MBO Executive Training

The Complete Management by Objectives “MBO”
Leadership Program Introduction and Initiatives

From the desk of:
Gerald E. Jackson

Regarding:
The “Management by Objectives” Executive Training Initiative

To All:
Pro-Actively Thinking Executive Professionals

Greetings Dear Friends,

Summary

Many authorities on business management identify five functions of management: planning, organizing, directing, controlling, and coordination. The planning and controlling functions often get less attention from owner-managers of small business and organizations than they should. One way to strengthen both of these functions is through effective goal setting.

Long range goals for sales, profits, competitive position, development of people, and industrial relations must be established. Then, goals are set for the current year, which will lead towards the accomplishment of the long-range goals.

Management by Objectives “MBO” includes goal setting by all managers and leaders down to the first level of supervision. Their goals are tied to those of the company or organization.

Traditionally, people have worked according to job descriptions that list the activities of the job. The Management by Objectives (MBO) approach, on the other hand, stresses results.

Let's look at an example. Suppose that you have a credit manager and that his or her job description simply says that the credit manager supervises the credit operations of the company. The activities of the credit manager are then listed. Under MBO, the credit manager could have five or six goals covering important aspects of the work. One goal might be to increase credit sales enough to support a 15 percent increase in sales.

The traditional job description for a personnel specialist might include language about conducting the recruiting program for your company or organization. Under MBO, the specialist's work might be covered in five or six goals – one which could be “recruit five new employees in specified categories by July 1.”

Thus, MBO looks for results, not activities. With MBO, you view the job in terms of what it should achieve. Activity is never the essential element. It is merely an intermediate step leading to the desired result .

Management by Objectives may be used in all kinds of organizations. But not everyone has had the same degree of success in using this concept. From examining those MBO programs that failed, it is clear that the programs were incomplete.

(The minimum requirements for an MBO program are):

Each manager/leader's job includes five to ten goals expressed in specific, measurable terms.
Each manager/leader reporting to you proposes his or her goals to you in writing. When you both agree on each goal, a final written statement of the goal is prepared.
Each goal consists of the statement of the goal, how it will be measured, and the work steps necessary to complete it.
Results are systematically determined at regular intervals (at least quarterly) and compared with the goals.
When progress towards goals is not in accordance with your goals, problems are identified and corrective action is taken.

Goal Setting

Goals for each of your managers are the crucial element in any MBO system. Goals at middle levels of management and leadership must be consistent with those at top levels. Goals of first line supervisors must relate to those at middle levels.

The goals at each level must tie in with those of managers/leaders responsible for other steps in the plan. And all goals must relate to and support your long range objectives for the company or organization.

When you first start your MBO program, your managers/leaders will undergo a learning period. They must learn how to prepare a goal which will make them stretch but is not beyond their capabilities. They must learn to develop ways to effectively measure their performance. They must learn to anticipate real problems which threaten the achievement of the goals and then take steps to cope with the problems.

The Miniature Work Plan

Your managers/leaders will initially work from a miniature work plan that will show each of the major work steps (subgoals) necessary to reach the goal. Then, if each work step is performed by the indicated date, the goal will be reached when the last work step is completed.

(A Manager/Leader's Goal):

Goal (Be specific and concise)
Measurement (The bench mark that tells you that you have achieved the goal, should be expressed in quantitative terms)
Major Problems Anticipated
Work Steps (List three or four most essential steps, give completion dates for each)
Superior's Goal (Give goal at next higher level to which your goal relates)

Whenever a problem is listed on the work plan, the manager/leader should include a work step to deal with it. This effort should be coordinated with the initial goal setter.

For example, suppose the head of a supply department set a goal to deliver all packages within one day of when they were received. He thought he might have difficulty in getting his people to follow the new procedures. So he included a work step to teach these procedures before the new program went into effect.

Kinds of Goals

When your managers/leaders begin to set their goals, they may want to know what areas are suitable for goal setting. What are the really important aspects of their jobs rather than that part which is most visible to them? How can they be sure that their program is balanced for the long haul, rather than just reacting to immediate, pressing problems? How can they set goals which are most likely to help them control their jobs?

It might be useful for them to have a classification of goals that suggests areas of opportunity. Generally, each manager/leader should have between five and eight goals. One or two in each of these areas should be helpful:

Regular work goals
Problem solving goals
Innovative goals
Development goals

These goal areas will be comprehensively covered during the leadership training sessions.

Progress Reports

An MBO program without provision for regular reports on progress is worthless. Nothing is accomplished by setting goals or objectives unless the program calls for a regular review of progress towards results.

A monthly or quarterly review of progress towards goals will help you determine where progress is below expectations. For example, suppose that one of your goals calls for a reduction of overtime by 50 percent this year, and the first quarter reduction is only 15 percent. A special effort must be exerted in the succeeding quarters to regain the lost ground or the goal will not be achieved by the end of the year.

Performance Evaluation

You will have to evaluate the performance of every person working for you in some way, either formally or informally. When your managers/leaders are working to achieve a full set of five to eight goals, their ability to get results on each goal can be a good objective measure of performance.

Threats to the MBO System

Not all MBO programs are successful. Some of the leading reasons why past programs failed to reach their potential are:

Top Management/Leadership did not get involved
Corporate objectives were inadequate
MBO was installed as a crash program
It was difficult to learn the system because the nature of MBO was not taught

It is hard to get people to think in terms of results rather than activities relating to their work. However, it can be done. The sequence of steps one owner/manager/leader uses may not work for another. It is often an individual matter. Results are what count.

The Ultimate Goal is to reach Level 5 Leadership

Level 5 - Prolific Executive/Leader (Builds enduring greatness through a paradoxical blend of personal humility and professional will)
Level 4 - Effective Leader (Catalyzes commitment to and vigorous pursuit of a clear and compelling vision, stimulating higher performance standards)
Level 3 - Competent Manager (Organizes people and resources toward the effective and efficient pursuit of predetermined objectives)
Level 2 - Contributing Team Member (Contributes individual capabilities to the achievement of group objectives and works effectively with others in a group setting
Level 1 - Highly Capable Individual (Makes productive contributions through talent, knowledge, skills, and good work habits)

Related Billing Fees:

These initiatives can be implemented in one of four applicable options:

A 4 hour seminar setting for senior managers/leaders for - $1,750.00(on-site)
A 4 hour seminar setting for senior managers/leaders for - $2,150.00(off-site)
A One Month, ( 3 separate 4 hour sessions) workshop for - $3,750.00(on-site)
A One Month, ( 3 separate 4 hour sessions) workshop for - $4,750.00(off-site)

Your consideration of our MBO course study is genuinely appreciated. Please allow our firm to serve as the facilitator for your next level of evolution and trainin

Act now, and receive a 20% discount on all program pricing rates! Move swiftly, because this is a “limited-time”

offer that will expire soon!

This program will change your mindset considerably from:

“ I believe we can do this and benefit”…to…“ I know we can do this, and move to the next level of our talent and capabilities!”

For further information and available training start dates, please contact our offices now!

To Your Continued Success,

Gerald E. Jackson
Senior Consultant
G.E. Jackson & Associates, Inc.

(310) 461-1477

questions@gejackson.com