THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
S U M M A R Y
DIARY: November 30, 1993 00:25 AM Tuesday;
Reviewed Drucker's book: "Management Tasks, Responsibilities, Practices."
2...Ergonomics Fit Technlogy to Lift Human Capacities for Productive Work
3...Management Work Requires Technology That Lifts Intelligence
4...Knowledge Worker Generates Knowledge from Information Every Day
5...Managing and Leadership Key Factors of Productivity
6...Productivity Biggest Opportunity is Knowledge Work, Mostly Management
.....Accountant's "Direct Labor" is Least Productive Resource
.....Overhead: Management is Most Productive Resource
.....Leadership Overhead Most Productive Resource in Enterprise
7...Knowledge Work Requires Flexible Structure Provided by SDS
8...Continual Learning Converting Information into Knowledge
9...Information Strategic Resource for Continual Learning Innovation
10...Convert Information to Knowledge Integrate Time Information Context
11...10X Improvement Justifies Adopting Innovation
12...Investing Enables Continual Improvement through Innovation
13...Management is Innovation - Making the Business of Tomorrow
14...Innovation Derived from Allocating Excess Earnings, i.e., Profit
15...Substitute Brain for Brawn
16...Investing Intellectual Capital Yields Organizational Memory
17...Knowledge Drives Productivity Experience Writing Increase Knowledge
18...History Shows Lessons Learned that Give Guidance for the Future
19...Working Smarter Not Harder than Grandfather
20...Knowledge Work Ultimate Craft of Civilization
21...Grandfather Worked Hard Civilization Advances by Working Smart
......Today's accountant or engineer does not make a better living than
22...Rework Avoided by Accurate Understanding Increases Productivity
23...Quality Measures Management Productivity - TQM, Accuracy
24...Productivity Knowledge Work Mainly Quality, Accuracy Avoids Rework
.....Long Way Around Short Way There - Accuracy Avoids Rework
25...Time Critical Factor for Good Management to Perform Analysis
26...Information Overload New Reality Reduces Productivity
27...Overeating in Candy Store Foraging on Information Reduces Productivity
28...Converting Information into Knowledge Improves Productivity
29...Alphabet Technology Most Advanced Scientific Management
30...Feedback Continual Process Refine Accuracy Knowledge Work
31...Knowledge Management Capture Record Feedback Refine Accuracy
32...Management Productivity Primary Source of Competitive Advantage
33...Customers Purpose of Business, Invest Sunshine Profits to Innovate
34...Innovation Invests Profits to Create New Customers with New Technology
35...Sunshine Profits Buy-off Mistakes for Limited Time Innovation Critical
36...Good Management Only Way to Maintain Good Results
37...Accounting Management Technology Suppressed by Fear Accountability
38...Fear Accountability Prevents Good Management Working Intelligently
39...WBS, Planning, Organizing Derived from Objectives Organic Structure
40...Management by Objectives Primary Process Requires Accountability
41...Objectives Primary Task of Management Implement Purpose of Business
42...Organic Subject Strucure, MBO for Enterprise Management
43...MBO is Records Management - Organic Subject Strucure
44...Records Management - Converts Information into Knowledge
....Intelligence Supported by MBO Practices
....Brain Power Requires Organic Subject Structure
.............Communication the biggest risk in enterprise
....Enterprise Management Requires Organic Subject Structure
....Strategic Resource Requires Investing Intellectual Capital
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Correlation to accepted practice and
Executive Training, 930726
Knowledge & Ideas, Distinguish from; Information Management
Inspiration Incite Bring Innovation
Organizational Knowledge Memory Preserve with SDS
Capturing the Record, What did we say, What did we hear
Experience Repository of Knowledge, Project Office
Management Tasks Responsibilities Practices, Peter Drucker, Reviewed
2310 - ..
2311 - Summary/Objective
231201 - Follow up ref SDS 24 0000, ref SDS 23 0000.
231203 - Scanned Drucker's book beginning on page 39, ref OF 5 0001 to
231204 - identify...
231206 - accepted management practices
231208 - ...that support core concepts of POIMS, supplementing analysis of Van
231209 - Kasper's paper "Information Revolution" on 931008, ref SDS 24 0000,
231210 - Covey's work reviewed on 951205, ref SDS 21 0969, and Cal Tech seminars
231211 - on 921021. ref SDS 20 0001.
231213 - ..
231214 - See part #2 for the rest of this review. ref SDS 29 0001
231216 - ..
231217 - Drucker ignores "records management" for generating intellectual
231218 - capital, yet extolls the knowledge worker, and bases his arguments on
231219 - historical examples. ref SDS 0 0756 There is not a word in his
231220 - thousands of pages on management responsibilities about the need to
231221 - capture an accurate record, organize the record, align it, analyse and
231222 - develop effective summary linked to detail, so that the history of the
231223 - meeting yesterday, last week, the letter last month, and the phone
231224 - call last year, can be applied correctly along with the other lessons
231225 - of history which Drucker otherwise advocates.
231227 - ..
231228 - He may take for granted everybody knows this, but it is not getting
231229 - done in the board room nor the engineering room.
231231 - [On 931203 called Drucker. ref SDS 30 3893]
231233 - [On 950816 Morris reported having reviewed Drucker's work.
231234 - ref SDS 51 3976]
231236 - ..
231237 - [On 960310 Morris cited Drucker as authority on management.
231238 - ref SDS 64 5967]
231240 - ..
231241 - [On 000116 Morris indicated Drucker's recommendation to invest in
231242 - discovering innovation is incorrect. ref SDS B9 0300]
231244 - ..
231245 - [On 041110 Gary Johnson discusses poor implementation of Drucker's
231246 - ideas on good management. ref SDS F6 KO3Q
231253 - ..
2315 - Progress
231601 - This is a review of:
231604 - ..
231605 - Management: Tasks, Responsibilities, Practices
231608 - ...by Peter F. Drucker.
231610 - ..
231611 - It was originally copyrighted in 1973, 1974, published by Harper &
231612 - Row, Inc. Evidently an updated version was published in 1985, and
231613 - then this version was published in 1993. ref OF 5 0001
231615 - The "Preface" entitled "Management as Profession and
231616 - Commitment," is dated New Year's Day, 1985.
231618 - ..
231619 - The book seems to be a compendium of Drucker's prior work, with an
231620 - effort to integrate into a cohesive statement through 1985. Nothing
231621 - appears to have been added since 1985. I read Drucker's book "The
231622 - Practice of Management" Modern Asia edition in 1969 while in Vietnam.
231623 - This newer book seems to include much of that material as well.
Ergonomics Arrangement of Tools Work Space to Suit Human Requirements
Knowledge Worker Basic Capital Resource Fundamental Investment and Co
Core Competency Convert Information into Knowledge Intelligence Proce
Knowledge Worker Learns from Systematic Education and Applies to Circ
Knowledge Cause Effect Chronology Time Organization Advantage SDS, Bi
Intelligence Process Intelligence Core Competency Convert Information
Continual Learning Links Good Management Working Intelligently Trace
371001 - ..
371002 - Ergonomics Fit Technlogy to Lift Human Capacities for Productive Work
371003 - Management Work Requires Technology That Lifts Intelligence
371004 - Knowledge Worker Generates Knowledge from Information Every Day
371006 - Drucker says on page 31...
371008 - The basic capital resource, the fundamental investment, but also
371009 - the cost center of a developed economy, is the knowledge worker
371010 - who puts to work what he has learned in systematic education, that
371011 - is, concepts, ideas, and theories, rather than the man who puts to
371012 - work manual skill or muscle. ref OF 6 3069
371014 - ..
371015 - Aligns with Drucker's view that quality is the primary metric of
371016 - knowledge work. ref SDS 0 3416
371018 - ..
371019 - This supports concepts developed on 931008 of converting information
371020 - into knowledge, as the core competency of management. ref SDS 24 2222
371021 - On 920110 Drucker's "knowledge worker" was cited in an article on
371022 - making technology useful for design professionals. ref SDS 17 4158
371024 - [On 000327 Doug Engelbart cites Drucker as basis for defining use
371025 - of computers for augmenting knowledge work, similar to SDS scope.
371026 - ref SDS C1 2030
371028 - ..
371029 - [On 990527 SDS is a disruptive technology because offering to
371030 - improve competence leads to fears that people will be found not
371031 - competent. ref SDS A6 1233
371033 - ..
