Peter F. Drucker: delivering value to customers

Citation

(2002), "Peter F. Drucker: delivering value to customers", Measuring Business Excellence, Vol. 6 No. 4. https://doi.org/10.1108/mbe.2002.26706dae.007

Peter F. Drucker: delivering value to customers

Peter F. Drucker: delivering value to customers

G.H. Watson, Quality Progress (USA), Vol. 35 No. 5, May 2002

Draws on the publications of, and an interview with, Peter Drucker, to explore his views on delivering quality and value to customers. Records Drucker's beliefs that business is part of society, that the purpose of a business is to create a customer, that enterprises are paid to create wealth and not cut costs, and that managing by objectives and using economic value-add as performance measures are key principles. Notes his criticism that cost accounting cannot identify root cause, registering support for activity-based costing in capturing downtime, rework and scrap costs. Discusses product pricing, the determination of competitive standing, innovation and delivering value, lists questions to be asked by managers regarding what is, will and should be our business, and what information is owed and to whom, and when and in what form that information is provided. Commends adoption of Drucker's ideas to enhance delivery of value to customers.

Comment: A chance to discover the views of management guru Peter Drucker on a subject that lies at the heart of any organization. A must for all managers.