Copyright 2003 by William Duggan. Click Here for Terms of Use. in Software

Creation QR-Code in Software Copyright 2003 by William Duggan. Click Here for Terms of Use.

Copyright 2003 by William Duggan. Click Here for Terms of Use.
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after centuries of struggle between the Nile Valley and the Nile Delta. Imhotep organized the Pharaoh s army, administration, and public works. His most famous achievement was Egypt s first pyramid. It went up at Saqqara, right where the Valley meets the Delta, to mark the union of the two regions. The Saqqara pyramid is the oldest surviving building in the world. It stands out among the 97 pyramids of Egypt for its unusual shape. Instead of being a smooth triangle like later pyramids, it s a series of stone steps. You see the same shape in organizational charts for bureaucracies to this day: the pharaoh at the top, then a few vice-pharaohs, then more sub-pharaohs, down to the workers slaving away at the bottom.1 Statues show Imhotep holding papyrus, so we know he wrote things down. But papyrus crumbles to dust over centuries, so none of Imhotep s writing has survived. We don t know exactly what he wrote. We do know, however, that down through the ages Egyptian scribes prayed to Imhotep before they dipped their pens in ink. And to this day, the step organization and writing things down go hand in hand. One level gives orders in writing to the level below, which reports back in writing, up and down through the pyramid. Imhotep was a commoner. He rose through the ranks as a result of his skill, not because of his noble birth. In the centuries after him, it took a long time for step organizations to favor skill over birth. For example, Napoleon rose quickly through the ranks of the French army partly because its noble officers had fled the French Revolution. The great sociologist Max Weber heaped great praise on step organizations that fill their ranks by merit.2 Such an organization, he argued, offers the highest degree of efficiency and exceeds all other forms of organization in precision, in stability, in the stringency of its discipline, and in its reliability. The result is a particularly high degree of calculability of results for the heads of the organization and for those acting in relation to it. And this applies to all sectors of human endeavor, because such an organization is formally capable of application to all kinds of administrative tasks.
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Plan-to versus Can-do
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No wonder the Saqqara step structure has survived so long: It works. And it works through plans. There is a high degree of calculability of results because you write down what results you want. Step by step, everyone knows what part to play in order to get those results. As you proceed, you write down what happens. That report informs the next cycle of planning. And this procedure continues on and on through the year and through the decades, as it has been done through the centuries from Imhotep s time to this day. In a modern classic, The Practice of Management, Peter Drucker restated these principles as management by objectives, or MBO:3
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Each manager, from the big boss down to the production foreman or the chief clerk, needs clearly spelled-out objectives. These objectives should lay out what performance the man s own managerial unit is supposed to produce.
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MBO is the guts of strategic planning. It fills in the step pyramid with Jomini s objective points for every level. It includes not just vertical objectives, but horizontal ones as well not just pharaoh to sub-pharaoh, but among sub-pharaohs too. As Drucker explains:
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They should lay out what contribution he and his unit are expected to make to help other units obtain their objectives. Finally, they should spell out what contribution the manager can expect from other units towards the attainment of his own objectives.
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So MBO wraps you in objectives, up and down and across. But we ask: Where do these objectives come from In expert intuition, they come from a coup d oeil that shows you a path to success. Your objective what you want comes from what you can do. But in MBO, your objectives come from what the company wants. Objectives should always be derived from the goals of the business. Jomini again. In the 1980s, when many American industries broke up their planning departments to spur innovation, strategic planning did
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