Objectives & Goals
Management by Objectives
What is MBO
Management by Objectives (MBO) is a strategic approach to enhance the performance of an organization.
• long-term (usually annual) definition of the company's objectives (mainly in a "top down" mode)
• achievement of objectives: measured, evaluated and, in the best case, rewarded (Bonuses) on the basis of results at the end of the year.
Process / Method of MBO
Steps in the management by objectives process:
1. Goal definition:
- What do I want to achieve, within how long?
2. Involvement of the team:
- Which resources can/will I count on?
3. Assignment of roles and objectives:
- What contribution do I expect from everyone?
4. Measurement in progress:
- Where are we? - corrective actions
5. Final verification of results
- Goal achieved?
Objectives must be S.M.A.R.T (Specific, Measurable, Achievable, Realistic, Timely)
Advantages and disadvantages of MBO
What is the Agile Approach
Agile is an iterative approach to project management (originated in the software development industry) that focuses on flexibility, communication and segmentation.
There are many different application methodologies of the agile philosophy (Scrum is the most popular), each of it is unique in its specific approach. But they all share a common vision and a set of core values:
• Individuals and interactions over processes and tools
• Working software over comprehensive documentation
• Customer collaboration over contract negotiation
• Responding to change over following a plan
Phases of Agile Process
• short-term objectives
• prognosis of project progress based on experience: giving way to constant revisions
This allows for a more continuous way of setting and reaching goals as well as being more efficient in responding to change if needs be.
Advantages and disadvantages of Agile
"Traditional” organizations: designed primarily for stability, involve a static, siloed, structural hierarchy.
“Agile” organizations: designed for both stability and dynamism.
- network of teams within a people-centered culture
- rapid learning and fast decision cycles enabled by technology and guided by a powerful common purpose.
Why this methodology is so important today
• Agile methodology overcomes the risk of spending a lot of time if there are any changes required.
• It allows teams to work directly with clients, instead of working with other teams.
• This provides a clear outcome with a focused goal and in an incremental way.
How to pull off an agile transformation
OKRs are the ideal approach for companies working with agile methodologies
Checklist for Agile Objectives
What is an agile objective?
Checklist for Agile Objectives
Is the goal specific and understandable enough so that people know what you mean?
Is the goal manageable and measurable so that success can be determined?
Is the goal memorable and reproducible so that people can easily communicate it to others?
Is the goal attainable and realistic so that people have a chance of actually achieving it?
Is the goal ambitious and stimulating enough so that it isn’t (too) easy to achieve?
Is the goal actionable and assignable so that it can be turned into specific actions?
Is the goal agreed-upon and committable so that people actually feel responsibility for it?
Is the goal relevant and useful enough for people so that they really care about it?
Is the goal time-bound and time-specific so that people know when to do it?
Is the goal tangible and real so that people can see the effects of achieving it?
Is the goal excitable and igniting so that it motivates people to do their best?
Is the goal inspiring and visionary so that it helps people to see a bigger picture?
Is the goal value-based and fundamental so that it builds on top of company values, team values, or personal values?
Is the goal revisitable and assessable so that you can reassess its applicability later?