Effective Management of Nonprofits NPOの成功例

Nonprofits need management even more than business does.

  In the early 1990s, people sentenced to their first prison term in Florida, mostly very poor black or Hispanic youths, were paroled into the Salvation Army’s custody – about 25,000 per year, Statistics showed that if these young men and women had gone to jail, the majority would have become habitual criminals. But the Salvation Army was able to rehabilitate 80 percent of them through a strict work program that was run largely by volunteers. And the program cost a fraction of what if would have to keep the offenders behind bars.
  Underlying this program and many other effective nonprofit endeavors is a commitment to management. Forty years ago, management was a dirty word for those involved in nonprofit organizations. It meant business, and nonprofits prided themselves on being free of the taint of commercialism and above such sordid considerations as the bottom line. Now most of them have learned that nonprofits need management even more than business does, precisely because they lack the discipline of the bottom line. The nonprofits are, of course, still dedicated to “doing good.” But they also realize that good intentions are no substitute for organization and leadership, for accountability, performance, and results. Those require management and that, in turn, begins with the organization’s mission.

ACTION POINT: Commit your nonprofit organization to effective management. Adopt high standards of organization, leadership, accountability, performance, and results.

Managing for the Future






2009.06.30 | Trackback(0) | Drucker ドラッカー

The Social Sector NPOへの反感

The bureaucracy cannot admit that the nonprofits
succeed where governments fail.

  The real answer to the question “Who takes care of the social challenges of the knowledge society?” is neither “the government” nor “the employing organization.” It is a separate and new social sector. Government has proved incompetent at solving social problems. The nonprofits spend far less for results than governments spend for failures.
  Instead of using the federal tax system to encourage donations to nonprofits, we have the IRS making one move after the other to curtail donations to nonprofits. Each of these moves is presented as “closing a tax loophole.” The real motivation for such action is the bureaucracy’s hostility to the nonprofits – not too different from the bureaucracy’s hostility to markets and private enterprise in the former Communist countries. The success of the nonprofits undermines the bureaucracy’s power and denies its ideology. Worse, the bureaucracy cannot admit that the nonprofits succeed where governments fail. What is needed therefore is a public policy that establishes the nonprofits as the country’s first line of attack on its social problems.

ACTION POINT: Support nonprofits in their efforts to tackle social problems.

Managing in a Time of Great Change





2009.06.29 | Trackback(0) | Drucker ドラッカー

Economic Progress and Social Ends 経済発展の目的

Economic expansion and increase are not aims in themselves. They make
sense only as means to a social end.

  As far as the potential economic future of the capitalist is concerned, Henry Ford – that grand old man of modern capitalism – was undoubtedly right, and the professional gravediggers of capitalism wrong. But Ford, no less than his critics, forgot that economic expansion and increase are not aims in themselves. They make sense only as means to a social end. They are highly desirable as long as they promise to attain this end. But if this promise is proved illusory, the means become of very doubtful value.
  Capitalism as a social order and as a creed is the expression of the belief in economic progress as leading toward the freedom and equality of the individual in the free and equal society. All previous creeds had regarded the private profit motive as socially destructive, or at least neutral. Their social orders had intentionally subjected the economic activity of the individual to narrow limitations so as to minimize its harmful effects upon spheres and activities considered socially constructive.

ACTION POINT: Make sure that in the pursuit of economic performance you develop people.

The End of Economic Man





2009.06.28 | Trackback(0) | Drucker ドラッカー

Legitimacy of Management マネジメントの正統性

It is the purpose of the organization, and the grounds of management
authority, to make human strength productive.

