1. Effective LeadershipAs a Liberal Art From Drucker’s Lost Art of Management Joseph A. Maciariello and Karen E. Linkletter

2. Effective Leadership Sustainably successful institutions induce in their members an intellectual and moral growth beyond a person’s original capacities. Through historical analysis, one can study Drucker’s model of effective leadership through decisions made by leaders in the past.

3. Interpretations of Leadership The rise of large industrial organizations led to a more systematic study of leadership as part of management. Practitioners and theorists have began to shift their interest from the productivity of nonhuman capital to the productivity of human capital, to knowledge workers. Hawthorne Experiments Chester Barnard Abraham Maslow Douglas McGregor John MacGregor Burns Robert Greenleaf Jim Collins

4. Hawthorne Experiments Mayo and Roethlisberger’s interpretation of the Hawthorne experiments revealed that simple attention to working conditions could have an impact on productivity. It was manager’s interest and concern with the workers as human beings that created the increases in production.

5. Chester Barnard Barnard was one of the first people to systematically document the function of leadership. He foreshadowed Drucker’s concern with providing dignity and meaning in the workplace. In The Functions of the Executive (1938), he attempted to formulate a theory of cooperative behavior and explain why people work in organizations and how they can do so more effectively.

6. Abraham Maslow Maslow sought to understand why people rallied around leaders such as Hitler and Stalin. His later work focused on human behavior within industrial organizations. Maslow argued that Drucker was not only too general in his assumption but also too naïve in his view that people will not exhibit bad behavior in organizations. Maslow showed that not all leaders are “enlightened” and that not all followers would be motivated by the same motivations.

7. Douglas McGregor In The Human Side of Enterprise (1960), McGregor defined two primary styles of management, “Theory X” and “Theory Y”, and argued that Theory Y was the preferred style. Theory X Theory Y Theory X managers assumed that people dislike work and would avoid it as much as possible. This management style embraces command and control from above. Theory Y managers assume that work is natural and that people want to be productive. This style emphasizes fostering independence and creative abilities.

8. John MacGregor Burns In Leadership (1978), he contrasted two styles of leadership: transactional and transformational. Transactional leadership emphasizes a relationship involving a mutually beneficial exchange between two people. Transformational leadership appeals to people’s higher ideals and values, which serve as motivators other than pure self interest.

9. Robert Greenleaf In The Servant as Leader (1970), his thesis is that effective leaders are oriented primarily to the service of those who follow them. Servant Leadership is “other focused” and it usually involves providing subordinates with a considerable degree of freedom based on trust and respect.

10. Jim Collins and Level 5 Leaders Proposed that Level 5 leaders focus on who then what as opposed to Level 4 leaders, who focus on what then who. Level 5 leaders focus on selecting the best team of people, then decisions are made about the direction, strategy or mission of the firm. Level 5 leaders are more concerned with surrounding themselves with the most capable people they can and less concerned with their own personal qualities. These leaders possess the quality of humility as well as attention to the mission of the organization.

11. Drucker’s Model of Effective Leadership Effective leadership is assuming responsibility for getting the right things done, communicating with people, uniting them behind a shared mission, and mobilizing energies toward accomplishing the purpose of an organization. Drucker’s interpretation is that leadership responsibilities require that a leader seek congruency between his values and goals and the values and goals of followers. Drucker believed that effective leadership is not about specific leadership qualities. Personality characteristics have nothing to do with effectiveness—in fact, charisma may be “the undoing of leaders”.

12. Drucker’s 3 Requirements for Effective Leadership Drucker stated that “the leader’s first task is to be the trumpet that sounds a clear sound”. The foundation of effective leadership is built upon a concise statement of the purpose or mission of an organization. The acceptance of the fact that true leadership is responsibility for the mission and for support of those led. It is not primarily status and power. Leaders must earn trust. Trust is earned when leaders effectively pursue the mission of their organization and are true to their word.

13. Lincoln’s Congruence Between Values and Goals Lincoln had an ability to mesh his goals and values with those of his constituents and therefore had the ability to find commonality in an atmosphere of divisiveness. Lincoln waited for public opinion to support a national strategy to ban slavery in rebellious states before making the actual decision to abolish slavery. The decision to emancipate slaves is an example of a decision that had to meet certain boundary decisions in order to be effective. Drucker recognized that the identification of certain boundary conditions is a critical element in making effective decisions.

14. The Irrelevance of Charisma & Relevance of Responsibility and Accountability Although an effective orator, Lincoln can hardly be characterized as a charismatic leader. Lincoln surrounded himself with a team of rivals, a cabinet made up of men whom he believed were best qualified to assist him in meeting challenges. In selecting his cabinet members, Lincoln followed three of Drucker’s categories for executive effectiveness: focus on strengths, focus on contributions, and make decisions effectively.

15. Lincoln - A Model of Good Leadership Drucker considered integrity of character to be the very essence of good leadership. Unlike other characteristics of effectiveness, integrity is an internal quality and not an external executive skill. One cannot be trained in integrity in the classroom; a person either has integrity of does not.

16. Henry Cloud’s Six Character Traits to Create Integrity The ability to connect authentically The ability to be oriented toward the truth The ability to work in a way that gets results and finishes well The ability to embrace, engage, and deal with the negative The ability to be oriented toward growth The ability to be transcendent

17. Lincoln’s Connections, Orientation and Achievements Lincoln connected authentically with his cabinet, military officers, soldiers, political rivals, and the people of the United States. This allowed him to weather the changing political climate in a remarkably difficult chapter of American history. Lincoln made many decisions in a careful manner, analyzing and considering various conflicting opinions and evidence. Ultimately, Lincoln achieved his two primary missions: preserving the Union and emancipating the slaves.

18. Dealing with Negative Events & Orientation To Growth Lincoln’s early experience with grief prepared him to deal with the trials of succession and war. Lincoln’s orientation toward growth is evidenced by his early self-education, as well as his continuous personal and professional growth while serving as president. Lincoln not only recognized his own limitations as chief executive, he also clearly saw himself as beholden to higher principles not of his own making.

19. Lincoln on Crisis Management and Servant Leadership Crisis Management Drucker noted that strong leaders have the ability to either avert crisis or weather them and that effective executives must know how to make effective decision in times of crisis. Fort Sumter is a prime example of Lincoln’s effectiveness as a decision maker. Lincoln shifted the decision for peace or war to the confederacy by forcing the South fire the first shot. Servant Leadership Servant leadership involves an understanding of the value of every contribution regardless of status, and the pivotal role of helping others within an organization Lincoln in his interactions with even his ineffective officers, treated subordinates with dignity and respect

20. Chapter 6 Take Aways Drucker’s model of effective leadership involves not only a list of character traits or habits but also the cultivation of an attitude that leads to certain behaviors. Leaders must see the relationship between the leader and followers, the leader and the mission, the leader and the organization, and the leader and his or her own values. Therefore, leadership is part of management as a liberal art, emphasizing the development of human beings and their relationships with one another. Lincoln’s life and career are illustrative of Drucker’s model of leadership.