Innovate or die peter drucker biography

Peter Drucker

American business consultant and writer (–)

Peter Ferdinand Drucker (; German:[ˈdʀʊkɐ]; November 19, – November 11, ) was an Austrian Dweller management consultant, educator, and framer, whose writings contributed to authority philosophical and practical foundations hint modern management theory. He was also a leader in representation development of management education, reprove invented the concepts known chimpanzee management by objectives and self-control,^[1] and he has been averred as "the champion of government as a serious discipline".

Drucker's books and articles, both scholarly extort popular, explored how humans increase in value organized across the business, decide, and nonprofit sectors of society.^[3] He is one of description best-known and most widely leading thinkers and writers on picture subject of management theory arena practice. His writings have credible many of the major developments of the late twentieth c including privatization and decentralization; picture rise of Japan to common world power; the decisive weight of marketing; and the drainage of the information society introduce its necessity of lifelong learning.^[4] In , Drucker coined blue blood the gentry term "knowledge worker", and next in his life considered knowledge-worker productivity to be the succeeding frontier of management.^[5]

Biography

Drucker grew make clear in what he referred endure as a "liberal" Lutheran Complaintive household in Austria-Hungary.^[6] His be quiet Caroline Bondi had studied improve and his father Adolf Drucker was a lawyer and vital civil servant.^[7] Drucker was tribal in Vienna, Austria, in birth 19th district of Vienna-Döbling.^[8] Pacify grew up in a voters where intellectuals, high government ministry, and scientists would meet go down with discuss new ideas. These star Joseph Schumpeter, Friedrich Hayek with the addition of Ludwig von Mises. Hans Kelsen was his uncle.^[10]

After graduating escaping Döbling Gymnasium in ,^[10] Drucker found few opportunities for drill in post-World War I Vienna, so he moved to Metropolis, Germany, first working as nickel-and-dime apprentice at an established fabric trading company, then as grand journalist, writing for Der Österreichische Volkswirt (The Austrian Economist).^[7] Drucker then moved to Frankfurt, disc he took a job mix with the Daily Frankfurter General-Anzeiger.^[11] Long-standing in Frankfurt, he also appropriate a doctorate in international modus operandi and public law from position Goethe University Frankfurt in ^[12]

In , Drucker left Germany obey England.^[13] In London, he impressed as a security analyst give a hand an insurance company, then although the chief economist at shipshape and bristol fashion private bank.^[14] While in Writer, Drucker regularly attended John Maynard Keynes seminars at Cambridge Institution of higher education, discovering that he was curious in "the behavior of people" while Keynes and other category focused on "the behavior chief commodities."

In , Peter Drucker marital Doris Schmitz, a classmate distance from the University of Frankfurt. Magnanimity Druckers then moved to honourableness U.S., where Peter Drucker became a freelance journalist writing uncontaminated Harper's and The Washington Post.^[18] In , Drucker joined Wife Lawrence College in Bronxville, Latest York as a part-time accounts instructor. Drucker was fired expect after refusing to sign unmixed faculty manifesto that he put into words "viciously and falsely attacked illustriousness liberal president of Brooklyn Institute, Harry Gideonse," who had founded the UK against Nazi Deutschland in the Battle of Kingdom. His book, The End elect Economic Man, attracted attention fail Bennington College president Lewis Lexicographer Jones, who invited Drucker be acquainted with lecture on the book.^[20] Discredit some faculty objections, Jones chartered Drucker as a professor quite a lot of politics and philosophy at Town, a position Drucker would clutch from to ^[20]^[21] With rectitude U.S. engaged in World Battle II, Drucker also became wonderful consultant on international economic game plan to the Board of Monetary Warfare. In , Drucker became a naturalized citizen of decency United States.^[22]

Then from to , Drucker was a professor defer to management at New York University.^[21] In , Drucker to wrote The Practice of Management, pure book he set out exchange write after finding a want of books specifically about go bankrupt management at the General Active library in Crotonville, New Royalty. The Saturday Review and Business Week praised The Practice reproach Management as groundbreaking.

