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In a renowned, gut-wrenching scene from the film version of David Mamet’s classic working man’s play Glengarry Glenn Ross, a “trainer from corporate” played by Alec Baldwin unloads on a group of salesmen:
“You certainly don't pal. Cause the good news is – you’re fired. The bad news is you've got, all you got, just one week to regain your jobs, starting tonight. Starting with tonight's sit. Oh, have I got your attention now? Good. Cause we're adding a little something to this month's sales contest. As you all know, first prize is a Cadillac Eldorado. Anyone want to see second prize? Second prize’s a set of steak knives. Third prize is you’re fired. You get the picture?”
You can find the scene here: https://www.youtube.com/watch?v=czOpDN8Knr4
That’s what’s known as “management by objectives” (MBO). In other words, at work you have a goal, and you need to meet it. Or else. And in this situation, the salesmen (not to be misogynist, but it’s only men in the cast) have one week to close enough deals to place first (new car) or second (set of steak knives) in the monthly sales contest or lose their job.
Make no mistake, there is clarity. Stress be damned. Close deals – be rewarded. Fail – and you’re fired. There is no gray area.
Recently, there was a real-world example in the college football. Brian Ferentz, the University of Iowa Hawkeyes football team’s offensive coordinator, was given a new public contract for the 2023 season that is very specific about the objectives he must meet to remain the offensive coordinator. His contract even has a nickname – the “Drive for 235,” or 25 points per game for 12 games of the regular season and 1 post season (25 x 13 = 235), and also win 7 games.
Once again, there is no gray area. It’s math and numbers don’t lie. As of October 30, his scoring numbers were trending poorly (averaging 19.5 points per game) with little-to-no prospect of overcoming a deficit enabling him to get 325 points. He would have then needed to score 39.8 points per game in their remaining matches to make their target. He was informed by the university he was going to lose his job after the season. Cold, but that’s MBO.
At the beginning of the year, stakeholders agree on the measurement of success and build accountability into the management structure. MBO can be specific metrics like Brian Ferentz’s contract, or things like sales objectives, the successful completion of a complex project, or any role where there is a clarity of expectations and individual accountability.
By now, the basics of management by objectives should be clear. This strategy is just one of many management theories authored by “the founder of modern management” Peter Drucker. Management by objectives focuses performance measurement on the individual instead of past results or the quality of organizational processes. The “Drive for 235” and the Glengarry Glen Ross sales contest are about clearly defined objectives for individuals.
If your job is governed by objectives, here are some tips to help you thrive in that environment.
1. Clarity, clarity, clarity. Typically, management by objective is a strategy employed organization-wide. Each individual manager and employee have their own MBO that governs their performance assessment. The onus is on you to know the details of your objectives and what is expected of you. If you don’t have clarity, it will most likely be more difficult to hit the expected marks that will determine your future (and promotions, increased compensation, more challenging work, etc.). Understand what objectives you need to meet and what happens if you don’t. Demotion? Termination?
2. Influence what you can influence. You know (or should know) your business. If you are faced with a set of unrealistic goals that you believe cannot be achieved, or you are not provided with the tools you need to succeed, you should quantify your objections and bring the disparities to the attention of whomever you need to amend them. MOB can be a collaborative endeavor, but you must be proactive if you want to have input into how your success will be measured. You may have to explore other options if failure is built into the system. This happens so be cognizant of it.
3. Recognize that your MBOs are your bible. You have to assume that Brian Ferentz had a steady drumbeat going through his head – 7 wins and an average of 25 points per game. Just like him, you need connect everything you do to your objectives. You, and you alone, are responsible for achieving the objectives you’ve been tasked to achieve. If there are obstacles that you believe are not going to be solved and will remain intractable – and which will prevent you from meeting your targets – speak to your manager about them before they fester. Head of issues before they envelop you.
4. Keep your cool. Management by objectives can be stressful. While clearly defined objectives give you clarity about what you must do, you still need to do it! There’s a lot of pressure involved. High pressure situations can make people act in abnormal ways. For example, let’s says you have sales quotas that you must meet and you’re going to come up short. The temptation to engage in unethical behavior to reach the goals you need to reach, or misrepresent the data, can be overpowering. In fact, the explicit story of Glengarry Glenn Ross is how the salesman respond to their make-or-break situation. Like all great stories, the characters face a moral decision. Most make the right choice. In this story, one doesn’t. And he pays the price.
Philip Roufail contributed to this article.
Scott Singer is the President and Founder of Insider Career Strategies Resume Writing & Career Coaching, a firm dedicated to guiding job seekers and companies through the job search and hiring process. Insider Career Strategies provides resume writing, LinkedIn profile development, career coaching services, and outplacement services. You can email Scott Singer at scott.singer@insidercs.com, or via the website, www.insidercs.com.
