This article is the first of a series about Management Styles and real Case Studies of them.

If you don’t know where you are going, you don’t know if you’re getting there! 

Peter Drucker established the basis of Management by Objectives (MBO) in his book The Practice of Management in 1954. Nowadays MBO is utilized in many organizations as a critical tool. In the 1990s period Peter Drucker clarified the implementation of MBO: “It’s just another tool. It is not the great cure for management inefficiency… Management by Objectives works if you know the objectives, 90% of the time you don’t.” 

Setting SMART Objectives and correctly aligned to Business targets is a success key

It is important for a Service Director to mirror the organisation’s objectives which are set forth to the Service Managers. Service Directors can use COBIT for doing this task.

MBO establishes SMART objectives, which are: Specific, Measurable, Achievable, Realistic and Time-related.

The Service Director must monitor the tasks performance against the objectives, give regular and fast feedback. Once this is done, he must evaluate Service Managers performance against their objectives. Last but not least, he must recognise and reward their good performance.

How you do it is not as important as getting it done! 

Drucker said that employees need four powers to do their jobs well: 

  1. the freedom to challenge everything 
  2. regular training and development 
  3. the ability to achieve the objectives they are set, and see the results 
  4. understanding of their organisation’s real purpose 

In conclusion, Management by Objectives (MBO) can help integrate, top-down, all the levels in an organization to achieve its targets. Next article we will go on how MBO changed Hewlett-Packard management style. Subscribe for free now to follow next articles.

Does your organization promote MBO? And you?

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Author: angelberniz (All Rights Reserved by the author).
Source: Original Text (based upon first hand knowledge).
Image courtesy of winnond at FreeDigitalPhotos.net
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