View source for Peter Drucker

{{Short description|American management consultant and author (1909–2005)}}
{{Use mdy dates|date=September 2022}}
{{Infobox person
| name               = Peter Drucker
| image              = Drucker5789.jpg
| caption            = 
| birth_name         = Peter Ferdinand Drucker
| birth_date         = {{birth date|1909|11|19|mf=y}}
| birth_place        = [[Vienna]], [[Austria-Hungary]]
| death_date         = {{death date and age|2005|11|11|1909|11|19|mf=y}}
| death_place        = [[Claremont, California]], U.S.
| occupation         = Management consultant, educator, author
| alma_mater         = [[Goethe University Frankfurt]] ([[PhD]])
| employer           = {{plainlist|
* [[Bennington College]] (1942–1949)
* [[New York University]] (1950–1971)
* [[Claremont Graduate School]] (1971–2005)
}}
| awards             = [[Henry Laurence Gantt Medal]] (1959)<br/>[[Austrian Cross of Honour for Science and Art, 1st class]] (1991)<br/>[[Presidential Medal of Freedom]] (2002)
| spouse = {{marriage|Doris Schmitz|1937}}
| children = 4
| website = {{URL|www.drucker.institute}}
}}

'''Peter Ferdinand Drucker''' ({{IPAc-en|ˈ|d|r|ʌ|k|ər}}; {{IPA|de|ˈdʁʊkɐ|lang}}; November 19, 1909 – November 11, 2005) was an Austrian American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of modern [[management science|management theory]]. He was also a leader in the development of [[management#Training and education|management education]], and contributed to the popularization of the concepts known as [[management by objectives]] and [[self-control]],<ref>{{cite journal |author=Drucker, Peter F. |title=Reflections of a Social Ecologist |journal=Society |issue=4 |date=June 1992 |volume=29 |doi=10.1007/BF02695313 |pages=57–64|s2cid=144879884}}</ref> and he has been described as "the champion of management as a serious discipline".{{sfn|Beatty|1998|p=1}}

Drucker's books and articles, both scholarly and popular, explored how humans are organized across the business, government, and [[nonprofit]] sectors of society.<ref name="druckerinstitute.com">[http://druckerinstitute.com/WhyDruckerNow.aspx Why Drucker Now?] {{Webarchive|url=https://web.archive.org/web/20101209082051/http://www.druckerinstitute.com/WhyDruckerNow.aspx |date=December 9, 2010}}, Drucker Institute.</ref> He is one of the best-known and most widely influential thinkers and writers on the subject of management theory and practice. His writings have predicted many of the major developments of the late twentieth century, including privatization and decentralization; the rise of Japan to economic world power; the decisive importance of marketing; and the emergence of the information society with its necessity of lifelong learning.<ref name="bw2005">{{Cite journal |last=Byrne |first=John A. |author2=Gerdes, Lindsey |title=The Man Who Invented Management |journal=[[BusinessWeek]] |date=November 28, 2005 |url=http://www.businessweek.com/magazine/content/05_48/b3961001.htm |archive-url=https://web.archive.org/web/20051125033344/http://www.businessweek.com/magazine/content/05_48/b3961001.htm |url-status=dead |archive-date=November 25, 2005 |access-date=November 2, 2009}}</ref> In 1959, Drucker coined the term "[[knowledge worker]]", and later in his life considered knowledge-worker productivity to be the next frontier of management.<ref>Davenport, Thomas H. ''Thinking for a Living'', 2005, p. 8.</ref>

==Biography==
Drucker grew up in what he referred to as a "liberal" [[Lutheran]] Protestant household in [[Austria-Hungary]].<ref>Drucker, Peter F., ''The Ecological Vision: Reflections on the Human condition'', 2016, p. 425.</ref> His mother Caroline Bondi had studied medicine and his father Adolf Drucker was a lawyer and high-level civil servant.<ref name="Drucker, Peter F. 1979">Drucker, Peter F. ''Adventures of a Bystander'', 1979.</ref> Drucker was born in Vienna, Austria, in the 19th district of [[Vienna-Döbling]].<ref name="in progress01">{{cite web|archive-url=https://web.archive.org/web/20020908141241/http://www.peterdrucker.at/en/bio/bio_01.html|archive-date=September 8, 2002|title=Biography: Drucker's childhood and youth in Vienna|url=http://www.peterdrucker.at/en/bio/bio_01.html|publisher=PeterDrucker.at|access-date=June 22, 2024|url-status=dead}}</ref> He grew up in a home where intellectuals, high government officials, and scientists would meet to discuss new ideas.{{sfn|Beatty|1998|pp=5-7}} These included [[Joseph Schumpeter]], [[Friedrich Hayek]] and [[Ludwig von Mises]]. [[Hans Kelsen]] was his uncle.<ref name=DSA>{{cite web|title=Drucker's childhood and youth in Vienna|url=http://www.druckersociety.at/index.php/peterdruckerhome/biography|website=Drucker Society of Austria|access-date=August 2, 2015}}</ref>

After graduating from Döbling [[Gymnasium (school)|Gymnasium]] in 1927,<ref name=DSA/> Drucker found few opportunities for employment in post-[[First World War|World War I]] Vienna, so he moved to [[Hamburg]], Germany, first working as an apprentice at an established cotton trading company, then as a journalist, writing for ''[[Der Österreichische Volkswirt]]'' (''The Austrian Economist'').<ref name="Drucker, Peter F. 1979"/> Drucker then moved to [[Frankfurt]], where he took a job at the Daily ''Frankfurter General-Anzeiger''.<ref>Drucker, Peter F. ''Adventures of a Bystander'', 1979, p. 159.</ref> While in Frankfurt, he also earned a doctorate in [[international law]] and public law from the [[Goethe University Frankfurt]] in 1931.<ref>"Obituary: Peter Drucker, 95, Economist Who Prized Value of Workers," ''The New York Times'', November 13, 2005.</ref>

