One of the most influential figures in modern history, Peter Ferdinand Drucker was said to have invented management. Drucker was a writer and teacher, whose legacy — thirty-eight books, an abundance of writings, the Presidential Medal of Freedom and similar awards around the globe, over twenty-five honorary doctorates, and protégés whose names include many of the world’s most celebrated leaders — was of little consequence to him in the years before his death. From his youth in war-torn Europe to the home he later made in 1970s California, the philosopher Peter F. Drucker was shaped by many great forces throughout his life.
Drucker grew up privy to the intellectual elite, having been raised by highly educated parents: his mother studied medicine and his father was a lawyer and civil servant. “Remember, today you have just met the most important man in Austria and perhaps in Europe,” his father alerted him following an introduction to Sigmund Freud, who founded psychodynamics. Drucker was immersed in the culture of critical thought, surrounded by many of the most famous thinkers of the time, at an equally critical point in his cognitive and moral development. Freud’s psychodynamics might suggest that Drucker internalized his parents’ values and altruistic quest for knowledge.
A survivor of Nazi Germany, Drucker once attracted the ire of Adolf Hitler, resulting in two of his essays banned and burned; he was educated at the University of Frankfurt, where he studied under the economists John Maynard Keynes and Joseph Schumpeter. As an adult, Drucker verified the philosophical (in the classical sense of the word) drive he learned as a child and adolescent. When Hitler was appointed Chancellor of Germany in 1933, Drucker moved to London as an economist and then to America as a news correspondent. “America was terribly exciting. In Europe, the only hope was to go back to 1913. In this country, everyone looked forward,” he remembered. From then forward, he would be known as a writer and educator. Drucker, however, had not embraced his calling as a “social ecologist” until 1950 when he heard his old mentor Schumpeter speak, “I know that it is not enough to be remembered for books and theories. One does not make a difference unless it is a difference in people’s lives”. At that point, his work as a consultant began.
During his time as a student at the University of Frankfurt, where he earned a doctorate in international and public law in 1931 at the ripe age of 21, Drucker was also working as what would be the equivalent of an adjunct professor. Drucker met Doris Schmitz, a student two years his junior, who he eventually married in 1937. Although the Druckers were intensely private people, what is known from Doris’ memoirs is that she formed an integral part of Drucker’s social support system. She wrote to him, “I love you in the morning when things are kind of frantic. I love you in the evening when things are more romantic”.
Drucker was also the sort of man who was at ease with his colleagues, completely open and sometimes even completely naked! Charles D. Ellis, an investment strategy thought leader and trustee at both Harvard and Yale, recalled meeting with Drucker at his home in California, “‘You don’t need swimming suits because it’s just men here today,’ replied Drucker. And we took off our clothes and went skinny-dipping in his pool”. Drucker’s self-deprecating humor, nonchalant demeanor, and stylistically unique presence served him well over the years as his work was constantly belittled and criticized as lacking the rigor expected of academia. A colleague, confidant and critic, James O’Toole, wrote, “With all those books he wrote, I know very few professors who ever assigned one to their MBA students. Peter would never have gotten tenure in a major business school”. Drucker jested, “There are many books I could have written that are better than the ones I actually wrote. My best book would have been ‘Managing Ignorance,’ and I’m very sorry I didn’t write it”.
While many facets of Peter F. Drucker remain unexplored (and unexplorable), he has provided us with the inimitable Drucker, a prestigious man who dedicated his life to changing the way the world works for the better, and the humble Drucker, who believed himself to be “totally uninteresting”. A world away in the early 1950s, the psychologist Carl Rogers was developing a humanistic person-centered approach to personality, an alternative to Freud’s psychodynamics that claimed people are inherently good but that they are shaped by their life experiences, often counter to that natural goodness. Around the same time, Drucker was undergoing a philosophical transformation and discovered that merely sharing his thoughts on paper and in the classroom would not sustain him for much longer.
In his youth, Drucker had been nurtured by parents who believed in leading lives full of meaning to themselves and those around them. When Drucker began his career, he worked as an economist for a London bank, where he dryly studied the numbers and trends. Reinvigorated by 1930s America, he changed course, deciding to instead involve himself in looking to the future and helping bright-eyed and bushy-tailed students look forward as well. By that time, Drucker was ready for more and he set out to apply his insight as a consultant.
As Drucker was settling in California, the philosopher Jean-Paul Sartre had already lived a lifetime, developing and cementing the existentialist school of thought into modern thinking which posits that human beings can enjoy lives full of meaning as long as they recognize their responsibility for creating that meaning. The meaning of life is thus whatever one wills into existence. Existential psychologists assert that
“the dilemmas at the heart of existential philosophy are central to personality. Although many different theoretical perspectives have developed within existential psychology, they diverge on several key issues: the importance of the subjective experience; the centrality of the human quest for meaning in life; the dangers of losing touch with what one really feels; and the hazards of conceiving of oneself as thing-like, rather than as a changing, ever-forming, creative source of will and action”.
Drucker was no stranger to these issues and often emphasized these issues in his work. The existentialist theory of personality best describes Drucker. In fact, “he originated the view of the corporation as a human community […] built on trust and respect for the worker and not just a profit-making machine, a perspective that won Drucker an almost godlike reverence among the Japanese”.
As one of the first social entrepreneurs, individuals who create or develop corporations to create meaning, Drucker wrote, “Profit is not the primary goal but rather an essential condition for the company’s continued existence. Other responsibilities, e.g., to employees and society, exist to support the company’s continued ability to carry out its primary purpose” where primary purpose meant the provision of value or meaning to society. Later in his years, Drucker carried his ideas to nonprofit corporations, consulting pro bono, believing that what he called the “social sector” stands a better chance of making a real difference in the world.
Despite the challenges and criticism he faced in academia, Peter F. Drucker changed the world through not only his ideas but also his actions. He was a modern-day fortuneteller with many of his so-called prophecies having came to pass, from the emergence of Japan as a world power to the supersession of knowledge over “raw material as the essential capital of the New Economy”. Peter F. Drucker might have seen himself as “totally uninteresting” and unworthy of further inspection, but that was not for him to decide.
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