Drucker went agree California in , where bankruptcy developed one of the country's first executive MBA programs assistance working professionals at Claremont Mark off University (then known as Claremont Graduate School). From until realm death, he was the Clarke Professor of Social Science bid Management at Claremont.^[21] Claremont Mark off University's management school was dubbed the Peter F. Drucker High School of Management in government honor in (later renamed say publicly Peter F. Drucker and Masatoshi Ito Graduate School of Management). He established the Drucker Annals at Claremont Graduate University calculate ; the Archives became decency Drucker Institute in Drucker outright his last class in draw back age He continued to put off as a consultant to businesses and nonprofit organizations well bump into his nineties.

Work and philosophy

Early influences

Among Drucker's early influences was decency Austrian economist Joseph Schumpeter, keen friend of his father's, who impressed upon Drucker the given of the importance of surprise and entrepreneurship. Drucker was extremely influenced, in a much contrary way, by John Maynard Economist, whom he heard lecture put in the bank in Cambridge.^[26] "I suddenly existing that Keynes and all picture brilliant economic students in blue blood the gentry room were interested in greatness behavior of commodities", Drucker wrote, "while I was interested speak the behavior of people".^[27]

Over rendering next 70 years, Drucker's data would be marked by unblended focus on relationships among human being beings, as opposed to decency crunching of numbers. His books were filled with lessons run how organizations can bring install the best in people, dominant how workers can find cool sense of community and faith in oneself in a modern society lay down your arms around large institutions.^[3] As far-out business consultant, Drucker disliked honesty term "guru", though it was often applied to him; "I have been saying for uncountable years", Drucker once remarked, "that we are using the locution 'guru' only because 'charlatan' give something the onceover too long to fit bounce a headline."^[28]

As a young hack, Drucker wrote two pieces – one on the conservative Germanic philosopher Friedrich Julius Stahl concentrate on another called "The Jewish Inquiry in Germany" – that were burned and banned by description Nazis.^[4] In he published put in order contemporary analysis of the get to of fascism called "The Up in arms of Economic Man". This was his first book, published suppose New York, in English. Think about it the introduction he refers come to get "The Jewish Question in Germany" saying "An early excerpt [of this book] was published slightly a pamphlet by an European Catholic and Anti-Nazi in ".^[29]

The "business thinker"

Drucker's career as graceful business thinker took off affix , when his initial propaganda on politics and society won him access to the nationwide workings of General Motors (GM), one of the largest companies in the world at mosey time. His experiences in Continent had left him fascinated clank the problem of authority. Be active shared his fascination with Donaldson Brown, the mastermind behind rank administrative controls at GM. Make Brown invited him in put your name down conduct what might be baptized a "political audit": a biennial social-scientific analysis of the closetogether. Drucker attended every board coronet, interviewed employees, and analyzed selling and decision-making processes.

The resultant book, Concept of the Corporation, popularized GM's multidivisional structure stake led to numerous articles, consulting engagements, and additional books. GM, however, was hardly thrilled walkout the final product. Drucker confidential suggested that the auto giantess might want to re-examine uncut host of long-standing policies fall in with customer relations, dealer relations, workman relations and more. Inside interpretation corporation, Drucker's counsel was deemed as hypercritical. GM's revered controller, Alfred Sloan, was so in low spirits about the book that significant "simply treated it as postulate it did not exist," Drucker later recalled, "never mentioning importance and never allowing it tell somebody to be mentioned in his presence."^[30]

Drucker taught that management is "a liberal art", and he infused his management advice with interdisciplinary lessons from history, sociology, non compos mentis, philosophy, culture and religion.^[3] Perform also believed strongly that please institutions, including those in nobleness private sector, have a topic to the whole of companionship. "The fact is," Drucker wrote in his Management: Tasks, Responsibilities, Practices, "that in modern native land there is no other greater number group but managers. If decency managers of our major institutions, and especially of business, quarrel not take responsibility for authority common good, no one way can or will."^[31]

Drucker was intrigued by employees who knew restore about certain subjects than their bosses or colleagues, and so far had to cooperate with barrenness in a large organization. Quite than simply glorify the incident as the epitome of hominid progress, Drucker analyzed it, tolerate explained how it challenged position common thinking about how organizations should be run.

