Latest news with #PeterDrucker
Forbes
26-05-2025
- Business
- Forbes
The New Destiny Of Management: Creating Value Faster
Communication technology with global internet network What will it take to attain the Drucker Forum's goal of turning management into a noble calling that helps create a worthy society? We will need more than piecemeal patches added on to current management thinking. Instead, we need to re-conceive management afresh as the art and science of creating value for others faster. In its HBR article of June 2024, the Drucker Forum suggested that 'The Next Management' should include at least seven aspirations: including innovation more than efficiency, ecosystems more than single institutions, long-term, more than short term, focus, human augmentation, more than automation, management as an art, more than a science, reality grounded more than ideology, and self-renewal capacity, more than revolution.[i] There is nothing wrong with these seven 'fixes' in themselves. They will, however, make little difference if the underlying concept of management involves creating value primarily for the firm, its executives and its shareholders. This traditional concept of management has a long and troubled history. It was assumed by Adam Smith in Wealth Of Nations, (1776), by Fredrick Taylor in The Principles of Scientific Management, (1911), by the U.S. Business Round Table (1997), by most articles in leading management journals even today [ii] Meanwhile, a different approach emerges from following Peter Drucker's advice to 'look out the window and note what is visible but not yet seen.' Over the last quarter century, some firms have already begun implementing the converse of merely making money for the company. Now profits are a result, not the goal. As these new firms found ways to have human concerns modify and drive the processes, practices, and methods of management, they have grown much faster and ironically have made exponentially more money than companies focused primarily on making money. They tend to began with the customer and worked backwards, while also giving thought to all the stakeholders. In so doing, they began to live the new destiny of management: creating value for others. Examples of firms that are mostly pursuing this goal and the results they have obtained in terms of long term returns and workplace satisfaction are included below in Figure 1. They include firms of all sizes and in all sectors in the U.S., Europe and Asia. In one sense, this is like rediscovering the wheel. For millennia, the human race has known that when we create value for others, the true spirit of living is alive in us. Whatever our kind of work, whether it is a business, a team, a family, a community or a political movement, when we embody the spirit of creating value for others, we become inventive, searching, daring, and self-expressing. We may disturb and upset, but we often also open the way for better understanding. What led to the change? It wasn't a sudden moral epiphany on the part of business leaders. It's a recognition by businesses that the world itself has changed. The internet (and now AI) gave rise first, to firms, new possibilities for innovation, and then to customers, more choices, and finally to firms again, the potential of new business models that can generate exponential network effects.[iii] The old way of managing can't keep up. Smart managers saw they had to do something different. While each firm is unique and uses its own language, the underlying management patterns have much in common. Thus Apple talks of a different 'culture'. Microsoft speaks about 'mindset', 'empathy' and 'values.' Amazon focuses on 'leadership principles.' Some firms talked of 'mental models' and 'narratives.' The Agile Manifesto spoke of valuing 'individuals and interactions' more than 'processes and tools.' Despite the differences, they are all about putting people ahead of processes. The new breed of firm generally uses subjective concepts to drive their objective business processes. These mindsets, goals, values, and narratives are the very things that traditional management dismissed in principle. The result has been an upheaval in every aspect of business practices. It can be called a paradigm shift in management, although probably no more than 20% of public firms have yet made the transition. Instead of trying to fix individual issues by adding patches to a framework of traditional management, the fastest growing firms have transformed almost every process so as to form an integrated concept of running a company. These multiple but integrated changes require that managers and staff need to think about work differently. How they perceive the organization is different, as is the language they use in the workplace. Methods, processes and tools don't disappear. But in these firms. it is the mindsets, and values that drive and transform the methods and processes, rather than vice versa. The result is a culture where employees can see meaning in what they do. It is not that the fast-growing firms without flaws. They all need to make continued progress towards creating steadily more value for stakeholders. and avoid backsliding towards self-interest. Lessons For Others Understanding how these fast-growing firms are being managed is the first step for those firms that are still being managed by yesterday's methods and processes. Unless they begin making similar shifts, most will not survive, at least in their current form. And read also: How Creating Value For Others Has Become The Key To Business Success How Networks Of Competence Are Crushing Hierarchies Of Authority Figure 1: Public firms with a track record of sustained fast growth. Firms with track records of sustained fast growth [i] Straub, R. Re-framing Management For The 21st Century,' HBR, June 2024. [ii] See for example Michael Mankins 'Lean Strategy Making' HBR, May-June 2025 [iii] Denning, S. 'Understanding How Exponential Network Effects Do—Or Don't—Happen' Aug 4, 2024 [iv] 'The CEO of e.l.f. Beauty on Maintaining a Startup Culture While Scaling.' HBR, Jan 2025
Yahoo
20-05-2025
- Business
- Yahoo
Tech startup leaders need to think globally from the get-go
'The best way to predict the future is to create it.'This timeless insight from renowned 20th-century Austrian-America management consultant Peter Drucker is especially relevant for startup leaders who aim to build something that stands the test of time. Housing market shift explained—and where it's happening the fastest 4 free Coursera courses to jump-start your AI journey Rite Aid is closing 95 more stores after selling assets to CVS and others: See the full list of locations across 6 states In today's digital economy, global expansion has never been easier—yet many tech founders are still focused on an initial geographical market. While starting with that thinking may seem practical, failing to embed a global mindset from the get-go can limit long-term potential. The reality is, startups that delay international thinking face tougher roadblocks later—scaling infrastructure, product-market fit, cultural nuances, and competition become bigger hurdles than necessary. The best startups anticipate these challenges early, positioning for global impact before opening a second office. I've seen this firsthand—setting out to empower the world with your company's tools shouldn't just be a tagline; it should shape every product decision, hire, and expansion effort. For founders unsure where to start, here's what I've learned about building global-first from day one. A strong vision serves as a guiding light through the thousands of decisions a company must make. Startups that scale successfully have a clear and ambitious purpose that informs their strategy from day one. For example, at Canva, we've aimed to make our product accessible to anyone, anywhere in the world. And while this seemed massively aspirational at our founding, it's helped us avoid complacency, and feels more realistic as you focus on hitting incremental milestones. In the early days, you won't be able to build a solution for every conceivable challenge. Focusing on your most obvious core audience, or, finding a niche that isn't too restrictive—tools for real estate, e-commerce, marketing, etc.—can ensure the foundation to support future expansion. Balancing ambition with practicality isn't just a challenge—it's a necessity. Those who master it pave the way for sustainable, scalable global success. Startups often face resource constraints, making it tempting to prioritize short-term gains over long-term scalability. However, founders must resist the urge to build products solely for their initial market. Instead, they should develop solutions with modularity and adaptability in mind. I believe in focusing on solving a fundamental problem—simplifying graphic design was our strategic focus—while ensuring that a platform can evolve for different industries, languages, and cultures. As your startup grows, maintaining flexibility becomes even more important. More than 10 years in, my company is still adapting to changing markets, shifting consumer expectations, and emerging trends. If you are an American startup founder, remember that 95.7% of the world's population lives outside of the U.S., and many of them may fall into your target customer demographic. Therefore, the ability to refine strategies based on global opportunities is a crucial trait of long-term success. This goes far beyond just translating the interface. It involves integrating local payment methods, content, templates, SEO strategies, and much more. At Canva we refer to a helpful metaphor of cupcakes and icing. The cupcake is our core offering of design and workplace software. The icing is the way we build on top to suit different countries, languages, and industries. The most important thing is that the cupcake is made in a way that it can expand and serve all of these different needs. A founder's passion is contagious. When a team believes in the company's mission, they'll go the extra mile to execute it. But passion alone isn't enough—it must be communicated effectively and proven in actions. Founders should meaningfully lift the hood on their own motivations as often as is appropriate, whether it's the inspiration behind the product, the obstacles overcome, or the impact their product has had on customers worldwide. I know from experience that this can be extremely successful in uniting a workforce around a shared mission. This becomes even more critical as a company scales across borders and languages. Consistently telling and refining your story ensures alignment and momentum, especially as new markets open up. A globally resonant narrative makes it easier to expand into different regions while maintaining a strong brand identity—and it starts at the top! Startups that embrace new technologies early gain a competitive edge. Staying ahead means keeping a pulse on industry shifts, making judgement calls as to whether a new technology aligns with your goals, and taking calculated risks. It also means building to adapt, and minimizing reliance on any single model or partner. Find ways to be 'pluggable' with other tools and technologies so you can evolve your tech stack without starting from scratch. In Q3 2024, AI startups accounted for 31% of global venture funding, signaling an industry-wide shift toward automation and intelligent systems. AI