Market of Objectives
The Market of Objectives is both a management technique and the philosophy associated with it, based on the concept of management by objectives formulated by Peter Drucker. The Market of Objectives complements Drucker’s methodology with contemporary trends in business and technology. The strategic objectives established by the management board are used as a basis for managers to set their own goals and negotiate and trade these with other managers. Once agreed, these go back to the board for approval and are then fed into the global Map of Objectives, which manages the management of the system automatically
A key to the Market of Objectives method is the three indicators principle, described in my book in detail. It defines the requirement to use a three-dimensional metric for each hard-measurable objective: 1) Satisfaction of the beneficiary, 2) Economic benefit to the company, 3) Description of the tangible results achieved.
Due to the number of transactions concluded within the market, the need for speedy communication between participants, and the short time available for establishing objectives, the Market of Objectives requires automation. Computerization is also necessary to efficiently manage and control the whole process.
The Market of Objectives introduces several elements and techniques that have not yet been used in management by objectives. The most important are:
- Horizontal correlation of objectives
- Measurement of the execution of objectives via three indices which measure added value
- IT application to enable simultaneous contracting of objectives
- Map of objectives
- Constant supervision over the process
- The Market of Objectives was first described in my book Market of Objectives. ROI in HR.