  It is the task of management to make the institutions of the society of organizations, beginning with the business enterprise, perform for the society and economy, for the community, and for the individual, alike. This requires, first, that managers know their discipline. It requires that they know management. The first task of the manager is indeed to manage the institution for the mission for which it has been designed. The first task of the business manager is, therefore, economic performance. But at the same time she faces the tasks of making the work productive and the worker achieving, and of providing for the quality of life for society and individual. But a leadership group also has to have legitimacy. It has to be accepted by the community as “right.” They need to ground their authority in a moral commitment, which at the same time, expresses the purpose and character of organizations. There is only one such principle of morality. It is the purpose of organization, and, therefore, the grounds of management authority, to make human strength productive. Organization is the means through which man, as an individual and as a member of the community, finds both contribution and achievement.

ACTION POINT: Use your position of authority to bring out whatever strength there is in the people you are responsible for.

Management: Tasks, Responsibilities, Practices





2009.06.27 | Trackback(0) | Drucker ドラッカー

Enjoying Work 仕事を楽しむ

Those who perform love what they’re doing.

  Those who perform love what they’re doing. I’m not saying they like everything they do. That’s something quite different. Everybody has to do a lot of the routine; there’s an enormous amount of the routine. Every great pianist has to do three hours of playing scales each day. And nobody will tell you they love it. You have to do it. It’s not fun, but you enjoy it because even after forty years you still feel the fingers improving. Pianists have a wonderful expression I heard many years ago: “I practice until I have my life in my fingers.” And, sure, it’s a dull routine, but you enjoy it.
  The same is true of people I’ve seen in business who enjoy the work. Their routine is: It’s got to be done, and I enjoy it because I enjoy the work. And that is the difference, I believe, not between mediocrity and performing, but between what you call a “learning organization” – one where the whole organization grows and then the process changes – and an organization that maybe does very well but nobody misses it after five o’clock.

ACTION POINT: Practice until you have your life in your fingers.

“Meeting of the Minds,” Across the Board: The Conference Board Magazine





2009.06.26 | Trackback(0) | Drucker ドラッカー

The Business Audit 事業監査の必要

The rise of pension funds as dominant owners represents
one of the most startling shifts in economic history.

  Even the largest U.S. pension fund holds much too small a fraction of any one company’s capital to control it. Not being businesses, the funds have no access to in-depth commercial or business information. They are not business-focused, nor could they be. They are asset managers. Yet they need in-depth business analysis of the companies they collectively own. And they need an institutional structure in which management accountability is embedded.
  I suspect that in the end we shall develop a formal business-audit practice, analogous perhaps to the financial-audit practice of independent professional accounting firms. For while the business audit need not be conducted every year – every three years may be enough in most cases – it needs to be based upon predetermined standards and go through a systematic evaluation of business performance: starting with mission and strategy, through marketing, innovation, productivity, people development, community relations, all the way to profitability.

ACTION POINT: Do you know what pension funds are big shareholders in your organization? What system do they have for getting information about your organization?

Managing for the Future





2009.06.18 | Trackback(0) | Drucker ドラッカー

Test of Pension-Fund Socialism 年金基金社会主義の成否

Penalties on capital formation are a luxury that a society under
pension-fund socialism can ill afford.

  We have to so far given almost no thought in this country to the ways in which capital formation could be increased to offset the actual “dissaving” resulting from the rise of pension costs, which springs in turn from the growth in the number of older retired people whose consumption has to be financed out of the “pseudo-savings” of employed workers. Only one thing can be said with certainty: obstacles to, and penalties on, capital formation are a luxury that a society under pension-fund socialism – and a society in which a large number of older people have to be supported in retirement – can ill afford. But one can say definitely that capital formation rather than consumption will of necessity become the central problem of domestic economic policy in the years ahead, and the acid test of the economic viability of America’s pension-fund socialism.

ACTION POINT: How can capital formation be increased?

The Pension Fund Revolution





2009.06.17 | Trackback(0) | Drucker ドラッカー

Pension-Fund Capitalism 年金基金社会主義の陥穽

Capital market decisions are shifting from the people who are
supposed to invest in the future to the people who have to
follow the “prudent man rule.”

  The capital market decisions are effectively shifting from the “entrepreneurs” to the “trustees,” from the people who are supposed to invest in the future to the people who have to follow the “prudent man rule,” which means, in effect, investing in past performance. Herein lies a danger of starving the new, the young, the small, the growing business. But this is happening at a time when the need for new business is particularly urgent, whether they are based on new technology or engaged in converting social and economic needs into business opportunities.
  It requires quite different skills and different rules to invest in the old and existing as opposed to the new ventures. The person who is investing in what already exists is, in effect, trying to minimize risk. He invests in established trends and markets, in proven technology and management performance. The entrepreneurial investor must operate on the assumption that out of ten investments, seven will go sour and have to be liquidated with more or less a total loss. There is no way to judge in advance which of the ten investments in the young and the new will turn out failures and which will succeed. The entrepreneurial skill does not lie in “picking investments.” It lies in knowing what to abandon because it fails to pan out, and what to push and support with full force because it “looks right” despite some initial setbacks.

ACTION POINT: Consider directing a portion of your pension-fund assets to trustees who have authority to invest in new ventures and who have had success doing so in the past.

The Pension Fund Revolution





2009.06.16 | Trackback(0) | Drucker ドラッカー

Pension-Fund Regulation 見えざる革命

The regulation of pension funds, and their protection against looting, will remain a challenge.

  For most people over forty-five in developed countries, their stake in a pension fund is one of their largest single assets. During the nineteenth century, the biggest financial need of common people was for life insurance to protect their families in the event of their early death. With life expectancies now almost double of the nineteenth century, the biggest need of common people today is protection against the threat of living too long. The nineteenth-century “life insurance” was really “death insurance.” The pension fund is “old-age” insurance. It is an essential institution in a society in which most people can expect to outlive their working lives by many years.
  The regulation of pension funds, and their protection against looting, will remain a challenge to policy makers and lawmakers for years to come. In all likelihood, the challenge will only be met after we have had a few nasty scandals.

ACTION POINT: What are the weaknesses of the current regulations of your pension fund?

Post-Capitalist Society





2009.06.15 | Trackback(0) | Drucker ドラッカー

Pension-Fund Shareholders 機関投資家としての年金基金

Short-term results and long-term performance are not irreconcilable,
but are different, and will have to be balance.

  The new corporation will have to balance short-term performance with the long-term interests of pension-fund shareholders. Maximizing short-term performance will jeopardize the interests of pension-fund stockholders.
  Significantly, the claim of the absolute primacy of business gains that made shareholder sovereignty possible has also highlighted the importance of the corporation’s social function. The new shareholders whose emergence since 1960 or 1970 produced shareholder sovereignty are not “capitalists” in the traditional sense. They are employees who own a stake in the business through their retirement and pension funds. By 2000, pension funds and mutual funds in the U.S. had come to own the majority of the share capital of America’s large companies. This has given shareholders the power to demand short-term rewards. But the need for a secure retirement income will increasingly focus people’s minds on the future value of the investment. Corporations, therefore, will have to pay attention both to their short-term business results and to their long-term performance as providers of retirement benefits. The two are not irreconcilable, but they are different, and they will have to be balanced.

ACTION POINT: Manage your company so that it produces both short-term results and has strong results over the long term to satisfy the interests of pension-fund shareholders.

Managing in the Next Society
The Next Society (Corpedia Online Program)





2009.06.14 | Trackback(0) | Drucker ドラッカー

Attracting Knowledge Workers 知識労働者の確保

In attracting and holding knowledge workers,
we already know what does not work: bribery.

