Peter Drucker's global legacy and management in Indonesia<\/p>\n
Novianta Hutagalung, Ovingham, South Australia<\/p>\n
Recently, the Business Week and The Economist wrote articles
\nabout Peter Drucker's legacy to the business world after his
\ndeath at 95 years of age. Both magazines acknowledged his unique
\nand valuable contribution to the development of management
\nprinciples despite the argument that his works were not always
\nsupported by the extensive and rigorous process of academic
\nresearch.<\/p>\n
However, instead of merely discussing his contribution to
\nmanagement concepts, it may be more valuable to contextualize his
\nideas within the context of management in Indonesia.<\/p>\n
His concepts may have even greater relevance, because
\nIndonesia as a nation is facing a protracted multi-dimensional
\ncrisis that signifies major management problems.<\/p>\n
Existing disputes over the draft tax laws, fuel shortages in
\nparticular regions, unresolved conflicts in Poso, the slow down
\nin economic growth, the political maneuvers over the Cabinet
\nreshuffle plan and confusion in the distribution of compensation
\nfunds are a few examples of how our nation fails to manage its
\nproblems.<\/p>\n
In terms of global competition, Indonesia is also considered
\none of the most corrupt countries; it has low competitiveness, a
\nlow credit rating and is among the least attractive places for
\ninvestment.<\/p>\n
Probably triggered by the awareness of our low global
\ncompetitiveness, President Susilo Bambang Yudhoyono during his
\nvisit to South Korea attending the APEC conference last month,
\nsuggested four critical factors for Indonesia to leap forward.<\/p>\n
Those factors are hard work, higher productivity, advancement
\nin technology and adequate capital. However, these factors may
\nnot be adequate in order to bring about fundamental
\ntransformation in this country.<\/p>\n
First, human capital holds growing importance in the present
\nand the future economy. Therefore, work smart and work with
\nwisdom (which is rooted in understanding the fundamental values
\nand purpose in life as well as incorporating strategic and
\ncreative thinking) is now becoming much more important than
\nmerely depending on hard work for long term and sustainable
\nsuccess.<\/p>\n
Second, technology and capital basically do not imply value.
\nTherefore, technology and capital can only be leveraged and
\ncapitalized when there are creative ideas from human capital
\nwhich enables them to be transformed into valuable activities.<\/p>\n
Third, productivity is basically a past performance indicator
\nwhich may be driven by good investment in human capital. By
\ninvesting in human capital, we may have ingenious ideas which may
\nalter the way our nation perceives and responds to problems,
\nperforms the work, plans for the future and develops.<\/p>\n
In this matter, Peter Drucker suggests that human capital and
\nthe ability to anticipate change are the critical factors that
\nneed to be taken into account by any modern organization.<\/p>\n
In many cases, rather than trying to find creative ideas to
\ngenerate new opportunities, our senior government officials and
\npoliticians tend to blame others or external factors for their
\nfailure to perform their task.<\/p>\n
In other words, our paradigm is mostly characterized by a
\nnarrow minded, short term, partial, transactional, win-lose, us-
\nthem and backward way of thinking.<\/p>\n
The minister of finance recently attacked businessmen for
\ndemanding too much with regard to their suggestions for more
\nincentives for businesses within the amendments to the tax laws.
\nHis reaction and statement reflected his failure to acknowledge
\nthe real problems faced by the business community.<\/p>\n
Moreover, his reactionary response signifies that he
\noverlooked the systemic and long term implications of his
\nstatement. Such behavior actually represents yesterday's logic,
\nwhich is strongly challenged by Peter Drucker. Simplifying the
\nproblems, as shown by simplistic comments by many of our high-
\nranking government officials and politicians is not relevant in
\ntoday's competitive global landscape anymore.<\/p>\n
In terms of human capital, Peter Drucker argued that knowledge
\nwhich resides in the people is critical for creating the values
\nof modern organizations. Therefore, the workforce needs to be
\ntreated as an asset rather than merely considering it as a cost
\nwhich burdens the organization.<\/p>\n
In anticipating change, Peter Drucker suggests that the
\nability to create is essential rather than merely depending on
\nthe ability to solve a problem. According to Drucker, the ability
\nto solve problems is not enough to anticipate change.<\/p>\n
First, because problem solving may distract the organization's
\nability to see, reap and create the opportunity from new ideas
\nand perspectives.<\/p>\n
In the context of Indonesia, tribulations tend to be
\napproached by the same old ways of thinking. Solving the problem
\nis more recognized than creating or re-creating opportunity. It
\nis not surprising then that in many cases high government
\nofficials tend to stay within their comfort zone by avoiding
\nproblems. Problem solving often simply becomes problem avoiding.<\/p>\n
Second, problem solving tends to be merely seen, understood
\nand therefore resolved based on the perspective of the most
\npowerful party. In this situation, the decisions merely shift the
\nproblems from the powerful to the powerless party, without
\ningenious ideas to open new windows of opportunities for both. It
\nis no wonder that short term solutions are popular even though
\nthe long term objective and fulfillment of the broader people's
\ninterests are sacrificed.<\/p>\n
The writer is a lecturer at Perbanas Business School Jakarta;
\nand a graduate from the International Graduate School of
\nBusiness, University of South Australia.<\/p>",
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