepared to respond?

The Freedom to Innovate

noreply@blogger.com (Elisa Mann) — Thu, 18 Sep 2008 15:05:31 PDT

by Elisa Akiko Mann

Peter Drucker was careful to point out in Innovation and Entrepreneurship that innovation can take place in a wider social realm than in pure technology. Of course, the technology space is good at understanding, adopting and driving innovation. It plans for incremental advances but also cherishes its more dramatic acts of creative destruction, when a new platform takes over much of the market of an old one, or an entire industry takes a back seat to (or even all but vanishes in the face of) a new one.

Yet the deepest progress lies in social innovation. It is a fragile progress that is guarded by people’s ideals and actions. In a sense, social innovation deals with simple things, even boring concepts, that can hardly be called innovative. Often they involve outreach of something important from one group to another: if people do not have work, see if they can be helped to find it or to create it; if people do not have enough to eat, see if they can be given food or sold it at prices they can afford it; if people are systematically being denied universal human rights, see if the context around them can be changed to provide more freedom and more safety. In general, the shift is from practices that are more harmful, more oppressive, and more unkind to those that are less harmful, more freeing, and kinder – whether the circumstances are political, economic, or due to natural forces. Often what is being extended or expanded is taken for granted by groups that do not customarily have to grapple with the lack, at least within their memory.

One of the longest ongoing social innovations has been the extension of equality – equal rights under the law, equal treatment in public places, equal respect and dignity, equal education and prospects for advancement. Many groups in the United States and elsewhere have faced treatment as second class citizens, from the Irish to the Chinese and Japanese – in social rejection and in discriminatory laws. It is a major benefit that now our laws are geared towards more inclusion and nondiscrimination, rather than deliberate exclusion in terms of property rights and other values. Laws, however, have their limits. It takes the internalization of respect and the extension of acceptance to create a just society.

Deep and abiding ramifications of inequality have left their trace over the centuries, due to the legacy of slavery and racism. The Emancipation Proclamation issued by Lincoln was a major step in our nation’s history, but it still left many problems to be solved. Discrimination was still written into our Constitution, and it took many years for voting rights to be correctly extended. The Civil Rights Movement inspired bravery from many sides, mainly within and also beyond the African-American communit(ies), to establish that every person should have a right to dream, a place at the counter, the chance for work, a seat anywhere on the bus, and water from the same source as the next person. We still have a way to go as a nation, as extraordinary as our nation is, before health statistics, economic statistics, and even crime statistics show that we have fully dealt with the legacies of slavery and integration. We have a thriving middle class of African-Americans, gains in the work force and in government, yet still also have communities where victimization is high, drugs are rampant, and health standards are lower than they should be. And this is not true only of African-American communities, but impoverished Caucasian, Hispanic and Asian ones as well, which live not far from more prosperous representatives of their particular groups.

My point is not that one group or another is a victim of the most difficult times in history – victimization and oppression are all too human, and history has multiple examples of real and enduring pain, across ethnic and racial lines. One need only remember the Holocaust to see that centuries of injustice could spill into almost unimaginable cruelty.

The newest advances in screen clarity for video games, interplatform connectivity, high fidelity sound, remote vehicle guidance and medical diagnostics are important, life enhancing, and even lifesaving. Entrepreneurs and workers are right to advance each craft. There are at least as many risks taken and kinds of ingenuity shown, however, by intelligently, thoughtfully, persistently insisting that we continue to make progress in the social realm. More health care, including preventative nutrition, for more children, more adults, more seniors. More inclusion and extensions of excellence in schools. More meaningful work. What is the algorithm for honest social equality? The measurements may be much tougher to gauge, but they are felt. We know them when we experience them. Incredible gains have been made, over years and even centuries. Even the everyday extensions of friendship, justice and fairness make the world that much more thoughtful, but the big gains -- in health, safety, opportunity -- still remain important.

