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.

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.

SMART goals and clear criteria

When setting goals, it’s crucial to identify targets that are not only relevant but also realistic and motivating. A proven method is to set SMART goals, meaning each goal is:
• Specific—clearly defined and unambiguous
• Measurable—progress and success can be tracked, either qualitatively or quantitatively
• Accepted—agreed upon by those involved or affected
• Relevant—aligned with the organization’s priorities and strategy
• Time-bound—bound by a defined timeline for achievement

By applying the SMART model, goals become concrete, trackable, and strategically aligned. It’s also important to ensure that match available resources and are adaptable to changing circumstances.

Follow-up and adjustment—the PDCA cycle

One of the most vital aspects of goal management is ongoing monitoring and adjusting when necessary. The PDCA cycle—plan, do, check, act—is a powerful tool that helps organizations continuously improve their processes.

• Plan—define clear goals and break them down into specific subgoals aligned across departments
• Do—take the necessary actions and monitor regularly
• Check—evaluate the outcomes and assess whether goals are still relevant and achievable
• Act—adjust actions and, if needed, the goals to align with organizational progress

This cyclical process ensures you’re always on course and able to respond quickly to deviations.

Follow-up and communication

Effective follow-up and communication strengthen the organization’s improvement efforts by making quality issues, inefficiencies, and shortcomings visible—and a shared responsibility to resolve.

Continuous measurement and reporting allow rapid responses to deviations. Ideally, measurement, reporting, and visualizing results should occur in real time.

However, follow-up and communication must not be seen as isolated tasks. They are part of a process with the ultimate goal of improving organizational performance.

Common pitfalls in goal management

Despite its importance, there are several common pitfalls in goal-oriented management:
• Focusing on easily measurable goals—organizations may favor what’s easy to track over what’s most effective
• Measuring the wrong things—operational metrics may misalign with strategic priorities
• Short-term focus—prioritizing short-term wins can undermine long-term objectives
• Suboptimization—departments optimizing for their own goals at the expense of overall efficiency

Follow-up and communication are critical to success

Integrating goals into daily work requires clear follow-up and communication. Every employee should understand the goals and how their work contributes to achieving them. Regular reporting, visualizing results, and a culture of open feedback will foster engagement and accountability.

By setting SMART goals, using the PDCA cycle, and avoiding common pitfalls, your organization can build an effective goal management process that delivers sustainable results. Contact us to develop a goal management model tailored to your organization’s unique needs and objectives.

Published by CANEA.