In 1933, Drucker was a lecturer at Frankfurt when the Nazi regime took over. After the Nazi commissar appointed to oversee the university dismissed all the Jewish professors, Drucker left Germany within 48 hours<ref>{{Cite web |date=2016-08-02 |title=Control of Universities in Nazi Germany |url=https://www.facinghistory.org/resource-library/controlling-universities |access-date=2025-03-30 |website=www.facinghistory.org |language=en}}</ref> for England.<ref>Drucker, Peter F.;Cohen, William. ''A Class with Drucker: The Lost Lessons of the World's Greatest Management Teacher'', 2007, p. 242.</ref> In [[London]], he worked as a security analyst for an insurance company, then as the chief economist at a private bank.<ref name="in progress06">{{cite web|archive-url=https://web.archive.org/web/20020929090738/http://www.peterdrucker.at/en/bio/bio_06.html|archive-date=September 29, 2002|title=Biography: Drucker's emigration to England|url=http://www.peterdrucker.at/en/bio/bio_06.html|publisher=PeterDrucker.at|access-date=June 22, 2024|url-status=dead}}</ref>{{sfn|Beatty|1998|p=16}} While in London, Drucker regularly attended [[John Maynard Keynes]] seminars at [[Cambridge University]], discovering that he was interested in "the behavior of people" while Keynes and other students focused on "the behavior of commodities."{{sfn|Beatty|1998|p=17}} 

In 1937, Peter Drucker married Doris Schmitz, a classmate from the University of Frankfurt.{{sfn|Beatty|1998|pp=14, 16-18}} The Druckers then moved to the U.S., where Peter Drucker became a freelance journalist writing for ''[[Harper's]]'' and ''[[The Washington Post]]''.<ref name="invented">{{cite web|archive-url=https://web.archive.org/web/20030131133748/http://www.peterdrucker.at/en/bio/bio_08.html|archive-date=January 31, 2003|title=Biography: How Drucker 'invented' management at General Motors|url=http://www.peterdrucker.at/en/bio/bio_08.html|publisher=PeterDrucker.at|access-date=June 22, 2024|url-status=dead}}</ref> In 1939, Drucker joined [[Sarah Lawrence College]] in [[Bronxville, New York]] as a part-time economics instructor. Drucker was fired in 1941 after refusing to sign a faculty manifesto that he said "viciously and falsely attacked the liberal president of [[Brooklyn College]], [[Harry Gideonse]]," who had supported the UK against Nazi Germany in the [[Battle of Britain]].{{sfn|Beatty|1998|pp=39-40}} His 1939 book, ''The End of Economic Man'', attracted attention of [[Bennington College]] president [[Lewis Webster Jones]], who invited Drucker to lecture on the book.<ref name="Linkletter 30">{{cite book|url=https://books.google.com/books?id=MOX4EAAAQBAJ&dq=%22an+economist+had+read+drucker%27s+book%22&pg=PT30|title=Peter Drucker and Management|last=Linkletter|first=Karen E.|page=30|version=e-book|place=New York|publisher=Routledge|year=2024|isbn=9781003410485|via=Google Books}}</ref> Despite some faculty objections, Jones hired Drucker as a professor of politics and philosophy at Bennington, a position Drucker would hold from 1942 to 1949.<ref name="Linkletter 30"/><ref name="Writers Directory">{{cite web|url=https://www.encyclopedia.com/arts/culture-magazines/drucker-peter-ferdinand|title=Drucker, Peter (Ferdinand)|work=Writers Directory 2005|publisher=Gale Group|access-date=June 22, 2024|year=2005}}</ref> With the U.S. engaged in [[World War II]], Drucker also became a consultant on international economic policy to the [[Board of Economic Warfare]].{{sfn|Beatty|1998|pp=39-40}} In 1943, Drucker became a [[naturalized citizen]] of the United States.<ref name="Feder 2005">{{cite news|url=https://archive.nytimes.com/www.nytimes.com/2005/11/12/business/12drucker.html|title=Peter F. Drucker, a Pioneer in Social and Management Theory, Is Dead at 95 |last=Feder|first=Barnaby J.|work=The New York Times|date=November 12, 2005|access-date=June 22, 2024|archive-url=https://web.archive.org/web/20130206154026/http://www.nytimes.com:80/2005/11/12/business/12drucker.html?pagewanted=all&_r=1&|archive-date=February 6, 2013|url-status=live}}</ref> 

Then from 1950 to 1971, Drucker was a professor of management at [[New York University]].<ref name="Writers Directory"/> In 1954, Drucker wrote ''The Practice of Management'', a book he set out to write after finding a lack of books specifically about business management at the [[General Electric]] library in [[Crotonville, New York]]. The ''[[Saturday Review (U.S. magazine)|Saturday Review]]'' and ''[[Business Week]]'' praised ''The Practice of Management'' as groundbreaking.{{sfn|Beatty|1998|pp=101-103}}

Drucker went to California in 1971, where he developed one of the country's first executive [[Master of Business Administration|MBA]] programs for working professionals at [[Claremont Graduate University]] (then known as Claremont Graduate School). From 1971 until his death, he was the Clarke Professor of [[Social Science]] and Management at Claremont.<ref name="Writers Directory"/> Claremont Graduate University's management school was named the Peter F. Drucker Graduate School of Management in his honor in 1987 (later renamed the [[Peter F. Drucker and Masatoshi Ito Graduate School of Management]]). He established the Drucker Archives at Claremont Graduate University in 1999; the Archives became the Drucker Institute in 2006. Drucker taught his last class in 2002 at age 92. He continued to act as a consultant to businesses and nonprofit organizations well into his nineties.{{sfn|Beatty|1998|pp=20-21}}

==Work and philosophy==

===Early influences===
Among Drucker's early influences was the Austrian economist [[Joseph Schumpeter]], a friend of his father's, who impressed upon Drucker the idea of the importance of innovation and entrepreneurship.{{sfn|Beatty|1998|p=163}} Drucker was also influenced, in a much different way, by [[John Maynard Keynes]], whom he heard lecture in 1934 in [[Cambridge]].<ref>Drucker, Peter F. ''The Ecological Vision: Reflections on the Human Condition'', 1993, p. 75.</ref> "I suddenly realized that Keynes and all the brilliant economic students in the room were interested in the behavior of commodities", Drucker wrote, "while I was interested in the behavior of people".<ref>Drucker, Peter F., ''The Ecological Vision'', 1993, pp. 75–76.</ref>

