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MBO Presentation

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Management by Objectives adapted to Sales Team context

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MBO Presentation

  1. 1. Management by Objectives MBO
  2. 2. Lets wake up
  3. 3. AGENDA - Definition - Principles - Process - Tools - Cultural Influences - Advantages & Disadvantages - Is MBO obsolete? - New Trends
  4. 4. DEFINITION BY PETER DRUCKER
  5. 5. DEFINITION OF MBO  Management Model based on Objectives that are agreed on between Management and Employees  The aim is to reach overall Strategic Goals for the Organization but also Individual Goals for the Employees  This Model integrates Employees in the planning process what leads to Participation, Motivation and Commitment
  6. 6. DEFINITION OF MBO  Employees measure their daily work on their individual goals and act in best interest of the company  Sum of all individual goals forms the overall goal of the company
  7. 7. MBO PRINCIPLES
  8. 8. Setting Goals Together Periodically Evaluation Focus on Goals, not on Methodologies Support from Superior MBO PRICIPLES
  9. 9. HOW TO ESTABLISH GOALS ?
  10. 10. S pecific M easurable A chievable R T elevant ime-based How to be SMART? SMART GOALS
  11. 11. Get SPECIFIC and clear about what you want to achieve! SMART GOALS – STEP 1 I want to be rich
  12. 12. Make your goal MEASURABLE - quantify what you want ! SMART GOALS – STEP 2 I want to have 1 Billion Dollars
  13. 13. Make your goal ACHIEVABLE within your resources! SMART GOALS – STEP 3 I work hard as hell
  14. 14. Make your goal RELEVANT – Is it worthwhile? SMART GOALS – STEP 4 I want to keep her happy
  15. 15. Your goal needs to be TIMED - Set a start and a finish date! SMART GOALS – STEP 5 One year till the first million
  16. 16. THE MBO’s PROCESS
  17. 17. PROCESS
  18. 18. Routine Objectives Problem-Solving Objectives Improvement Objectives Innovation Objectives CENTRAL GOAL SETTING
  19. 19. Development of Individual Goals Revision of Job Description Resource Allocation INDIVIDUAL GOAL SETTING
  20. 20. PROGRESS MONITORED RESULTS’ REVIEW - Objectives and key results - Long and short term priorities - Scope of assistance expected - Standards of performance
  21. 21. Self Evaluation 360-Degree Evaluation Checklist Evaluation Critical Incidents Method PERFORMANCE APPRAISAL
  22. 22. Non-Financial Motivators  Salaries  Commission  Share Ownership  Performance Pay Financial Motivators ACHIEVERS REWARDED  Job Enlargement  Job Rotation  Job Enrichment  Empowerment
  23. 23. TOOLS
  24. 24. Organizational Goals = Organizational KPI (e.g. number of complaints in the end of the week) Individual Goal = Individual KPI (e.g. weekly % difference in complaints handled that result in satisfied customers vs. unsatisfied customers) KEY PERFORMANCE INDICATORS
  25. 25. To achieve our vision, how should we appear to our customers? CUSTOMER Objectives Measures Targets Initiatives To satisfy our share holders and customers, what business processes must we invest in? INTERNAL BUSINESS PROCESS Objectives Measures Targets Initiatives To achieve our vision, how will we sustain our ability to change and improve? LEARNING AND GROWTH Objectives Measures Targets Initiatives To succeed financially, how should we appear to our share holders? FINANCIALS Objectives Measures Targets Initiatives VISION AND STRATEGY BALANCED SCORECARD
  26. 26. HOW CAN CULTURE INFLUENCE MBO?
  27. 27. Power Distance Index Individualism vs. Collectivism Masculinity vs. Femininity Uncertainty Avoidance Index Long vs. Short-Term Orientation + + + + + - - - - - HOFSTEDE’s CULTURAL DIMENSIONS
  28. 28. Low Power Distance Low Uncertainty Avoidance High Individualism High Masculinity Short-Term Orientation REQUIREMENTS OF MBO