371034 - On page 41 Drucker says management should organize work and make it
371035 - suitable for human beings having peculiar physiological and
371036 - psychological properties, abilities, and limitations, and a distinct
371037 - mode of action. ref OF 5 5050
371039 - ..
371040 - Drucker's call for managers to set objectives and organize to work
371041 - efficiently, rather than simply give up on communication, requires
371042 - technology that is ergonomically designed to support the human
371043 - "intelligence" process that converts information into knowledge,
371044 - ref SDS 0 6622
371046 - ..
371047 - This supports POIMS concept of using technology to leverage human
371048 - "intelligence," as the basic fucntion of management, ref OF 2 0582,
371049 - based on a management cycle, described below. ref SDS 0 2562
371051 - ..
371052 - Drucker's explanation of...
371054 - "knowledge" worker
371056 - ...may be too narrow, although Drucker defines "analysis" expansively,
371057 - as primary responsibility of management. ref SDS 0 7911 Experience
371058 - shows that "systematic education" is not a fundamental characteristic
371059 - of a "knowledge worker." The ability to think, remember and
371060 - communicate can be sharpened by formal education, however, managers in
371061 - particular rarely use the specific disciplines presented in higher
371062 - education.
371064 - ..
371065 - Drucker says at page 415...
371067 - Every manager should ask himself: "What information do I need to
371068 - do my job and where do I get it?" He should make sure that
371069 - whoever has to provide that information understands the manager's
371070 - needs -- not only in terms of what is needed but also how it is
371071 - needed. ref OF 6 1541
371073 - ..
371074 - Drucker's expression poses a "manager" as a passive sponge rather than
371075 - a proactive "knowledge worker" who has an affirmative duty to capture
371076 - "information" that comes as a continuous stream of communication and
371077 - experience from seeing, hearing and doing things all day, and convert
371078 - it into knowledge, per POIMS. ref OF 2 8774
371080 - Drucker seems to define "knoweldge worker" as using "knowledge"
371081 - generated by others and learned from others in school, such as an
371082 - engineer, scientist, marketing guy, accountant, and so on. This
371083 - worker depends on others to provide information that will be used
371084 - to apply knowledge, i.e., expertise.
371086 - ..
371087 - Managers are the primary "knowledge" workers who spend more time
371088 - creating and using new information, and evolving correlations and
371089 - implications (i.e., synthesis) of untested concepts, theories and
371090 - ideas; whereas a craftsman, like a doctor, carpenter, gardener,
371091 - accountant, or truck driver for the most part use knowledge that
371092 - has been created, tested and obtained from others. Management is
371093 - dynamic, fluid, constantly looking forward to unknown conditions,
371094 - whereas, craft work is directed at a fixed target with fixed
371095 - variables.
371097 - ..
371098 - Thus, the knowledge worker creates intellectual capital, while the
371099 - manual worker draws on that capital. The challenge for management
371100 - is finding the most efficient means to "invest" intellectual
371101 - capital, so it can be recycled in the manner of the craftsman when
371102 - necessary.
371106 - ..
371107 - Managing and Leadership Key Factors of Productivity
371108 - Productivity Biggest Opportunity is Knowledge Work, Mostly Management
371110 - Drucker states on page 69...
371112 - Outside of manufacturing, transportation, and mining, e.g., in
371113 - distribution, finance, insurance, and the service industries (that
371114 - is, in two-thirds of the American economy), the increase in
371115 - productivity has been caused primarily by the replacement of labor
371116 - by planning, replacing brawn by brain, and replacing sweat by
371117 - knowledge. ref OF 6 5080
371119 - ..
371120 - Greatest opportunity for increasing productivity are in knowledge
371121 - work itself, and especially in management. ref OF 6 5081
371124 - ..
371125 - Accountant's "Direct Labor" is Least Productive Resource
371126 - Overhead: Management is Most Productive Resource
371127 - Leadership Overhead Most Productive Resource in Enterprise
371130 - Drucker observes...
371132 - Direct labor is the least productive resource and what accountants
371133 - call "overhead" --the very term reeks of moral disapproval --
371134 - contains what should be the most productive resource, the
371135 - managers, researchers, planners, designers, innovators.
371136 - ref OF 6 5081
371138 - ..
371139 - "Overhead" is leadership by the CEO, president, vice president,
371140 - managers, directors and others, who leverage organizational assets to
371141 - make each individual productive through teamwork and technology. (see
371142 - POIMS on making the power of knowledge a highly leveraged asset by
371143 - applying Moore's Law. ref OF 2 SV9H)
371145 - [On 960301 discussed with Morris. ref SDS 62 5040
371147 - ..
371148 - [On 990816 boy scout napsack analogy explains how technology
371149 - enables more people to use good management practices with less
371150 - diligence. ref SDS A9 2880
371152 - ..
371153 - [On 991014 people object to opening links because knowledge
371154 - brings responsibility to act. ref SDS B3 3066
371156 - ..
371157 - [On 010420 cognitive overhead is an excuse for laziness that
371158 - fails to make front-end investment and apply diligence to work
371159 - intelligently by organizing the work and providing alignment,
371160 - or doing research to verify understandings by opening links.
371161 - ref SDS D2 SU6K
Flexible Structure Natural Organization for Creating Managing Context
Flexible Structure Writing Uses Grammar Assembles Meaning Organically
Ergonomics Arrangement of Technology for Knowledge Work Critical to P
Ergonomics Require Technology to Provide Flexible Structure that is F
450701 - ..
450702 - Knowledge Work Requires Flexible Structure Provided by SDS
450704 - SDS supports Drucker's call for technology to align with the design of
450705 - human ergonomics. ref SDS 0 5088 For knowledge work, the foundation
450706 - must align with the architecture of human thought by providing a
450707 - flexible structure for planning, performing and reporting daily work
450708 - that makes these tasks fast and routine.
450710 - ..
450711 - Drucker could be interpretted to reject this approach on page 33...
450713 - ....based on the assumption -- valid to some extent for manual
450714 - work but quite inappropriate to knowledge work -- that an outside
450715 - expert such as the industrial engineer or the work-study
450716 - specialist can objectively determine the one best way for any kind
450717 - of work to be done. For knowledge work, this is simply not true.
450718 - There may be one best way, but it is heavily conditioned by the
450719 - individual and not entirely determined by physical, or even by
450720 - mental, characteristics of the job. It is temperamental as well.
450721 - ref OF 6 2894
450723 - ..
450724 - POIMS argues that knowledge work is bound by the architecture of human
450725 - thought, ref OF 2 0367, so technology and work ergonomics must enable
450726 - that basic core design in order to avoid folly, as Aristotle pointed
450727 - out in 2400 BC. see NWO. ref OF 3 4564
450729 - ..
450730 - Casual observers may mistakenly feel SDS requires management to be
450731 - performed in a rigid structure. SDS provides a flexible structure to
450732 - strengthen the cognitive process of organizing information according
450733 - to human needs, so it can be analysed and modified in an orderly way,
450734 - and connected into chronologies of cause and effect that comprise
450735 - useful experience, history and organizational memory, sometimes called
450736 - "intelligence." see POIMS. ref OF 2 5418
450738 - [On 991025 Drucker published a new article calling for technology
450739 - to routinize use of cognitive processes that aid management.
450740 - ref SDS B3 0785
450742 - ..
450743 - Drucker recognizes that "organization" is a primary task of
450744 - management. ref SDS 0 0741 He urges using management by objectives,
450745 - MBO, which is supported by SDS organic subject structure. ref SDS 0
450746 - 6622
450748 - ..
450749 - Experience using SDS shows flexible structure is critical, as reported
450750 - on 890325 where Lotus 123 was not flexible enough to enable effective
450751 - management support. ref SDS 1 AX6K
450753 - [On 000709 SDS flexible structure improves understanding.
450754 - ref SDS B9 1029
450756 - ..
450757 - On 890606 explained advantage of SDS line numbers that enable flexible
450758 - size for fields and records. ref SDS 4 G14H Also, on 891111.
450760 - SDS records
450762 - Flexible fields
450763 - Flexible size
450764 - Flexible subjects
450765 - Flexible references, documents, citations
450767 - ..
450768 - Contacts
450770 - Flexible fields
450771 - Flexible size
450773 - ..
450774 - Subject Index
450776 - Organic subject structures
450778 - ..
