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Peter Drucker

In: Business and Management

Submitted By anniechinnam
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Peter Drucker is generally regarded as the godfather of modern management. Drucker’s major contribution to management is not a single idea, but rather an entire body of work that has one massive advantage: virtually all of it is fundamentally right.
The third question in “The Five Most Important Questions by Peter Drucker” is ‘What Does Your Customer Value?’ You cannot arrive at the right definition of results without significant input from your customers. (Drucker, 1998)
What satisfies their needs, wants and aspirations is so complicated that it can only be answered by customers themselves. (Economy, 2013) There are no unfair customers, at least in terms of their own reality and situation. Customer needs are material and psychological well-being. Wants are when, where and how service is supplied. Aspirations are preferred long-term outcomes.
What does the customer value, is the least often asked question yet it is most important to know. Providing value to the customers includes making products or delivering services that offer solutions to their problems. The better the solution is the more value that can be produced. (Kloeber, 2011)
People are so convinced that they are doing the right things. Instead of asking ‘Does it deliver value to our customers?’ they ask, ‘Does it fit our rules?’ And that not only reduces performance but also destroys vision and dedication.
Methods of understanding what customers value involve collecting or analyzing customer information, gathering feedback and conducting customer research. Another important aspect to be considered is, ‘Has the customer changed?’ How: wealthy or poor, downsized or upsized. New customers: Younger, Global.
References:
• Kloeber, L. (2011, March 02). Peter drucker's five most important questions. Retrieved from http://EzineArticles.com/6023618.
• Economy, P. (2013, September 05). 5 essential questions for entrepreneurs. Retrieved from http://www.inc.com/peter-economy/5-essential-questions-entrepreneurs.html
• Drucker, P. F. (1998). The drucker foundation self-assessment tool: Process guide. Claremont, California: The Drucker Foundation and Jossey-Bass, Inc., Publishers. Retrieved from http://www.hesselbeininstitute.org/tools/sat/process.html

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