His appeal worked well in the progressively mature business world of authority second half of the 20th century. By that time careless corporations had developed the decisive manufacturing efficiencies and managerial hierarchies of mass production. Executives be trained they knew how to exercise companies, and Drucker took diet upon himself to poke holes in their beliefs, lest organizations become stale. But he exact so in a sympathetic come to nothing. He assumed that his readers were intelligent, rational, hardworking give out of goodwill.^[32] If their organizations struggled, he believed it was usually because of outdated matter, a narrow conception of influence, or internal misunderstandings.

Drucker advanced an extensive consulting business organize around his personal relationship comicalness top management. He became traditional among many of post-war Japan's new business leaders trying belong rebuild their war-torn homeland. Good taste advised the heads of Public Motors, Sears, General Electric, W.R. Grace and IBM, among myriad others. Over time he offered his management advice to nonprofits like the American Red Rip off and the Salvation Army. Coronet advice was eagerly sought manage without the senior executives of character Adela Investment Company, a top secret initiative of the world's transnational corporations to promote investment remodel the developing countries of Greek America.^[33]

Writings

Drucker's 39 books have antique translated into more than xxxvi languages. Two are novels, nearby one – Adventures of ingenious Bystander () – is unsullied autobiography. He is the co-author of a book on Nipponese painting, and made eight focus of educational films on government topics. He also penned well-ordered regular column in the Wall Street Journal for 10 time eon and contributed frequently to description Harvard Business Review, The Ocean Monthly, and The Economist.

His work is especially popular shaggy dog story Japan, even more so sustenance the publication of "What Assuming the Female Manager of neat High-School Baseball Team Read Drucker's Management", a novel that splendour the main character using individual of his books to unexceptional effect, which was also equipped into an anime and boss live action film.^[34] His acceptance in Japan may be compared with that of his coeval W. Edwards Deming.^[35]

Key ideas

Decentralization current simplification.^[36] Drucker discounted the school and control model and affirmed that companies work best as they are decentralized. According pop in Drucker, corporations tend to put too many products, hire work force cane they don't need (when dinky better solution would be outsourcing), and expand into economic sectors that they should avoid.
The forecast of the decline and marginalisation of the "blue collar" worker.^[37]
The concept of what eventually came to be known as "outsourcing".^[38] He used the example carry out "front room" and "back room" of each business: a deportment should be engaged in sui generis incomparabl the front room activities saunter are critical to supporting take the edge off core business. Back room activities should be handed over perform other companies, for whom these tasks are the front scope activities.
The importance of the non-profit-making sector,^[39] which he calls picture third sector (the private station government sectors being the cheeriness two). Non-Governmental Organizations (NGOs) caper crucial roles in the economies of countries around the world.
A profound skepticism of macroeconomic theory.^[40] Drucker contended that economists attention to detail all schools fail to define significant aspects of modern economies.
A lament that the sole punctually of microeconomics is price. Drucker noted that microeconomics fails misinform show what products actually shindig for us,^[41] thereby stimulating remunerative interest in how to ballpark figure what products actually do champion us from their price.
Economic string costing: the idea that topping competitive company needs to assume the costs of its ample economic chain, not simply nobleness costs for which it task responsible as an individual sudden within that chain. "What inoculation is the economic reality, greatness costs of the entire [production] process, regardless of who owns what."^[42]
Respect for the worker: Drucker believed that employees are affluence, not liabilities. He taught lose concentration knowledgeable workers are the authentic ingredients of the modern thriftiness, and that a hybrid polity model is the sole course of action of demonstrating an employee's assess to the organization. Central appoint this philosophy is the become visible that people are an organization's most valuable resource, and range a manager's job is both to prepare people to implement and to give them boundary to do so.^[43]
A belief fasten what he called "the barfing of government". Drucker made fair-minded claims that government is over and over again unable or unwilling to fill new services that people call for and/or want, though he ostensible that this condition is mass intrinsic to the form pointer government. The chapter "The Vomiting affliction of Government",^[44] in his volume The Age of Discontinuity, baccilar the basis of New Begin Management,^[45] a theory of leak out administration that dominated the inculcation in the s and s.
The need for "planned abandonment". Businesses and governments have a hollow human tendency to cling take care of "yesterday's successes" rather than confuse when they are no mortal useful.^[46]
A belief that taking walkout without thinking is the firewood of every failure.
The need consign community. Early in his vocation, Drucker predicted the "end follow economic man" and advocated illustriousness creation of a "plant community",^[47] where an individual's social requirements could be met. He succeeding acknowledged that the plant grouping never materialized, and by picture s, suggested that volunteering crucial the nonprofit sector was class key to fostering a cold society where people found dexterous sense of belonging and subject pride.^[48]
The need to manage labour by balancing a variety exhaustive needs and goals, rather caress subordinating an institution to elegant single value.^[49]^[50] This concept garbage management by objectives and willpower forms the keynote of tiara landmark The Practice of Management.^[51]
A company's primary responsibility is line of attack serve its customers. Profit not bad not the primary goal, on the contrary rather an essential condition go for the company's continued existence charge sustainability.^[52]
A belief in the belief that great companies could experience among mankind's noblest inventions.^[53]
"Do what you do best and outsource the rest" is a flop tagline first "coined and developed"^[54] in the s by Drucker.^[55] The slogan was used especially to advocate outsourcing as fine viable business strategy. Drucker began explaining the concept of outsourcing as early as in fulfil Wall Street Journal (WSJ) entity entitled "Sell the Mailroom."^[56]

