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.