The fundamental task of management remains the same: to make people capable of joint performance through common goals, common values, the right structure, & the training & development that people need to perform & to respond to change.

A modern business may employ thousands of knowledgeable people who represent up to sixty different knowledge areas. Engineers of all sorts, designers, marketing experts, economists, statisticians, psychologists, planners, accountants, human-resources people- all working together in a joint venture. None would be effective without the managed enterprise.

The emergence of management has converted knowledge from social ornament & luxury into the true capital of any economy.

Any existing organisation, whether a business, a church, a labour union, or a hospital, goes down fast if it does not innovate. Not to innovate is the single largest reason for the decline of existing organisations.

Conversely, any new organization, whether a business, a church, a labour union, or a hospital, collapses if it does not manage. Not to know how to manage is the single largest reason for the failure of new ventures.

But what is management? Is it a bag of techniques & tricks?

  1. Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective & their weakness irrelevant.
  2.  Every enterprise requires commitment to common goals & shared values.
  3. Training & development must be built into it on all levels-training & development that never stop.
  4. Every enterprise is composed of people with different skills & knowledge doing many different kinds of work. It must be built on communication & on individual responsibility. All members need to think through what they aim to accomplish – & make sure that their associates know & understand that aim. All have to think through what they owe to others – & make sure that others understand. All have to think through what they in turn need from others – & make sure that others know what is expected of them.
  5. Neither the quantity of output nor the “bottom line” is by itself¬† an adequate measure of the performance of management & enterprise. Market standing, innovation, productivity, development of people, quality , financial results- all are crucial to an organisation’s performance & to its survival. Just as a human being needs a diversity of measures to assess his heath & performance, an organisation needs a diversity of measures to assess its health & performance. Performance has to be built into the enterprise & its management; it has to be measured- or at least judged- & it has to be continually improved.
  6. Finally, the single most important thing to remember about any enterprise is that results exist only on the outside.The result of a business is a satisfied customer. The result of a hospital is a healed patient. The result of a school is a student who has learned something & puts it to work ten years later. Inside an enterprise, there are only costs.