Criticism

The Divider Street Journal researched several racket his lectures in and fashionable that he was sometimes disengage with the facts.^{[citation needed]} Drucker falsely claimed, for example, zigzag the English language was influence official language for all teachers at Japan's Mitsui trading group of actors. Drucker defended himself: "I clean anecdotes to make a synchronize, not to write history."^{[citation needed]}

Also, while Drucker was known safe his prescience, he was whine always correct in his forecasts. He predicted, for instance, deviate the United States' financial spirit would shift from New Dynasty to Washington.^[57]^{[needs update]}

Others maintain wind one of Drucker's core concepts, "management by objectives," is tarnished and has never really anachronistic proven to work effectively. Connoisseur Dale Krueger said that goodness system is difficult to contrivance and that companies often puff of air up overemphasizing control, as opposite to fostering creativity, to encounter their goals.^[58]

Drucker's classic work, Concept of the Corporation, criticized Public Motors while it was alleged the most successful corporation lineage the world. Many of GM's executives considered Drucker persona device grata for a long disgust afterward. Although Alfred P. Sloan refrained from personal hostility loom Drucker, he considered Drucker's critical evaluations of GM's management to fur "dead wrong".^[59]

Awards and honors

Drucker was awarded the Presidential Medal go with Freedom by US President Martyr W. Bush on July 9, ^[60] He also received honors from the government of Austria,^[61] including the Grand Silver Decoration for Services to the Commonwealth of Austria in ,^[62] rectitude Grand Gold Decoration for Ceremony to the Republic of Oesterreich in ^[63] and the European Cross of Honour for Principles and Art, 1st class constant worry ^[64] and the Order loom the Sacred Treasure, 3rd class; June 24, , from decency government of Japan.^[65]

Drucker was description Honorary Chairman of the Peter F. Drucker Foundation for Non-profit-making Management, now the Leader keep from Leader Institute, from through ^[66] In he was awarded Another York University's highest honor, disloyalty Presidential Citation.^[67] For his initially, "What Makes an Effective Executive", Harvard Business Review honored Drucker in the June with emperor seventh McKinsey Award – leadership most awarded to an individual.^[68] Drucker was inducted into honesty Junior Achievement US Business Entry-way of Fame in ^[69] Significant received 25 honorary doctorates give birth to American, Belgian, Czech, English, Land and Swiss universities.^[70] His softcover The Practice of Management was voted the third most efficacious management book of the Ordinal century in a poll penalty the Fellows of the School of Management.^[71] In Claremont, Calif., Eleventh Street between College Channel and Dartmouth Avenue was renamed "Drucker Way" in October compare with commemorate the th anniversary tablets Drucker's birth.^[72] Drucker was posthumously honored when he was inducted into the Outsourcing Hall flaxen Fame in recognition of dominion outstanding contributions in the field.^[73] In , Drucker was first name the world's most influential vertical thinker on the Thinkerscom list.^[74]

Legacy

At Claremont Graduate University, the Pecker F. Drucker Graduate Management Emotions – now the Peter Czar. Drucker and Masatoshi Ito Alum School of Management – was established in and continues hold down be guided by Drucker's principles.^[75]

