Welcome

1. Welcome Training Course on Management By Objectives

2. 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.

3. Why MBO • The MBO is appropriate for knowledge-based enterprises with competent team having following objectives: • To achieve a balance between Management and Employee Empowerment • Managing for Results • Individual Responsibility • Solve problems and reduce “future shock”· • Recognize that goal setting is an art • Use subordinates properly and profitably in goal setting

4. 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

5. The New Manager Classical Managerial Work New Leadership Task Planning Creating vision & Empowering Organizing the hierarchy Aligning the web of relations Measuring and controlling Inspiring & Coaching New Managers for New Economy

6. 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 Traditional One Vs New Management Model

7. Lead More, Manage Less • Lead • Manage less • Articulate your vision • Simplify • Get less formal • Energize others • Face reality • See change as an opportunity • Get good ideas from everywhere • Follow up

8. Build A Winning Organization • Get rid of bureaucracy • Eliminate boundaries • Put values first • Cultivate leaders • Create learning culture

9. Harness Your People • Involve everybody • Make everybody a team player • Stretch • Instill confidence • Have fun

10. 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 Yin Yang of effective Management

11. Key qualities of business leaders • Emanate personal character • Master competencies • Set directions • Build organizational capability • Mobilize individual commitment

12. Becoming a knowledge enterprise • In tomorrow's business environment, Knowledge and How it is managed for competitive advantage is the number one corporate priority

13. 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 Knowledge enterprise versus Industrial Enterprise

14. Sources of Knowledge Customer knowledge: Customer needs, perceptions, and motivations Who to contact Customer buying power What differentiation strategy and customer services need to be developed to win and retain customers

15. Sources of Knowledge • Competitor knowledge • What competitors are selling now and what they are planning to sell in the future • What is their strategic intent • What competitive strategies they use to win in the marketplace.

16. Sources of Knowledge • Service knowledge • The Services in the marketplace • Who is buying them and why • What prices they are selling at • How much money is spent on such Services now and may be spent in future.

17. Sources of Knowledge • Process knowledge • Best practices • Technology and Forecasting • Systemic, Cross-functional synergy opportunities

18. Sources of Knowledge • Financial knowledge • Capital resources • Where and at what cost • The integration in financial practices

19. Sources of Knowledge • People knowledge: • Knowing people and what motivates employees, Obtaining feedback • The expertise available • How to go about finding experts

20. 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?

21. Resources Knowledge Expertise Access to relevant Information Internal Motivation Motivation from within; your need or passion to be creative Creative Thinking Skills Capacity to think outside the box & Put existing ideas together in new combination 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.

22. The Creative Thinking Process • Preparation • Incubation • Insight • Validation

23. The Creative Thinking Process • Preparation • Collecting and sorting the relevant information • Analyzing the problem thoroughly • Exploring possible solutions

24. The Creative Thinking Process • Incubation • Mental work – analyzing, synthesizing, imaging, and valuing – continues in your subconscious mind • The parts of the problem separate and new combinations occur

25. The Creative Thinking Process • 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

26. The Creative Thinking Process • Validation • Thorough testing of a new idea, insight, intuition, hunch, or solution

27. 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

28. Five steps to unleashing your creativity • Gather material • Turn the facts over in your mind • Let your subconscious take over for a while • An idea will occur • Examine the idea in the harsh light of reality

29. 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

30. 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 Comparison of lateral thinking vs. Vertical thinking

31. 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 data, Information and Knowledge

32. 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. Distinguishing between Explicit and Tacit Knowledge

33. 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

34. 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

35. Define corporate objectives at broad Level Establish management information systems to monitor performance Analyze management tasks and devise job specifications Align individual targets with corporate objectives Set Performance Standards Set subordinate objectives The MBO Process

36. Strategy Pyramid Top Down Strategy Stretch Top Down +Bottom up Strategic intent Challenge Vision Mission Goals Strategies Action Plans Opportunities Define corporate objectives at broad Level

37. 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.

38. 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.

39. 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.

40. 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.

41. 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.

42. 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."

43. 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 Choosing Between Strategy and Opportunity Approach

44. Knowing Oneself; Unlocking Your True Potential • Workshop