For reference, below is one of the greatest speeches on the “innovation” of having children play together, on economic equality being a basis for justice, and on the universality of ideals. It is by Martin Luther King, Jr., as quoted on the website American Rhetoric: Top 100 Speeches (http://www.americanrhetoric.com/speeches/mlkihaveadream.htm). He would likely be the first to agree that the ideals of justice and freedom stretch across all boundaries. His approach turned away from hate, and embraced partnership.

I Have a Dream

I am happy to join with you today in what will go down in history as the greatest demonstration for freedom in the history of our nation.

Five score years ago, a great American, in whose symbolic shadow we stand today, signed the Emancipation Proclamation. This momentous decree came as a great beacon light of hope to millions of Negro slaves who had been seared in the flames of withering injustice. It came as a joyous daybreak to end the long night of their captivity.

But one hundred years later, the Negro still is not free. One hundred years later, the life of the Negro is still sadly crippled by the manacles of segregation and the chains of discrimination. One hundred years later, the Negro lives on a lonely island of poverty in the midst of a vast ocean of material prosperity. One hundred years later, the Negro is still languished in the corners of American society and finds himself an exile in his own land. And so we've come here today to dramatize a shameful condition.

In a sense we've come to our nation's capital to cash a check. When the architects of our republic wrote the magnificent words of the Constitution and the Declaration of Independence, they were signing a promissory note to which every American was to fall heir. This note was a promise that all men, yes, black men as well as white men, would be guaranteed the "unalienable Rights" of "Life, Liberty and the pursuit of Happiness." It is obvious today that America has defaulted on this promissory note, insofar as her citizens of color are concerned. Instead of honoring this sacred obligation, America has given the Negro people a bad check, a check which has come back marked "insufficient funds."

But we refuse to believe that the bank of justice is bankrupt. We refuse to believe that there are insufficient funds in the great vaults of opportunity of this nation. And so, we've come to cash this check, a check that will give us upon demand the riches of freedom and the security of justice.

We have also come to this hallowed spot to remind America of the fierce urgency of Now. This is no time to engage in the luxury of cooling off or to take the tranquilizing drug of gradualism. Now is the time to make real the promises of democracy. Now is the time to rise from the dark and desolate valley of segregation to the sunlit path of racial justice. Now is the time to lift our nation from the quicksands of racial injustice to the solid rock of brotherhood. Now is the time to make justice a reality for all of God's children.

It would be fatal for the nation to overlook the urgency of the moment. This sweltering summer of the Negro's legitimate discontent will not pass until there is an invigorating autumn of freedom and equality. Nineteen sixty-three is not an end, but a beginning. And those who hope that the Negro needed to blow off steam and will now be content will have a rude awakening if the nation returns to business as usual. And there will be neither rest nor tranquility in America until the Negro is granted his citizenship rights. The whirlwinds of revolt will continue to shake the foundations of our nation until the bright day of justice emerges.

But there is something that I must say to my people, who stand on the warm threshold which leads into the palace of justice: In the process of gaining our rightful place, we must not be guilty of wrongful deeds. Let us not seek to satisfy our thirst for freedom by drinking from the cup of bitterness and hatred. We must forever conduct our struggle on the high plane of dignity and discipline. We must not allow our creative protest to degenerate into physical violence. Again and again, we must rise to the majestic heights of meeting physical force with soul force.

The marvelous new militancy which has engulfed the Negro community must not lead us to a distrust of all white people, for many of our white brothers, as evidenced by their presence here today, have come to realize that their destiny is tied up with our destiny. And they have come to realize that their freedom is inextricably bound to our freedom.

We cannot walk alone.

And as we walk, we must make the pledge that we shall always march ahead.
We cannot turn back.

There are those who are asking the devotees of civil rights, "When will you be satisfied?" We can never be satisfied as long as the Negro is the victim of the unspeakable horrors of police brutality. We can never be satisfied as long as our bodies, heavy with the fatigue of travel, cannot gain lodging in the motels of the highways and the hotels of the cities. We cannot be satisfied as long as the negro's basic mobility is from a smaller ghetto to a larger one. We can never be satisfied as long as our children are stripped of their self-hood and robbed of their dignity by a sign stating: "For Whites Only." We cannot be satisfied as long as a Negro in Mississippi cannot vote and a Negro in New York believes he has nothing for which to vote. No, no, we are not satisfied, and we will not be satisfied until "justice rolls down like waters, and righteousness like a mighty stream."

