Management by Objectives

Management by objectives – reach set up goals! A solution for strategy implementation that facilitates steering of the business!
A clear strategy that has good support of all employees is an important prerequisite for creating a long term profitable and competitive business.

In larger organisations, it is sometimes difficult to get a clear picture of the situation and the future direction. Sometimes there is a lack of well-defined scorecards and key figures as well as a clear organisation and effective tools.
Strategy Implementation

The implementation of strategy and scorecards can come about as follows:
 a.Define the organisation's role in the market, industry and development
b.Determine a vision
c.Identify prospects
d.Break down the vision and formulate strategic objectives
e.Identify critical success factors
f.Develop indicators, identify cause-effect relations and create a balance
g.Determine the overall scorecard
h.Break down the scorecard and the measures in the organisation
i.Formulate objectives
j.Develop action plans
k.Implement the strategy!



A well-implemented strategy speaks to the whole organisation, and to the individual. In order to function in an as comprehensive a manner as possible, the scorecard is required to have a strong link to the organisation's strategy and business idea and be supported by as many as possible in the organisation, the more the better. It presupposes that the employees accept the strategy and that they see it as a relevant action plan that includes long-term needs and aspirations from all parts of the organisation.

Business benefits of management by objectives
The management by objectives tool facilitates the implementation of the strategy throughout the organisation leading to increased profitability and competitiveness. This is done by means of the tool through:
 •Making employees aware of the strategy as well as more involved in efforts to reach the goals!
•Facilitating the strategic work and the long-term planning for the management!
•Providing the basis for rapid decision-making by providing a clear overview of the status, forecast and trends!

Applications for management by objectives
The types of information that are usually handled in a tool for management by objectives are:
 •Scorecards including measurements
•Strategy maps
•Business plans
•Reports
•Action plans

Ref: http://www.canea.com/it-solutions/solutions/management-by-objectives