Management by Objectives, or MBO as it is affectionately called, is a concept expressed by Peter Drucker more than 50 years ago. This strategy for managing people, which focuses on managing teams based on their ability to complete individual and team goals, has been used in larger organizations since its inception. Small to midsize organizations, however, can also benefit from adopting this strategy, particularly if you also take on the S.M.A.R.T. (specific, measurable, achievable, realistic, and time-based.) method of implementation.
Because your people are going to do what you ask them to do. So you need to be specific about the end result. Use action words like “to increase”, “to establish”, “to reduce” and “to create”. You can also use “specific” to remind yourself that objectives need to relate back to a specific organisational goal.
Making the case for MBO
MBO works because it helps to align the individual efforts of broad teams around the organization's collective objectives. MBO works in the same way that a laser works. A laser is, at its heart, just light. We have light all around us whether through the light bulbs overhead or the computer screen that we're reading this article from. However, that light is diffused. It is scattered, going in every direction. As a result it doesn't cut through the things that it strikes. Similarly, unless the light is very bright and/or extremely focused, it isn't generally noticeable. Lasers, however, take a relatively small amount of light and focus it into a narrow beam which is very noticeable and at sufficient size can cut metal. Management by Objectives does the same thing.
Organizations today are often diffused light sources with each member of the organization focusing on different, often personal, objectives. So instead of being able to cut through the market and capture more market share, or command higher prices, organizations are lucky to make steady growth.
The MBO process starts with the organization defining its objectives. The process of strategic planning, goal setting, or visioning generates from its process a set of objectives that the organization should strive to achieve. From there it is up to the individual departments to form their objectives, most if not all of which should align and support the organizational objectives. Individual objectives are then established to support the departmental objectives.
Setting goals at the employee level that align with company goals is the key. Here's how you can use the S.M.A.R.T. system for establishing those goals.
First steps
Once you've decided that you're going to give managing by objectives a try there are two important steps that you'll have to take. First, you must explain to your employees what you're doing and why you're doing it. The second step, setting the actual objectives, can be challenging in its own right as you seek to find the right balance.
Communicating the message
MBO is designed to improve the management process and maximize the effectiveness of the members of individual teams. You need to explain that the MBO process is focused on helping team members understand the individual roles they play and how their jobs contribute to company success. By focusing on the message that MBO is meant to help the employee assess and prioritize efforts to make certain those efforts are focused on the bottom line and organizational values. The process also helps your team understand what the organization doesn't value and what it may not need to do any more.
The so called 'Activity Trap' is one where we get so busy doing things that we forget to ask whether what we're doing are the right things. This is an important concept for everyone in an organization to understand. Helping to explain how the activity trap happens and how MBO is designed to help avoid it will help your employees understand the goal of making the work that they do more effective.
![Examples Of Time Management Goals And Objectives Examples Of Time Management Goals And Objectives](/uploads/1/2/5/5/125596394/396934189.jpg)
There's a natural resistance to change that occurs even when there is an understanding that the intent is right and fair. In order to combat this natural resistance, consider making smaller (more tactical) objectives and measure them on a shorter basis than you normally might (quarterly or half a year instead of a typical one-year pattern.)
![Time management goals for employees Time management goals for employees](/uploads/1/2/5/5/125596394/618809643.jpg)
Setting S.M.A.R.T. objectives
The objective setting process is a difficult one for most individuals, particularly those who've never been asked to set objectives. The process seems daunting. However, it doesn't need to be. The process can be as simple as sitting down with the departmental objectives and asking the question, 'How can I best help to meet these objectives?' From that answer comes the core for setting the individual's objectives. For example, if the departmental objective is to improve the customer satisfaction score, the team can work on providing more self-service information to reduce the number of calls and call wait-time or offer tools to improve customer service levels by clarifying how to communicate with a customer.
The S.M.A.R.T. method is one way to help you remember how to walk through the process of setting your first MBO objectives.