  29. 29. ADVANTAGES AND DISADVANTAGES
  30. 30.  Develops a result-oriented philosophy  No role ambiguity or confusion  Raises employee morale  Improves the appraisal of subordinates  Produces goals that identify expected results  Allows a continuous monitoring ADVANTAGES OF MBO
  31. 31.  Develops a result-oriented philosophy  No role ambiguity or confusion  Raises employee morale  Improves the appraisal of subordinates  Produces goals that identify expected results  Allows a continuous monitoring DISADVANTAGES OF MBO
  32. 32. IS MBO OBSOLETE?
  33. 33. High Volatility in Markets and Trends Conservative Individual Goals Non Collaborative Goals = Inefficiency Having productivity measured is hard YES! BUT WHY?
  34. 34. LET’S PRACTISE IT !
  35. 35. TASK 2 Paper Planes Level 1: less than 2 m 5 points Level 2: 2-5 m 10 points Level 3: more than 5 m 20 points Choose which paper you will use before the game: Big paper: - 2 points Normal paper: 0 points Small paper: + 2 points TASK 1 Card’s Castle Level 1: 2 levels high 5 points Level 2: 3 levels high 10 points Level 3: 4 levels high 20 points Choose how many cards you will need before starting the game If you need more cards during the game it costs you half a point If you have to much cards over when the time is up it costs you half a point for every card. Choose one of the following:
  36. 36. • Everyone of you ever thought about your bucket list? • Achieved one of the setted objectives? • Have they been SMART? Task: Imagine if you would have just 1 year to live • What would you plan to do in this year. Please write down 6 things (you don‘t have to share that with us) • What about if you would just have 6 month? ( 3 things) • 1 month? • 1 day? Your Bucket List
  37. 37. NEW TRENDS IN MBO
  38. 38. SKILLS ACTIVITIES Three types of management RESULTS BALANCING RESULTS SKILLS AND ACTIVITIES
  39. 39. SKILLS RESULTS Traditional MBO Approach BALANCING RESULTS SKILLS AND ACTIVITIES
  40. 40. New MBO Approach BALANCING RESULTS SKILLS AND ACTIVITIES SKILLS RESULTSACTIVITIES
  41. 41. As Peter Drucker said, “you can only manage what you measure” and “what gets measured gets done”. GAMIFICATION: A NEW WAY TO EMPLOYEE ENGAGEMENT
  42. 42. Measurable goals are crucial for organizational success Inspire mastery, commitment and higher performance rates Keep employees focused on results. GAMIFICATION: A NEW WAY TO EMPLOYEE ENGAGEMENT
  43. 43. The problem is: With those set for lower levels employees Managing Staff objectives are not always in line… Is here where gamification can intervene GAMIFICATION: A NEW WAY TO EMPLOYEE ENGAGEMENT
  44. 44. But what is gamification? GAMIFICATION: A NEW WAY TO EMPLOYEE ENGAGEMENT
  45. 45. What does it bring to the table? Act as tool to realign employees with corporate goals Keeps workplace competition under control Establishes a feedback system that individually rewards employees GAMIFICATION: A NEW WAY TO EMPLOYEE ENGAGEMENT
  46. 46. How? GAMIFICATION: A NEW WAY TO EMPLOYEE ENGAGEMENT
  47. 47. Challenge: Increase sales training program participation Solution: Motivate through rewarding exploration and knowledge demonstration in an online collaborative community GAMIFICATION: FORD CANADA AND BUNCHBALL EXAMPLE
  48. 48. Examples of Tools Used - Badges and virtual trophy case - Different levels of performance for tasks and missions - Individual and team leaderboards - Virtual Dream garage GAMIFICATION: FORD CANADA AND BUNCHBALL EXAMPLE
  49. 49. RESULTS - 100 000 unique visits to the platform - User activity increased 60% - Impact on sales GAMIFICATION: FORD CANADA AND BUNCHBALL EXAMPLE
  50. 50. André Campino, Diogo Vasques, Katharina Erdrich, Eric Stange, Miguel Saúde, Soraia Vale Thank you for your attention.

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