welcome training course on management by objectives

Welcome

Training Course on

Management By Objectives

Management by Objectives (MBO)

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.

Why MBO

The MBO is appropriate for knowledge-based enterprises with competent team having following objectives: To achieve a balance between Management

and Employee EmpowermentManaging for ResultsIndividual ResponsibilitySolve problems and reduce “future shock”·Recognize that goal setting is an artUse subordinates properly and profitably in goal setting

Shift from Management to Leadership

“Management works in the system. Leadership works on the system.”

- Stephen R. Covey

Effective LeadershipAttributes x Results = The Roadmap for Improving Leaders

New Managers for New Economy

The New Manager

Classical Managerial Work New Leadership Task

Planning Creating vision & Empowering

Measuring and controlling

Organizing the hierarchy

Inspiring & Coaching

Aligning the web of relations

Traditional One Vs New Management Model

Traditional Model New Model

Managing Assets Managing Resources & Capabilities.

Built around assets Built around Capabilities

Focus on Managing Numbers Focus on Creating Value

Hierarchical Networked

Independent Parts Interdependent parts

Reactive Responsive

Rationality & Analysis Intuition & Analysis

Risk Averse Blame Culture Encouraging radical Ideas and Risk Taking

Lead More, Manage Less

LeadManage lessArticulate your visionSimplifyGet less formalEnergize othersFace realitySee change as an opportunityGet good ideas from everywhereFollow up

Build A Winning Organization

Get rid of bureaucracyEliminate boundariesPut values firstCultivate leaders

Create learning culture

Harness Your People

Involve everybodyMake everybody a team playerStretchInstill confidenceHave fun

Yin Yang of effective Management

Yang (Active, Creative)Brain Storming

Yin (Passive, Receptive)Brain Stilling

Business Efficiency Business Effectiveness

Spotting and pursuing opportunities Taking the bird’s eye view of your business strategies

Making fast decisions and implementing them under the time pressure

Building and balancing your business system

Innovating and creating outside the box solution

Harmonizing men, material and methods to achieve sustainable growth, human development and social benefit

Key qualities of business leaders

Emanate personal characterMaster competenciesSet directionsBuild organizational capabilityMobilize individual commitment

Becoming a knowledge enterprise

In tomorrow's business environment, Knowledge and How it is managed for competitive advantage is the number one corporate priority

Knowledge enterprise versus Industrial Enterprise

INDUSTRIAL ENTERPRISE KNOWLEDGE ENTERPRISE

Economies of scale Smaller business units

Standardization of work Customization of work

Standardization of workforce Flexible, multi-skilled workforce

Financial capital as scarce resource

Human capital as scarce resource

Corporate HQ as operational controller

Corporate HQ as advisor & core competency guardian

Hierarchical pyramid structure Flat or networked structure

Employees seen as expense Employees seen as investment

Internally focused top-down governance

Both internal and external distributed governance

Information based on "need to know"

Open & distributed information system

Vertical decision making Distributed decision making

Emphasis on stability Emphasis on change

Emphasis on vertical leadership Emphasis on empowered self-leadership

Sources of Knowledge

Customer knowledge:Customer needs, perceptions, and motivationsWho to contactCustomer buying powerWhat differentiation strategy and customer services need to be developed to win and retain customers


Competitor knowledge What competitors are selling now and

what they are planning to sell in the future

What is their strategic intentWhat competitive strategies they use

to win in the marketplace.


Service knowledge The Services in the marketplaceWho is buying them and whyWhat prices they are selling atHow much money is spent on such

Services now and may be spent in future.


Process knowledge Best practicesTechnology and ForecastingSystemic, Cross-functional synergy

opportunities


Financial knowledge Capital resourcesWhere and at what costThe integration in financial practices


People knowledge: Knowing people and what motivates

employees, Obtaining feedback The expertise available How to go about finding experts

Managing Knowledge Workers

To lead knowledge workers effectively and unlock their true potential, you need to define:

What knowledge work professionals do? How they do it best? What drives them to do it?

Creativity defined

Resource x Motivation x Creative Thinking Skills'Creativity is the juxtaposition of ideas which were previously thought to be unrelated.' It is your ability to combine ideas in a unique way or to make useful associations among ideas.

ResourcesKnowledgeExpertise Access to relevant Information

Internal MotivationMotivation from within; your

need or passion to be creative

Creative Thinking SkillsCapacity to think outside the box

&Put existing ideas together in new

combination

The Creative Thinking Process

Preparation Incubation Insight Validation


Preparation

Collecting and sorting the relevant information Analyzing the problem thoroughly Exploring possible solutions


Incubation Mental work – analyzing, synthesizing,

imaging, and valuing – continues in your subconscious mind

The parts of the problem separate and new combinations occur


Insight

A new idea emerges into your conscious mind, either gradually or suddenly - often when you are in a relaxed frame of mind and are not

thinking about the problem


Validation

Thorough testing of a new idea, insight, intuition, hunch, or solution

Rules of creative thinking

Don't let assumptions stifle your capacity. Throw every one of them. Discipline yourself to take time to look for alternatives. Stay open and generate as many as you can think of before deciding on one. To get solutions, you must create an atmosphere where you and others are comfortable expressing new ideas (even if you make mistakes by coming out with bad ideas), an atmosphere where ideas are not immediately evaluated and attacked. To open up true creativity, you have to shed inhibitions and move from left-brain – dominated by numbers – toward right-brain – the original thinking. If you are working on a problem and getting nowhere, leave it for a while and let your subconscious – your depth mind – to take over

