MBO Program Mechanics

Implementing and managing an MBO program requires the use of a well-defined process.

Introducing any new policy or program that can impact an employee’s compensation needs to be carefully and thoroughly explained to all impacted participants.  Establishing a variable compensation, an MBO program requires special attention for individuals who have not participated in a similar plan in the past.  For many individuals, an MBO plan may be their first exposure in having their individual performance objectively scrutinized.  Creating and following a logical, defined process will help to alleviate their fears.