Written by Marc Oliveras

Article 3, Volume 2 Issue 2:

The OPTIMAL MBO: A model for effective management-by-objectives implementation

Sharon Gotteiner

DOI: 10.26595/eamr.2014.2.2.3


The Management-by-Objectives (MBO) approach is wide spread, but has been challenged to demonstrate its consistent, positive effect on organizations’ performance. The OPTIMAL MBO is a revised formula, proposed for vitalizing the original MBO approach. It includes some additional components related to business strategy, financial performance, and incentives, as well as some tune-ups to existing components, and aims at wining executive support. The OPTIMAL MBO stands for its integrated set of components, namely: (O) Objectives, Outside-in; (P) Profitability (budget) related goals; (T) Target Setting; (I) Incentives & Influence; (M) Measurement; (A) Agreement, Accountability, Appraisal, Appreciation; and (L) Leadership Support. Empirical testing of impact on operational and financial performance is called for.


  • Leadership
  • Management
  • Management-by-objectives
  • MBO
  • Performance

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