Peter Drucker’s Five Questions


Correct and efficient management actions are essential for organizational development; however, the executives do not always understand the peculiarities of business expansion. From these considerations, Peter Drucker’s five questions might be the appropriate instrument to direct the leaders to more productive planning. In general, the five management guidelines concern the purpose of the organization, customers and their values, achievements, and plans for the future (Peter Economy, 2013). Based on these questions, it is possible to reflect on the development of the company and choose an appropriate strategy. The current work analyzes a business organization focusing on smart technologies from the perspective of Peter Drucker’s five management questions.

Organization Overview

At present, smart technologies have become highly prominent both in business and private settings. Nevertheless, a large number of organizations deny the potential opportunities that digitalization and technological optimization have to offer. Therefore, for the purpose of the current work, the analyzed company is a start-up project that provides smart technology solutions to other businesses. Several examples of such technologies include software, coding kits, smart accessories, such as cameras and audio devices, or networks. Regardless of the application, smart technologies emphasize the connectivity of all software and hardware at the workspace (Malik, 2017). Ultimately, the primary purpose of smart technologies is to enhance the convenience and productivity of the work; therefore, there is a large variety of potential smart and digital solutions to any kind of business problem.


The first Peter Drucker’s question is “What is your mission?”. In general, this guideline concerns the overall purpose of the organization and the reason for its establishment (Peter Economy, 2013). In the current case, the primary objective is to help other business companies install smart and digital solutions that improve the efficiency of the work. The first management guideline answers the question ‘why?’ the organization should do this particular activity (Peter Economy, 2013).

It is critical to clearly understand the mission of the company to ensure that every employee is focused on the purpose. Furthermore, it is particularly important for organizations that provide smart technologies. At present, there is an abundance of potential digital solutions to any type of business problem; and it is the company’s mission to choose the most appropriate smart technology and provide corresponding services.

The second and third questions concern the customers and their values. In the current case, the clients are other business organizations that require digital assistance. Providing services to other companies is different from assisting individuals; however, it is frequently easier to understand the objectives. For instance, most business organizations requesting smart technologies integration need a comprehensive network to increase the productivity of operations. Therefore, unlike the wishes of individual customers, it is transparent that the ultimate goal of every company is to increase efficiency. From these considerations, it is possible to structure an appropriate plan that encompasses the structure, values, and objectives of the assisted organization.

For instance, if a commercial education project is in need of digitalization, smart interactive displays in classrooms might enhance the teaching process. Consequently, a software network that connects all the databases of the organization and protects the information is essential to increase overall productivity. Ultimately, customers and their specific needs vary; however, business companies generally require digital assistance to increase the efficiency of the work process.

The fourth question refers to the ultimate results that the organization achieves or wants to achieve. Similar to previous guidelines, a comprehensive understanding of progress and achievements is necessary to establish future plans for the company (Peter Economy, 2013). Drucker specifically mentions that both qualitative and quantitative results are important instruments to choose a business strategy (Peter Economy, 2013). Furthermore, the assessment of the achievements is as significant as the results themselves; therefore, it is vital to know how to evaluate them (Peter Economy, 2013). In the analyzed case, the results demonstrate the capabilities of the company to implement contemporary smart technologies and allow to evaluate their relevance in the competitive market.

Lastly, the fifth question concerns the planning of the organizational development and business strategies. It is vital to understand the mission, goals, budget, customer values, and other internal and external factors to choose appropriate planning. This management area is one of the most significant factors for new companies to take into account. Frequently, start-up projects emerge based on one profound idea or concept; however, in the contemporary market, theory and enthusiasm are not sufficient to succeed.

Every project needs thorough planning with an accurate representation of how the organization will achieve its objectives. Smart technologies are a relatively new industry; therefore, there is a large number of companies providing various services concerning digitalization. Peter Drucker specifically emphasizes the utmost significance of planning flexibility in rapidly changing industries, and it is particularly relevant to smart technologies (Rao, 2021). In the current case, a comprehensive roadmap of business development ensures that the chosen area is relevant in the market and profitable investment of finances.

Reflective Analysis

I have chosen the industry of smart technologies for the analysis due to the increasing importance that digitalization has on our lives. I believe that a similar organization could potentially become my future place of work. That is why it is critical to grasp a firm understanding of how such companies operate and what might be done to enhance productivity at the workspace. The two specific actions that I will take to enhance my leadership and management practices are emphasis on the mission and efficient planning.

I believe that these two factors are essential for the analyzed organization since it is transparent who the customers are and what their values are. Nevertheless, the mission and planning are difficult to establish due to the large variety of existing smart technologies, continuous digital advancement, and competitiveness of the market.

At the same time, I do understand that the significance of each of Peter Drucker’s questions depends heavily on the organization and its business strategy, customers, achievements, budget, and changes in the industry. Therefore, I also acknowledge the utmost importance of critical thinking and adaptability in the business setting. The world is changing rapidly, but the focus on Peter Drucker’s questions helps to keep track of the mission and goals of the organization.


The provision of smart technology services is a complex business, and it is essential to have a comprehensive understanding of management and organizational development. For this purpose, Peter Drucker’s five questions might be highly useful for new companies to choose efficient business strategies. In the current case, I believe that emphasis on the mission and planning of the company are the two most significant factors of organizational development. However, the value of these questions might change depending on the chosen organization and its business strategies. Lastly, having reflected on Drucker’s questions and the smart technology industry, I have realized the utmost importance of critical thinking and adaptability in the business setting. Therefore, it is essential to adjust to the modern realities of the industry but consider the core management questions nonetheless.


Malik, Y. (2017). Smart, connected and IoT based devices. What’s the difference?. Web.

Peter Economy. (2013). 5 essential questions for entrepreneurs. Web.

Rao, M. S. (2021). Peter Drucker’s principles, philosophies, and practices. The Journal of Values-Based Leadership, 14(2), 1-11. Web.

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BusinessEssay. "Peter Drucker’s Five Questions." December 6, 2022.