In contrast to the conventional LQG method using calculus of variations, this paper presents an alternative approach based on operator theory and spectrum factorization. This approach, which works toward transfer function domain, has merits in its simple and straightforward development. The novelty of this method is not the results achieved, but rather in their derivation. A loop shaping design procedure which incorporates the classical loop shaping into LQG/LTR synthesis is developed such that the robustness properties of the optimal full state feedback are guaranteed atboththe plant input and the plant output. The design procedure is applied to a position controller design in a servo system, and the performance is evaluated by a digital signal processor, the TMS320C30. Experimental results have shown effectiveness of this design method.