is offering an unprecedented opportunity to grow efficiently, without adding costs. Companies that delay integrating these advancements risk falling behind. Regardless of a startup's stage, a forward-thinking approach to technology is key to long-term success. The most successful startups aren't those that expand internationally just because they need to continue to grow sales; they're the ones that embed a global mindset into their culture, strategy, and vision from the get-go. Founders must recognize that the world is their market, not just their home country. From my native Australia to America and everywhere in between, each market might benefit from a product in different ways. Wise founders will commit to exploring and embracing those differences by building adaptable products, crafting a resonant brand story, hiring teams with diverse perspectives, and leveraging technology to stay ahead. In the end, the startups that think globally from the beginning are the ones that don't just react to the future—they create it, just as Drucker envisioned. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
19-05-2025
- Business
- Fast Company
Tech startup leaders need to think globally from the get-go
'The best way to predict the future is to create it.' This timeless insight from renowned 20th-century Austrian-America management consultant Peter Drucker is especially relevant for startup leaders who aim to build something that stands the test of time. In today's digital economy, global expansion has never been easier—yet many tech founders are still focused on an initial geographical market. While starting with that thinking may seem practical, failing to embed a global mindset from the get-go can limit long-term potential. The reality is, startups that delay international thinking face tougher roadblocks later—scaling infrastructure, product-market fit, cultural nuances, and competition become bigger hurdles than necessary. The best startups anticipate these challenges early, positioning for global impact before opening a second office. I've seen this firsthand—setting out to empower the world with your company's tools shouldn't just be a tagline; it should shape every product decision, hire, and expansion effort. For founders unsure where to start, here's what I've learned about building global-first from day one. Establishing a clear vision A strong vision serves as a guiding light through the thousands of decisions a company must make. Startups that scale successfully have a clear and ambitious purpose that informs their strategy from day one. For example, at Canva, we've aimed to make our product accessible to anyone, anywhere in the world. And while this seemed massively aspirational at our founding, it's helped us avoid complacency, and feels more realistic as you focus on hitting incremental milestones. In the early days, you won't be able to build a solution for every conceivable challenge. Focusing on your most obvious core audience, or, finding a niche that isn't too restrictive—tools for real estate, e-commerce, marketing, etc.—can ensure the foundation to support future expansion. Balancing ambition with practicality isn't just a challenge—it's a necessity. Those who master it pave the way for sustainable, scalable global success. Solve a problem that transcends borders Startups often face resource constraints, making it tempting to prioritize short-term gains over long-term scalability. However, founders must resist the urge to build products solely for their initial market. Instead, they should develop solutions with modularity and adaptability in mind. I believe in focusing on solving a fundamental problem—simplifying graphic design was our strategic focus—while ensuring that a platform can evolve for different industries, languages, and cultures. As your startup grows, maintaining flexibility becomes even more important. More than 10 years in, my company is still adapting to changing markets, shifting consumer expectations, and emerging trends. Balance focus and flexibility If you are an American startup founder, remember that 95.7% of the world's population lives outside of the U.S., and many of them may fall into your target customer demographic. Therefore, the ability to refine strategies based on global opportunities is a crucial trait of long-term success. This goes far beyond just translating the interface. It involves integrating local payment methods, content, templates, SEO strategies, and much more. At Canva we refer to a helpful metaphor of cupcakes and icing. The cupcake is our core offering of design and workplace software. The icing is the way we build on top to suit different countries, languages, and industries. The most important thing is that the cupcake is made in a way that it can expand and serve all of these different needs. The power of passion and storytelling A founder's passion is contagious. When a team believes in the company's mission, they'll go the extra mile to execute it. But passion alone isn't enough—it must be communicated effectively and proven in actions. Founders should meaningfully lift the hood on their own motivations as often as is appropriate, whether it's the inspiration behind the product, the obstacles overcome, or the impact their product has had on customers worldwide. I know from experience that this can be extremely successful in uniting a workforce around a shared mission. This becomes even more critical as a company scales across borders and languages. Consistently telling and refining your story ensures alignment and momentum, especially as new markets open up. A globally resonant narrative makes it easier to expand into different regions while maintaining a strong brand