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Peter Drucker, author of Management by Objectives, developed his popular theory about the role of goals and objectives in the management of corporate America in a time of stable economies and steady growth. However, the fast-paced global marketplace of today is drastically different. Information is required to be available at lightning speeds, and businesses must learn to manage goals and objectives in real-time.

Align Company Goals With Objectives
Volatile and changing times requires regularly monitored and altered goals and objectives throughout the business year. By managing goals and objectives in real-time, management is given the opportunity to change goals and priorities immediately to stay aligned with company objectives.

Get A Visual Map
Having a visual map of your goals and objectives increases focus, motivation and productivity. Real-time systems contain maps that supply a centralized picture of where a firm stands at any point in time in the goal-setting process. Maps play a key role in driving outcomes by giving users a chance to study how tasks are progressing, and what needs changing to point the firm on the productive path.

Align Employees With Company Goals To Increase Productivity
To achieve optimum productivity, employee goals and objectives must be aligned with company goals. In this vein, every employee must have specific goals that help the firm work towards its desired outcome. Real-time systems will highlight which employees are productively working towards company goals and which ones are not working up to potential. With this, management can then make changes to correct any employees that are off course.

Increase Focus
Managing and tracking goals and objectives in real-time increases focus. Since information is continuously changing during real-time feedback, it gives management a chance to immediately focus in on what is working and what is not.

One crucial way to increase focus is using lists as a visual representation of tasks. It’s important to keep track of tasks, as they are crucial for driving outcomes. According to Peter Drucker, task management and task study are central to any goals and objectives process. Real-time systems allow us to analyze the work, tasks and steps needed to achieve desired outcomes. After analyzing data, management can decide what course of action is required.

Real-time systems also provide us with an updated “to do” task list that helps decision makers concentrate on exactly what needs to be done to better manage the goal and objectives process.

Develop Time Optimization
As any effective manager understands, time is money. By managing objectives in real-time, time optimization skills will be enhanced. Less time is spent on useless activities and on distractions. With proper time optimization, employees can increase their overall focus, organization, productivity and motivation.

Change Nonproductive Goals
Real-time systems allow management the opportunity to set, change and re-prioritize goals as soon as inefficient ones are noted. This in turn also allows management the opportunity to quickly change company goals to better reflect and align itself with the goals of management.

Real-time systems , like those offered by Objectiveli, offer so many benefits for managing goals and objectives, firms will flounder and fall behind the competition unless effective ones are implemented. Objectiveli concentrates on driving outcomes by using a simple and intuitive interface that shows users how to replace traditional tools, such as emails, post-its and spreadsheets with empowering applications that fulfill goals, aspirations and visions.


Source: Toward the ­ Next Economics and Other Essays – 1981 Peter Drucker

Kevan Hall
Kevan Hall

Clear, goals are really important. But, in my world of matrix management, goals from different legs of the matrix can be clear, but still compete for my time and attention. Priorities change fast and SMART goals can quickly become out of date.


Any thoughts about goal setting in this very complex environment?


My own approach is to clarify what you can, but also build the capability in our people to manage trade-offs, dilemmas and conflicts when we run out of clarity. 


It’s an interesting article. Through managing goal better clarity in organizational action is possible. It definitely encourages personal commitment which leads to development, and hence time optimization can be achieved.


MBO is a big subject and it needs lots of practices to implement them effectively. It is always found the importance of setting goals in all areas where performance is critical for success of any organization. There are many theories and concepts, but it’s important to follow the concept whatever may be the end result. With changing time, approach to goal setting has taken a new shape. It’s a key to managerial activities.


This is a must read blog post, bringing Management by Objectives to the modern world.

Stas Gulinsky
Stas Gulinsky

Great blog post, its high time someone built an application to bring management by objectives to the current paradigm.

Objectiveli moderator

Great blog post, the business paradigm has shifted since Peter Drucker invented Management by Objectives, the fundamentals of the business remain the same, however the speed of which change occurs across the board, products, suppliers, customers etc.. and effects all industry segments - needs new applications to manage Goals and Objectives.


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