Peter F Drucker - Reconsidered

I don't have to tell you that the late Peter F. Druckerenergize their troops.
is still one of the most revered names inMuch of this modern obsession with defining, but
management circles.especially with re-defining the mission of one's
Shortly, those of us that studied with him directly,business is traceable to Peter F. Drucker, who
and the business school named in his honor atfamously asked: "What business are you in?"
Claremont Graduate University, will celebrate hisHe pointed out that America's railroads were
centennial, the 100th anniversary of his birth.relegated to sinking revenues and profits, and had
This presents an opportunity to refresh some of hisbeen outpaced by upstarts: by trucking companies
most profound insights as well as to reappraise andand by airlines. Drucker attributed the decline to failing
reconsider some of the areas in which people haveto properly define one's mission.
misunderstood his concepts, or have simply takenInstead of saying "We're in the railroad business,"
them too far.they should have redefined themselves as being in
I have a personal stake in getting the record right,the "transportation" field. Had they done this, they
having filled much of my Advanced Executive MBAmight have adapted faster, or even have led the
degree program with his classes, as well as havingfield onto highways and into the air, instead of
benefited from numerous chats I had with him as Ireluctantly chasing it.
shuttled him home from campus, on SaturdayMoving to a higher level of abstraction might have
afternoons.served a positive purpose for railroads, just as
Moreover, as a fellow consultant, the fact that heHonda's decision to define itself in the human
took it upon himself to introduce me to his consulting"mobility" business encapsulates its very prominent
clients, will always stand as a cherished and mostexisting and future role in manufacturing cars,
appreciated gesture.motorcycles, jet aircraft, off-road vehicles, robotics,
There is a famous Drucker question that has beenand walking devices to assist the injured and infirm.
misunderstood, misapplied, and exaggerated:But when the leap in abstraction is stratospheric, it
"WHAT BUSINESS ARE YOU REALLY IN?"becomes comical. "Keeping promises" might be a
I was having coffee at a Starbucks in Ventura,mission Hallmark could tout with a straight face, but
California when my gaze fixed on the otherwise blandmaking this the slogan of a transport firm is nothing
brown truck UPS parked at the curb.less than ludicrous.
A moment later, I noticed with some surprise itsA better question might be:
slogan, painted prominently near the wheel well:"To survive and to thrive, must we become more
"Synchronizing the World of Commerce."than we are or more than we have been to the
Wow, that's a lofty mission, isn't it? It sounds as ifcustomer?"
this one corporation is laying claim to being theThe unexpected and non-trendy reply, somewhat like
world's timekeeper and taskmaster, all at once.that favorite phrase repeated in high school yearbook
Later that afternoon, I was tooling down thededications could be: "Never change. Stay exactly as
freeway when I noticed a slogan on yet anotheryou are."
shipping company's truck, this time on a largeHad Coca-Cola gone this route they wouldn't have
tractor-trailer rig. Its mission:altered their time-tested secret formula, only to face
"Helping the world to keep its promises."massive protests, requiring a return to "Classic Coke."
Whatever happened to simply being in the deliveryFord might have kept its T-Birds and Mercury
business? Isn't that the "value" that people customersCougars lithe and sleek and above-all, selling, instead
are buying?of making them big and bulky.
Lofty mission statements aren't new, of course. ThisWhat is value to the customer? Perhaps it is defining
is what "visionaries" in companies do, I suppose atyour business in a way that makes sense, something
countless resort retreats. They fill flip-charts withthat resonates with customers instead of with
brainstormed slogans that will conquer customers andinternal visionaries and sloganeers.