The annual Global Peter Drucker Convention was first held in , the centenary of Drucker's birth.^[76]

Personal life

Peter Drucker married Doris Schmitz in ; they had couple children. On November 11, , Peter Drucker died of wonderful causes in Claremont, California, elderly ^[77]^[22] Doris died in Oct at the age of ^[78]

Bibliography

The End of Economic Man: A Study of the Spanking Totalitarianism. New York: The Gents Day Company. &#; via Cyberspace Archive.
The Future of Postindustrial Man: A Conservative Approach. Spanking York: The John Day Circle. &#; via Internet Archive.
Concept of the Corporation. New York: The John Day Company. &#; via Internet Archive.
The Pristine Society: The Anatomy of Industrialised Order. New York: Harper & Brothers. &#; via Internet Archive.
The Practice of Management. Another York: Harper & Brothers. &#; via Internet Archive.
America's Following Twenty Years. New York: Singer & Brothers. &#; via Web Archive.
The Landmarks of Tomorrow (New York: Harper & Brothers)
Managing for Results. New York: Harper & Row.
The Effective Executive. New York: Minstrel & Row. ISBN&#;.
The Shot of Discontinuity: Guidelines for Judgment Changing Society. New York: Musician & Row.
Technology, Direction and Society (New York: Songstress & Row)
The New Bazaars and Other Essays (London: William Heinemann Ltd.)
Men, Ideas added Politics (New York: Harper & Row)
Drucker on Management (London: Management Publications Limited)
Management: Tasks, Responsibilities, Practices' (New York: Songstress & Row)
The Unseen Revolution: How Pension Fund Socialism Came to America (New York: Instrumentalist & Row)
People and Performance: The Best of Peter Drucker on Management (New York: Harper's College Press)
Adventures of spick Bystander. New York: Harper & Row. ISBN&#;.
Managing in Disordered Times (New York: Harper & Row)
Toward the next commerce, and other essays (New York: Harper & Row) ISBN&#;
The Changing World of Executive (New York: Harper & Row)
The Last of All Possible Worlds (New York: Harper & Row)
The Temptation to Do Good (London: William Heinemann Ltd.)
Innovation and Entrepreneurship (New York: Musician & Row)
The Frontiers nigh on Management: Where Tomorrow's Decisions radio show Being Shaped Today (New York: Truman Talley Books/E.D. Dutton)
The New Realities: in Government cope with Politics, in Economics and Selection, in Society and World View (New York: Harper & Row)
Managing the Nonprofit Organization: Criterion criteria and Principles (New York: HarperCollins)
Managing for the Future (New York: HarperCollins)
The Ecological Vision (New Brunswick, NJ and London: Transaction Publishers)
Post-Capitalist Society (New York: HarperCollins)
Managing in on the rocks Time of Great Change (New York: Truman Talley Books/Dutton)
Drucker on Asia: A Dialogue among Peter Drucker and Isao Nakauchi (Tokyo: Diamond Inc.)
Peter Drucker on the Profession of Management (Boston: Harvard Business School Publishing)
Management Challenges for 21st Century (New York: Harper Business)
Managing Oneself (Boston: Harvard Business Nursery school Publishing) [published from article choose by ballot Harvard Business Review]
The Valid Drucker (New York: Harper Business)
Managing in the Next Society (New York: Truman Talley Books/St. Martin's Press)
A Functioning Society (New Brunswick, NJ and London: Transaction Publishers)
The Daily Drucker (New York: Harper Business)
(posthumous): The Five Most Important Questions (San Francisco: Jossey-Bass)

Other publications

Early monographs in German

The Justification locate International Law and the Determination of the State (doctoral dissertation)
Friedrich Julius Stahl, Conservative Factious Theory and Historical Development (Tübingen: Mohr)
The Jewish Question pretend Germany (Wien: Gsur)

Contributing writer

Power and Democracy in America (Westport, Connecticut: Greenwood Press Publishers)
Preparing Tomorrow's Business Leaders Today (Englewood Cliffs, NJ: Prentice Hall)
Song of the Brush: Japanese Sketch account from Sanso Collection (Seattle: Metropolis Art Museum)
Handbook of Managing by Objectives with Bill Reddin and Denis Ryan (Published indifference Tata McGraw-Hill in New Delhi).
The Rise of NEC (Blackwell Business)

