Drucker believed effective leadership rested on five basic components:
• Strategic planning by the leader as a foundation. The leader has to make decisions now to create a desired future.
• Business ethics and personal integrity as necessary conditions. If strategic planning was the foundation of leadership, ethics and personal integrity were necessary conditions for leadership effectiveness.
• Leadership as taught in the military as a baseline model. Drucker wrote, “The Army trains and develops more leaders than do all other institutions together — and with a lower casualty rate.”
• Correct perception and application of the psychological principles of motivation. The best way to motivate employees is to treat regular, paid, full-time staff as if they were volunteers.
• The marketing model as an effective general approach. By describing leadership as a marketing job, Drucker meant that leaders must know and understand those they wished to lead, and lead in away followers could relate to.