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1954Economics

Drucker: management by objectives, and what an organisation is for

The point, in one line

The purpose of an organisation always lies outside it — so doing the internal work well proves nothing by itself.

How it works

Inside an organisation there are only efforts and costs; a result appears when somebody outside chooses you.

InsideEfforts and costs. The easiest things to count.
OutsideSomebody who is not in the club is better off.
  • How many meetings were heldHow many students came, and came back
  • How enjoyable the board session wasWho outside the club is better off
  • Only the president knows the objectivesEach person checks their own
You separate activity from result and give every board member objectives they check themselves, objectives that do not leave with the president.
The same thing, in your club
  1. The situation

    The annual report: twelve events, an active board, a good atmosphere.

  2. What the model says

    Three lines, all of them from inside. The activity may have been enjoyable; the result is what changed outside the club.

  3. What you do

    Against each activity write one sentence: who outside has to be better off for it, and how you will see that within a month.

What it claims

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Who created it

PD1954
An illustrated emblem, not a portrait.
Peter F. Drucker (1909–2005)
1954

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Why this is your problem

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Where it runs in the product

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Source

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Rights and licence
In copyright

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What this connects to

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Grounds these competency domains

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The student version
Drucker: management by objectives, and what an organisation is for

The same work written for a member: what to do with it in the club.

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