450779 - Reports
450781 - Can be drawn based on time and organic subjects, which
450782 - enables a high degree of refinement.
Continual Learning Core Competency Task Responsibility Practice Knowl
580401 - ..
580402 - Continual Learning Converting Information into Knowledge
580403 - Information Strategic Resource for Continual Learning Innovation
580404 - Convert Information to Knowledge Integrate Time Information Context
580406 - Continual learning generates new knowledge by capturing experience as
580407 - a strategic resource of organizational memory and adding intelligence
580408 - that shows chronology of cause and effect based on the context of
580409 - objectives, requirements and commitments. This process of continual
580410 - learning routinely creates knowledge of history that Drucker recounts
580411 - in his book as "lessons learned," except on a larger scale.
580413 - [...on 931130 Drucker expressly cites critical role of "study" to
580414 - make management assets continually productive in the future.
580415 - ref SDS 0 WX7W
580417 - ..
580418 - [On 011102 organizational learning developed by Senge antecedent to
580419 - Knowledge Management based on studies of building aircraft during
580420 - WWII, and later an article published in 1962 that won a Nobel Prize
580421 - on improving productivity through learning and experience.
580422 - ref SDS D6 M25K
580424 - ..
580425 - SDS enables a new way of working using an "intelligence" process
580426 - explained in POIMS, ref OF 2 6649, that connects "information" into
580427 - chains of chronology to create "knowledge" of cause and effect. see
580428 - also spreadsheet for knowledge on 931008. ref SDS 24 9995
580430 - ..
580431 - Stated another way, "SDS supports the mental process of converting
580432 - information into knowledge." This process creates continuing history
580433 - that provides an expanding resource which aids the process.
580435 - ..
580436 - This implies "information" is inert until it is connected into context
580437 - of history, objectives, requirements and commitments; then information
580438 - becomes " "knowledge," or what we call "experience," that guides daily
580439 - work, per review of Jeromy Campbell's book on the theory of on human
580440 - cognition, reviewed on 900303. ref SDS 8 3002
580442 - ..
580443 - "Intelligence process" is a core competency for improving
580444 - communication, discussed below. ref SDS 0 2562
580446 - [See support for role of experience in expediting learning at
580447 - ref SDS 68 8888, from Landauer's work.]
580449 - ..
580450 - See below on "communications" and Communication Metrics at ref SDS 44
580451 - 6007; Case Studies and Continual Learning at ref SDS 51 8301; ISO
580452 - 10006 at ref SDS 49 2846.
580454 - ..
580455 - See "Continual Learning" Tofflers at ref SDS 54 2222, Hammer's
580456 - reengineering ideas at ref SDS 53 2248. Executive skills at learning
580457 - at ref SDS 36 3381.
580459 - ..
580460 - Listening skills are essential to learning is at ref SDS 34 4485, and
580461 - ref SDS 34 4338, and with Dialogos, ref SDS 66 5549 and also at
580462 - ref SDS 66 0700.
Continual Learning Core Competency Task Responsibility Practice Knowl
Making Business of Tomorrow Cannot Be Flash of Genius Future Innovati
Entreprenuship through Innovation Only Source of Survival Solutions t
Innovation Define Endowing Human and Material Resources with New and
10X Improvement Required to Justify Adopting Innovation to Replace Ex
Innovation Not Flash of Genius Innovation Only Source of Survival Sol
Innovation Define Endowing Human and Material Resources with New and
701001 - ..
701002 - 10X Improvement Justifies Adopting Innovation
701003 - Investing Enables Continual Improvement through Innovation
701004 - Management is Innovation - Making the Business of Tomorrow
701005 - Innovation Derived from Allocating Excess Earnings, i.e., Profit
701007 - Entrepreneurship through innovation enables business to be successful
701008 - in the future. Making the business of tomorrow cannot be a flash of
701009 - genius. It requires investment, analysis and hard, rigorous work.
701010 - Thus, inherent in the managerial task is entrepreneurship. ref OF 5
701011 - 0580 "Innovation" in business products, methods, and practices takes
701012 - investing sunshine profits to discover cost effective improvements
701013 - through experience, study, experimentation, trial and error, per
701014 - below. ref SDS 0 WX7W
701016 - [On 130427 1038 Open Colleges offers 18-month e-learning
701017 - advanced education program for certificate in project
701018 - management; applies Tofflers vision of continual learning
701019 - with training and support. ref SDS G2 XQ5L
701021 - ..
701022 - Drucker also argues that an innovation must be 10 times better than
701023 - existing methods in order to justify the cost of making a change.
701025 - [On 931215 SDS improves some tasks by a factor of 10.
701026 - ref SDS 31 TB9H
701028 - [On 971008 USACE issued report showing cost savings from using
701029 - SDS is in the range of 10:1. ref SDS 86 5775
701031 - ..
701032 - [On 020223 Gary says consultants should propose only 10%
701033 - improvement to avoid making customer feel incompetent.
701034 - ref SDS D9 U63J
701036 - ..
701037 - [On 020304 Jill Acree with the Drucker Center at Claremont
701038 - College is researching the Drucker archives for the source for
701039 - Drucker's argument. ref SDS E0 0001
701041 - ..
701042 - [On 040615 case study to prepare filing for SDS standard on
701043 - organizational memory and intelligence support demonstrates
701044 - resistance to change requiring significant gain in order to
701045 - encourage people to retool skills. ref SDS F4 QW6U
701047 - ..
701048 - Drucker's explanation of "innovation" for developing new ideas to
701049 - invent new products and theories from investing in analysis is enabled
701050 - by SDS to strengthen human intelligence.....
701052 - Innovation can be defined as the task of endowing human and
701053 - material resources with new and greater wealth-producing capacity.
701054 - ref OF 6 0430
701056 - [On 960301 discussed role of management. ref SDS 64 5967]
701058 - ..
701059 - [On 990527 Christensen points out in the Innovator's Dilemma
701060 - economic and cutlural forces that inhibit innovation in
701061 - established organizations. ref SDS A6 9711 and ref SDS A6 4077
Cognitive Science Ignorant Meaning Drift Information Overload Not So
Murphy's Law Mistakes Relying on Common Sense Paradigms Compounded b
Information Different from Knowledge Immediate Rewards, Knowledge De
Long Way Around Short Way There Intellectul Capital Intelligence Org
Productivity of Knowledge Work Undefined in Liturature
Quality Best Measure of Management Productivity
910901 - ..
910902 - Substitute Brain for Brawn
910903 - Investing Intellectual Capital Yields Organizational Memory
910904 - Knowledge Drives Productivity Experience Writing Increase Knowledge
910905 - History Shows Lessons Learned that Give Guidance for the Future
910907 - Drucker states on page 68...
910909 - The basic factor in an economy's development must be the rate of
910910 - "brain formation," the rate at which a country produces people
910911 - with imagination and vision, education, and theoretical and
910912 - analytical skills. ref OF 6 5822
910914 - ..
910915 - Below, he explains importance of analysis, and that this is
910916 - essential for converting information into useful knowledge,
910917 - ref SDS 29 4496, but also notes people have given up trying to
910918 - improve communication because there isn't enough time for
910919 - analysis. ref SDS 29 3851
910921 - [On 960103 executives rely on style because there isn't
910922 - enough time to understand content. ref SDS 58 8409
910924 - ..
910925 - However, the planning, design, and installation of capital
910926 - equipment is only a part of the increase in productivity through
910927 - the substitution of brain for brawn. At least as important is the
910928 - contribution made through the change in the character of work from
910929 - one requiring the manual labor, skilled and unskilled, of many
910930 - people, to one requiring theoretical analysis and conceptual
910931 - planning without any investment in capital equipment.
910933 - ..
910934 - Drucker says on page 69 that productivity is increased by innovation
910935 - substituting brain (knowledge and planning) for brawn. This overturns
910936 - the 18th century model of manual labor as the primary productive
910937 - resource, by ref OF 6 5080
910939 - [On 040312 lectures on the locality principle present the
910940 - power of knowledge derived from connecting cause and effect
910941 - under the 2nd law of thermodynamics. ref SDS F2 YH4G
910943 - ..
910944 - The same point is made on page 454. ref OF 6 1228
910946 - ..