Five steps to unleashing your creativity

Gather material Turn the facts over in your mindLet your subconscious take over for a whileAn idea will occur Examine the idea in the harsh light of reality

Creative thinking Tips

If you are thinking along a certain line and nothing happens, stop. Analyze the problem again and see if you can come up with a new approach. Break out of self-imposed limitations. Look for wider solutions, 'think beyond the square'. Think sideways; explore the least likely directions; abandon step-by-step approach and thinking 'to one side' and master the 'lateral thinking' approach. Sharpen your brain – communicate and exchange ideas with other creative people as often as you can. This is useful not only for stimulating idea generation but also for giving you an opportunity to validate your ideas through professional colleagues. If you are working on a problem and getting nowhere, leave it for a while and let your subconscious – your depth mind – to take over

Comparison of lateral thinking vs. Vertical thinking

Vertical Thinking Lateral Thinking

Chooses Changes

Looks for what is right Looks for what is different

One thing must follow directly from another

Makes deliberate jumps

Concentrates on relevance Welcomes chance intrusions

Moves in the most likely directions Explores the least likely directions

Distinguishing between data, Information and Knowledge

Data Information Knowledge

Symbols or facts out of context, and thus not directly nor immediately meaningful

Data placed within some interpretive context, and thus acquiring meaning and value

Meaningfully structured accumulation of information; information that is relevant, actionable, and based at least partially on experience

Distinguishing between Explicit and Tacit Knowledge

Explicit knowledge - Tacit knowledge

Can be formally articulated or encoded; can be more easily transferred or shared; is abstract and removed from direct experience

Knowledge-in-practice; developed from direct experience and action; highly pragmatic and situation specific; subconsciously understood and applied; difficult to articulate; usually shared through highly interactive conversation and shared experience.

Application of Tacit Knowledge in Innovation

Problem solving Experts, as opposite to novices, can

solve a problem more readily as they have in mind a pattern born of experience, which they can overlay on a particular problem and use to quickly detect a solution

Application of Tacit Knowledge in Innovation

Problem finding Linking a general sense of intellectual or existential

unease to radical innovation: creative problem framing allows the rejection of the "obvious" answer to a problem in favor of asking a wholly different question. Intuitive discovery is often not simply an answer to the specific problem but an insight into its real nature

The MBO Process

Define corporate objectives at broad Level

Establish management information systems to monitor

performance

Analyze management tasks and devise job specifications

Set Performance Standards

Set subordinate objectives

Align individual targets with corporate objectives

Define corporate objectives at broad Level

VisionMissionGoals

StrategiesAction Plans

Strategy PyramidTop Down

Strategy StretchTop Down +Bottom up

Strategic intent

Challenge

Opportunities

Vision

Vision is a short, succinct, and inspiring statement of what the organization intends to become and to achieve at some point in the future, often stated in competitive terms. Vision refers to the category of intentions that are broad, all intrusive and forward thinking. It is the image that a business must have of its goals before it sets out to reach them. It describes aspirations for the future, without specifying the means that will be used to achieve those desired ends.

Mission Statement

A mission statement is an organization's vision translated into written form. It makes concrete the leader's view of the direction and purpose of the organization. It is a vital element in any attempt to motivate employees and to give them a sense of priorities.

A mission statement should be a short and concise statement of goals and priorities.

Setting Goals

A goal is a long-range aim for a specific period. It must be specific and realistic. Long-range goals set through strategic planning are translated into activities that will ensure reaching the goal through operational planning.

Setting Objectives

Setting objectives involves a continuous

process of research and decision-making. Knowledge of yourself and your unit is a vital

starting point in setting objectives.

Corporate Strategy

Strategy is the way in which a company orients itself towards the market in which it operates and towards the other companies in the marketplace against which it competes. It is a plan an organization formulates to gain a sustainable advantage over the competition.

Strategic Intent

A strategic intent is a company's vision of what it wants to achieve in the long term. It must convey: A significant stretch for your company A sense of direction, discovery An opportunity that can be communicated as

worthwhile to all employees "To achieve great things, you need ambitious visions.

And it does not matter that vision cannot be laid out in details. It is the direction that counts."

Choosing Between Strategy and Opportunity Approach

Use Strategy Approach Use Opportunity Approach

Known environment Unknown environment

Building on existing competencies, capabilities, products, markets

Building on new competences, capabilities, products, markets

Need consolidation Need rapid growth

Need stability and certainty Need change, accept uncertainty

Lack capacity for flexibility, corporate venturing, and speed

Established capacity for flexibility, corporate venturing, and speed

Knowing Oneself; Unlocking Your True Potential

Workshop

welcome training course on management by objectives

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