Using Management by Objectives

Many organizations use a common management technique called management by objectives (MBO). MBO is not covered directly in the PMBOK, but you will need to understand its general concept for the PMP exam. In very simple terms, MBO helps ensure that objectives within various areas or levels within an organization agree, or harmonize, with objectives from other areas and levels. In short, MBO gets everyone thinking with an enterprisewide perspective.

The project initiation process group is really a set of activities that directly support MBO techniques. The main purpose of project initiation is to ensure projects are understood, provide value to the organization, and are fully authorized by the organization.

MBO is closely related to solid project management practices for several reasons:

• MBO implements goal setting and recurring reviews and suggests activities similar to the project control process.

• MBO is concerned with ensuring that goals are consistent across an organization, and one task of the project charter is to state how the project supports an organization's overall goals.

• Both MBO and sound project management work only if management supports them at a high level.

Implementing MBO is relatively simple. Here are the basic MBO process steps:

1.	Establish clear and achievable objectives.
2.	Periodically check whether objectives are being met.
3.	Take corrective actions on any discovered discrepancies.