identity—and it starts at the top! Integrating emerging technologies Startups that embrace new technologies early gain a competitive edge. Staying ahead means keeping a pulse on industry shifts, making judgement calls as to whether a new technology aligns with your goals, and taking calculated risks. It also means building to adapt, and minimizing reliance on any single model or partner. Find ways to be 'pluggable' with other tools and technologies so you can evolve your tech stack without starting from scratch. In Q3 2024, AI startups accounted for 31% of global venture funding, signaling an industry-wide shift toward automation and intelligent systems. AI is offering an unprecedented opportunity to grow efficiently, without adding costs. Companies that delay integrating these advancements risk falling behind. Regardless of a startup's stage, a forward-thinking approach to technology is key to long-term success. Building internationally and for decades to come The most successful startups aren't those that expand internationally just because they need to continue to grow sales; they're the ones that embed a global mindset into their culture, strategy, and vision from the get-go. Founders must recognize that the world is their market, not just their home country. From my native Australia to America and everywhere in between, each market might benefit from a product in different ways. Wise founders will commit to exploring and embracing those differences by building adaptable products, crafting a resonant brand story, hiring teams with diverse perspectives, and leveraging technology to stay ahead. In the end, the startups that think globally from the beginning are the ones that don't just react to the future—they create it, just as Drucker envisioned.
Time of India
08-05-2025
- Time of India
Exploring Explainability in the Realm of Responsible AI
Relishing delicious delicacies is something that most people often look forward to - be it visiting a bakery and tasting creamy pastries or enjoying one's favorite dishes at a restaurant. But there is a habit we, as humans, usually possess: if the pastry or dish is extremely delectable, we ask for the recipe. Moreover, before going to the bakery or restaurant, we assess whether it adopts hygienic practices, uses quality ingredients, and so on. You guessed it right — inquisitiveness and skepticism make humans an extraordinary while leveraging Artificial Intelligence, which quickly and efficiently provides solutions to a myriad of problems, having a curious and questioning mind is AI and the Principle of ExplainabilitySince AI assists humans in solving problems and making decisions, it is imperative to ensure that people's trust is consistently maintained. Furthermore, the decisions and solutions must inevitably be ethical and law-abiding. There is a dire necessity for AI tools to act responsibly, and extensive deliberation on 'Responsible AI' thus finds a significant place in today's technology landscape. As AI continues to become indispensable for businesses, understanding how it derives a specific solution or reaches a particular conclusion becomes crucial. The Austrian-American consultant and educator Peter Drucker beautifully says, "The purpose of information is not knowledge. It is being able to take the right action." Responsible AI hence brings forth the principle of explainability to foster confidence in AI systems, equipping us to make informed decisions that translate into actions with the right Performance and Explainability: Balancing Between the TwoWhile discussing Artificial Intelligence, we often come across the terms AI models and algorithms. AI models are programs empowered by AI algorithms to make decisions based on data analysis. The major challenge to explainability in AI stems from many AI models being opaque. Significant breakthroughs in AI have resulted in the emergence of numerous opaque models, as many incorporate deep learning. Deep learning models employ multi-layered neural networks that comprehend patterns based on vast datasets by adjusting weights across several layers. Instead of each step in decision-making being clearly specified, neural networks find their own path to draw a scenario wherein such an AI model examines CT scans to predict the chances of lung cancer in a person and estimates an 80% chance of malignancy. If it does not provide any plausible explanation regarding the rate of metastasis, highlighted tumor areas, or shape or texture-based characteristics, it certainly does not adhere to the principle of explainability. Consequently, it would delay the process of further diagnosis and treatment, which may prove yet another scenario, if we request a refund for a damaged item bought online and the e-commerce site, using a chatbot for customer support, responds, 'Your request is denied' without specifying any reason, such as 'No refund possible after 20 days,' it essentially does not qualify as explainable counter such problems, AI models have begun to include explainable AI approaches like LIME (Local Interpretable Model-agnostic Explanations), Integrated Gradients, SHAP (SHapley Additive exPlanations), Activation Maximization, etc. Although the adoption of such techniques is rising, achieving explainability to a satisfactory level continues to be a Herculean task. As businesses witness the evolution of AI, striking the right balance between model performance and explainability becomes paramount. Continued research and improved methodologies can enable organizations to implement explainability appropriately, marking a significant leap toward 'Responsible AI'.By Jigyasu Pant, Application Developer, This article is a part of ETCIO's Brand Connect Initiative.
