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
It is often easier to do what you always did. The problem with this mentality is that you will probably get what you always got. Change is not easy, but it is necessary if you want to get different results. The organizations that do decide to implement Management by Objecives never go back because they are too busy measuring and enjoying success.
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives
Managers who use Management By Objectives can be described as follows:
• Progressive
• Enlightened
• Motivated
• Successful
If every manager had these attributes an organization could accomplish any goals and dominate their market.
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives
Every employee wants to know what is expected of them and they also want to get feedback on their performance. Studies show that the number one reason an employee leaves an employer is that they do not feel valued. Management by Objectives provides a proven mechanism to allow each employee to be part of the process in designing their own objectives and strategies to redeem their manager’s goals. The manager and employee meet regularly to review progress and accomplishments. The net result is an employee who feels valued and ultimately is rewarded for success.
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives
Management by Objectives is a management tool that has proven to be the most effective way to manage employees to accomplish agreed upon goals. Management by Objectives insures that every employee has full knowledge of the manager’s goals and is also in agreement with these goals. In addition each employee will design their own personal objectives and strategies to accomplish the manager’s goals. Just imagine the power of every team member in an organization rowing in the same direction.
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives
To follow is an example for a sales manager:
Objective #1: Increase sales of the new product line by 15% in our next fiscal year.
Strategy #1: Train the entire sales team on the new product line.
Milestone #1: New product line training to be scheduled the week of January 13th.
Strategy #2: Each sales rep to set visits with our existing customer base.
Milestone #1: The schedule for these visits to be completed and uploaded to the sales team site by January 20th.
Milestone #2: All visits are to be completed by March 31st
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives
A good objective should me SMART.
S = Specific
M = Measurable
A = Attainable
R = Relevant
T = Time Bound
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives
I have never had an employee disagree with the Management By Objectives process because creating the objectives and associated strategies is a joint exercise.
Dan Stewart
Mr. Objectives
Twitter: @MrObjectives