  Attracting and holding knowledge workers have become two of the central tasks of people management. We already know what does not work: bribery. In the past ten or fifteen years many business in America have used bonuses or stock options to attract and keep knowledge workers. It always fails when falling profits eliminate the bonus or falling stock prices make the option worthless. Then both the employee and the spouse feel bitter and betrayed. Of course knowledge workers need to be satisfied with their pay, because dissatisfaction with income and benefits is a powerful disincentive. The incentives, however, are different.
  Knowledge workers know they can leave. They have both mobility and self-confidence. This means they have to be treated and managed as volunteers, in the same way as volunteers who work for not-for-profit organizations. The first thing such people want to know is what the company is trying to do and where it is going. Next, they are interested in personal achievement and personal responsibility – which means they have to be put in the right job. Knowledge workers expect continuous learning and continuous training. Above all, they want respect, not so much for themselves, but for their area of knowledge. Knowledge workers expect to make the decisions in their own area.

ACTION POINT: Manage professional as volunteers by defining for them what the company is trying to do and where it is going. Put them in the right job and offer them educational benefits. Respect them and their areas of expertise. Allow them to make decisions in their own areas.

Managing in the Next Society





2009.06.13 | Trackback(0) | Drucker ドラッカー

Management Education マネジメント教育

Management courses for people without a few years of
management experience are a waste of time.

  What I would like to see – and what I have practiced now for many years in my own teaching – is:
  • Management education only for already successful people. I believe management courses for people without a few years of management experience are a waste of time.
  • Management education for people from the private, the public, and the not-for-profit sectors together.
  • Planned, systematic work by the students while at school in real work assignments in real organizations – the equivalent to the MD residency.
  • Far more emphasis on government, society, history, and the political process.
  • Teachers with real management experience and enough of a consulting practice to know real challenges.
  • Major emphasis on the nonquantifiable areas that are the real challenges – and especially on the nonquantifiable areas outside the business – at the same time much greater quantitative skills, that is, in understanding both the limitations of the available numbers and how to use numbers. 

ACTION POINT: Take executive development courses that pertain to your current position and the position to which you aspire. Apply the concepts directly to your work assignments.

“An Interview with Peter Drucker,” The Academy of Management Executive





2009.06.12 | Trackback(0) | Drucker ドラッカー

Place Yourself in the Right Organization ところを得る

Where do I belong as a person?

  To develop yourself, you have to be doing the right work in the right kind of organization. The basic question is: “Where do I belong as a person?” This requires understanding what kind of work environment you need to do your best: A big organization or a small one? Working with people or alone? In situations of uncertainty or not? Under pressures of deadlines?
  If the thoughtful answer to the question “Where do I belong?” is that you don’t belong where you currently work, the next question is why? Is it because you can’t accept the values of the organization? Is the organization corrupt? That will certainly damage you, because you become cynical and contemptuous of yourself if you find yourself in a situation where the values are incompatible with your own. Or you might find yourself working for a boss who corrupts because he’s a politician or because he’s concerned only with his career. Or – most tricky of all – a boss whom you admire fails in the crucial duty of a boss: to support, foster, and promote capable subordinates. The right decision is to quit if you are in the wrong place, if it is basically corrupt, or if your performance is not being recognized.

ACTION POINT: Are you in the right organization? Why or why not? If not, should you quit?

Managing the Non-Profit Organization





2009.06.11 | Trackback(0) | Drucker ドラッカー

What to Do in a Value Conflict? 価値観の悩み

I saw no point in being the richest man in the cemetery.

  There rarely is a conflict between a person’s strengths and the way that person performs. The two are complementary. But there is sometimes a conflict between a person’s values and that same person’s strengths. What one does well – even very well – and successfully may not fit with one’s value system. It may not appear to that person as making a contribution and as something to which to devote one’s life (or even a substantial portion thereof).
  I, too, many years ago, had to decide between what I was doing well and successfully, and my values. I was doing extremely well as a young investment banker in London in the mid-1930s; it clearly fitted my strengths. Yet I did not see myself making a contribution as an asset manager of any kind. People, I realized, were my values. And I saw no point in being the richest man in the cemetery. I had no money, no other job in a deep Depression, and no prospects. But I quit – and it was the right thing. Values, in other words, are and should be the ultimate test.

ACTION POINT: Does what you do well fit with your value system?

