Bank of America’s Self-Imposed Exam

Like other large financial institutions, Bank of America was put through a “stress test” by U.S. officials last year. But it’s a self-imposed procedure—one akin to Peter Drucker’s “Business X-Ray”—that may ensure the company’s long-term health.

Drucker, who was fond of medical analogies, thought every organization should regularly go through this kind of rigorous examination for all of its current lines: products, services, technologies, processes, and distribution channels. “The Business X-Ray is a tool for decision making,” Drucker wrote. “It enables us, indeed forces us, to allocate resources to results in the existing business. But it also makes it possible for us to determine how much is needed to create the business of tomorrow. . . . It enables us to turn innovative intentions into innovative performance.”