By reading this book an executive will:
- Get a strategy for achieving results.
- Learn what to do to create customers.
- Learn where to find opportunities.
- Gain prudence: “Results are obtained by exploiting opportunities, not by solving problems.”
- Get smart questions: What is our business? What should it be? What will it have to be [in 5-10 years]?
- Get case studies of great corporations, some of which Drucker advised.
- Finally, an executive (or anyone who wants to live effectively) will gain a strategy for his or her life.
Drucker’s book on business strategy helps executives understand their economic tasks. Tasks that are entrepreneurial in nature and essential for achieving long-term results.
The book’s three sections — Understanding the Business, Focus on Opportunity, and A Program for Performance — explain the tasks and build a case for three decisions: the idea of the business, the business’s area of excellence, and priorities.
The overarching idea provides direction and guides goal setting. It encompasses the customer and contribution, such as: “We provide senior managers with change management solutions.” An area of excellence makes focus and market leadership feasible. A good example is change management. Lastly, priorities enable performance and form strategy, balancing the needs of the present and the future.
In the first section, Drucker explains what top managers must do to evaluate the state of a business, including the analysis of revenues, costs, market, and knowledge area. Second, Drucker explains how to achieve results by assessing business strengths as well as opportunities inside and outside of the organization.
In the final section, Drucker explains the factors necessary for strategy execution and getting results.
The critical chapters are:
- Chapter 1: Business Realities — Explains timeless business realities.
- Chapter 6: The Customer Is the Business — Explains what must be done to create customers.
- Chapter 7: Knowledge Is the Business — Explains what must be done to achieve market leadership.
- Chapter 9: Building on Strength — Explains what must be done to achieve longterm results.
- Chapter 10: Finding Business Potential — Explains where opportunity is found.
- Chapter 11: Making the Future Today — Explains what must be done to make future decisions now.