Management by Objectives
At Level 3, the project Lowest Static Baseline is the objectives
baseline, illustrated in Figure 5. These projects are referred
to in the DBM as development. For development projects, the art and science of project
management is in selecting and manipulating alternative requirements approaches to
implement the objective with optimal efficiency; i.e., the requirements are a dynamic
baseline. The corresponding project management behavior appropriate to a Level 3 environment
is MBO.
Figure 5: Static Objectives Baseline
The Project:
A typical MBO application would have evolving requirements and a containable
total system responsibility or TSR obligation. MBO work entails closed systems engineering
with significant internal integration risk. It would feature a semi-tangible product
(combination of hardware and software) and leading edge technology. MBOs have a distinct
advantage over higher level projects in being able to operate covertly due to the
TSR. Because the bureaucracy associated with MBR does not suit the highly unique nature
of MBO projects, they must be "insulated" from the routine line operations
protocol described in the company rulebook. Hence, they do not only operate in a projectized
environment; it is generally difficult to establish status information such as cost/schedule
performance for outside stakeholders.
The People:
The ideal MBO behavior features a highly goal-oriented individual, strong
willed, with high leadership skills. An MBO practitioner would be a Myers Briggs ENTJ
(Extroverted/iNtuitive/Thinking/Judgmental) or "Field Marshal," representing
2% of the population.
The project management training syllabus for MBO includes subjects such as:
- Conflict resolution
- Crashing
- Decision theory
- Effective meetings
- Fast tracking
- Human resources (McGregor, Ouchi, McClelland, Maslow, Heitzberg, etc.)
- Management reserve
- Motivational theories
- Negotiation
- Project charter
- Project procurement management
- Utility theory
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Management
by Methods
