The Practice of Management: 8 key ideas
The core ideas of The Practice of Management, each in under a minute, written in our own words. Want the full depth? Get the book.
- IDEA 1 OF 8
Management became a discipline
Drucker's book helped establish management as a distinct field of study and practice.
He argues that managers are essential to modern society, because organisations depend on them to turn resources into results.
- IDEA 2 OF 8
Ask what your business is
Drucker argues that every business must ask what its business is, who its customers are and what they value.
These questions guide strategy. A company that cannot answer them clearly is likely to drift without direction.
- IDEA 3 OF 8
Customers define the business
Drucker argues that the purpose of a business is to create a customer.
What customers buy determines what the business is. A business does not exist for its owner's pride but because someone is willing to pay for what it offers.
- IDEA 4 OF 8
Marketing and innovation matter most
Drucker argues that marketing and innovation are the two basic functions of business.
Everything else supports them. A business that only cuts costs or runs daily work, without winning customers and creating something new, will fall behind.
- IDEA 5 OF 8
Manage by objectives
Drucker introduced management by objectives, where managers and employees agree on goals.
This aligns effort. When people help set their goals, they know what is expected and can see how their own work fits the larger aim.
- IDEA 6 OF 8
Develop managers
Drucker argues that organisations must develop managers deliberately.
Good management does not happen by accident. Waiting for good managers to appear on their own leaves a company weak when its leaders retire or leave. Training people and giving them real responsibility prepares them for bigger roles.
- IDEA 7 OF 8
Workers are resources, not costs
Drucker argues that workers should be treated as resources with knowledge and skills.
Respect improves performance. Seeing people only as a cost to be cut wastes what they know and can learn.
- IDEA 8 OF 8
Management has responsibilities
Drucker argues that managers have responsibilities to society as well as to the business.
Business must serve the public good. A company that harms the society around it cannot expect to stay respected or successful for long.
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