I am not unmindful that some of you have come here out of great trials and tribulations. Some of you have come fresh from narrow jail cells. And some of you have come from areas where your quest -- quest for freedom left you battered by the storms of persecution and staggered by the winds of police brutality. You have been the veterans of creative suffering. Continue to work with the faith that unearned suffering is redemptive. Go back to Mississippi, go back to Alabama, go back to South Carolina, go back to Georgia, go back to Louisiana, go back to the slums and ghettos of our northern cities, knowing that somehow this situation can and will be changed.

Let us not wallow in the valley of despair, I say to you today, my friends.
And so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream.

I have a dream that one day this nation will rise up and live out the true meaning of its creed: "We hold these truths to be self-evident, that all men are created equal."

I have a dream that one day on the red hills of Georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood.

I have a dream that one day even the state of Mississippi, a state sweltering with the heat of injustice, sweltering with the heat of oppression, will be transformed into an oasis of freedom and justice.

I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.

I have a dream today!

I have a dream that one day, down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of "interposition" and "nullification" -- one day right there in Alabama little black boys and black girls will be able to join hands with little white boys and white girls as sisters and brothers.

I have a dream today!

I have a dream that one day every valley shall be exalted, and every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made straight; "and the glory of the Lord shall be revealed and all flesh shall see it together."²

This is our hope, and this is the faith that I go back to the South with.
With this faith, we will be able to hew out of the mountain of despair a stone of hope. With this faith, we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood. With this faith, we will be able to work together, to pray together, to struggle together, to go to jail together, to stand up for freedom together, knowing that we will be free one day.

And this will be the day -- this will be the day when all of God's children will be able to sing with new meaning:

My country 'tis of thee, sweet land of liberty, of thee I sing.
Land where my fathers died, land of the Pilgrim's pride,
From every mountainside, let freedom ring!

And if America is to be a great nation, this must become true.
And so let freedom ring from the prodigious hilltops of New Hampshire.
Let freedom ring from the mighty mountains of New York.
Let freedom ring from the heightening Alleghenies of Pennsylvania.
Let freedom ring from the snow-capped Rockies of Colorado.
Let freedom ring from the curvaceous slopes of California.
But not only that:
Let freedom ring from Stone Mountain of Georgia.
Let freedom ring from Lookout Mountain of Tennessee.
Let freedom ring from every hill and molehill of Mississippi.
From every mountainside, let freedom ring.

And when this happens, when we allow freedom ring, when we let it ring from every village and every hamlet, from every state and every city, we will be able to speed up that day when all of God's children, black men and white men, Jews and Gentiles, Protestants and Catholics, will be able to join hands and sing in the words of the old Negro spiritual:

Free at last! Free at last!
Thank God Almighty, we are free at last!

The Practical World of Venture Capital

noreply@blogger.com (Elisa Mann) — Wed, 27 Aug 2008 16:41:23 PDT

By Elisa Akiko Mann

Richard Koffler, CEO of Koffler Ventures, LLC, spoke with the Drucker Society of Los Angeles on August 23, 2008 at the Angel City Café in Bellflower. A member of the executive committee of the Tech Coast Angels Los Angeles network, he has served as president of the Los Angeles Venture Association and the Technology Council of Southern California.

He also serves on the advisory boards of the Center for Technology Commercialization at the University of Southern California and the Wells Fargo Center for Small Business and Entrepreneurship at the College of Business and Economics at California State University, Northridge. He has been a C-level executive for 25 years, launching and nurturing technology ventures, with an education in computer science from MIT and Berkeley.

What he found separated teams that went on to have successful ventures from those that did not, were several basic ideas. First, the founders had to have a drive and passion, an abiding belief in what they were doing that allowed them to persevere in the face of challenges. Second, management had to spend its time nurturing its team(s), playing the role of mentor and coach. Third but in his view most important, the leader/CEO had to have unshakable integrity that was evident to the rest of the team. Trust had to be earned, and values had to be real, and displayed. Essentially, the leader had to keep his or her word.