- S for Specific: There are several key factors which should be present in the objectives that are set in order for them to be effective. They should be specific. In other words, they should describe specifically the result that is desired. Instead of 'better customer service score,' the objective should be 'improve the customer service score by 12 points using the customer service survey.'
- M for Measurable: The second example is much more specific and also addresses the second factor—measurable. In order to be able to use the objectives as a part of a review process it should be very clear whether the person met the objective or not.
- A for Achievable: The next important factor to setting objectives is that they be achievable. For instance, an objective which states '100 percent customer satisfaction' isn't realistically achievable. It's not possible to expect that everyone must be 100 percent satisfied with their service. A goal of '12 percent improvement in customer satisfaction' is better—but may still not be achievable if it's assigned to the database developer. They aren't likely to have enough influence over the customer interaction process to improve satisfaction by 12 percent.
- R for Realistic: This leads into the next factor—realistic. Realistic objectives are objectives that recognize factors which can not be controlled. Said another way, realistic goals are potentially challenging but not so challenging that the chance of success is small. They can be accomplished with the tools that the person has at their disposal.
- T for Time-based: The final factor for a good objective is that it is time-based. In other words, it's not simply, 'improve customer service by 12 percent,' it's 'improve customer service by 12 percent within the next 12 months.' This is the final anchor in making the objective real and tangible. This final factor is often implied in MBO setting. The implied date is the date of the next review, when the employee will be held accountable for the commitments that they've made through their objectives.
Key learning
Setting organized objectives to help team members make a greater positive impact on the organization may seem daunting but is simply a matter of taking a few forwards steps and following a simple recipe for success.
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Time-management skills are essential in just about any endeavor in life. Whether you are running a small business or going to college, you need to know how to effectively manage your time in order to meet both your short- and long-term goals. When it comes to long-term goals, time management skills can provide you with a number of positive benefits in the long run.
Taking Control
One of the broader, long-term goals that effective time management can help you fulfill is taking control of your own life. Many people are managed by their schedule, rather than the other way around. Schedules often dictate what people do from one moment to the next, so much so that they never seem to have the ability to make decisions on their own. Instead, their schedule dictates their decisions and takes complete control. Effective time management that allows you to meet your goals early can give you some control back over your schedule and the freedom to decide to do what you want, when you want.
Prioritizing
Another long-term goal for developing time-management skills is prioritizing what is truly important and what is not. When you realize that some activities can be completed within a specified time frame and some cannot, then you can begin to develop a sense of what is most important and what is not. This understanding will also allow you to take control of your own schedule by learning to recognize that some things can be finished later.
Balance
Effective time management should lead to the long-term goal of better work-life balance. This type of balance is essential, especially for professionals who have families. They need to be able to spend time completing necessary work tasks should be balanced with creating the time for the other important events in life, such as a child's first day of school or his day of graduation. Time management can also help busy professionals to maintain a strong relationship their spouse, while avoiding the neglect and hurt that sometimes results from letting work take priority over family. This can be done by simply adding family and important events to the daily and weekly schedule.
Healthy Living
Living a healthier life is yet another long-term goal for effective time management. Those who effectively manage their time and are not controlled by their schedule have time to squeeze in additional activities like exercise. Effective time managers have time to plan their meals rather than eating on the go all the time and can have a healthier diet as a result. In effect, not being pulled to and fro by a schedule can lead to a reduction in stress and an overall healthier lifestyle that can result in longevity and vitality.
References (4)
About the Author
Jared Lewis is a professor of history, philosophy and the humanities. He has taught various courses in these fields since 2001. A former licensed financial adviser, he now works as a writer and has published numerous articles on education and business. He holds a bachelor's degree in history, a master's degree in theology and has completed doctoral work in American history.
Cite this Article Choose Citation Style
Lewis, Jared. 'Long-Term Goals for Time-Management Skills.' Small Business - Chron.com, http://smallbusiness.chron.com/longterm-goals-timemanagement-skills-32371.html. Accessed 13 June 2019.
Lewis, Jared. (n.d.). Long-Term Goals for Time-Management Skills. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/longterm-goals-timemanagement-skills-32371.html
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