Classic Management   Management by Objectives (MBO)   Examples 3 Basic Parts & 6 Stages of MBO Peter Drucker   Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. MBO is also used by some CEOs of multinational corporations for their country managers abroad.       3 Basic Parts of MBO       ① All individuals within an organization are assigned a special set of objectives that they try to reach during a normal operating period. These objectives are mutually set and agreed upon by individuals and their managers. ② Performance reviews are conducted periodically to determine how close individuals are to attaining their objectives.     ③ Rewards are given to individuals on the basis of how close they come to reaching their goals.   Management for Results   Plans are only good intentions unless they immediately degenerate into hard work. Peter Drucker     6 Stages of MBO         Starting from the top of a company, the six stages of Management by Objectives (MBO) are:       ① Define corporate objectives at board level ② Analyze management tasks and devise formal job specifications, which allocate responsibilities and decisions to individual managers ③ Set performance standards ④ Agree and set specific objectives     ⑤ Align individual targets with corporate objectives ⑥ Establish a management information system to monitor achievements against objectives   Strategic Alignment Effective KPIs   Follow effective action with quiet reflection. From the quiet reflection will come even more effective action. Peter Drucker   DOs and DON'Ts of a Successful Innovator 5 Main Functions of a Manager Management for Results  >>  8 Perceptions How To Increase Your Individual Performance Delegation DOs and DON'Ts Management by Objectives (MBO) Setting Objectives  ▪  Practicing MBO Individual Responsibility  ▪  MBO Pros & Cons   MBO works if you know the objectives, 90% of the time you don't. Peter Drucker