Educational administrators considering the use of management by objectives (MBO) as a management technique are advised to place MBO in its proper perspective as an additional tool, not as a panacea. Understanding that MBO is a joint decision-making process is vital for a successful implementation. The experience of South-Western City Schools would indicate that at least five years are necessary. The author provides a historical account of how this development occurred in his school and district using MBO and Program Planning Budgeting System (PPBS). The relationship between MBO and PPBS is also clarified. A comprehensive list of potential problem areas when implementing MBO offers direction for the prudent administrator. Further advice, particularly for the top administrator, involves ten steps leading to successful use of MBO. (Author/MLF)