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Management by objectives isn’t just a way to set direction for an organization. It’s a prerequisite for creating sustainable development and a culture of continuous improvement.
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True success, however, comes not just from setting goals, but from ensuring they are actually achieved. Or, to paraphrase Alice in Wonderland, “If you don’t know where you’re going, any road will get you there.” With the right goals and structured follow-up, your organization can make both small and significant strides forward.
Why is management by objectives important?
Setting clear and realistic goals provides employees with a shared direction. It fosters a sense of purpose and unity, which can enhance both engagement and performance. When everyone understands the destination and how their efforts contribute, it becomes easier to align resources and avoid wasted effort. Effective goal management also helps identify the most relevant areas for improvement to achieve long-term strategic objectives.
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Comments
Deming and MBO
MBO was often cited by Deming as being one of the consequences of one of his "Deadly Diseases," management by visible figures alone. I think, however, you've covered some ideas that would help avoid the problems he discussed. One of his objections to MBO was that--at least at that time--it was usually done in silos, without any understanding of the system and how it might be affected by MBO. Your caveats about measuring the wrong things, short-term thinking, and suboptimization are exactly the dangers he warned about.
As a side-note, he would have told you, however, that it's PDSA - Study, not Check. Subtle but significant difference.
Process view
I agree. Would like to add that the process view is also very important, to mitigate silo thinking.
The PDCA/PDSA story is interesting. Whatever term we like to use, we can thank Deming and Shewhart for making it famous. Here's one version of the history: https://deming.org/wp-content/uploads/2020/06/PDSA_History_Ron_Moen.pdf
PROCESS BEHAVIOR CHARTS
Measurable goals can best be tracked using Process Behavior Charts, something Deming would also recommend. Goto www.PBCharts.com to learn more about how to use Excel to make Process Behavior Charts using an Excel Add-in
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