CHAPTER 29

Manage by Objectives

LEARNING FROM

Gustav Mahler

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The world premiere of the Symphony No. 8 in E-flat major by Gustav Mahler (1860–1911) in Munich on September 12, 1910, was a grandiose event involving no fewer than 1,030 people, including Mahler himself, who had no intention of letting anyone else conduct the first performance of the work. Yet Mahler’s symphonies only really became widely popular in concert halls and as records in the 1960s, during a veritable Mahler renaissance. One factor that prompted this resurgence in Mahler’s popularity was a speech given in Vienna, the “Wiener Rede,” in 1960 by Theodor W. Adorno, commemorating the centenary of the composer’s birth. Another factor was the ardent backing of Mahler’s works by the great conductor Leonard Bernstein. The fervor for Mahler’s music stirred up back then has lingered to today among conductors and audiences alike.

On August 18, 1906, after completing his Eighth Symphony, Gustav Mahler penned a gushing letter to the conductor Willem Mengelberg, writing: “I’ve just finished my Eighth—my greatest work to date. And so unusual in content and form that it defies description in words. Imagine the universe starting to ring and reverberate. These are no mere human voices resounding, but those of planets and suns. . ..”1

Just as it is almost impossible to describe the delight of delicious food, the beauty of a picture, or the sense of exhilaration upon hearing a wonderful opera, even the composer was at a loss for words to adequately describe his latest piece. Things like that simply need to be experienced. It comes as no surprise, then, that those who attended the world premiere of Mahler’s Eighth Symphony, author Thomas Mann among them, reported the overwhelming impact of the performance. But how was that impact created? What makes an undertaking like that succeed? How does a performance have to be conducted to elicit a perfect result from 1,030 people?

In management, the “secret” behind such a masterly feat is management by objectives and self-control. Management by objectives and self-control enables hundreds of musicians and their conductor, who is akin to their CEO, to synchronize their performance of even the most complex works with absolute precision. It is the fact that they share the same score that enables so many specialists in the orchestra to make such an effective contribution to the overall performance. And this, of course, is nothing other than a figurative description of how to go about using objectives in an organization.

Objectives provide the human beings in an organization with the information they need to make effective contributions as specialists. Management by objectives makes clear to the people in an organization what management expects the organization as a whole to achieve, as well as what it expects of each division and of each specialist who constitutes a part of the larger unit.

In addition, clearly spelled-out objectives enable every staff member to autonomously compare those expectations with their own performance because they enable them to exercise self-control. In organizations in which knowledge work plays a central role, this situation is particularly important. Often, a superior is unable to tell a specialist how to execute the task at hand, just as only a few conductors can play the violin, let alone show their first violinist how a piece should be played. Conductors can guide players in a way that harnesses the knowledge and skills of a violinist for the benefit of the overall result and produces wonderful music, but the violinist needs objectives and must be allowed to use self-control to implement those instructions.

The importance of management by objectives and self-control really cannot be overestimated, since it gives human beings control over their own performances. Within set limits, managers have the freedom to decide which course of action is right. This results in better performances and boosts motivation.

Management by objectives and self-control forces managers to make high demands on themselves. Aiming high is much more likely to make them ask too much of themselves and of their subordinates, rather than demanding too little. The concept assumes that people want to assume responsibility, contribute, and achieve. Managers may experience a few disappointments, but in most cases the response will be exactly what they are hoping for: responsible behavior, valuable contributions, and great performances. By acting in this way, they lay some of the essential foundations for a healthy corporate culture—a culture based on trust, responsibility, a results-oriented approach, and performance.

If objectives are to be effective, they must meet a string of criteria. They should always derive from the goals of the enterprise and be worded clearly and unequivocally. Specific deadlines need to be set for the attainment of objectives, which must also be assigned to one particular individual who is responsible for their attainment. “Who needs to do what by when?” is the key question to ask when deciding on which measures to implement to achieve the desired outcome.

Another thing to spell out is which results are to serve as a basis for measuring the attainment of objectives. It is helpful if results can be quantified. Often, it will neither be possible nor make sense to exactly quantify the attainment of objectives. In such instances, you will have to decide which criteria to use to judge the degree of attainment.

Accordingly, if management by objectives and self-control is to prove effective, managers must be given more than just targets, namely regular feedback—that is, information—on the current situation regarding the attainment of objectives. And they need it quickly enough to enable them to make any changes required to ensure that the objectives in question are attained. Only if this information is provided can they judge their own performance, and only then can self-control function properly.

Management by objectives and self-control is one of the most important components of effective management. Everyone in an organization makes his or her own specific contribution, but each individual contributes something different. Management by objectives and self-control effectively channels these various contributions toward a common goal. It turns individual achievements into an overall performance. It encourages people in an organization to see the bigger picture, to bear in mind what can only be jointly achieved—an excellent overall performance.

Mahler, too, conducted his Eighth Symphony using a single score, and all the musicians knew what they had to do.


Image Manage the area for which you are responsible with objectives and self-control.

Image What can you do tomorrow to ensure that greater use is made of self-control and that it functions efficiently?