Management by Objectives (MBO's)
You want your company to grow. You see goal setting as a way to achieve more success for your business. You also know that the very mention of objectives is enough to create resistance from your staff. And the last thing you need right now is to put your workforce offside. What you need is Management By Objectives (MBO).
So what is MBO? Think collaboration. For your company to grow and achieve
greater success you need the commitment and involvement from all levels of
your organisation to create the MBO blueprint that will achieve measurable
improvements for your business. And the good news is, creating your MBO
program is simple.
Establish measurable – and achievable – goals for each department within your
organisation. Now take those goals and develop objectives based upon the role
of each individual within that department. It is not enough to create
departmental goals if your individual team members don’t understand how their
roles fit into the common objectives. Your staff should feel a sense of ownership
over their departmental goals. This is only achievable if your employees
absolutely understand how their roles are contributing towards departmental
success.
Meet with your staff periodically – and agree and set those meetings in advance.
Use the meetings effectively to review the individual’s progress. If progress hasn’t
been made, discuss what can be done to get the individual back on track. And
don’t be afraid to realign the objective if circumstances change. Communication
is the key to the success of your MBO program. Give feedback and authorise
necessary modifications to objectives or individuals’ timetables as circumstances
dictate.
And finally, measure the individual’s performance against their objectives – and
reward accordingly for their successful contribution to your company’s goals.
The Simple 4-Step Process
1. Establish departmental goals with your teams
2. Collaborate with individuals to set individual objectives
3. Set up periodic manager/staff member meetings to track objectives
4. Complete quarterly or six-monthly reviews to modify objectives, develop
action plans to get back on track, and set new objectives as current ones
are achieved.
Research has demonstrated that when top management personnel are personally
committed and involved in implementing MBO programs overall employee
performance is significantly improved.
This finding is not surprising when you consider that through implementing the MBO program your employees are actively involved in determining their own objectives.
Remember, objectives drive the planning process. It is imperative that your
top management personnel clearly communicate company goals to your middle management
team who, in turn, will translate and implement them effectively.
Clear objectives will also guide critical managerial activities such as budgeting,
action plan development, staffing and equipment purchasing. Quite simply, your
organisation's success ultimately depends upon the combined outcomes of your
objectives.
SMART Objectives
Setting objectives is easy, right? Wrong. An ill-conceived objective is ineffectual
at best; at worst it can seriously undermine staff morale. Your objectives must be
SMART - Specific, Measurable, Attainable, Result based and Time oriented.
Specific
One objective: one key result. If you want to achieve more than one result, write
more than one objective. Just knowing what you want to accomplish is a big step
towards achieving it.
Measurable
An objective must be measurable. Quantify your objective. Some objectives are
more difficult to measure than others; even so, difficulty in measuring does not
mean it cannot be measured. Remember, only an objective that effects behaviour
in a measurable way can be truly effective.
Attainable
Your objective must be attainable using the available resources. If it is not
realistic – both in terms of measurement and time frame – then your objective is
futile. You know it and we guarantee your employees do too.
Result-based
Your objective should be central to the goals of the organisation. The successful
completion of each independent objective should make a tangible difference to
the group or team or company achieving your organisation’s goals.
Time-oriented
Establish a time frame for each objective. Without that, your objectives have no
focus. Your staff members need to plan their time, set priorities and work towards
goals most important at the time. Be fair and be sure that the time lines you have
established are realistic and accommodate the other priorities your employees are
working on concurrently.
In Summary
We all like – and need – to know what is expected of us. Communicate and
collaborate meaningfully with your employees; align individual, departmental and
company goals; and reap the rewards of a motivated workforce and a successful
business.
Machinery Automation & Robotics
1/101 Derby Street
Silverwater NSW 2128
Phone: (61) 2 9748 7001
http://www.machineryautomation.com.au