Ultimately, his work drew from pioneering management consultant Mary Parker Follett.<ref>Graham, Pauline; Follett, Mary Parker, eds. (2003). Mary Parker Follett - prophet of management: a celebration of writings from the 1920s (Repr ed.). Washington, DC: Beard Books. ISBN 978-1-58798-213-2; Barbara B. Moran, Library and Information Center Management, 9th ed. Santa Barbara, California: Libraries Unlimited, 2018, 36.; Mary P. Follett. Dynamic Administration: The Collected Papers of Mary Parker Follett, ed. by E. M. Fox and L. Urwick (London: Pitman Publishing, 1940).</ref> 

Over the next 70 years, Drucker's writings would be marked by a focus on relationships among human beings, as opposed to the crunching of numbers. His books were filled with lessons on how organizations can bring out the best in people, and how workers can find a sense of community and dignity in a modern society organized around large institutions.<ref name="druckerinstitute.com"/> As a business consultant, Drucker disliked the term "guru", though it was often applied to him; "I have been saying for many years", Drucker once remarked, "that we are using the word 'guru' only because '[[charlatan]]' is too long to fit into a headline."<ref>"Peter Drucker, the man who changed the world", ''Business Review Weekly'', September 15, 1997, p. 49.</ref>

As a young writer, Drucker wrote two pieces – one on the conservative German philosopher [[Friedrich Julius Stahl]]<ref>{{Cite web |title=Peter Starbuck "Reclaiming Drucker" |url=https://www.druckerforum.org/articles/peter-starbuck-reclaiming-drucker/ |access-date=2025-03-30 |website=www.druckerforum.org}}</ref> and another called "''[http://ccdl.libraries.claremont.edu/cdm4/item_viewer.php?CISOROOT=/dac&CISOPTR=3415&CISOBOX=1&REC=1 The Jewish Question in Germany]''" – that were burned and banned by the [[Nazi Party|Nazis]].<ref name="bw2005"/> In 1939 he published a contemporary analysis of the rise of fascism called "The End of Economic Man". This was his first book, published in New York, in English. In the introduction he refers to "[[Jewish Question|The Jewish Question in Germany]]" saying "An early excerpt [of this book] was published as a pamphlet by an Austrian Catholic and Anti-Nazi in ... 1936".<ref>"The End of Economic Man, Introduction to the Transaction Edition" Transaction Publishing, 2009. Drucker was among the 2,300 names of prominent persons listed on the [[Nazi]]s' [[The Black Book (list)|Special Search List]], of those who were to be arrested on the invasion of Great Britain and turned over to the [[Gestapo]].</ref>

===The "business thinker"===
Drucker's career as a business thinker took off in 1942, when his initial writings on politics and society won him access to the internal workings of [[General Motors Corporation|General Motors (GM)]], one of the largest companies in the world at that time. His experiences in Europe had left him fascinated with the problem of authority. He shared his fascination with [[Donaldson Brown]], the mastermind behind the administrative controls at GM. In 1943 Brown invited him in to conduct what might be called a "political audit": a two-year social-scientific analysis of the corporation. Drucker attended every board meeting, interviewed employees, and analyzed production and decision-making processes.

The resulting book, ''[[Concept of the Corporation]]'', popularized GM's [[Multi-divisional form|multidivisional structure]] and led to numerous articles, consulting engagements, and additional books. GM, however, was hardly thrilled with the final product. Drucker had suggested that the auto giant might want to re-examine a host of long-standing policies on customer relations, dealer relations, employee relations and more. Inside the corporation, Drucker's counsel was viewed as hypercritical. GM's revered chairman, [[Alfred Sloan]], was so upset about the book that he "simply treated it as if it did not exist," Drucker later recalled, "never mentioning it and never allowing it to be mentioned in his presence."<ref>Drucker, Peter F., ''Adventures of a Bystander'', p. 288, (1979)</ref>

Drucker taught that management is "a liberal art", and he infused his management advice with [[interdisciplinary]] lessons from history, sociology, psychology, philosophy, culture and religion.<ref name="druckerinstitute.com"/> He also believed strongly that all institutions, including those in the private sector, have a responsibility to the whole of society. "The fact is," Drucker wrote in his 1973 ''Management: Tasks, Responsibilities, Practices'', "that in modern society there is no other leadership group but managers. If the managers of our major institutions, and especially of business, do not take responsibility for the [[common good]], no one else can or will."<ref>Drucker, Peter F., ''Management: Tasks, Responsibilities, Practices'', 1973, p. 325.</ref>

Drucker was intrigued by employees who knew more about certain subjects than their bosses or colleagues, and yet had to cooperate with others in a large organization. Rather than simply glorify the phenomenon as the epitome of human progress, Drucker analyzed it, and explained how it challenged the common thinking about how organizations should be run.

His approach worked well in the increasingly mature business world of the second half of the twentieth century. By that time large corporations had developed the basic manufacturing efficiencies and managerial hierarchies of [[mass production]]. Executives thought they knew how to run companies, and Drucker took it upon himself to poke holes in their beliefs, lest organizations become stale. But he did so in a sympathetic way. He assumed that his readers were intelligent, rational, hardworking people of goodwill.<ref>{{Cite journal |last=Druker |first=Peter F. |date=February 2006 |title=What Executives Should Remember |url=https://rlaexp.com/studio/biz/conceptual_resources/authors/peter_drucker/what-executives-should-remember.pdf |journal=Harvard Business Review |pages=144–152}}</ref> If their organizations struggled, he believed it was usually because of outdated ideas, a narrow conception of problems, or internal misunderstandings.

Drucker developed an extensive consulting business built around his personal relationship with top management. He became legendary among many of post-war Japan's new business leaders trying to rebuild their war-torn homeland. He advised the heads of [[General Motors]], [[Sears]], [[General Electric]], [[W. R. Grace and Company|W.R. Grace]] and [[IBM]], among many others. Over time he offered his management advice to nonprofits like the [[American Red Cross]] and the [[Salvation Army]]. His advice was eagerly sought by the senior executives of the [[Adela Investment Company]], a private initiative of the world's multinational corporations to promote investment in the developing countries of [[Latin America]].<ref>{{cite news |url=https://www.forbes.com/sites/drucker/2012/09/11/how-to-consult-like-peter-drucker/ |work=Forbes |first=Rick |last=Wartzman |title=How to Consult Like Peter Drucker}}</ref>

===Writings===
Drucker's 39 books have been translated into more than thirty-six languages. Two are novels, and one – ''Adventures of a Bystander'' (1978) – is an [[autobiography]]. He is the co-author of a book on [[Japanese painting]], and made eight series of educational films on management topics. He also penned a regular column in the ''[[Wall Street Journal]]'' for 10 years and contributed frequently to the ''[[Harvard Business Review]]'', ''[[The Atlantic Monthly]]'', and ''[[The Economist]]''.

