Management by Objectives (MBO) has been used by many businesses as a means of improving performance by managers. MBO involves setting agreed performance objectives in writing and includes a periodic review of the degree of achievement of those objectives. This document argues that MBO principles should be used by colleges and universities, and it describes how to proceed. The type of MBO approach suggested is based on the unique features of an educational environment. It is suggested that a design and implementation report be written prior to beginning an MBO system. The essential elements that such a report should cover are: purpose of the MBO system; the MBO statement; who will write statements and when; a timetable; and a training plan. Some suggestions are also made about how to write objectives. Examples are provided. (Author/KE)