How Can MBO Help Improve the Implementation of Strategy

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The Answer is MBO is a powerful implementation technique because it is a system that links plans with performance. It forces managers to communicate the objectives of the overall business unit to their subordinates so they are better able to see how they fit into the company's goal accomplishment. MBO, therefore, acts to tie together corporate, business, and functional objectives, as well as the strategies developed to achieve them. This forms a hierarchy of objectives similar to the hierarchy of strategy mentioned in Chapter 1. The mutual give and take, together with the sense of personal responsibility exemplifying a successful MBO program, serves to motivate employees to help implementation activities succeed.

How Can MBO Help Improve the Implementation of Strategy

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