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“Social responsibility objectives need to be built into the strategy of a business, rather than merely be statements of good intentions. Management by objective works, if you know the objectives. Ninety percent of the time you don’t.”  – Peter Drucker

When differentiating between the things we need to do and the outcomes we expect to achieve, we need to understand that the elements that go into managing the process are going to dictate when and how those goals or objectives will be fulfilled.

These goals need to be researched and recorded so that they are not only implemented efficiently, but tracked and refined over time. When using a management method that is based on objectives, as Mr. Drucker has pointed out, it is crucial to plan the process so that we know exactly what the most competent objectives are.

The role of ‘Goals and Objectives’ in the management of ‘Corporate America’

As a company or organization in corporate America, the idea behind having written goals and objectives in place is to support management by instilling a protocol for when a specific event or predicament occurs.

In addition, if both management and the employees take part in the process of setting the goals that need to be achieved, then those goals can be harmonized into an organized process that will coincide with the company’s overall objectives. This will make the management by objective process more focused on personal goals rather that some obscure corporate hierarchy. The key to it all is that these objectives are meant to be coordinated and supervised throughout the organization in a way that creates a uniformity that, when successful, can be duplicated.

During the planning stage, associates are asked to set a few personal/professional goals that can in some way be measured. These personal goals are then communicated with the associates direct supervisor to insure that what they’ve chosen as a goal is both appropriate and track able. This is typically followed by both the supervisor and employee putting the top objectives in writing and setting a date for them to be reviewed in the future.

Finally, a customized reward system should be put in place so that when the reviews take place, the manager doing the evaluation can reward those achieving their objectives.

Driving Outcomes

For the business owner who wants to get his or her business refocused looking into management by objectives might just be the way to go.

Since this process was created as a management tool for managers, the best place to start is at the top as these principles work best when they are adopted with enthusiasm by those implementing them.

On the opposite side of that, management by objective doesn’t work well when it forced upon or imposed. The true benefits reside in the participation of all those involved being part of the planning of those objectives. That’s because the formulating of these measurable objectives becomes a way of training those involved to think in a way that produces noticeable benefits.

Enthusiasm truly is contagious. If the management by objective process is adopted by the owner where it is proven to work well, then that enthusiasm will act as a motivator for the managers to spread the concept throughout the business.

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  3. […] individual that is working towards the organizational goals that have been set. This is exactly how Management by Objectives works in maintaining a high level of communication and cooperation between management and […]