Forbes
08-05-2025
- Business
- Forbes
7 Steps To Building An AI-Ready Corporate Culture
Culture eats AI strategy for breakfast A few decades back, management guru Peter Drucker made the observation that 'culture eats strategy for breakfast.' meaning that without a responsive, forward-looking corporate culture, even the most meticulously planned business strategy will fall flat. In other words, just as people make the world go 'round, and people make the business go 'round, it's going to take people to make artificial intelligence go 'round. For organizations moving full-steam into AI, Drucker's time-tested words still ring true. Culture will eat any AI strategy for breakfast, and perhaps lunch too. There are some approaches that leaders seeking to pursue a well-functioning AI strategy can follow that can help integrate it into corporate culture. West Monroe, an analyst group, recently published practical guidelines for building a thriving culture that embraces – not repels – AI. Here are some salient points: Visualize a successful AI operating model. It's important to have a compelling vision of what exactly AI will bring to the business. An ideal AI operating culture provides for a natural flow of work between human talent and AI systems. AI is good at some things, humans at others – such as creativity, judgement, and empathy. 'Organizations that first define what success looks like – automating simple and routine tasks, enhancing customer experiences, or improving decision-making—will maximize ROI,' the West Monroe co-authors state. "Without this alignment, AI will remain an expensive, underleveraged asset rather than a business enabler.' Set realistic expectations. 'Asking employees to blindly trust AI without understanding its role leads to skepticism and resistance. Instead, organizations should clarify AI's purpose: Is it an advisor, an efficiency tool, or an automated assistant? Setting realistic expectations ensures AI is seen as an enabler, not a disruptor.' Build a collaborative culture around AI. For starters, AI should be accessible – in some shape or form – to all. It's not an IT or data analyst project, it's everyone's concern. 'Foster a culture that rewards collaboration over territorial thinking," the West Monroe team urges. "Employees need the assurance that they can experiment with AI to test outcomes. Leaders need to clearly define the purpose of AI within the organization.' Position AI agents as 'interns." 'Think of an internal AI chatbot as providing each employee with a permanent intern that has perfect recall, access to vast knowledge, and continually improves over time," the co-authors advise. "Letting this 'intern' handle routine tasks frees your team to focus on higher-value work that requires uniquely human skills.' Educate and train. Then educate and train some more. 'Not every employee needs to become an AI expert, but every employee should have a clear, baseline understanding of how AI can impact their role," West Monroe urges. "A nurse, for example, doesn't need to engineer AI algorithms to treat patients but should trust AI-driven diagnostic tools while still applying human judgement.' Measure, measure, measure. 'AI's impact isn't just about automation – it's about measurable business outcomes," the co-authors state. Metrics key to AI progress include productivity gains, cost reductions, decision-making quality, employee adoption rates, customer experience improvements, and performance improvement. Prioritize change management. 'AI adoption can often falter not because the technology itself is flawed but because organizations struggle with change," according to West Monroe. "Many companies operate in environments resistant to innovation, where entrenched processes, risk aversion, and siloed thinking create barriers. Companies must first assess their readiness for change to break this cycle.' Companies need to integrate AI into existing processes and their DNA – rather than treating it as a standalone project. To get there, full employee engagement is the path to success.
