Organizational results management: what it is and how it can help your company

Results-focused management is a business management strategy in which the results achieved are used to define all of the company’s actions. Results-based management methods require constant monitoring of those results.

Regardless of size or market, the way an organization chooses to run its company is essential to determine whether its main goals will be reached.

Could there be a management model capable of helping increase productivity, deliver results and also generate a high level of employee engagement in a business?

That is where so-called organizational results management appears, as an option increasingly adopted in the corporate environment.

Learn more about strategic results management, discover its advantages and see how to put results-based management into practice in 5 steps:

1. Review the company’s objectives;
2. Define the team’s objectives;
3. Monitor the process;
4. Run performance reviews;
5. Reward.

What is organizational results management?

It is a business administration model, also known by the English terms Management by Objectives (MBO) or Management by Results (MBR).

The concept originated in the 1950s, in the book “The Practice of Management” by Austrian-born Peter Drucker, considered the “father of modern management.”

As the name suggests, organizational results management is a way of running a company with results as the main focus of the actions of everyone involved in the business.

That way, the organization seeks to improve performance by looking at the goals to be reached, and not only at processes, as in the traditional management model.

To learn even more about management strategies, download our e-book: How to do Strategic Managementopens in a new tab (in Portuguese)

Characteristics of the model

The keyword is always one: results, in all of the company’s processes. To choose this management model, you need to understand that applying this concept brings some essential characteristics to your business:

1. Responsibility belongs to everyone

All employees, regardless of the different roles they hold in the organization, are responsible for the results the company generates. That includes even losses and missed opportunities.

Also, all professionals take part in choosing the objectives to be reached and should have their efforts recognized.

2. Integration of business units

The various business units contribute their specific tasks but work together, in an integrated way and aimed at common results.

That makes relationships between leaders and team members closer, with a smoother exchange of information.

3. Results, not processes

In this model, there are guidelines to follow, but there is no imposition of particular ways of acting or carrying out a task.

The focus is the desired results, not the varied processes and procedures carried out in the organization.

Understand better what processes and projects are in this video:

What are the advantages for a company?

1. Better communication and integration

Since there is a closer relationship between employees at different hierarchical levels, communication in the work environment improves.

Processes become more integrated, thanks to greater information sharing, more frequent feedback and collaboration among professionals in the most varied roles.

Different experiences are shared and everyone learns from everyone, which results in a more harmonious organizational environment.

2. More motivation

Employees are an essential part of reaching the company’s results. But in this model they are even more than that: everyone is considered responsible and takes part closely in defining objectives.

When they are valued and feel they are truly part of the business, motivationopens in a new tab (in Portuguese) and professionals’ self-esteem increase. People tend to engage more in projects of their own making than in tasks simply imposed by others.

So it is noticeable that everyone feels more motivated when they see that they take part in the decision-making process and make a difference in a project.

3. Clearer objectives

When results are built and planned together, the objectives of the company and of each employee become clearer. And with clearer objectives defined in strategic planning, they are easier to reach.

Do you know the difference between goals and objectives? Check it out:

4. More productivity

Professionals who feel part of the organization, responsible for results, with clear objectives and constantly engaged contribute to higher company productivity.

Want to see examples of results management in practice? Start with this success story, also available in the post Strauss Coffee caseopens in a new tab:

How to put it into practice?

Organizational results management should follow 5 main steps:

1. Review the company’s objectives

Managers need a broad view of the business, knowing the company’s characteristics and intentions. It is essential that they reflect on and feel confident about the organization’s objectives, both short and long term.

2. Define the team’s objectives

Leaders and team members should define together the objectives and results of their work. They should agree with those goals and with the deadlines set to reach them.

And what about personal objectives?

Learn more about them:

3. Monitor the process

It is important to follow the process to reach the results sought before the final deadline. So, regularly bring team leaders and team members together to assess the activities carried out so far and compare them with the objectives set. This is the ideal stage to detect and make changes, if needed.

4. Performance review

This step consists of assessing employees’ performance, both individually and as a group, based on results evaluation. Were the agreed objectives achieved? Or not?

5. Reward

Finally, workers receive rewards for the results achieved.

Here is one more case of how to put results-based management into practice:

Is it worth implementing the organizational results management model?

Organizational results management brings advantages to companies by adopting a model with greater flexibility in processes, better internal corporate relationships and higher motivation among employees.

The model has been studied and implemented in the most varied businesses since 1954. HPopens in a new tab, for example, is one of the most cited cases of adopting this form of management for business results.

Before choosing the model, it is essential to reflect and determine the organization’s real objectives. And that is not all: collaboration is needed. All professionals should work jointly and in an integrated way.

Starting from those two points, the results set can be reached and the business tends to gain productivity with organizational results management.

How to track results management day to day?

Organizational results management only works when each team’s objectives are broken down and results are tracked every period. Without that, results-based management becomes goals on paper.

In Stratwsopens in a new tab, the AI platform for strategic and performance management created by Siteware, the company’s objectives are broken down into goals and indicators by team, tracked in a visual dashboard, and deviations are followed by action plans until completion.

Visit our website and explore the Goal and Indicator Deployment solution in Stratwsopens in a new tab.