His work is especially [[Big in Japan (phrase)|popular in Japan]], even more so after the publication of "[[Moshidora|What If the Female Manager of a High-School Baseball Team Read Drucker's ''Management"'']], a novel that features the main character using one of his books to great effect, which was also adapted into an anime and a [[Moshidora (film)|live action film]].<ref>[https://www.economist.com/business/2010/07/01/drucker-in-the-dug-out Drucker in the dug-out], A Japanese book about Peter Drucker and baseball is an unlikely hit, ''The Economist'', July 1, 2010</ref> His popularity in Japan may be compared with that of his contemporary [[W. Edwards Deming]].<ref>''Outcome-Based Religions: Purpose-Driven Apostasy,'' Mac Dominick, "The quest begins by looking into the lives of two men, Edwards Deming and Peter Drucker. Deming (now deceased) and Drucker (in his mid 90s) are enshrined as internationally renowned experts in business management and gurus of business methodology. These two individuals were among the primary players in a select group of Americans (Though Drucker is a U.S. citizen, he is actually Austrian.) who are lauded as part of the almost super-human effort that developed systems-based management philosophies that first gained public recognition in post-World War II Japan. The popular story is told of the Americans who developed a cutting edge business methodology that was rejected by western business but eagerly embraced by the Japanese.", quoted at [http://www.crossroad.to/Quotes/TQM.html Total Quality Management (TQM)]</ref>

===Key ideas===
* [[Decentralization]] and simplification.<ref>{{cite news|last=Buchanan|first=Leigh|title=Peter Drucker from A to Z|url=http://www.inc.com/articles/2009/11/drucker.html|access-date=June 22, 2024|newspaper=Inc. magazine|date=November 19, 2009|archive-url=https://web.archive.org/web/20100308035844/https://www.inc.com/articles/2009/11/drucker.html|archive-date=March 8, 2010|url-status=live}}</ref> Drucker discounted the [[Command and control (management)|command and control]] model and asserted that companies work best when they are decentralized. According to Drucker, corporations tend to [[Overproduction|produce too many products]], hire employees they don't need (when a better solution would be [[outsourcing]]), and expand into economic sectors that they should avoid.
* The prediction of the decline and marginalization of the "[[blue collar]]" worker.<ref>{{cite news|last=Drucker|first=Peter|title=The Age of Social Transformation|url=https://www.theatlantic.com/past/docs/issues/95dec/chilearn/drucker.htm|access-date=March 12, 2012|newspaper=The Atlantic|date=November 1994}}</ref>
* The concept of what eventually came to be known as "[[outsourcing]]".<ref>{{cite news|last=Wartzman|first=Rick|title=Insourcing and Outsourcing: the Right Mix|url=http://www.businessweek.com/managing/content/feb2010/ca2010024_507452.htm|archive-url=https://web.archive.org/web/20100210044752/http://www.businessweek.com/managing/content/feb2010/ca2010024_507452.htm|url-status=dead|archive-date=February 10, 2010|access-date=March 12, 2012|newspaper=Bloomberg Businessweek|date=February 5, 2010}}</ref> He used the example of "front room" and "back room" of each business: a company should be engaged in only the front room activities that are critical to supporting its [[core business]]. Back room activities should be handed over to other companies, for whom these tasks are the front room activities.
* The importance of the nonprofit sector,<ref>{{cite news|last=Drucker|first=Peter|title=What Business Can Learn from Nonprofits|url=http://hbr.org/1989/07/what-business-can-learn-from-nonprofits/ar/1|access-date=March 12, 2012|newspaper=Harvard Business Review|date=July 1989}}</ref> which he calls the third sector (the private and government sectors being the first two). Non-Governmental Organizations (NGOs) play crucial roles in the economies of countries around the world.
* A profound skepticism of [[macroeconomic]] theory.<ref>{{cite news|last=Drucker|first=Peter|title=Schumpeter And Keynes|url=https://www.forbes.com/2007/10/10/schumpeter-keynes-economics-biz-cz_pd_1011schumpeter.html|access-date=March 12, 2012|newspaper=Forbes|date=May 23, 1983}}</ref> Drucker contended that economists of all schools fail to explain significant aspects of modern economies.
* A lament that the sole focus of microeconomics is [[price]]. Drucker noted that microeconomics fails to show what products actually do for us,<ref>Drucker, P.F., ''Innovation and Entrepreneurship'', p. 250 (1985)</ref> thereby stimulating commercial interest in how to calculate what products actually do for us from their price.
*Economic chain costing: the idea that a competitive company needs to know the costs of its entire economic chain, not simply the costs for which it is responsible as an individual business within that chain. "What matters ... is the economic reality, the costs of the entire [production] process, regardless of who owns what."<ref>Quoted in Watson, Gregory H., [https://www.academia.edu/32677662/Peter_F_Drucker_Delivering_Value_to_Customers Peter F. Drucker: Delivering Value to Customers], ''Quality Progress'', May 2002, accessed February 23, 2021</ref>
*[[Skills management|Respect for the worker]]: Drucker believed that employees are assets, not liabilities. He taught that knowledgeable workers are the essential ingredients of the modern economy, and that a hybrid management model is the sole method of demonstrating an employee's value to the organization. Central to this philosophy is the view that people are an organization's most valuable resource, and that a manager's job is both to prepare people to perform and to give them freedom to do so.<ref>Drucker, P. F., Collins, J., Kotler, P., Kouzes, J., Rodin, J., Rangan, V. K., et al., ''The Five Most Important Questions You Will Ever Ask About your Organization'', p. xix (2008)</ref>
* A belief in what he called "the sickness of government". Drucker made nonpartisan claims that government is often unable or unwilling to provide new services that people need and/or want, though he believed that this condition is not intrinsic to the form of government. The chapter "The Sickness of Government",<ref>{{cite book|last=Drucker|first=Peter|title=The Age of Discontinuity|year=1969|publisher=Harper & Row|location=New York|url=https://books.google.com/books?id=1Zp7_rJ1vcMC&q=drucker+%22sickness+of+government&pg=PR12|isbn=978-1-56000-618-3}}</ref> in his book ''The Age of Discontinuity'', formed the basis of [[New Public Management]],<ref>{{cite book|last=Pollitt and Bouckaert|first=Christopher and Geert|title=Public Management Reform|year=2011|publisher=Oxford University Press|location=New York|pages=38|url=https://books.google.com/books?id=epPWAutxrFQC&q=drucker&pg=PP2|isbn=978-0-19-959508-2}}</ref> a theory of public administration that dominated the discipline in the 1980s and 1990s.
* The need for "planned [[Abandonment (legal)|abandonment]]". Businesses and governments have a [[sunk cost|natural human tendency]] to cling to "yesterday's successes" rather than seeing when they are no longer useful.<ref>{{cite book|last=Drucker|first=Peter|title=Management: Tasks, Responsibilities, Practices|year=1974|publisher=HarperCollins|location=New York|pages=84–85|url=https://books.google.com/books?id=9a5SAlaY-X4C&q=drucker%20%22planned%20abandonment%22&pg=PA84|isbn=978-0-7506-4389-4}}</ref>
* A belief that taking action without thinking is the cause of every failure.
* The [[sense of community|need for community]]. Early in his career, Drucker predicted the "end of economic man" and advocated the creation of a "plant community",<ref>{{cite book|last=Drucker|first=Peter|title=The Future of Industrial Man|year=1942|publisher=The John Day Company|location=New York|pages=205|url=https://books.google.com/books?id=sqSDMzKbHpsC&q=plant+community&pg=PA3|isbn=978-1-56000-623-7}}</ref> where an individual's social needs could be met. He later acknowledged that the plant community never materialized, and by the 1980s, suggested that volunteering in the nonprofit sector was the key to fostering a healthy society where people found a sense of belonging and civic pride.<ref>{{cite book|last=Drucker|first=Peter|title=Managing the Non-Profit Organization|year=1990|publisher=HarperCollins|location=New York|page=xii|url=https://books.google.com/books?id=qwAf_g_GnFgC&q=community&pg=PR12|isbn=978-0-7506-2691-0}}</ref>
* The need to manage business by balancing a variety of needs and goals, rather than subordinating an institution to a single value.<ref>Drucker, Peter F., ''The Practice of Management'', pp. 62–63, (1954)</ref><ref>Drucker, Peter F., ''Managing for the Future'', p. 299, (1992)</ref> This concept of [[management by objectives]] and self-control forms the keynote of his 1954 landmark ''The Practice of Management''.<ref>Drucker, Peter F., ''The Practice of Management'', p. 12, (1954)</ref>
* A company's primary responsibility is to [[customer service|serve its customers]]. [[Profit (accounting)|Profit]] is not the primary goal, but rather an essential condition for the company's continued existence and [[sustainability]].<ref>Drucker, Peter F., ''The Practice of Management '' (1954)</ref>
* A belief in the notion that great companies could stand among mankind's noblest inventions.<ref>Drucker, Peter F., ''The Five Most Important Questions You Will Ever Ask About Your Organization'', p. 54, (2008)</ref>
* "Do what you do best and outsource the rest" is a business tagline first "coined and developed"<ref>{{cite web|last1=Haus|first1=Marian|title=Best 10 Peter Drucker Quotes|url=http://pmseed.com/best-10-peter-drucker-quotes/|website=pmseed thoughts on managing project work|publisher=pmseed|access-date=April 27, 2015|date=October 9, 2011}}</ref> in the 1990s by Drucker.<ref>{{cite journal|last1=Vitasek|first1=Kate|title=A New way to Outsource|journal=Forbes|date=June 1, 2010}}</ref> The slogan was used primarily to advocate outsourcing as a viable business strategy. Drucker began explaining the concept of outsourcing as early as 1989 in his Wall Street Journal (WSJ) article entitled "Sell the Mailroom."<ref>{{cite journal|last1=Drucker|first1=Peter|title=Sell the Mailroom|journal=Wall Street Journal|date=November 15, 2005|issue=Manager's Journal|url=https://www.wsj.com/articles/SB113202230063197204|access-date=April 27, 2015|publisher=Dow Jones Company}} Reprinted from July 25, 1989. </ref>