910947 - Drucker says "knowledge" is a primary source of productivity, see at
910948 - ref OF 6 5081, and cited above, ref SDS 0 7720, and that "quality" is
910949 - the best measure of productivity, ref OF 6 2721, reflecting analysis
910950 - below. ref SDS 0 3416
910953 - ..
910954 - Working Smarter Not Harder than Grandfather
910955 - Knowledge Work Ultimate Craft of Civilization
910956 - Grandfather Worked Hard Civilization Advances by Working Smart
910958 - To illustrate the march of civilization substituting brain for brawn,
910959 - discussed above, ref SDS 0 2134, on page 72 Drucker offers historical
910960 - perspective for using "intelligence" that demonstrates civilization
910961 - advances under new realities of a new world order, noted below,
910962 - ref SDS 0 1855, by switching from hard work to knowledge work...
910964 - ..
910965 - Today's accountant or engineer does not make a better living than
910966 - his grandfather on the farm because he works harder. He works
910967 - far less hard.
910969 - [...below, Drucker says work improves doing things differently
910970 - rather than working harder to do the same things better.
910971 - ref SDS 0 1DW2
910973 - ..
910974 - Nor does he deserve a better living because he is a better man.
910975 - He is the same kind of human being as grandfather was, and
910976 - grandfather's grandfather before him. He can be paid so much more
910977 - and yet work so much less hard because the capital investment in
910978 - him and his job is infinitely greater than that which financed
910979 - his grandfather's job in 1900, when grandfather started, capital
910980 - investment per American farmer was at most S5,000. To create the
910981 - accountant's or engineer's job, society first invests at least
910982 - $50,000 in capital and expenses for school and education. And
910983 - then the employer invests another $25,000 to $50,000 per job. All
910984 - of this investment that makes possible both additional and better
910985 - jobs has to come out of the surplus of economic activity, that
910986 - is, out of profits. ref OF 6 6932
910988 - ..
910989 - Drucker's example of applying knowledge to replace hard work on the
910990 - farm aligns with grandfather resisting transformation from horses to
910991 - tractors in the 1920s, reported on 921217. ref SDS 21 8930
910993 - ..
910994 - [On 950426 farming shows power of investing. ref SDS 44 4404
910995 - Executive training consultant advocates hiring smarter
910996 - people, rather than enabling people to work intelligently.
910997 - ref SDS 44 2394
910999 - ..
911000 - [On 980808 manager uses "hard work" to solve information
911001 - overload. ref SDS 95 3379]
911003 - ..
911004 - [On 990311 "warrior" seeks challenge of working "harder"
911005 - rather than "intelligently." ref SDS A0 6000]
911007 - ..
911008 - "Working smarter" not harder requires technology that automates and
911009 - integrates tasks, so more can be done in less time with fewer
911010 - mistakes, per POIMS.
911012 - ..
911013 - Drucker says on page 33 that productivity of "Knowledge work" (e.g.
911014 - managers) is undefined in the literature. ref OF 6 6296
911016 - ..
911017 - Numerous case studies that Drucker uses throughout the book to suggest
911018 - principles and rules for guiding daily managemnt show personal
911019 - commitment to study and understand the lessons of history and
911020 - experience in order to continually grow useful knowledge.
911022 - SDS enables continuous case studies that enable continual learning
911023 - to grow knowledge, per above. ref SDS 0 5820
911025 - [On 950721 ISO criteria call for continual learning to improve
911026 - management. ref SDS 48 2846
911028 - ..
911029 - [On 950721 ISO calls for investing time to "connect the dots"
911030 - of cause and effect; an audit trail showing traceability to
911031 - original sources aligns work with objectives, requirements, and
911032 - commitments to discover correlations, implications, and nuance
911033 - that effect results. ref SDS 48 1740
911035 - ..
911036 - [On 040312 power of knowledge controls the future with energy
911037 - from connecting cause and effect, based on the irreversability
911038 - of time; ignoring the locality principle under the 2nd law of
911039 - thermodynamics increases entropy that transforms control into
911040 - disorder, chaos, conflict, crisis, and calamity. ref SDS F2
911041 - YH4G
911043 - ..
911044 - For example, Drucker cites Sears' success pioneering mail-order
911045 - catalog sales to farmers at the turn of the century, to draw lessons
911046 - on innovative marketing technology. ref OF 5 0517
911048 - [On 991025 he cites e-commerce as the big pay-off for the Internet
911049 - as an electronic bill board, or sales catalog, emulating the Sears
911050 - story. ref SDS B5 5092]
911052 - ..
911053 - Drucker decrys people giving up on communication because information
911054 - overload makes the problem hard to solve. ref SDS 0 3851 Yet he fails
911055 - to suggest that managers apply the core of Drucker's work practice,
911056 - making information from communication useful by adding the context of
911057 - history. Without organizational memory connected to relevant history
911058 - showing cause and effect of contextual subjects, there can never be
911059 - adequate understanding to plan and carry out the work, as Drucker
911060 - advocates below. ref SDS 0 EW6I
911062 - ..
911063 - POIMS argues that productivity arises from knowledge by
911064 - integrating "time" with a greater emphasis on the strong force of
911065 - knowledge (mathematical analysis and its linguistic equivalent of
911066 - writing "linked" into patterns of context that yield consistent
911067 - lessons or rules about cause and effect); rather than the weak
911068 - force of conversation and hunch, i.e., guess and gossip, which is
911069 - the staple of most organizations.
911071 - [On 960321 "gussing" is the process of cognition in "knowledge"
911072 - formulation that connects information into patterns of cause
911073 - and effect, according to the paper by Tom Landauer that
911074 - explains "induction." ref SDS 68 7382 Experience improves the
911075 - accuracy of guessing. ref SDS 68 4537]
911077 - ..
911078 - On 930112 writing evolved about 5,000 years ago as a means to
911079 - improve "guessing" by preserving patterns of cause and effect,
911080 - i.e., "knowledge," established by experience. ref SDS 23 3443
911082 - ..
911083 - Therefore, better productivity of knowledge work likely requires
911084 - better use of writing.
911086 - [On 950204 SDS has a lot of firepower to make better use of
911087 - writing. ref SDS 43 4995]
911089 - ..
911090 - Feel Good management prefers conversation to writing, reported on
911091 - 911123. ref SDS 14 1331
911094 - ..
911095 - Rework Avoided by Accurate Understanding Increases Productivity
911096 - Quality Measures Management Productivity - TQM, Accuracy
911097 - Productivity Knowledge Work Mainly Quality, Accuracy Avoids Rework
911099 - Drucker holds that...
911101 - Productivity with respect to the knowledge worker is, in other
911102 - words, primarily quality. ref OF 6 2721
911104 - ...where "knowledge work" is the primary source of productivity and
911105 - earnings, per above. ref SDS 0 7720
911107 - ..
911108 - Drucker says analysis is the principle practice of mangement that
911109 - enables innovation essential for success. ref SDS 29 7911 Drucker
911110 - further says analyis requires study, experiement, trial and error, per
911111 - above, ref SDS 0 8955, to accurately understand the sequence of work
911112 - history, because "connecting the dots" of cause and effect yield the
911113 - power of knowledge for predicting the future. ref SDS 29 4496 Thus,
911114 - accuracy of decisions measures the quality of management that drives
911115 - productivity, and is achieved with alignment for understanding
911116 - causation that controls future consequences.
911118 - ..
911119 - [On 040312 the locality principle derives the power of
911120 - knowledge from energy that connecting cause and effect
911121 - under the 2nd law of thermodynamics. ref SDS F1 YH4G
911123 - ..
911124 - Supports fabled risk management practice of accuracy for Hansel and
911125 - Gretel being prepared to find a way back (home) to original source by
911126 - creating an audit trail.
911128 - [On 950721 ISO management standards call for process of
911129 - traceability to original sources that "connect the dots"
911130 - from the chain of causation, verify accuracy from the
911131 - weight of evidence, and disclose context from related
911132 - history. ref SDS 48 1740
911134 - ..
911135 - This supports idea of the "hare and tortoise"...
911137 - ..
