The Best Performance-Management Technique to Use with Senior Executives

Peter Drucker’s thirty-year-old concept of creating a “manager’s letter” probably remains the best performance-management technique to use with senior executives. Each executive writes an annual letter to her superior, spelling out the objectives of her own job and those of the superior’s job as she sees them. She then sets down the performance standards she believes are being applied to her. She lists the goals she intends to accomplish, the major obstacles to achieving them, and the support she needs from her superior and the company. Finally, she spells out what she intends to do during the next year to reach her goals. If her superior accepts this statement, this “manager’s letter” becomes the charter under which the executive then operates.

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