Idea 32 - Management by objectives Management by objectives is such a classic principle that many who couldn't care less about business will still recognize the phrase. It was introduced to the language by that most enduring of classic business thinkers, Peter Drucker, in his milestone 1954 work, The Practice of Management. Management by objectives (MBO) is about making sure that you can see the wood for the trees. Drucker noticed that managers could get stuck in what he called an 'activity trap', getting so wrapped up in their daily tasks that they overlooked the reasons why they were doing them. MBO calls for a focus, not on activities, but on results. Which is why it's sometimes called management by results. Drucker tells us that setting objectives is the first of the five essential operations for managers. (The others are to organize, to motivate and communicate, to measure and, finally, to develop people - including themselves.) One of the keys to MB