911138 - Long Way Around Short Way There - Accuracy Avoids Rework
911140 - The "long way around is the short there," means good management
911141 - practices used consistently, as explained during Cal seminar on
911142 - 921021, ref SDS 19 5624, and, also, ref SDS 19 8187, which was
911143 - supported by Covey's work reviewed on 921205, ref SDS 20 6013,
911144 - greatly increase the chance of making a correct decision, relative
911145 - to the results from taking shortcuts that lead to endless cycles
911146 - of correcting mistakes, called "rework", see again Cal Tech on
911147 - 921021, ref SDS 19 8677, review of Stephen Covey on 921205,
911148 - ref SDS 20 1558 and also a compelling article on Risk Management
911149 - on 940523, ref SDS 37 4821.
911151 - [On 971008 USACE reports SDS reduces rework that improves
911152 - productivity by improving quality of management. ref SDS 83
911153 - 1273
911155 - ..
911156 - Below, Drucker cites accounting as strongest information technology
911157 - for management, ref SDS 0 L78J, because accountability is essence of
911158 - productive enterprise. ref SDS 0 NR5I
911160 - ..
911161 - However, TQM practitioners and Drucker both leave open the question of
911162 - how to accomplish better quality under the pressures of modern
911163 - business life, which Drucker says arises from the explosion of
911164 - information overload caused by technology. ref SDS 0 TP7F
911166 - [On 940609 Kissinger bomoans management is Alice in Wonderland
911167 - of continual bumbling, because executives do not have time for
911168 - analysis. ref SDS 40 4238
911170 - ..
911171 - [On 970910 executives do not have time to think. ref SDS 83
911172 - 3479
911174 - ..
911175 - The allure of "feel good" management taking immediate action, called
911176 - "expediting," through conversation, personal recall and intuition, as
911177 - explained on 911123, ref SDS 14 1331, arises because acting on impulse
911178 - is easy, quick and sometimes works, or at least does not appear to
911179 - cause failure at the moment, as explained in POIMS, ref OF 2 MQ6J,
911180 - because mistakes caused by misunderstanding in communication are
911181 - deferred, i.e., significantly removed in time, from causation (see Cal
911182 - Tech seminar on 921021, ref SDS 19 7486 and ref SDS 19 3452).
911184 - [On 940820 "debugging" project management at PG&E seems faster
911185 - and easier than debugging a computer. ref SDS 42 5588
Information Overload New Reality Requires Investing Time for Analysis
930401 - ..
930402 - Time Critical Factor for Good Management to Perform Analysis
930403 - Information Overload New Reality Reduces Productivity
930404 - Overeating in Candy Store Foraging on Information Reduces Productivity
930405 - Converting Information into Knowledge Improves Productivity
930407 - The most productive -- or least productive -- time is that of the
930408 - manager himself. Yet it is usually the least known, least analyzed,
930409 - least managed of all factors of productivity. ref OF 6 4006
930411 - ..
930412 - Drucker addresses limited time and limited span of attention only
930413 - indirectly, states page 70...
930415 - Then there is time -- man's most perishable resource. Whether men
930416 - and machines are utilized steadily or only half the time will make
930417 - a difference in their productivity. There is nothing less
930418 - productive than idle time of expensive capital equipment or wasted
930419 - time of highly paid and able people. Equally unproductive may be
930420 - cramming more productive effort into time than it will comfortably
930421 - hold--for instance, the attempt to run three shifts in a congested
930422 - plant or on old or delicate equipment. ref OF 6 4226...
930424 - ..
930425 - The most productive -- or least productive -- time is that of the
930426 - manager himself. Yet it is usually the least known, least
930427 - analyzed, least managed of all factors of productivity.~
930429 - ..
930430 - The reason for this is that "managers" direct and pay for efforts to
930431 - automate production work, without realizing that as such work becomes
930432 - more productive by requiring fewer people, then management work of
930433 - planning, directing, communicating and obtaining information becomes a
930434 - larger factor of net productivity.
930436 - ..
930437 - Drucker overlooks automating "management tasks" to get more done in
930438 - less time with fewer mistakes. The integration of "time" and
930439 - "information" is a new and powerful tool that leverages human capacity
930440 - to create new knowledge.
930442 - [On 000319 time critical factor building chronologies of cause
930443 - and effect that enable memory for reasoning. ref SDS 9 0005
930445 - ..
930446 - The malady Drucker recognizes in crowding too much activity into a
930447 - plant or overloading equipment also applies to managers. What seems
930448 - like increasing productivity by increasing "communications" (e.g. fax,
930449 - email, celluar phones), actually reduces it, as explained at
930450 - ref SDS 23 line 200, and applied in defining POIMS, ref OF 2 line 14
930451 - and ref OF 2 line 119.
930453 - ..
930454 - Drucker does not discuss an "intelligence" process for management to
930455 - add metrics to "communications" by writing understandings, and linking
930456 - to discover alignment with objectives, requirements and commitments,
930457 - as called out in POIMS.
930459 - [On 991026 Drucker wrote a piece in Atlantic Monthly that
930460 - supports need for technology to support cognition in order to
930461 - improve management. ref SDS B3 0836 and ref SDS B3 8925]
930463 - ..
930464 - [On 960227 automated process was defined to support knowledge,
930465 - wisdom, vision. ref SDS 61 9402; however, executives prefer to
930466 - work by conversation. ref SDS 61 2004]
930468 - ..
930469 - [On 970418 U.S. Army Corps of Engineers issued report that SDS
930470 - supports Communication Metrics for organizing and analysing
930471 - information to produce "intelligence." ref SDS 74 5368]
930473 - ..
930474 - Drucker's personal work practice, noted above, reflects commitment to
930475 - understanding experience in order to improve knowledge that is
930476 - essential for effective management. ref SDS 0 0756
930478 - ..
930479 - Drucker recognizes that defining a manager's job is strengthened by
930480 - considering multiple factors that triangulate each role in relation
930481 - to others.
930483 - ..
930484 - POIMS explains SDS enables people to continually triangulate the
930485 - record in order to refine accuracy of knowledge based on organization,
930486 - analysis, alignment, summary and feedback as a "double entry" process
930487 - of verification that "debugs management," similar to double entry
930488 - bookkeeping. ref OF 2 1108
930492 - ..
930493 - Alphabet Technology Most Advanced Scientific Management
930494 - Feedback Continual Process Refine Accuracy Knowledge Work
930495 - Knowledge Management Capture Record Feedback Refine Accuracy
930497 - Drucker seems to recognize that people need time for capturing
930498 - experience in personal and organizational memory, and for analysis to
930499 - add "intelligence" that converts daily working information into
930500 - knowledge, as explained in POIMS. ref OF 2 6649
930502 - ..
930503 - On page 182 Drucker says...
930505 - "As with every phenomenon of the objective uniervse, the first
930506 - step toward understanding work is to analyze it. This, as
930507 - Taylor realized a century ago, means identifying the basic
930508 - operations, ...and arranging them in logical, balanced and
930509 - relational sequence."
930511 - ..
930512 - "The outline which the budding writer is being told to work
930513 - out, before he starts to write, is in effect scientific
930514 - management. And the most advanced, most perfect example of
930515 - scientific management was not developed by industrial engineers
930516 - during the last hundred years. It is the alphabet, which
930517 - enables all words in a langauge to be written with a very small
930518 - number of repetitive and simple symbols."
930520 - [On 991108 the alphabet is an explosive technology that
930521 - revolutionalized culture to enable civilization by making
930522 - people superhuman with a complete solution to the problem
930523 - of fixed mental biology operating in a world of expanding
930524 - complexity. ref SDS B7 5628
930526 - ..
930527 - Work has to be synthesized into a production process. The
930528 - Gnatt Chart developed during World War I identifies timing,
930529 - sequence, and dependencies of steps in a process to achieve
930530 - results, whether making shoes, landing a man on the moon, or
930531 - producing an opera. PERT, critical path, and network analysis
930532 - extend Gnatt's scientific management concept of syntheses to
930533 - devise work process.
930535 - ..
930536 - Drucker continues on page 183...
930538 - Knowledge work needs a feedback mechanism to recognize
930539 - deviations in time to make changes that yield desired results.
930541 - Analysis, synthesis (process), and feedback are particularly
930542 - important in knowledge work.
930544 - ..
930545 - On page 482 Drucker notes that data is transformed (he says "redound")
930546 - into information and then into knowledge. Abundance of information
930547 - prevents communication because there is not enough time for analysis,
930548 - discussed below. ref SDS 29 7911 Professionals and executives, in
930549 - fact, everyone feels the urge to continually consume information, very
930550 - much like the little boy who overeats when left alone in the candy
930551 - store. Every manager, every executive is overcome by an information
930552 - explosion. ref OF 7 7492
930554 - [On 040620 seminar on Knowledge Management proposes substitute
930555 - conversation for linear, mechanistic, analysis, i.e., literacy.