Management Challenges for the 21st Century





2009.06.10 | Trackback(0) | Drucker ドラッカー

Hierarchy Versus Responsibility 命令から責任へ

Traditional organizations rest on command authority.
Information-based organizations rest on responsibility.

  When a company builds its organization around modern information technology, it must ask the questions: “Who requires what information, when and where?” And then those management positions and management layers whose duty it has been to report rather than to do can be scrapped.
  But, the information-based organization demands self-discipline and upward responsibility from the first-level supervisor all the way to top management. Traditional organizations rest on command authority. Information-based organizations rest on responsibility. The flow is circular from the bottom up and then down again. The information-based system can, therefore, function only if each individual and each unit accepts responsibility: for their goals and their priorities, for their relationships, and for their communications. This in turn makes possible fast decisions and quick responses. These advantages will be obtained only if there are understanding, shared values, and, above all, mutual respect. If every player needs to know the score, there has to be a common language, a common core of unity. If the organization is information-based, diversification in which financial control is the only language is bound to collapse into the confusion of the Tower of Babel.

ACTION POINT: Is your organization held together by financial controls or by understanding, shared values, and mutual respect? Accept responsibility for yourself and your unit, including your goals, your relationships, and your communications.

The Frontiers of Management





2009.06.06 | Trackback(0) | Drucker ドラッカー

Rewards for Information Specialists スペシャリストの昇進

Advancement into “management” will be the exception,
for the simple reason that there will be far fewer
middle-management positions to move into.

  Opportunities for specialists in an information-based business organization should be more plentiful than they are in an orchestra or hospital, let alone in the Indian civil service. But as in these organizations, they will primarily be opportunities for advancement into within the specialty, and for limited advancement at that. Advancement into “management” will be the exception, for the simple reason that there will be far fewer middle-management positions to move into.
  But to professional specialists – and to their management colleagues – the only meaningful opportunities are promotions into management. And the prevailing compensation structure in practically all business reinforces this attitude because it is heavily biased toward managerial positions and titles. There are no easy answers to this problem. Some help may come from looking at large law and consulting firms, where even the most senior partners tend to be specialists and associates who will not make partner are outplaced fairly early on. But whatever scheme is eventually developed will work only if the values and compensation structure of business are drastically changed.

ACTION POINT: How can you alter the compensation-and-reward structure of your organization to reflect the reality that promotions are either horizontal or outside of the organization?

The Ecological Vision





2009.06.05 | Trackback(0) | Drucker ドラッカー

Taking Information Responsibility 情報責任

Information specialists are tool makers. They can tell us what tool to use
to hammer upholstery nails into a chair. We need to decide whether
we should be upholstering a chair at all.

  A requirement of an information-based organization is that everyone take information responsibility. The bassoonist in the orchestra takes information responsibility every time he plays a note. Doctors and paramedics work with an elaborate system of reports and an information center, the nurses’ station on the patient’s floor. The district officer in India acted on this responsibility every time he filed a report. The key to such a system is that everyone asks: “Who in this organization depends on me for what information? And on whom, in turn, do I depend?” Each person’s list will always include superiors and subordinates. But the most important names on it will be those of colleagues, people with whom one’s primary relationship is coordination. The relationship of the internist, the surgeon, and the anesthesiologist is one example. But the relationship of a biochemist, a pharmacologist, the medical director in charge of clinical testing, and a marketing specialist in a pharmaceutical company is no different. It, too, requires each party to take the fullest information responsibility.

ACTION POINT: Take information responsibility by getting the right information to the right people at the right time. Make a list of whom you depend on for what information and, in turn, who depends on you.

The Ecological Vision





2009.06.04 | Trackback(0) | Drucker ドラッカー

The “Score” in Information-Based Organizations 情報型組織の楽譜

All the specialists in the hospital share a common “score”:
the care and cure of the sick.

