Peter Drucker's Smart Decision Guide for Project Managers

Peter Drucker was one of the greatest management thinkers of all time. In The Effective Executive (1967), he taught that good decisions start with one key question:

“Is this a generic situation or an exception?”

Most project managers jump straight to solutions. That’s a mistake. Smart project managers classify the problem first.

Drucker’s Two Types of Situations

Drucker said almost all problems fall into two groups. Getting this right changes everything about how you respond.

Generic Problems: The Repeating Ones

Generic problems are recurring situations. They show up again and again in organizations and projects. Drucker’s advice: treat them as policy issues, not one-off cases.

Applied project management examples of generic problems:

• Team members missing deadlines

• Budget overruns on supplies

• Clients changing their minds

• Team communication breakdowns

• Scope creep requests

The Drucker approach: Create a rule or principle. Don’t solve these problems case by case. Put a system in place so they are handled consistently in the future.

Unique Problems: The One-Time Events

Unique problems are exceptional cases. They don’t happen often and can’t be handled by an existing rule.

Applied project management examples of unique problems:

• A key team member suddenly quits right before launch

• Your main vendor goes out of business mid-project

• New government rules change your whole approach

• A natural disaster affects your timeline

• Your biggest competitor copies your exact idea

The Drucker approach: Treat each unique problem on its own. Don’t try to force it into a rule. Use judgment and creativity to find the best response.

The Big Mistake Most Project Managers Make

Here’s what goes wrong: Project managers treat generic problems as unique ones.

They spend hours re-solving the same communication issue, hold long meetings about recurring budget overruns, and stress about the same conflicts that show up in every project.

This wastes time and energy.

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Your Step-by-Step Action Plan (Applied from Drucker)

Step 1: Pause and Ask the Key Question

“Is this a generic situation or an exception?”

Step 2: Classify the Problem

• If it’s recurring (or similar to past cases), it’s generic

• If it’s truly different, it’s unique

Step 3: Choose Your Response

• Generic problems: Create or use a rule/policy

• Unique problems: Develop a tailored solution

Step 4: Build Your Rule Book

Keep a living list of your rules for generic problems. Share them with your team and refine over time.

How to Create Good Rules for Generic Problems

Make rules that are clear and simple. Your team should understand them without asking questions.

Applied examples of project rules:

• Missed deadlines: “When someone misses a deadline, they must (1) tell the team within 4 hours, (2) give a new realistic date, (3) explain what went wrong, (4) share how they’ll prevent it next time.”

• Scope creep: “All change requests need (1) written description, (2) timeline and budget impact, (3) sponsor approval, (4) updated project plan before work starts.”

These aren’t Drucker’s words, but they apply his principle: rules save you from re-solving the same problem.

When a Generic Problem Has Unique Elements

Drucker noted that even recurring problems may contain special circumstances. For example:

• A missed deadline caused by a family emergency

• A scope change request from your most important client

In such cases, the manager must use judgment. Rules should guide decisions, but they don’t replace thinking.

Signs You’re Doing It Right

• Less time on repeat problems. Rules handle them automatically

• A more independent team. They know what to do without asking you every time

• More focus on the real challenges. Your energy goes to the unique, high-impact issues

Start This Week

Pick three recent problems. Ask: Were they generic or unique?

• For the generic ones, write a simple rule and test it with your team.

• For the unique ones, reflect on what made them exceptional and how you might prepare if something similar happens again.

Remember Drucker’s wisdom: “Effective executives concentrate on the important decisions.”

Stop wasting time on repeat problems. Build good rules for the common issues. Save your best thinking for the unique challenges.

That’s how great project managers get great results.

👋 While you’re here:

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