930556 - ref SDS F5 PX6M
930558 - ..
930559 - This distinction arises from the biology of the brain, as explained by
930560 - Jeremy Campbell in his book "The Improbable Machine," reviewed on
930561 - 900303. ref SDS 8 0000.
930563 - ..
930564 - POIMS explains constant foraging on information crowds out time for
930565 - converting information into useful knowledge. ref OF 2 2049
930567 - ..
930568 - New reality of information overload requires a new kind of technology
930569 - and a new work role. described below, ref SDS 0 1855
930571 - [On 940609 distinguish SDS from overwhelming demand for
930572 - information from conversation and pictures. ref SDS 40 4671
930574 - [On 960304 IT industry creates information overload under
930575 - theory that more and faster transmission of information
930576 - improves understanding, i.e., strengthens the quality of
930577 - management communication. ref SDS 65 SO4K
930579 - ..
930580 - [On 960326 Landauer's paper on knowledge acquisition explains
930581 - information needs to be converted into knowledge. ref SDS 69
930582 - 5689.]
930584 - ..
930585 - [On 960510 developed organic structure of consciousness that
930586 - demonstrates the conversion process Drucker cites, which is
930587 - supported by POIMS technology. ref SDS 72 5672]
930589 - ..
930590 - [On 970829 management text cites "information overload." see
930591 - ref SDS 82 2878]
930593 - ..
930594 - [On 980412 CBS News reported on 60 Minutes that more
930595 - information reduces time to think that is essential for the
930596 - human mind to produce useful knowledge. ref SDS 94 2025]
930598 - ..
930599 - [On 970818 Max Wideman observed managers do not have enough
930600 - time for "front end investment," which is another name for
930601 - analysis. ref SDS 79 1897]
930603 - ..
930604 - [On 970910 PMI dinner meeting expert reports executives do not
930605 - have enough time to think. ref SDS 81 2139]
930607 - ..
930608 - [On 980405 Morris suggested segmenting analysis from "facts"
930609 - ref SDS 91 2156]
930611 - ..
930612 - [On 980803 Max Blodgett at USACE notes managers have drifted
930613 - away from practice of written analysis. ref SDS 94 4192]
930615 - ..
930616 - [On 980807 managers do not have enough time for analysis
930617 - because their day is too hectic handling problems; believe
930618 - information overload is solved by hard work. ref SDS 96 4140]
Long Way Around is Short Way to Success,
Buy Off Mistakes Rather than Fix with SDS
Sunshine Profits Invest to Prepare for
Definition - Technology
Technology Can Support Organized Human
Information Overload Entropy Not Enough Time to Think Cursory Analysi
Management Productivity Knowledge Drucker Context Time Chronologies S
Invest Sunshine Profit for Making Business of Tomorrow Cannot Be Flas
AE1101 - ..
AE1102 - Management Productivity Primary Source of Competitive Advantage
AE1103 - Customers Purpose of Business, Invest Sunshine Profits to Innovate
AE1104 - Innovation Invests Profits to Create New Customers with New Technology
AE1105 - Sunshine Profits Buy-off Mistakes for Limited Time Innovation Critical
AE1107 - Drucker encourages people to ask "What is our business," and notices
AE1108 - that the purpose of a business is to create a customer. ref OF 6 2852
AE1110 - ..
AE1111 - Innovation, being an early mover in a new market, patent protections
AE1112 - and the like provide insulation from bad management for awhile, but
AE1113 - does not last forever. This requires investment of time and money for
AE1114 - analysis to innovate solutions that customers need, and to convert
AE1115 - that need into a desire and opportunity to buy, called a market, per
AE1116 - below. ref SDS 0 7911 Money to pay for innovation comes from profit,
AE1117 - which implies continual investment for renewal. Therefore, a big
AE1118 - responsibility of management is to wisely invest a portion of profit
AE1119 - into innovation to maintain competitive advantage and create new
AE1120 - customers, rather than hope for a static market, where people will
AE1121 - continue to want the same solutions forever. ref SDS 0 8955
AE1123 - [On 980307 Andy Grove cites advantage of leadership for early
AE1124 - movers to shape new markets. ref SDS 89 N14G
AE1126 - ..
AE1127 - [On 010123 wireless telecom industry going bankrupt because failed
AE1128 - to develop technology that improves productivity. ref SDS D1 WG8O
AE1130 - ..
AE1131 - Drucker says that the task of a business is to make resources
AE1132 - productive, ref OF 6 1845; he therefore maintains that "productivity"
AE1133 - is the first test of management competence, ref OF 6 4119, because
AE1134 - managers, rather than direct labor, which is a popular view, are the
AE1135 - engine of productivity, ref OF 6 5081, explained below citing
AE1136 - "analysis" as the primary responsibility of management. ref SDS 0 7911
AE1138 - [On 960301 discussed managers and productivity with Morris.
AE1139 - ref SDS 64 5040
AE1142 - ..
AE1143 - Good Management Only Way to Maintain Good Results
AE1145 - Drucker notices that all businesses have about the same resources and
AE1146 - that competitive advantage due to patent protection for invention is
AE1147 - short-lived. He argues that the quality of management using good work
AE1148 - practices enable continual innovation through study, experiment,
AE1149 - analysis, trial and error, per above, ref SDS 0 R96M, which is the
AE1150 - only lasting competitive advantage in the market place. ref OF 6 4119
AE1152 - ..
AE1153 - This aligns with Stephen Covey's point that sustained success requires
AE1154 - good work practices, reviewed on 921205. ref SDS 21 2229 and on good
AE1155 - habits, ref SDS 21 4803
AE1157 - [On 030410 Morris recalled commentary during professional event
AE1158 - that most companies rarely last more than a few generations
AE1159 - because there is no commitment to good management. ref SDS F0 LA6I
AE1161 - ..
AE1162 - [On 040312 laws of nature yield order, structure, pattern
AE1163 - of cause and effect for logical analysis, ref SDS F2 RP6K;
AE1164 - locality principle requires adding energy to connect cause
AE1165 - and effect that converts information into the power of
AE1166 - knowledge; Knowledge Management takes a lot of hard work
AE1167 - (i.e., energy) without tools for intelligence support;
AE1168 - without "knowledge," however, information overload drives
AE1169 - management toward entropy, which makes email a "killer
AE1170 - application" that kills productivity, from lectures on 21st
AE1171 - century science. ref SDS F2 YH4G
AE1173 - ..
AE1174 - Cite in POIMS on need for improving management. ref OF 2 22G4
AE1176 - [On 980313 Reuters wire report that price of PCs has dropped below
AE1177 - $1K, which reflects Drucker's point about leveling force of
AE1178 - competitive markets. ref SDS 91 1331]
AE1180 - ..
AE1181 - Effectiveness is discussed on page 46 noting that 10 - 15 percent of
AE1182 - activity like products, orders, customers, people, produce 80 to 90
AE1183 - percent of the results. The other 85 to 90 percent of activity, no
AE1184 - matter how efficiently take care of, produce nothing but costs...
AE1185 - ref OF 5 6P5I
AE1187 - ..
AE1188 - Below, he says investing for continuous innovation to improve
AE1189 - productivity is critical. ref SDS 0 3709 and ref SDS 0 8955
AE1191 - [On 950924 creativity defined by Hofstadter. ref SDS 55 1683]
AE1193 - [On 951010 Bill Walsh cites consistent use of good work practices
AE1194 - enhances chance of having "good" luck, and remaining competitive.
AE1195 - ref SDS 57 9558]
AE1197 - ..
AE1198 - [On 990527 "Innovator's Dilemma" explains need to continually
AE1199 - invest "sunshine profits" to discover new opportunities, rather
AE1200 - than maintian status quoe. ref SDS A6 0738]
AE1202 - ..
AE1203 - [...executive feels innovator should pay company to evaluate
AE1204 - innovation that improves productivity. ref SDS A6 5672]
AE1206 - ..
AE1207 - [On 000116 Morris explains investing to pilot test innovations for
AE1208 - improving productivity is "risky." ref SDS B9 0627]
AE1210 - ..
