WISDOM FROM PETER DRUCKER

Last Monday and Tuesday was the annual conference of the Peter F.
Drucker Foundation for Nonprofit Management.
(http://www.druckerfoundation.org). This foundation, created ten
years ago to honor Peter Drucker's contributions to management and
leadership, believes that a healthy society requires three vital
sectors: a public sector of effective governments; a private sector
of effective businesses; and a social sector of effective community
organizations, including faith-based organizations. It furthers its
mission to lead social sector organizations toward excellence in
performance by providing educational opportunities and resources.

In his opening remarks to the conference, Drucker debunked all the
talk of transition triggered by the new economy, saying that the
current transition is, "...exactly like the preceding one. What is
new is society. The next century will be dominated by society, not
the economy. We are entering the first century in human history in
which, in the developed world, the great majority of people will
work with what is between their ears, not their hands."

Equally as unprecedented is the structure of the population. For the
first time in recorded history, in peacetime, a prosperous time, the
Western population will shrink. It has already begun except in the
English speaking countries. The aging is not new; it has been going
on for 300 years. We have put the retirement age in a box, but it is
predictable that in 20 years, retirement age will be in the 70's.
Immigration will be the central social and political issue and bring
new social challenges and opportunities.

The 20th century was one of big government and big business. The
next century will be focused on the social sector and its
performance. Beginning in the U.S. and other nations, success and
survival depend on it. You, in this room, have the challenge, the
responsibility, of the social sector. This is the new challenge: to
innovate, perform, to go from good intentions to results.

In the closing session of the conference, Drucker answered
participants' questions. Here are some highlights:

Q: What are three greatest lessons you have learned?

Drucker: I'll give you four. If it has to be explained, it won't
work. Say please and thank you. As a writer, if a sentence does not
jell, don't re-write, re-think it. Never ask WHO is right, start by
asking WHAT is right.

Q: How can nonprofits measure their impact in terms of changed
lives?

Drucker: That is the wrong question. It assumes we have defined what
results are. Results are not obvious and they change. The first step
is always to define results.

Q: How is leadership different between profit and nonprofit
organizations?

Drucker: In the nonprofit, you have many more constituencies and you
have far less incentives for them. Therefore, the mission is
infinitely more important. The second thing is that their values are
different and much more important. The third difference is not
easily understood but it is, "What do we say no to? What are we not
going to do?" The world is full of good causes and in nonprofits, it
is very difficult to say no and be able to defend that to your
board, volunteers and staff.