What Peter Drucker Can Teach the Water Industry About Management

If you’ve spent any time in the world of business or management, you’ve likely come across the name Peter Drucker. Known as the “father of modern management,” Drucker’s ideas have shaped industries for decades. But what does his wisdom have to do with the water industry—a sector steeped in technical expertise, regulatory challenges, and resource management? Quite a lot, as it turns out.

As I revisited Drucker’s The Essential Drucker, I found his principles strikingly relevant to the challenges we face in the water industry today. From optimizing operations to centering the customer, Drucker’s insights provide a lens through which we can reimagine how we manage one of the world’s most critical resources.

Here are a few of Drucker’s lessons that can guide the water industry toward more effective and sustainable management:

1. The Customer Defines the Business

Drucker’s insight that “the customer defines the business” is particularly relevant to the water industry. It’s not enough to provide reliable, quality water; we must also help customers understand why these elements matter and how they are achieved.

By explaining the complexities behind clean, safe water—such as investments in infrastructure, innovative technologies, and sustainability initiatives—utilities can build trust and foster engagement.

Centering the customer transforms water management from a transactional service into a partnership, aligning the industry’s efforts with evolving customer priorities and driving long-term value.

2. Focus on Results, Not Effort

Drucker emphasized the importance of focusing on results rather than activity. In the water sector, where budgets are tight and resources are limited, this lesson is especially crucial.

For example, many utilities invest in leak detection programs, infrastructure upgrades, and water reuse initiatives. While these efforts are valuable, the question remains: Are they achieving measurable outcomes? Are we reducing non-revenue water, extending the life of critical infrastructure, or increasing water availability in drought-prone areas?

As Lord Kelvin famously said, “You can’t manage what you don’t measure.” Drucker would urge us to establish clear metrics for success and prioritize actions that deliver the greatest impact. By focusing on results, the water industry can maximize the value of every dollar and drop of water.

3. Innovation Is Essential

Drucker believed that innovation is one of the two primary functions of any organization (the other being marketing). In the water industry, innovation is often seen through a technical lens—new treatment technologies, advanced metering systems, or AI-driven analytics.

But innovation can and should extend beyond technology. It includes rethinking how we engage with customers, manage operations, and finance projects. For example:

• Could we create new partnerships with private companies to fund infrastructure upgrades?

• Can we redesign customer communication strategies to encourage water conservation?

• How might we use circular economy principles to turn wastewater into valuable resources?

Innovation in the water industry doesn’t just solve problems—it creates opportunities to redefine how we value and manage water.

4. Problems Don’t Solve Themselves

One of Drucker’s most practical pieces of advice is that “problems go away because someone does something about them.” This lesson resonates deeply in an industry where challenges like aging infrastructure, water scarcity, and climate change won’t disappear on their own.

Taking action requires leadership—both at the organizational level and within individual teams. It means identifying problems early, mobilizing resources, and driving solutions. In my own experience optimizing filtration systems in breweries around the world, success often came down to proactive problem-solving and collaboration. The same principles apply on a larger scale in the water sector.

5. The Scarcest Resource Is Performing People

Drucker’s observation that “the scarcest resources in any organization are performing people” highlights a critical challenge in the water industry: talent. As the sector grapples with an aging workforce and a shortage of skilled professionals, attracting, retaining, and empowering talent is more important than ever.

Investing in training programs, creating opportunities for growth, and fostering a culture of innovation can help bridge the gap. Just as we must carefully manage our water resources, we must also steward our human resources to ensure the industry’s future success.

6. Recreate Value Continuously

Finally, Drucker teaches us that organizations thrive by continuously recreating value. The water industry is no exception. While the core mission of delivering safe, reliable water remains unchanged, the context in which we operate is constantly evolving.

By embracing new technologies, rethinking customer engagement, and addressing environmental challenges head-on, the water industry can remain relevant and resilient. This isn’t about discarding what works but building on it to create greater value—for customers, communities, and the planet.

Final Thoughts

Drucker’s wisdom reminds us that even in a field as unique and complex as water management, the principles of effective leadership and management still apply. By focusing on results, centering the customer, fostering innovation, and empowering people, the water industry can rise to meet today’s challenges while building a sustainable future. This means taking bold steps to redefine how we manage our most precious resource—not just for today but for generations to come.

What are some lessons you’ve drawn from your work in water management? How do you think Drucker’s insights apply to our industry? I’d love to hear your thoughts—let’s keep the conversation flowing…