AE1211 - [.... Morris indicated Drucker's recommendation to invest in
AE1212 - discovering innovation is incorrect. ref SDS B9 0300]
AE1214 - ..
AE1215 - Certain monopoly situations, such as military spending charged with
AE1216 - national survival, are permitted to buy-off management mistakes. A
AE1217 - good economy and opening of new markets provide "sunshine" profits
AE1218 - that reduce efforts to improve management. "Feel good" management on
AE1219 - 911123, ref SDS 14 1331, causes focus on avoiding accountability,
AE1220 - rather than doing a good job to reduce cost. Insurance is another
AE1221 - vehicle for avoiding accountability. But, for the most part, an
AE1222 - enterprise subject to market competition must invest in the means to
AE1223 - achieve superior management, as the best source of survival.
AE1225 - [On 931223 Deming, who developed TQM, had to leave the country to
AE1226 - get his ideas tested and deployed, because no one thought was
AE1227 - concerned about cost savings in a good economy. ref SDS 32 9765]
AE1229 - ..
AE1230 - [On 950721 ISO management standards call for accountability and
AE1231 - traceability to original sources. ref SDS 48 2221, ref SDS 48 1740
AE1233 - ..
AE1234 - [On 980405 managers fear accountability. ref SDS 92 5065]
AE1236 - ..
AE1237 - [On 990425 cost savings are not an inducement to improve
AE1238 - management when managers can buy off mistakes. ref SDS A4 6410]
Technology Art Craft of Organized Human Activity Management is a Tech
Accounting Double Entry Bookkeeping Strongest Information Technology
Management Technology Accounting Double Entry Bookkeeping Strongest S
Accounting Best Information Technology and Management System for Mana
AZ0701 - ..
AZ0702 - Accounting Management Technology Suppressed by Fear Accountability
AZ0703 - Fear Accountability Prevents Good Management Working Intelligently
AZ0705 - Drucker observes in his earlier release "The Practice of Management"
AZ0706 - Asia Press 1969 p. 69 that...
AZ0708 - ...technology is the art, craft or science of any organized human
AZ0709 - activity.
AZ0711 - ..
AZ0712 - [On 940125 concern that POIMS is not a technology, defined
AZ0713 - POIMS technology in relation to Drucker's formulation.
AZ0714 - ref SDS 33 9562]
AZ0716 - ..
AZ0717 - [On 960301 discussed with Morris concern that technological
AZ0718 - advantage eventually is overtaken by market forces.
AZ0719 - ref SDS 64 5945]
AZ0721 - ..
AZ0722 - [On 970728 discussed technological or other advantage provides
AZ0723 - sunshine profits, or monopoly or exceptional high risk work
AZ0724 - can enable management to "buy-off" its mistakes. ref SDS 80
AZ0725 - 1144]
AZ0727 - ..
AZ0728 - [On 980307 Andy Grove's book "Only the Paranoid Survive" cites
AZ0729 - need for strong firms to avoid becoming overtaken by change
AZ0730 - due to inertia of success. ref SDS 89 3740]
AZ0732 - ..
AZ0733 - Accounting, double entry bookkeeping, cost and schedule control, like
AZ0734 - C/SCSC are management technologies.
AZ0736 - [On 980101 Drucker argued accounting and double entry bookeeping
AZ0737 - are the best information technologies for management, and that
AZ0738 - principles of accounting need wider application to improve
AZ0739 - management communications. ref SDS 88 0627
AZ0741 - ..
AZ0742 - Accounting is one of a critical mass of integrated tasks supported by
AZ0743 - SDS, as explained in POIMS. ref OF 1 8936
AZ0745 - ..
AZ0746 - SDS enables an audit trail by adding alignment using traceability to
AZ0747 - orginal sources that adds intelligence to management, as explained in
AZ0748 - POIMS. ref OF 1 CZ8O and ref OF 1 4662
AZ0750 - [On 960313 accounting analogy explained. ref SDS 67 1568
AZ0752 - ..
AZ0753 - SDS facilitates a "double entry" process of capturing organizational
AZ0754 - memory and adding intelligence to verify accuracy that refines
AZ0755 - understanding of new information in relation to history, objectives,
AZ0756 - requirements and commitments. see POIMS, ref OF 1 3084
AZ0758 - ..
AZ0759 - Accounting practices applied by SDS to manage information provide
AZ0760 - intelligence for understanding the micrososm of daily details like a
AZ0761 - powerful microscope that sees small formations occurring that lead to
AZ0762 - problems, solutions and opportunities, as explained in NWO.
AZ0763 - ref OF 3 4925 and ref OF 3 5846
AZ0765 - ..
AZ0766 - Drucker does not explain how to overcome ignorance, fear and denial
AZ0767 - that prevents accountability from providing intelligence needed to be
AZ0768 - effective, as explained in POIMS. ref OF 2 4079 On 911130 Supreme
AZ0769 - Court Justice Mosk concerned people destroy intellectual capital
AZ0770 - because people fear accountability more than they desire to improve
AZ0771 - the work. ref SDS 15 0001
AZ0773 - [On 980405 people hate accountability. ref SDS 92 0001
AZ0775 - ..
AZ0776 - Drucker does not discuss how to account for costs of bad management
AZ0777 - that avoids good management practice of capturing organizational
AZ0778 - memory and adding intelligence to understand and follow up, against
AZ0779 - the long term extra cost of failed intelligence, when people fail to
AZ0780 - align daily work with history, objectives, requirements and
AZ0781 - commitments, and instead get by on style and image by reacting on
AZ0782 - impulse in the moment from consuming information. Drucker does not
AZ0783 - explain rewards from generating the knowledge resources that a
AZ0784 - knowledge worker needs using practices that Drucker advocates for
AZ0785 - analysis that creates an audit trail are inherently deferred, also,
AZ0786 - explained in POIMS....
AZ0788 - ..
AZ0789 - Deferred rewards counterintuitive............. ref OF 2 SK7L
AZ0791 - ..
AZ0792 - Knowledge rewards are at war with cost savings
AZ0793 - from relying on information in the moment..... ref OF 2 R89J
AZ0794 - ..
AZ0795 - Speech natural human reaction, not analysis...
AZ0796 - ref OF 2 5106
AZ0798 - ..
AZ0799 - How should this accounting be presented to calculate cost benefits of
AZ0800 - working intelligently using the good management practices Drucker
AZ0801 - calls out?
AZ0803 - Rework accumulates deferred expense of
AZ0804 - bad management........................... NWO, ref OF 3 6915
AZ0806 - ..
AZ0807 - [On 940611 case study cost savings evaporate when information
AZ0808 - overload causes bad management. ref SDS D5 8239
AZ0810 - ..
AZ0811 - [On 971008 US Army Corps of Engineers calculated cost of rework is
AZ0812 - 10 times greater than cost of good management implemented by SDS.
AZ0813 - ref SDS 83 5775
AZ0815 - ..
AZ0816 - [On 990912 doctors fear accountability. ref SDS B1 3416
AZ0818 - ..
AZ0819 - [On 011213 failed communciation costs $40K per day in business
AZ0820 - unit at CSG. ref SDS D7 LM4I
AZ0822 - ..
AZ0823 - [On 020204 bad management that failed to align daily work with
AZ0824 - original sources using an audit trail specified by the board of
AZ0825 - directors, caused Enron to collapse into bankruptcy. ref SDS D8
AZ0826 - EX5O
AZ0829 - ..
AZ0830 - WBS, Planning, Organizing Derived from Objectives Organic Structure
AZ0831 - Management by Objectives Primary Process Requires Accountability
AZ0832 - Objectives Primary Task of Management Implement Purpose of Business
AZ0834 - Drucker says setting objectives and organization are primary tasks
AZ0835 - of management. ref SDS 0 4320
AZ0837 - SDS applies accounting practices to create organic structure for
AZ0838 - understanding and managing the context of daily work under MBO
AZ0839 - principles, also explained in POIMS. ref OF 1 1110
AZ0841 - ..
AZ0842 - Drucker explains objectives and accountability.....
AZ0844 - If objectives are only good intentions they are worthless. They
AZ0845 - must degenerate into work. And work is always specific, always
AZ0846 - has--or should have--clear, unambiguous, measurable results, a
AZ0847 - deadline and a specific assignment of accountability. ref OF 6
AZ0848 - GV5J
AZ0850 - ..