Other ideas were important as well. For example, the team(s) had to be able to respond to the market, and especially to respond to the unexpected. A team was better at handling new information, in general, than just one person alone. The value of having multiple viewpoints made for better flexibility and a higher chance of making the right responses.

Also, competence for the business was a real necessity. Learning on the job is difficult in a pressured environment – it is important that each person know what he or she is doing. This tenet translates into venture capitalists having interest in teams that have worked together in one space before, branching out into a related field, but not trying something completely outside their expertise.

As further advice to those seeking to earn venture capital, Koffler reminded the audience that they had to look for high returns and ultimately a big payoff, which keeps venture capital interested. He cautioned that venture capital is neither necessary nor necessarily optimal for all businesses, and that keeping ownership in something that people believe in passionately, and bootstrap, may be more important than having an early infusion of means but losing major control and ownership of the business.

Koffler reminded us that 100% of business plans do not go as planned, and that the best leaders, as Peter Drucker said, are good managers. They respond thoughtfully to opportunities and they strive to recognize market changes. They delegate so that everyone can do more as a whole, and they nurture their teams. Koffler echoed Peter Drucker’s idea that it is important to know who the customer is, and what that customer considers of value.

Koffler learned through many ups and downs the value of each of the recommendations he gave, and suggested that venture funding should never be sought for its own sake. The founder should have an abiding, realistic faith in being able to create a vision into a working business, beyond the first infusion of funding. He also warned against “founderitis,” in which those who started a company and wanted it to grow to a greater scale were resistant to hearing and acting upon changes needed to succeed – often centering upon a loss of their accustomed control.

In response to a question about what Koffler wished he had known many years ago, he mentioned the lifestyle balance of golf and yoga, and its importance. He is still hard at work, his latest company being LatinoLA, itself part of a larger Internet group of new ventures.

Doris Drucker Shares Thoughts on Peter Drucker

noreply@blogger.com (Elisa Mann) — Sun, 10 Aug 2008 00:36:39 PDT

Doris Drucker, author and wife of the late management philosopher Peter Drucker, shared her thoughts via email with Elisa Mann, co-president of the Drucker Society of Los Angeles.

Question: What was your first impression of Peter Drucker when you met him?

Answer: I first met Peter at a Seminar on International Law. It was held once a week in the evening at a University professor's house and was attended by eight or ten undergraduate law students, and by Peter and another young man, Fritz K., who both had just got their doctoral law degrees. The whole degree system was different in Germany in those days. You did not waste time getting an undergraduate degree, you started right out in law school or medical school or whatever after graduating from High School . Anyway, those two young men ran the seminar, the professor just sat by and listened in. They discussed cases and argued with one another and both were extremely erudite and knew a lot about precedents and historical data. I remember one case they – we – discussed at great length. Fritz K. flew the flag of the old Kaiser monarchy from his little kayak, instead of the black-red-gold flag of the German Weimar Republic which had replaced the Kaiser Empire. When he sailed in his kayak in Italy, I think it was in the Bay of Naples, the Italian Police came after him and told him that it was against the International Law of the Sea to fly an outdated flag. So Peter and Fritz engaged in long arguments in the seminar whether the Law of the Sea applies only to registered big ships or also to small craft. Both thoroughly enjoyed themselves – and entertained us – by quoting all sorts of precedents from Greek history and such. I am sure they invented a lot but nobody dared to challenge them as to their sources. I thought Peter was extremely knowledgeable and entertaining as well.

Question: Did you and he always agree about his business theories?

Answer: Of course we had different opinions on a number of subjects, but that was all right; it would have been boring if we had agreed on everything.

Question: Do you have a favorite among his writings, for example his books or articles?

Answer: I like "Adventures of a Bystander" because it is the most personal of all his books.

Question: When you consider his legacy, of what are you most glad?

