Management by Objectives is one of the easiest management tools to both implement and maintain. This is because everyone is involved in the process of setting the goals and objectives and everyone is involved in monitoring the progress. It is far easier and much more effective when everyone is involved in an improvement process versus just the management team.
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives
Let’s take a look at what could happen if you improved each segment of your business by just 1% by implementing Management by Objectoves:
A 1% improvement in Gross Margin, Sales Cost and G&A Cost will result in a 25% improvement in net profit. Pretty good return on investment.
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives
The Management By Objectives process will actually free up time for the manager. Proactive management is always easier and always more effective than reactive management. When a manager is in a reactive mode he or she is dealing with problems that are often emotional and are always time consuming. Management By Objectives provides a mechanism to identify and solve problems in their infancy. The net result is more time for the manager to concentrate on current results and future improvements.
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives
Management By Objectives makes this often uncomfortable process very easy to implement. Management By Objectives allows each employee to assist in the design of their annual objectives as well as the strategies to redeem these objectives.
During the fiscal year the employee will be meeting with their manager to review the progress on these objectives. At year end both the employee and manager know exactly how the employee has performed against these objectives and therefore the annual review process becomes a very easy and productive meeting.
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives