No one can deny Peter Drucker’s major practical and philosophical contributions to management. Drucker was an influential Australian-American personality known for laying the foundations of modern management theories for progressive professionals. Due to his exemplary efforts, many experts regard him as the father of modern business management. Here are the top clever insights that we can gain from Drucker.
Top Clever Insights to Gain from Peter Drucker

1. Management by Objectives
According to Drucker, management by objectives (MBO) is an integral part of an organization. It includes a framework for all management consultants to define and manage their goals in a modern business setting. It also involves assessing and monitoring each employee’s performance and goals against the organization’s goals.
2. Solid Management Functions
Management is central to any organization, and each manager has several functions. These functions include setting goals and increasing profitability and productivity. They also include motivating and communicating with employees.
3. Organizational Changes
Drucker was concerned about swift technological transitions affecting society as a whole. He educated professionals on establishing organizations that can quickly adapt and absorb organizational changes.
4. Federalism
As a management enthusiast, Drucker favored federalism. He taught professionals to build a centralized control with a decentralized approach. It enables top management to focus on priority tasks and define responsibilities for other employees. In this way, managers can calculate the efficiency and accomplishments of each employee.
Drucker once said, “What’s measured, improves.”
In other words, improvements can be made on things that are regularly measured and recorded.
5. The SMART method
Drucker emphasized the importance of the SMART method. He designed this approach for professionals to ensure their objectives stay realistic, time-barred and practical. In this way, they can remain committed to their ultimate goals.
More Insights from Peter Drucker

6. Responsibilities of Management Consultants
Being a knowledgeable observer, Drucker reminded us of the duties of management consultants or practitioners. He emphasized the importance of them extrapolating ideal patterns from organizational principles. His works also describe the profession as a discipline that handles ideal and non-ideal circumstances.
7. The Nature of Management
Drucker openly criticized the bureaucratic system and supported management with creative and inventive schools of thought. He approved the acceptance of modernization as the only way to be successful in management in the long run.
8. Organization Structure
The structure of an organization should achieve the best performance. Therefore, an organization should have the least number of managerial levels possible. The training and assessment of employees should also be regular, according to Drucker’s design of an enterprise.
9. Monitoring Managers
All of Drucker’s studies focused on the monitoring of managers. This regulatory act saves the organization from unfortunate oncoming issues.
10. Evaluation and Feedback
Drucker also taught professionals how to implement a feedback and evaluation system. This system ensures a worker-friendly environment and reduces non-cooperation from the employees.
The Bottom Line
Peter Drucker’s management theory focuses on decentralization and managing by objectives and SMART goals. His contributions play a significant role in helping managers and progressive professionals today. They can increase productivity, improve workplace culture and, ultimately, help the company be more successful.
As Drucker said, “Management is doing things right; leadership is doing the right things.”