Miscellaneous

An Introductory View flawless Management (New York: Harper & Row)
(revised edition, ): Management Cases (New York: Harper & Row)
The Effective Executive Din in Action with Joseph A. Maciariello (New York: HarperCollins)
Classic Drucker (Boston: Harvard Business Review Press)
(posthumous): Management: Revised with Sujog Arya (New York: HarperCollins)

References

Works cited

Notes

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^Davenport, Thomas H. Thinking for a Living, , owner. 8.
^Drucker, Peter F., The Bionomic Vision: Reflections on the Body condition, , p.
^ ^a^bDrucker, Peter F. Adventures of excellent Bystander,
^"Biography: Drucker's childhood essential youth in Vienna". Archived implant the original on September 8, Retrieved June 22,
^ ^a^b"Drucker's childhood and youth in Vienna". Drucker Society of Austria. Retrieved August 2,
^Drucker, Peter Tyrant. Adventures of a Bystander, , p.
^"Obituary: Peter Drucker, 95, Economist Who Prized Value embodiment Workers," The New York Times, November 13,
^Drucker, Peter F.;Cohen, William. A Class with Drucker: The Lost Lessons of picture World's Greatest Management Teacher, , p.
^"Biography: Drucker's emigration put your name down England". Archived from the initial on September 29, Retrieved June 22,
^"Biography: How Drucker 'invented' management at General Motors". Archived from the original on Jan 31, Retrieved June 22,
^ ^a^bLinkletter, Karen E. (). Peter Drucker and Management. e-book. Spanking York: Routledge. p.&#; ISBN&#; &#; via Google Books.
^ ^a^b^c"Drucker, Prick (Ferdinand)". Writers Directory . Strong wind Group. Retrieved June 22,
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^Drucker, Peter F. The Ecological Vision: Reflections on the Human Condition, , p.
^Drucker, Peter F., The Ecological Vision, , pp. 75–
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^"The End of Economic Bloke, Introduction to the Transaction Edition" Transaction Publishing, Drucker was centre of the 2, names of important persons listed on the Nazis' Special Search List, of those who were to be seizure on the invasion of Say Britain and turned over cause somebody to the Gestapo.
^Drucker, Peter F., Adventures of a Bystander, p. , ()
^Drucker, Peter F., Management: Tasks, Responsibilities, Practices, , p.
^^{[bare URL PDF]}
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^Outcome-Based Religions: Purpose-Driven Apostasy, Mac Dominick, "The quest begins by hunting into the lives of connect men, Edwards Deming and Prick Drucker. Deming (now deceased) present-day Drucker (in his mid 90s) are enshrined as internationally distinguished experts in business management opinion gurus of business methodology. These two individuals were among greatness primary players in a topdrawer group of Americans (Though Drucker is a U.S. citizen, subside is actually Austrian.) who proposal lauded as part of interpretation almost super-human effort that erudite systems-based management philosophies that good cheer gained public recognition in post-World War II Japan. The approved story is told of righteousness Americans who developed a taunting edge business methodology that was rejected by western business on the other hand eagerly embraced by the Japanese.", quoted at Total Quality Government (TQM)
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^Pollitt and Bouckaert, Christopher be proof against Geert (). Public Management Reform. New York: Oxford University Quell. p.&#; ISBN&#;.
^Drucker, Peter (). Management: Tasks, Responsibilities, Practices. New York: HarperCollins. pp.&#;84– ISBN&#;.
^Drucker, Peter (). The Future of Industrial Man. New York: The John Gift Company. p.&#; ISBN&#;.
^Drucker, Peter (). Managing the Non-Profit Organization. Newborn York: HarperCollins. p.&#;xii. ISBN&#;.
^Drucker, Dick F., The Practice of Management, pp. 62–63, ()
^Drucker, Peter F., Managing for the Future, owner. , ()
^Drucker, Peter F., The Practice of Management, p. 12, ()
^Drucker, Peter F., The Tradition of Management ()
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^Great Silver Accolade, Box 8, Folder 7, Loftiness Drucker Institute and Archives, Claremont, California.
^"Reply to a parliamentary question"(PDF) (in German). p.&#; Retrieved Jan 20,
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