AZ0851 - But objectives that become a straitjacket do harm. Objectives are
AZ0852 - always based on expectations. And expectations are, at best,
AZ0853 - informed guesses. Objectives express an appraisal of factors that
AZ0854 - are largely outside the business and not under its control. The
AZ0855 - world does not stand still. ref OF 6 081W
AZ0857 - ..
AZ0858 - Objectives are not fate; they are direction. They are not
AZ0859 - commands; they are commitments. They do not determine the future;
AZ0860 - they are means to mobilize the resources and energies of the
AZ0861 - business for the making of the future. ref OF 6 09U1
AZ0863 - ..
AZ0864 - ...and citing a case study on objectives and accountability....
AZ0866 - ....converted objectives into work assignments. [set] results and
AZ0867 - contributions ...needed in each objectives area. ...assigned
AZ0868 - responsibility for these results to someone ...held ...
AZ0869 - accountable. ref OF 6 GS8I
AZ0871 - ..
AZ0872 - Thus, Drucker recognizes complexity impacts planning and further that
AZ0873 - accountability is endemic to management.
AZ0875 - ..
AZ0876 - He recognizes, without expressly stating, organic structure by noting
AZ0877 - that objectives flow from the purpose or mission of an organization,
AZ0878 - i.e., set the big goal, then break it down into parts.
AZ0880 - ..
AZ0881 - Drucker sees "organizing" as arranging the organization chart, and
AZ0882 - defining manageable work activities, which is the planning function,
AZ0883 - e.g., WBS. ref OF 6 5828 and ref OF 6 6300
AZ0885 - ..
AZ0886 - On page 99 he discusses the power and purpose of objectives, with 5
AZ0887 - basic principles, ref OF 6 3827, and lists on page 100 the following 8
AZ0888 - primary objectives of a business. ref OF 6 4722
AZ0890 - Marketing
AZ0891 - Innovation
AZ0892 - Human Organization
AZ0893 - Financial
AZ0894 - Physical
AZ0895 - Productivity
AZ0896 - Social
AZ0897 - Profit
AZ0899 - ..
AZ0900 - [On 990615 proposal to NSF sets objective to develop primary subject
AZ0901 - structure. ref SDS A5 3844]
AZ0904 - ..
AZ0905 - Organic Subject Strucure, MBO for Enterprise Management
AZ0906 - MBO is Records Management - Organic Subject Strucure
AZ0907 - Records Management - Converts Information into Knowledge
AZ0909 - Drucker says "objectives" are the basis of work and work assignments,
AZ0910 - ref OF 6 8858,
AZ0912 - ..
AZ0913 - Drucker does not discuss the correlation between setting objectives,
AZ0914 - measuring performance, and setting up a filing system to organize
AZ0915 - information in a way that adds value by association to produce the
AZ0916 - knowledge and ideas according to established objectives. Indeed there
AZ0917 - is a natural synthesis between these factors so that each supports the
AZ0918 - other.
AZ0920 - ..
AZ0921 - Organic structure reveals the complexity of managing daily working
AZ0922 - information that is otherwise hidden by the mind's tendency to
AZ0923 - suppress complexity until problems arise. SDS technology enhances the
AZ0924 - art, craft and science of organizing, understanding and managing
AZ0925 - information. The art and craft of managing organic structure
AZ0926 - increases ability to find relevant information quickly when needed, as
AZ0927 - reviewed on 890523. ref SDS 3 SQ5L
AZ0929 - [On 000926 worry that being an "accountant" of organizational
AZ0930 - memory is too difficult using methods and technologies that people
AZ0931 - like. ref SDS C6 004M
AZ0933 - ..
AZ0934 - [On 010916 report SDS enables amazing memory with mechanisms that
AZ0935 - obviously work. ref SDS D3 0001
AZ0937 - ..
AZ0938 - [On 010916 report people cannot find anything using other systems.
AZ0939 - ref SDS D4 KA6H
AZ0941 - ..
AZ0942 - Creating organic subject structure to convert information into
AZ0943 - knowledge is difficult in a manual world, as reported on 910418,
AZ0944 - ref SDS 13 5584 "Records Management" is not a well respected function
AZ0945 - because it reveals the disjunction between the vision of theorists and
AZ0946 - the reality of poor implementation, as seen from the discussion with
AZ0947 - Frank Shultz at Cal Tech on 921021. ref SDS 19 4390
AZ0950 - ..
AZ0951 - Intelligence Supported by MBO Practices
AZ0952 - Brain Power Requires Organic Subject Structure
AZ0954 - Drucker's primary goal for organizations to use "brain power,"
AZ0955 - "brain formation" and "knowledge," ref SDS 0 7720, and ref SDS 0
AZ0956 - 4481 requires applying his call for using MBO, above, ref SDS 0
AZ0957 - 5977, to manage information through an organic subject structure.
AZ0959 - ..
AZ0960 - The most important "knowledge" managers use comes from innate human
AZ0961 - mental processing of daily work through seeing, hearing and doing
AZ0962 - tasks, mostly in meetings, calls and documents. This constant
AZ0963 - stream of information is very hard to manage because it comes from
AZ0964 - all directions and without evident structure. Traditionally,
AZ0965 - information from experience is managed solely within the mind and
AZ0966 - through filing documents, called "records management." There is no
AZ0967 - tradition in business for using intelligence because the pace of
AZ0968 - daily management does not leave time to organize, analyse, align,
AZ0969 - summarize and develop feedback loops, as noted in POIMS.
AZ0970 - ref OF 2 1850
AZ0972 - ..
AZ0973 - Limited time makes investing time to convert information into
AZ0974 - knowledge seem like overkill. Managers therefore have given up
AZ0975 - trying to improve communication, as noted by Drucker, ref SDS 0
AZ0976 - 3851, and rely on results doing the work to show understanding of
AZ0977 - communication, reported on 891205. ref SDS 7 1848 Feedback metrics
AZ0978 - that verify accurate understanding of communication to ensure work
AZ0979 - is performed correctly are avoided because a record reduces wriggle
AZ0980 - room for deniability when hasty communication to save time by
AZ0981 - expediting turns out to be defective, causing delay, loss,
AZ0982 - conflict, crisis and calamity, as reported on 890324. ref SDS 2
AZ0983 - 6894 This boils down to relying on the "gift of gab" being a "fast
AZ0984 - talker" to gain credit and avoid accountablity, rather than use the
AZ0985 - record, as explained in POIMS, ref OF 2 4079, which obviates the
AZ0986 - purpose of literacy for strengthening human memory, also, discussed
AZ0987 - in POIMS. ref OF 2 ER3G
AZ0989 - ..
AZ0990 - Ponderous methods for intelligence in business, as discussed at the
AZ0991 - Cal Tech seminar on 921021, ref SDS 19 5624, prevent accomplishing
AZ0992 - Drucker's call for "brain formation." The seminar further revealed
AZ0993 - loss of productivity, damage and frustration caused by lack of
AZ0994 - intelligence. ref SDS 19 4390
AZ0996 - ..
AZ0997 - The overwhelming tendency to use bad management makes....
AZ1000 - Communication the biggest risk in enterprise
AZ1002 - ..
AZ1003 - The difference in cost between correcting bad management by failing
AZ1004 - to use Communication Metrics to avoid misunderstanding, and
AZ1005 - correcting defective work, called "rework" presents a huge profit
AZ1006 - opportunity for adding "intelligence" to daily management,
AZ1007 - explained in NWO. ref OF 3 0110
AZ1010 - ..
AZ1011 - Enterprise Management Requires Organic Subject Structure
AZ1012 - Strategic Resource Requires Investing Intellectual Capital
AZ1014 - The idea of "brain power" relates in large part to the POIMS notion
AZ1015 - of "investing intellectual capital" where "knowledge and ideas"
AZ1016 - comprise a strategic resource, discussed above. ref SDS 0 3490
AZ1018 - ..
AZ1019 - The key to making such a data base practical is the ability to
AZ1020 - quickly identify, segment, link and access information based on
AZ1021 - time, people and subject (i.e. applied MBO principals). Absent
AZ1022 - these capabilities, information is just an expense although it will
AZ1023 - always have a baseline value from the experience of having created
AZ1024 - information. The creator has at least a short term deeper
AZ1025 - understanding (i.e. knowledge).
AZ1028 - ..
AZ1029 - See part #2 for the rest of this review. ref SDS 29 0001