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January is a time to refresh ourselves, our goals and "best practices". In this issue we discuss lessons from management guru Peter Drucker. We know many people in the BOBSEARCH network may make changes heading into 2010, so don't forget to check out our article on how an executive can exit gracefully from their job. |
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Lessons from Drucker
 2009 was the 100th anniversary of management guru Peter Drucker's birth, and there was a centennial celebration in Vienna (his birthplace) and in the US, plus numerous articles about him. Although he died 5 years ago, Drucker's ideas live on, and are worth revisiting. He wrote 39 books and received the Presidential Medal of Freedom, the highest civilian award given by the White House. Of all the learning to be derived from Drucker's books and talks, we've selected two areas that are highly relevant today.
Social Responsibility: Drucker started talking about corporations and their role in society in the 50's, and in 1974 he wrote: "Society and an economy can put any business out of existence overnight." Further, he added: "The enterprise exists on sufferance and exists only as long as the society and the economy believe that it does a necessary, useful and productive job." Drucker pointed out the need for businesses to be socially responsible and to think through the impact they make and the responsibilities they have. This early espousing of social responsibility for companies put Drucker at odds with leading economists who advocated profit, and efficiency. Of course, Drucker also contributed substantially to major initiatives in those areas too. He just felt there should be balance.
Leadership: In 1993, Drucker wrote a column (in the Wall Street Journal) advocating six rules for Presidents - Presidents of the United States. Here are the six rules, and a current interpretation for company presidents:
1. "What needs to be done?" This may not be the same as what you want to do. CEOs must face reality, and be effective in their actions.
2. "Concentrate. Don't splinter yourself." There might be half a dozen correct answers to any given situation. A leader must be decisive and take risks, even if controversial, or risk being completely ineffective.
3. "Don't ever bet on a sure thing." Your proposed ideas must be tested, with your people, your customers, to validate the idea really will work.
4. "Don't micromanage." Even though leaders have ultimate responsibility, they must NOT do the things that a leader shouldn't do. They must select a disciplined team that they can trust completely to execute, and stay in the big picture, visionary, strategic mode.
5. "No friends in the Administration." This was Drucker's way of saying cronies can be dishonest, have their own agenda, etc. Today's interpretation for a CEO would be: Hire for competency, not familiarity. Make sure the person can execute the job.
6. "Once you're elected, stop campaigning." Take all the blame, and give the credit to others, and you will be perceived as more of a hero than if you do your own "PR" and blow your own horn.
Our conclusions: Some management ideas are timeless. Go forward into the recovery with sound management techniques that have stood the test of time, and also think outside the box.
Events relating to Drucker's centennial continue through fall 2010, so if you are interested in revisiting this visionary's ideas, check out the Drucker Institute at Claremont College. |
Q&A: What testing do you advocate for candidate assessment in intellegence and aptitude?
We have mixed feelings about testing. Examining past performance in the context of the results you need can be a better predictor of behavior. But, if you really want a quick, validated intelligence test, we recommend Wonderlic. The NFL uses it for pre-draft assessment!
For aptitude, testing is trickier. People have great abilities to work outside their preference ranges when it matters to them (to succeed at a job). But, a good predictor of behavior is the 16-PF. |
How to Leave Your Company Gracefully 
We predict many executives will change jobs this year, hoping for a better situation at a different company. Based on our 30 years experience, we've seen the good, the bad and the ugly of how people conduct their personal exit from a company. Ideally, when you leave a company, it is a graceful exit, without burning bridges. Here are our top tips on how to do this the right way:
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If you are leaving voluntarily, be sure of the decision. Counter offers rarely work to your advantage. Never leverage a new job offer to get a better deal at your company. If you have legitimate reasons to leave, stick with the decision.
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Keep your own counsel: Thinking about a job change is a private matter. Don't share with others - the gossip mill will start talking as soon as you do.
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Plan to give notice, but be prepared to leave immediately. Some companies want people to work two weeks to make a smooth transition, and some ask for even more time. But, some employers walk people to the door, especially if they will be going to a competitor. Be prepared for all scenarios.
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The resignation discussion: Make an appointment with your boss. Don't just drop in. Rehearse your speech, and keep it simple, concise and to the point. We advocate:
- "I have decided to accept another position and I will be leaving as of [date]. Being with this company has been a valuable experience to me, and it is important to me to leave on excellent terms with you, and remain a valued contact down the road. [If your company has a history of making counter offers, preempt that with:] I have thought this through carefully, my decision is made, and this isn't about getting a counter offer, so I hope we can quickly dispense with that. I will be happy to work diligently through the next 2 weeks(or as negotiated) to make a smooth transition."
- Keep it simple. Be concise in responding to questions. Do not reveal too much.
Hand over a written resignation letter, essentially stating what you say verbally.
- Thank your boss. Be positive. Be graceful. Don't do anything to burn a bridge. If your boss is angry, validate their feelings, don't argue. Take the approach that you may work for this person again, or may need a reference from him/her.
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NEVER say anything negative about your boss or company to co-workers, people outside the company, or his/her peers. Every complaint can be spun around and reframed to the positive, usually by thinking about what you want instead, or what you want in the future. Example: "My boss is a micromanager who second guesses me all the time" becomes "The new position will offer me more freedom, responsibility and autonomy."
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If you are being let go, ask about a severance arrangement, and evaluate the offer before responding. Don't agree or sign anything immediately. Think about consulting an attorney for advice if appropriate.
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Ask for letters of reference at the time of your departure - make the request in writing, and "suggest" things that you were proud of, that the writer may want to include. They will usually write what you suggest!
In summary, use common sense and imagine you were reporting on the exit scenario to your next boss. Make sure you would be proud of the story you would be telling. |
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Top 10
The top 10 growth industries:
- Management, scientific and technical consulting services
- Offices of physicians
- Computer systems design and related services
- Other general merchandise stores
- Employment services
- Local government, excluding education and hospitals
- Home health care services
- Services for the elderly and persons with disabilities
- Nursing care facilities
- Full-service restaurants
The top 10 industries expected to experience the steepest employment declines:
- Department stores
- Semiconductor and other electronic component manufacturing
- Motor vehicle parts manufacturing
- Postal service
- Printing and related support activities
- Cut and sew apparel manufacturing
- Newspaper publishers
- Support activities for mining
- Gasoline stations
- Wired telecommunications carriers
US Bureau of Labor Statistics (BLS) | |
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