== Criticism ==
''[[The Wall Street Journal]]'' researched several of his lectures in 1987 and reported that he was sometimes loose with the facts.{{cn|date=January 2025}} Drucker falsely claimed, for example, that the English language was the official language for all employees at Japan's [[Mitsui]] trading company. Drucker defended himself: "I use anecdotes to make a point, not to write history."{{cn|date=January 2025}}

Also, while Drucker was known for his prescience, he was not always correct in his forecasts. He predicted, for instance, that the United States' financial center would shift from [[NYC|New York]] to [[Washington, DC|Washington]].<ref>"Peter Drucker, Leading Management Guru, Dies at 95," ''Bloomberg'', November 11, 2005.</ref>{{Update inline|date=November 2023|reason=This may need to be revised as there have been more financial decisions made in Washington D.C. in more recent times. See the M1 stock chart from 2010 to current date}}

Others maintain that one of Drucker's core concepts, "[[management by objectives]]," is flawed and has never really been proven to work effectively. Critic Dale Krueger said that the system is difficult to implement and that companies often wind up overemphasizing control, as opposed to fostering creativity, to meet their goals.<ref>Krueger, Dale. ''Strategic Management and Management by Objectives'', Small Business Advancement National Center, 1994.</ref>

Drucker's classic work, ''[[Concept of the Corporation]]'', criticized [[General Motors]] while it was considered the most successful corporation in the world. Many of GM's executives considered Drucker [[wikt:persona non grata#Noun|persona non grata]] for a long time afterward. Although [[Alfred P. Sloan]] refrained from personal hostility toward Drucker, he considered Drucker's critiques of GM's management to be "dead wrong".<ref name="Drucker_1990_new_foreword">Drucker, Peter. Introduction, pp. v–vi, in Sloan, Alfred P. (1964), McDonald, John, ed., ''My Years with General Motors'', Garden City, New York: Doubleday, {{LCCN|64011306}}, {{OCLC|802024}}. {{ISBN|978-0385042352}}</ref>