Answer: I am most glad that he had such a long and interesting life, good health, wonderful friends, and lots of challenges and opportunities. Regarding Peter's legacy, Dean Ira Jackson [of the Peter F. Drucker and Masatoshi Ito Graduate School of Management] said it best in an article he wrote for the Ontario Daily Bulletin of March 5, 2007: "Peter was the founder or the father of modern management. He has been described as the most important thinker about business and organizations of our times. He has had a profound impact on everyone in the field. He viewed organizations not as mechanical inventions or as financial balance sheets, but as essentially human enterprises, and he put people first. His insights about knowledge workers, his focus on employees as assets, rather than expenses or liabilities, his ideas about the importance of the non-profit sector, his emphasis on creativity and innovation, his early emphasis on sustainability and environmental stewardship – those and other powerful teachings have all helped to shape the field . Peter pointed the way to a future that others couldn't see but that almost everyone now acknowledges." These sentences are excerpts from Dean Jackson's article but they express better than I can what Peter stood for.

Druckerian - What is that?

noreply@blogger.com (Ray) — Sat, 09 Aug 2008 18:02:37 PDT

What does Druckerian mean? Obviously something to do with Peter Drucker, who was a true polymath. His interests ranged from history to Japanese art to management to non-profits. His resume included being a banker, reporter, consultant, professor, mentor, husband, and Father. And he loved to read and was a life long learner.

My 2 cents...

Doing the right thing ethically.

I would enjoy your opinion!

Guru Drucker Still Smiles on U.S.

noreply@blogger.com (Ray) — Tue, 15 Jul 2008 21:15:04 PDT

Guru Drucker Still Smiles on U.S. - refreshing letter to the editor in the WSJ from A.G. Lafley , Chief Executive Officer of Procter & Gamble. It corrects some mis-communication in an earlier article in the Wall Street Journal.

Subtle Innovations

noreply@blogger.com (Elisa Mann) — Tue, 15 Jul 2008 20:05:56 PDT

By Elisa Akiko Mann

New knowledge as a basis for innovation is perhaps the most classic understanding of what innovation is. In Innovation and Entrepreneurship, Peter Drucker devotes a chapter to describing the requirements and the risks of new knowledge as a starting point for ventures. More subtle, however, is a slender chapter on a different inflection point for innovation: changes in perception. When people feel a certain way and are prepared to act on their perceptions, the underlying reality might be at an equipoise with regard to their looking at things one way or another, but their choice to see the glass as half full or half empty can impact their decisions. That subtle understanding can lead to opportunities.

One case that Drucker shares is sales of Encyclopedia Britannica. At a time when people began to see themselves as middle class, and to identify that idea with specific kinds of surroundings, ideas, and products, to purchase an encyclopedia became a sort of badge. They were emerging from a time of greater class differentials, and could have continued to see themselves in higher or lower strata with respect to others, but instead, a new perception was emerging of a group that had aspirations and a respect for knowledge, specifically for the sake of their children. Those who sold the encyclopedia saw the fit between ideals and a practical source of more understanding (these were in days before electrons carried information straight to search engines online). A set of books on topics mundane and erudite conferred a sense of intellectual and economic comfort, but it also touched upon a particular perception for its purchasers that their children would, with the encyclopedia around, do better in school. And doing better in school would help the children rise in the workplace, and help the whole family. Knowledge and education would meet in a virtuous loop.

Another example given by Drucker is the willingness of a company such as Citibank, traditionally staffed by men, to gather in women. The game for large companies was to recruit the highest performing men from universities. When managements were informed that the best students in finance and marketing were more and more women, traditional managements told the recruiters to work harder to find the best men. Citibank suggested instead recruiting the women. To them, the talent pool had a new aspect and a new opportunity, not just a shrinkage of what they were used to in the past. The change in perception was that women entering the workforce could be a helpful trend instead of a threat.

Drucker warned that changes in perception are difficult to master. Often what seems a shift for a year or two turns out to be a passing fad, rather than a change with deeper consequences. At the same time, he suggests that if one is to take most advantage of a change in perception, having the first mover advantage is important. Trying to catch up after others have already staked claims in a field becomes challenging. Because of these tensions, Drucker suggests that any perception based innovation “start small and be very specific.”