“The hard reality of the present must not be obscured by the lure of tomorrow’s promises. But the difficult and discouraging work for tomorrow must also not be smothered by the urgencies of the present.”
This chapter introduces the third part of the book, A Program for Performance. In it, Drucker summarizes three decisions that every organization must make. These decisions form a strategy.
The first decision is “The idea of a business.” The idea provides direction and it takes into account all of the analyses explained in the first part of the book and summarized in the questions of “What is our business?” and “What should it be?”. It must not be too broad or specific. For example, a consulting business would be too broad. While a laptop manufacturer would be too specific. Drucker gives an example of an office supply business that provides office managers with office equipment. This idea includes the market and the knowledge area.
L.L. Bean is a business driven by an idea. Provide those involved in outdoor activities with affordable, quality products that make outdoor experiences more enjoyable and successful.
The second decision is the excellence of the organization. This is an area of knowledge essential for gaining a leadership position. Drucker writes that it must lead to action in products and services, and determine hiring, promotions, and corporate benefits and rewards.
Priorities are the third decision. They are based on knowledge of what the business is and should be. Drucker says that strategy is determined by them. Without priorities, the best opportunities will not be maximized.
These three decisions need to be made deliberately and “systematically” by organizational leaders. They will help leaders balance the needs of the present with the future.
(Managing for Results, chapter 12)