==Awards and honors==
Drucker was awarded the [[Presidential Medal of Freedom]] by US President [[George W. Bush]] on July 9, 2002.<ref>[http://ccdl.libraries.claremont.edu/cdm4/item_viewer.php?CISOROOT=/dac&CISOPTR=3478&CISOBOX=1&REC=1 Presidential Medal of Freedom ceremony, 2002-07-09], The Drucker Institute Archives, Claremont, California.</ref> He also received honors from the government of Austria,<ref>[http://ccdl.libraries.claremont.edu/cdm4/item_viewer.php?CISOROOT=/dac&CISOPTR=2797&CISOBOX=1&REC=1 Great Silver Award], Box 8, Folder 7, The Drucker Institute and Archives, Claremont, California.</ref> including the [[Grand Silver Medal for Services to the Republic of Austria]] in 1974,<ref>{{cite web |url=http://www.parlament.gv.at/PAKT/VHG/XXIV/AB/AB_10542/imfname_251156.pdf |title=Reply to a parliamentary question |language=de |page=398 |access-date=January 20, 2013}}</ref> the [[Grand Gold Decoration for Services to the Republic of Austria]] in 1991<ref>{{cite web |url=http://www.parlament.gv.at/PAKT/VHG/XXIV/AB/AB_10542/imfname_251156.pdf |title=Reply to a parliamentary question |language=de |page=905 |access-date=January 20, 2013}}</ref> and the [[Austrian Cross of Honour for Science and Art, 1st class]] in 1999<ref>{{cite web |url=http://www.parlament.gv.at/PAKT/VHG/XXIV/AB/AB_10542/imfname_251156.pdf |title=Reply to a parliamentary question |language=de |page=1305 |access-date=January 20, 2013}}</ref> and the [[Order of the Sacred Treasure]], 3rd class; June 24, 1966, from the government of Japan.<ref>[http://ccdl.libraries.claremont.edu/cdm4/item_viewer.php?CISOROOT=/dac&CISOPTR=2808&CISOBOX=1&REC=15 Japanese Decoration of Honor], Box 8, Folder 7, The Drucker Institute Archives, Claremont, California.</ref>

Drucker was the Honorary Chairman of the ''Peter F. Drucker Foundation for Nonprofit Management'', now the [https://web.archive.org/web/20110403084814/http://www.leadertoleader.org/ ''Leader to Leader Institute''], from 1990 through 2002.<ref>Drucker, Peter. [http://ccdl.libraries.claremont.edu/cdm4/document.php?CISOROOT=/dac&CISOPTR=2425&REC=3 Biographical data], Box 35, Folder 30, The Drucker Institute Archive, Claremont, California.</ref> In 1969 he was awarded [[New York University]]'s highest honor, its Presidential Citation.<ref>[http://ccdl.libraries.claremont.edu/cdm4/item_viewer.php?CISOROOT=/dac&CISOPTR=2803&CISOBOX=1&REC=2 Letter recognizing Presidential Citation of New York University], Box 8, Folder 7, The Drucker Institute Archives, Claremont, California.</ref> For his article, "What Makes an Effective Executive", ''[[Harvard Business Review]]'' honored Drucker in the June 2004 with his seventh [[McKinsey Award]] – the most awarded to an individual.<ref>[https://web.archive.org/web/20120114151949/http://hbr.org/web/2009/mckinsey/mckinsey-award-winners McKinsey Award Winners] at ''[[Harvard Business Review]]''</ref> Drucker was inducted into the [[Junior Achievement]] US Business Hall of Fame in 1996.<ref>{{cite web |url=http://www.ja.org/hof/viewLaureate.asp?id=37&alpha=D |archive-url=https://web.archive.org/web/20100619110547/http://ja.org/hof/viewLaureate.asp?id=37&alpha=D |url-status=dead |archive-date=June 19, 2010 |title=Peter F. Drucker |work=U.S. Business Hall of Fame |publisher=Junior Achievement |access-date=December 17, 2012}}</ref> He received 25 honorary doctorates from American, Belgian, Czech, English, Spanish and Swiss universities.<ref>[http://ccdl.libraries.claremont.edu/cdm/search/collection/dac/searchterm/honorary%20degrees/field//mode/all/conn/and/cosuppress/ Honorary Degrees] in The Drucker Institute Archives, Claremont, California.</ref> His 1954 book ''The Practice of Management'' was voted the third most influential management book of the 20th century in a poll of the Fellows of the [[Academy of Management]].<ref>{{cite journal |last1=Bedeian |first1=Arthur G. |last2=Wren |first2=Daniel A. |author-link1=Arthur G. Bedeian |author-link2=Daniel A. Wren |date=Winter 2001 |title=Most Influential Management Books of the 20th Century |journal=Organizational Dynamics |volume=29 |issue=3 |pages=221–25 |doi=10.1016/S0090-2616(01)00022-5 |url=http://www.bus.lsu.edu/bedeian/articles/MostInfluentialBooks-OD2001.pdf |access-date=May 5, 2012 |archive-date=October 17, 2015 |archive-url=https://web.archive.org/web/20151017015937/http://www.bus.lsu.edu/bedeian/articles/MostInfluentialBooks-OD2001.pdf |url-status=dead }}</ref> In Claremont, California, Eleventh Street between College Avenue and Dartmouth Avenue was renamed "Drucker Way" in October 2009 to commemorate the 100th anniversary of Drucker's birth.<ref>{{cite news |url=http://www.druckerinstitute.com/link/eleventh-street-in-claremont-calif-will-be-renamed-%E2%80%9Cdrucker-way%E2%80%9D-%E2%80%93-celebrating-renewing-and-honoring-the-life-work-and-legacy-of-peter-drucker/ |title=Eleventh Street in Claremont, Calif., will be renamed 'Drucker Way' |first=Christina |last=Wassenaar |publisher=Drucker Institute |date=October 8, 2009 |access-date=December 17, 2012 |archive-url=https://web.archive.org/web/20130122194838/http://www.druckerinstitute.com/link/eleventh-street-in-claremont-calif-will-be-renamed-%E2%80%9Cdrucker-way%E2%80%9D-%E2%80%93-celebrating-renewing-and-honoring-the-life-work-and-legacy-of-peter-drucker/ |archive-date=January 22, 2013 |url-status=dead}}</ref>
Drucker was posthumously honored when he was inducted into the Outsourcing Hall of Fame in recognition of his outstanding contributions in the field.<ref>{{cite journal|last1=Wartzman|first1=Rick|title=Insourcing and Outsourcing: the Right Mix|journal=Bloomberg Business|date=February 2010|url=http://www.businessweek.com/managing/content/feb2010/ca2010024_507452.htm|archive-url=https://web.archive.org/web/20100210044752/http://www.businessweek.com/managing/content/feb2010/ca2010024_507452.htm|url-status=dead|archive-date=February 10, 2010|access-date=April 27, 2015|publisher=Bloomberg Business.com}}</ref> In 2018, Drucker was named the world's most influential business thinker on the Thinkers50.com list.<ref>{{cite news |title=2018 Hall of Fame Inductees |url=http://thinkers50.com/hall-of-fame/ |access-date=November 30, 2018 |publisher=thinkers50.com}}</ref>