  What can we say about the requirements of the information-based organization? Several hundred musicians and their CEO, the conductor, can play together because they all have the same score. Similarly, all the specialists in the hospital share a common mission: the care and cure of the sick. The diagnosis is their “score”; it dictates specific action for the X-ray lab, the dietitian, the physical therapist, and the rest of the medical team. Information-based organizations, in other words, require clear, simple, common objectives that translate into particular actions.
  Because the “players” in an information-based organization are specialists, they cannot be told how to do their work. There are probably few orchestra conductors who could coax even one note out of a French horn, let alone show the horn player how to do it. But the conductor can focus the horn player’s skill and knowledge on the musicians’ joint performance. And this focus is what the leaders of an information-based business must be able to achieve. An information-based business must be structured around goals that clearly state management’s performance expectations for the enterprise and for each part and specialist and around organized feedback that compares results with these performance expectations so that every member can exercise self-control.

ACTION POINT: Have a common “score” for your organization that clearly states management’s performance expectations for the enterprise and for each specialist, and that compares expectations to results.

The Ecological Vision





2009.06.03 | Trackback(0) | Drucker ドラッカー

A Successful Information-Based Organization 情報型組織の成功例

The system worked because it was designed to ensure that each of its
members had the information he needed to do his job.

  The best example of a large and successful information-based organization, and one without any middle management at all, was the British civil administration in India. The British ran the Indian subcontinent for two hundred years, from the middle of the eighteenth century through World War II. The Indian civil service never had more than one thousand members to administer the vast and densely populated subcontinent. Most of the Britishers lived alone in isolated outposts with their nearest countryman a day or two of travel away, and for the first hundred years there was no telegraph or railroad.
  The organization structure was totally flat. Each district officer reported directly to the “COO,” the provincial political secretary. And since there were nine provinces, each political secretary had at least one hundred people reporting directly to him. Each month the district officer spent a whole day writing a full report to the political secretary in the provincial capital. He discussed each of his principal tasks. He put down in detail what he had expected would happen with respect to each of them, what actually did happen, and why, if there was a discrepancy, the two differed. Then he wrote down what he expected would happen in the ensuring month with respect to each key task and what he was going to do about it, asked questions about policy, and commented on long-term opportunities, threats, and needs. In turn, the political secretary wrote back a full comment.

ACTION POINT: Reflect on any similarities between your organization and the British civil administration in India.

The Ecological Vision





2009.06.02 | Trackback(0) | Drucker ドラッカー

Managing Oneself 自らをマネジメントする

Knowledge workers must take responsibility for managing themselves.

  Knowledge workers are likely to outlive their employing organization. Their average working life is likely to be fifty years. But the average life expectancy of a successful business is only thirty years. Increasingly, therefore, knowledge workers will outlive any one employer, and will have to be prepared for more than one job. And this means most knowledge workers will have to MANAGE THEMSELVES. They have to place themselves where they can make the greatest contribution; they will have to learn to develop themselves. They will have to learn how and when to change what they do, how they do it, and when they do it.
  The key to managing oneself is to know: Who am I? What are my strengths? How do I work to achieve results? What are my values? Where do I belong? Where do I not belong? Finally, a crucial step in successfully managing oneself is FEEDBACK ANALYSIS. Record what you expect the results to be of every key action or key decision you take, and then compare ACTURAL RESULTS nine months or a year later to your expectations.

ACTION POINT: Manage yourself by knowing your strengths, values, and where you do best. Then use feedback analysis by, first, recording what you expect the results of key actions or decisions to be, and then nine months or a year later, comparing the actual results to those expectations.

Management Challenges for the 21st Century
Managing Oneself (Corpedia Online Program)





2009.06.01 | Trackback(0) | Drucker ドラッカー

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【スエルテ - SUERTE】

Author:【スエルテ - SUERTE】
ピーター・ドラッカー(P.F.ドラッカー、Peter Ferdinand Drucker)の鋭い洞察力および示唆に富んだ文章は我々を魅了します。
『The Daily Drucker(ドラッカー 365の金言)』を元に毎日解説していきます。