"By their fruits ye shall know them"
Society in all the developed countries has become a society of organizations in which most, if not all, social tasks are being done in and by and organization. Organizations to do exist for their own sake. They are means: each society's organ for the discharge of one social task. The organization's goal is the specific contribution to the individual and society. The test of its performance, unlike that of a biological organism, therefore, always lies outside itself. This means that we must know what "performance" means for this institution.
Each institution will be the stronger the more clearly it defines its objectives. It will be more effective the more yardsticks and measurements there are against which its performance can be appraised. It will be more legitimate the more strictly it bases authority on justification by performance. "By their fruits ye shall know them" - this might well be the fundamental constitutional principle of the new pluralist society of institutions.
ACTION POINT: Are your performance yardsticks appropriate to your objectives?
Quoted from The Daily Drucker, January 18 , Page 20
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