1. The Core Process – Management by Objectives (MbO)

2. The Malik Management Map
long term (> 1 year)
short term (< 1 year)
employee-related
company-related
Company
Policy
Results

3. Malik Integrated Management System® (Malik IMS®)

4. Some important terminology
Corporate Policy
(mission/vision/values)
Who do we want to be?
Strategy
Where do we want to go?
Operational Planning
How do we get there?
The Objectives
Anticipated resultats
Action
Way towards the objectives

5. Managing means having effective and concrete objectives
are the main tool for guiding decentralised units
are the biggest motivator for employees and managers
define the contribution of the division, the department and the individual to the whole organisation
make it clear what employees should spend their time on
should be aligned to individual strengths
Managing means having effective and concrete objectives 1 2 3 4 5
Managing effectively means getting results by having concrete objectives, clarifying the individual contribution to the whole and making use of strengths.

6. Main causes of failure
Objectives are not specified but activities are Objectives agreement is confused with operational planning 1.
There is no discussion taking place. Objectives are not argued about generally. They are only being set. 2. 3.
Only quantitative objectives are set. I.e. sales, yield, reject levels, etc. Everything regarding soft objectives is considered as irrelevant.
Objective agreements are made bottom-up exclusively. 4.
Clear business objectives do not exist. Every division works only for itself. The contribution of the division to the whole (company's success) is not considered. 5.
The objectives set are not compared horizontally. Nobody knows what the other person is doing. Priorities, tools and techniques are not coordinated. 6.
The progress towards the objective is not monitored and checked in a structured way. The reasons for not achieving the objective are only established at the end of the year. 7.
Objective agreement is not included in the annual employee appraisals. There is neither reward nor sanction. The whole issue is not relevant. 8.

7. The process of MbO is characterised by three main, repetitive phases
Providing goals
Phase 2:
Implementation
Phase 3:
Development O E
Outlook, assistance with
achieving goals
Preliminary talk
Communication of basic information (Strategy, individual goals), agreement on the contributions
Formal and informal progress reviews: bilateral or as a team
Manager
Employees
Target-actual comparison
Progress reviews
Superior considers contributions of the employees to his or her goal
Employee considers his or her contribution
to the various departments
Advancement & development
Path to reach the goal
Autonomy / stage of maturity
New goals (development)
Discussion of goals
Discussion & Commitment E U P
Employee conversation
historical review

8. OEEUP – in the course of setting objectives
bjectives in the overall context E
xplain, relating all experiences E
xtract common factors U
ncover differences P
ut standards for objectives control in place

9. The process of MbO is characterised by three main, repetitive phases
Providing goals
Phase 2:
Implementation
Phase 3:
Development O E
Outlook, assistance with
achieving goals
Preliminary talk
Communication of basic information (Strategy, individual goals), agreement on the contributions
Formal and informal progress reviews: bilateral or as a team
Manager
Employees
Target-actual comparison
Progress reviews
Superior considers contributions of the employees to his or her goal
Employee considers his or her contribution
to the various departments
Advancement & development
Path to reach the goal
Autonomy / stage of maturity
New goals (development)
Discussion of goals
Discussion of and agreement on goals and activities E U P
Employee conversation
historical review

10. Four Ws
Objectives need to be formulated so that they are understandable and achievable. Use the 4 W’s as a check when setting objectives....
What type?
or How?
What result should be achieved?
What precisely should the determined result be?
What does the result look like? or How much?
Or: How good?
(specify precisely for quantitative figures)
When?
or By when?
By what date is what result realized?
With what?
What resources (personnel, costs, support from divisions) are required for the achieve the goal? This is the only way to assess whether the objectives are realistic.

11. Good objectives should have AROMA
appeal, demonstrative, motivation R
realistic, feasible O
objective
operational, concrete M
measurable, but at least manageable, testable A
acceptable