Management by Objective

Management by Objective is not a new concept. It has been written about in many books and articles over the years. If used properly it can be extremely useful to any company. I used this in a company I owned many years ago. It was so successful I continued using MBO in every company I owned after that.

The concept is very simple:

• Create a set of goal for your company. When you do this make sure you include your management team. This way they will buy into and take ownership of the concept.

• You will have the overall goals for the company such as increased profits, increased market shares, etc.

• Present the goals to the whole company

• You then set divisional goals

• You then set goals for each individual within each division

• Make the rewards whatever you think will motivate the whole team

• The rewards are only realized when all employees act as a team. If there are slackers on a team, the other team members will put pressure on them to produce or leave.

This is a great team builder. But remember, if the CEO and by extension the management team is not fully committed to this concept it will not work.