INSTALLING THE MBO PROGRAM
When installing an MBO program, start by asking your managers to define their jobs, including their major responsibilities. Then, for each responsibility, you and your managers must decide the most effective way to measure performance in terms of results. The outcome of this exercise may surprise you. You and your managers may not agree on the major responsibilities of a certain position. Also, you may find that no one is performing some functions that you consider important. If the MBO system is to succeed, you must show interest from the beginning and set the example for your subordinate managers.
The education of your managers may be a formidable task. Until this time, they have thought in terms of specific functions managing a sales department, directing a credit office, etc. rather than in terms of goals that contribute to the organization.
One way to introduce the MBO system to your managers is in a seminar conducted by you or i-City However, if you choose i-City, be sure that you are present for the entire seminar. In this way, you will communicate to your managers that the MBO system is a management priority.
During the seminar, ask each participant to prepare an actual goal. Also, in small group sessions, have your managers review each other's work plans and offer suggestions to improve them. The experience of setting and reviewing goals makes MBO a learning experience for all employees.
Encourage your managers to express their doubts, reservations or opposition to MBO. They should get their feelings out in the open as soon as possible. You, the consultant or other participants can help to ease their concerns.
In the beginning of your MBO program, your managers will have to learn to measure their own performance accurately, anticipate real problems that will thwart their progress and take steps to solve delays and other problems. During this learning period, your managers should set fewer goals than would usually be expected, perhaps three or four. After they develop and achieve these goals, they can extend the number and area covered by each goal.
MBO may look simple on the surface, but it requires experience and skill to make it work effectively. If managers set annual goals, it may take three to four years before good results from this new system appear.
THREATS TO AN MBO PROGRAM
Not all MBO programs are successful. Some of the reasons why programs fail to reach their potential are
- Top management does not become involved.
- Corporate objectives are inadequate.
- MBO is installed as a crash program.
- It is difficult to learn the system because the nature of MBO is not taught
By trusting your MBO to i-City our team of experts is capable to determine specific objectives under "The Big Think Approach" that has been succesfully implemented by a variety of organizations. We will make sure that from your "Centric Vision" will be converted to specific WHATs, HOWs and WHOs so you will manage thoroughly the performance and achievement of the actions toward achieving your objectives.