“There are few things that distinguish competent from incompetent management quite as sharply as the performance in balancing objectives.”
“The late Nicholas Dreystadt, head of Cadillac and one of the wisest managers I have ever met, said to me once: “Any fool can learn to stay within his budget. But I have seen only a handful of managers in my life who can draw up a budget that is worth staying within.””
According to Drucker, objectives need to be set in eight business areas, including marketing and innovation. The chapter describes how to set objectives in these areas. The marketing and innovation sections are particularly detailed and useful.
Any area that requires performance and results needs objectives, measures, and standards. Drucker emphasizes the need to pick the right “yardstick” or measuring rod.
Objectives and measures enable a business to focus on its mission. Moreover, when objectives are prioritized, a business allocates its resources effectively.
The future should guide the setting of objectives. Drucker recommends evaluating past and current events that will create and shape future demand.
(The Practice of Management, Chapter 7)