== Legacy ==
At [[Claremont Graduate University]], the Peter F. Drucker Graduate Management Center – now the [[Peter F. Drucker and Masatoshi Ito Graduate School of Management]] – was established in 1987 and continues to be guided by Drucker's principles.<ref>{{Cite web|title=Drucker School of Management|url=https://www.cgu.edu/school/drucker-school-of-management|access-date=October 21, 2020|website=Claremont Graduate University|language=en-US}}</ref>

The annual [[Global Peter Drucker Forum]] was first held in 2009, the centenary of Drucker's birth.<ref>{{cite journal|year=2009|title=HRPS, People & Strategy Attend First Global Drucker Forum|url=http://drucker-ws.org/pdf/HRPS_PSIssue32%204_Final.pdf|journal=People & Strategy|page=68|access-date=October 21, 2020}}</ref>

==Personal life==
Peter Drucker married Doris Schmitz in 1937; they had four children. On November 11, 2005, Peter Drucker died of natural causes in [[Claremont, California]], aged 95.<ref name=wapoobit>{{cite news |url=https://www.washingtonpost.com/wp-dyn/content/article/2005/11/11/AR2005111101938.html |title=Management Visionary Peter Drucker Dies |author=Sullivan, Patricia |newspaper=The Washington Post |date=November 12, 2005|archive-url=https://web.archive.org/web/20081012131645/http://www.washingtonpost.com/wp-dyn/content/article/2005/11/11/AR2005111101938.html|archive-date=October 12, 2008|url-status=dead|access-date=June 22, 2024}}</ref><ref name="Feder 2005"/> Doris died in October 2014 at the age of 103.<ref>{{cite news|last1=Colker|first1=David|title=Doris Drucker dies at 103; memoirist and wife of Peter Drucker|url=https://www.latimes.com/local/obituaries/la-me-doris-drucker-20141005-story.html|access-date=June 22, 2024|newspaper=Los Angeles Times|date=October 4, 2014|archive-url=https://web.archive.org/web/20141012051117/https://www.latimes.com/local/obituaries/la-me-doris-drucker-20141005-story.html|archive-date=October 12, 2014|url-status=dead|url-access=limited}}</ref>

==Bibliography==
* 1939: {{cite book |title=The End of Economic Man: A Study of the New Totalitarianism |place=New York |publisher=The John Day Company |url=https://archive.org/details/endofeconomicman0000unse/page/n5/mode/2up|url-access=registration |year=1939 |via=[[Internet Archive]]}}
* 1942: {{cite book |title=The Future of Industrial Man: A Conservative Approach|place=New York |publisher=The John Day Company|year=1942 |url=https://archive.org/details/futureofindustri0000druc/page/n3/mode/2up |url-access=registration |via=[[Internet Archive]]}}
* 1946: {{cite book |title=Concept of the Corporation |place=New York |publisher=The John Day Company |url=https://archive.org/details/conceptofcorpora0000druc/page/n5/mode/2up |url-access=registration |year=1946 |via=[[Internet Archive]]}}
* 1950: {{cite book |title=The New Society: The Anatomy of Industrial Order |place=New York |url=https://archive.org/details/newsocietyanatom0000pete/page/n3/mode/2up |url-access=registration |year=1950 |publisher=Harper & Brothers |via=[[Internet Archive]]}}
* 1954: {{cite book |title=The Practice of Management |place=New York |publisher=Harper & Brothers |year=1954 |url=https://archive.org/details/practiceofmanage00drucrich/page/n5/mode/2up |url-access=registration |via=[[Internet Archive]]}}
* 1957: {{cite book |title=America's Next Twenty Years |url=https://archive.org/details/americasnexttwen0000pete/page/n5/mode/2up |url-access=registration |place=New York |year=1957 |publisher=Harper & Brothers |via=[[Internet Archive]]}}
* 1959: ''[[The Landmarks of Tomorrow]]'' (New York: Harper & Brothers)
* 1964: {{cite book |title=Managing for Results |place=New York |year=1964 |publisher=Harper & Row}}
* 1967: {{cite book |title=The Effective Executive |place=New York |year=1967 |url=https://archive.org/details/isbn_0060318252/page/n5/mode/2up |url-access=registration |publisher=Harper & Row|isbn=9780060318253}}
* 1969: {{cite book |title=The Age of Discontinuity: Guidelines for Our Changing Society |place=New York |year=1969 |url=https://archive.org/details/ageofdiscontinui00druc/page/n7/mode/2up |url-access=registration |publisher=Harper & Row}}
* 1970: ''Technology, Management and Society'' (New York: Harper & Row)
* 1971: ''The New Markets and Other Essays'' (London: William Heinemann Ltd.)
* 1971: ''Men, Ideas and Politics'' (New York: Harper & Row)
* 1971: ''Drucker on Management'' (London: Management Publications Limited)
* 1973: ''Management: Tasks, Responsibilities, Practices''' (New York: Harper & Row)
* 1976: ''The Unseen Revolution: How Pension Fund Socialism Came to America'' (New York: Harper & Row)
* 1977: ''People and Performance: The Best of Peter Drucker on Management'' (New York: Harper's College Press)
* 1978: {{cite book |title=Adventures of a Bystander |place=New York |publisher=Harper & Row |url=https://archive.org/details/adventuresofbyst0000druc/page/n5/mode/2up |url-access=registration |year=1978|isbn=9780060111014}}
* 1980: ''Managing in Turbulent Times'' (New York: Harper & Row)
* 1981: ''Toward the next economics, and other essays'' (New York: Harper & Row) {{ISBN|0060148284}}
* 1982: ''The Changing World of Executive'' (New York: Harper & Row)
* 1982: ''The Last of All Possible Worlds'' (New York: Harper & Row)
* 1984: ''The Temptation to Do Good'' (London: William Heinemann Ltd.)
* 1985: ''Innovation and Entrepreneurship'' (New York: Harper & Row)
* 1986: ''The Frontiers of Management: Where Tomorrow's Decisions are Being Shaped Today'' (New York: Truman Talley Books/E.D. Dutton)
* 1989: ''The New Realities: in Government and Politics, in Economics and Business, in Society and World View'' (New York: Harper & Row)
* 1990: ''Managing the Nonprofit Organization: Practices and Principles'' (New York: HarperCollins)
* 1992: ''Managing for the Future'' (New York: HarperCollins)
* 1993: ''The Ecological Vision'' (New Brunswick, NJ and London: Transaction Publishers)
* 1993: ''[[Post-Capitalist Society]]'' (New York: HarperCollins)
* 1995: ''Managing in a Time of Great Change'' (New York: Truman Talley Books/Dutton)
* 1997: ''Drucker on Asia: A Dialogue between Peter Drucker and [[Isao Nakauchi]]'' (Tokyo: Diamond Inc.)
* 1998: ''Peter Drucker on the Profession of Management'' (Boston: Harvard Business School Publishing)
* 1999: ''Management Challenges for 21st Century'' (New York: Harper Business)
* 1999: ''Managing Oneself'' (Boston: Harvard Business School Publishing) [published 2008 from article in Harvard Business Review]
* 2001: ''The Essential Drucker'' (New York: Harper Business)
* 2002: ''Managing in the Next Society'' (New York: Truman Talley Books/St. Martin's Press)
* 2002: ''A Functioning Society'' (New Brunswick, NJ and London: Transaction Publishers)
* 2004: ''The Daily Drucker'' (New York: Harper Business)
* 2008 (posthumous): ''The Five Most Important Questions'' (San Francisco: Jossey-Bass)

