MBO (Management By Objectives) - Managing Organizational Goals

MBO (Management By Objectives) or management of organization goals is a strategic tool used by Willow Creek Capital Management in controlling company's work and investments. The purpose of this tool is to establish a balance between the goals of the firm and the goals of the employees. With the aim of achieving greater efficiency and achieving employee motivation results, this is quite a crucial factor. By using the MBO tool, Willow Creek has created an efficient management system where employee goals are aligned with the goals of the company.

The process of implement the management goals of the company goes through 5 steps:

Defining organization's goals

The whole organization development depends on the set goals. The goal is the most critical and most important factor behind the organization's efficiency. For this reason, it is necessary to manage the goals.

Before you start working on the set goals, you need to define organizational goals that are designed to create an adequate management that will be able to manage different target types.

Organizational efficiency goals appear as a typical reason for conflict. In accordance with the above, your firm may have several different goals so you need to manage it appropriately for each purpose.

A variety of different types of managers must be included when setting the targets. The goals set by the superiors are preliminary, and based on analysis and judgment of what the organization can and should accomplish in a given period.

Defining employees' targets

Once you have defined the organizational goals, familiarize yourself with the individual goals of your employees. Ask employees what goals they can achieve within a certain time frame and what resources they need to realize them.

Classify your goals and rank them in importance so you can tailor your goals to the organization.

Keeping track of performance and progress

The MBO process is not just setting goals but is used for constant measurement and tracking of employee and organization progress.

The following elements can help you monitor performance and progress:

• recognizing ineffective programs by comparing performance with predefined goals,
• Zero Based Budgeting,
• measuring plans of organizations and individuals,
• defining long-term and short-term goals and plans,
• installing effective controls,
• designing an organizational structure with clear responsibilities and decision-making powers.

Evaluating efficiency

In this step, Willow Creek Capital Management creates a work evaluation. Evaluation should be made by "considerate" managers. Keep in mind that this is one of the most important factors in building a firm that is geared towards achieving goals.

Providing feedback

Constantly provide feedback on the achievements of the organization and the realization of personal goals of individuals. Enable all stakeholders to keep track of their development continuously.

Organize periodic formal assessment meetings where superiors and subordinates can review progress toward goals.

Evaluate performance and point to the space for progress and encourage employees to improve their skills.

Setting goals defines the company in the market and precedes any success. Quality setting and effective management of goals is the skill of a competent manager.

Our team at Willow Creek Capital Management can set goals for your firm and measure their realization. Follow us on Facebook for more information