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

You can be extremely busy in a club and produce nothing anyone outside it would notice. The difference between activity and result is one sentence beside each item.

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Peter F. Drucker (1909–2005) · 1954
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.
What you do first

List every activity the club runs and write one sentence against each: who outside the club has to be better off because of it, and how you will see that within a month. Keep the ones whose only answer is "we enjoy it" — but mark them in another colour and stop calling them results.

Who thought of it
PD1954
Peter F. Drucker (1909–2005)
1954

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