There is a lot that can be said about MBO – Management By Objectives. MBO mostly centers on being a tool for strategic planning, employee motivation and performance enhancement.

There is a lot that can be said about MBO: management by objectives. MBO mostly centers on being a tool for strategic planning, employee motivation and performance enhancement. MBO can also be useful for personal development goals. The main factor in MBO is getting results. It has changed a lot over the years and it’s a goodapproach for business management. Its aim is to increase organizational performance by aligning goals and subordinate objectives throughout the organization. You can find success in MBO, by making it a part of your overall business system of planning and goal setting.

As stated above, MBO is not just for large groups in an organization, it is very useful in helping an individual to set their own personal development goals. When you, by yourself or with your group being to set goals; set them on observable, measurable terms. When you set goals on observable, measurable terms, then the goals become objectives then the objectives become stated measurable targets of how to achieve business or individual aims.

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It’s a process where managers and employees agree upon a specific set of performance goals/objectives and together they develop a plan for reaching them. Should disagreements arise, then some type of conflict resolutions should be implemented. MBO in business is the theory and practice of achieving results on the outside of the business, in the market and economy. After you implement an MBO program, it takes patients, organization, work, follow-through and tracking to get results and be successful.

When you take the first steps towards implementing an MBO program, start with establishing long-range company goals in areas such as sales, competitive positioning, human resource development etc….

MBO In Business

MBO: management by objectives; has been utilized by all kinds of organizations but not all organizations have had the same amount of success. Programs of this nature require a provision for regular progress reports.   In regards to that, many times the MBO program is sometimes called MBO/R, with= the “R” meaning results. With regular review of your progress, it will help all those involved to get results and achieve success.

When defining business objectives you can implement the S.M.A.R.T technique:

  • S-specific: state exactly what is to be achieved.
  • M-measurable: an objective/ goal should be measurable. You should be able to track what you’ve done so far, to see if you’re moving in the right direction.
  • A-achievable: you should set realistic objectives according to the resources available to the business.
  • R-relevant: objectives should be relevant to the people responsible for achieving them.
  • T-time specific: have realistic time frames/ deadlines in mind and written.

MBO doesn’t micro-manage, it empowers and develops staff. It can be helpful to begin by defining the company’s current business:

  • Is the definition of your business right for today’s market?
  • Do you need to change your business to meet emerging client needs?

Look for emerging customer needs or market trends that require adaptation. When you begin to plan these long-range company goals/ objectives, it lays the framework for charting the company’s future staffing levels, marketing approaches, financing needs, focus on product development, facility & equipment usage.

For many, establishing an MBO program represents an unusual way of thinking about job performance for many employees. Business owners may find it best to introduce MBO programs gradually and to include a formal training component. In defining an effective MBO program for your business, you should have a clear vision of your business. A clear vision is critical in planning your marketing, product development, buildings, equipment, financial and staff needs.

If you are a business owner or manager, it may be helpful to breakdown employee goal setting into categories and introduce MBO programs gradually and include a formal training component. The programs can be introduced through a classroom seminar, taught by the business owner or an outside consultant. During the introduction process or meeting, there should be room for open discussion to talk about any doubts, reservations or ideas that others may have. The training should include preparation of an actual goal by each participant. When you allow others to contribute to the goal setting, it may increase the motivation & productivity of others or employees.

MBO and You

Have yourself in check before correcting others. Know what to do, how to do it and get it done. Self control is an effective management tool. Set objectives for yourself, your employees and your organization. You should strive to be a leader and a manager; the two roles can be incorporated for success. There is a big difference between managing and leading. When you know the difference between the two, it can lead to overall business success. If you want your employees or associates to do better, then you do better.

Strive to do better than your current contributions, be able to adapt to change. Developing better control of your time, establish priorities, build on opportunities to enhance your abilities & performance. Then leverage the resources of others by delegating and outsourcing non-core business functions to a Virtual Assistant. MBO success can also stem from direct involvement of the business owner or top management. It’s good to remain patient during the implementation phase, because it can take months or years before the programs shows results.

Establishing an MBO system can be difficult and time consuming but don’t give up. It takes patients, organization, follow-through and tracking to be successful. There are pros and cons, challenges and benefits to MBO, but in the end it is usually worth implementing.