Management by Objectives (MBO)
A management approach where goals are agreed jointly and progress measured against them.
Management by Objectives (MBO) is an approach in which managers and employees jointly define clear, measurable objectives and then assess performance against those agreed goals. It emphasises outcomes over activity and shared ownership over top-down instruction.
By involving employees in setting their own targets, MBO aims to increase commitment and clarity about what success looks like. It influenced many later frameworks, including OKRs, which share its focus on explicit, measurable goals.
MBO works best when objectives are genuinely aligned to organisational priorities and reviewed regularly rather than filed away after they are set. Overly rigid application can encourage people to game targets, so judgement and dialogue remain essential.