===Other publications===

;Early monographs in German
* 1932: ''The Justification of International Law and the Will of the State'' (doctoral dissertation)
* 1933: ''Friedrich Julius Stahl, Conservative Political Theory and Historical Development'' (Tübingen: Mohr)
* 1936: ''The Jewish Question in Germany'' (Wien: Gsur)

;Contributing writer
* 1961: ''Power and Democracy in America'' (Westport, Connecticut: Greenwood Press Publishers)
* 1969: ''Preparing Tomorrow's Business Leaders Today'' (Englewood Cliffs, NJ: [[Prentice Hall]])
* 1979: ''Song of the Brush: Japanese Painting from Sanso Collection'' (Seattle: Seattle Art Museum)
* 1988: ''Handbook of Management by Objectives'' with Bill Reddin and Denis Ryan (Published by Tata McGraw-Hill in New Delhi).
* 1991: ''The Rise of NEC'' (Blackwell Business)

;Miscellaneous
* 1977: ''An Introductory View of Management'' (New York: [[Harper & Row]])
* 1977 (revised edition, 2009): ''Management Cases'' (New York: Harper & Row)
* 2006: ''The Effective Executive In Action'' with Joseph A. Maciariello (New York: [[HarperCollins]])
* 2006: ''Classic Drucker'' (Boston: Harvard Business Review Press)
* 2008 (posthumous): ''Management: Revised'' with Sujog Arya (New York: HarperCollins)

==References==
;Works cited
* {{cite book |title=The World According to Peter Drucker |last=Beatty |first=Jack |author1-link=Jack Beatty |publisher=The Free Press |year=1998 |isbn=978-0-684-83801-4 |url=https://archive.org/details/worldaccordingto00beat |url-access=registration}}

;Notes
{{reflist|30em}}

==Further reading==
* Tarrant, John C. ''Drucker: The Man Who Invented the Corporate Society'', 1976. {{ISBN|0-8436-0744-0}}
* Flaherty, John E. ''Peter Drucker: Shaping the Managerial Mind'', 1999. {{ISBN|0-7879-4764-4}}
* Edersheim, Elizabeth. ''The Definitive Drucker'', 2007. {{ISBN|0-07-147233-9}}
* Cohen, William A. ''A Class with Drucker: The lost lessons of the World's greatest management teacher'', 2008. {{ISBN|978-0-8144-0919-0}}
* Weber, Winfried W. Kulothungan, Gladius (eds.) ''Peter F. Drucker's Next Management. New Institutions, New Theories and Practices'', 2010. {{ISBN|978-3-9810228-6-5}}
* Stein, Guido. Managing People and Organisations, 2010. {{ISBN|978-0-85724-032-3}}
* Turriago-Hoyos, A., Thoene, U., & Arjoon, S. (2016). Knowledge workers and virtues in Peter Drucker's management theory. SAGE Open, January–March 2016: 1–9, {{doi|10.1177/2158244016639631}}

==External links==
{{Sister project links|voy=no|wikt=no|commons=Category:Peter Drucker|b=no|n=no|q=Peter Drucker|s=no|v=no|species=no}}
* [http://ccdl.libraries.claremont.edu/cdm/landingpage/collection/dac/ Drucker Archives] in the Claremont Colleges Digital Library
* {{Official website|www.drucker.institute}}, Drucker Institute
* [http://ccdl.libraries.claremont.edu/cdm/landingpage/collection/twi The Window] {{--}} the bimonthly newsletter of the Drucker Institute from 2008 to 2012, available in the Claremont Colleges Digital Library
* [https://www.wsj.com/articles/SB113202230063197204 Sell the Mailroom] {{--}} article by Drucker that appeared on the [[Wall Street Journal]] on July 25, 1989
* {{C-SPAN|38663}}
* [https://www.mediathek.at/atom/200458AB-1FD-00069-00002061-2003E59D// Peter Drucker] (in German) from the archive of the [[Österreichische Mediathek]]
* {{Internet Archive author |sname=Peter Drucker}}
* [http://rlaexp.com/studio/biz/conceptual_resources/authors/peter_drucker/what-executives-should-remember.pdf ''What Executives Should Remember''], [[Harvard Business Review]], February 2006

{{Peter Drucker}}
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{{Management}}
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