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Executive Manual

Leadership by Objectives (LBO) is a system for transforming organizations to keep pace and grow in an ever-changing world. The system provides a framework for improving the corporate culture and increasing the degree of employee engagement. LBO is based on behavioral science concepts, organizational research, and the experiences of outstanding corporate leaders.

Why LBO is important

• LBO teaches a win-win approach for collaborative planning between managers and workers, relying on the manager as a coach or mentor.
• LBO creates a framework to balance employees’ freedom with the need to stick to the firm’s strategy and principles.
• LBO creates opportunity, provides growth, and fosters a sense of belonging.
• LBO provides means for your people to achieve their maximum effectiveness and contribute to your organization’s success.
• LBO is more than doing what you do better; it facilitates doing something new.

The system is presented in three publications

1. Executive Manual
2. Manager’s Guide
3. Employee Workbook

The heart of the program is found in the work laid out in the Employee Workbook.  The Manager’s Guide has suggestions for how to be an effective manager and outlines the specific roles and responsibilities of the manager while the employees are completing workbook activities.

The Executive Manual

• Presents findings underlying the need for LBO
• Asks the top executive to become personally committed to LBO
• Includes the Company Compass—a worksheet to articulate the core ideology, mission, values, vision, and goals of the company
• Includes a personal worksheet on the meaning of the organization on an emotional level

The Executive Manual Outlines the LBO system from start to finish

• A diagnostic questionnaire measures the quality of the workplace climate and the level of employee engagement
• Management presents the company’s core ideology, values, and mission
• Employee behavioral competencies are assessed online
• Employees disclose insightful personal attributes with their managers
• Employees describe their work on the Job Expectations Worksheet
• Employee and manager in one-to-one conversation align job expectations in light of employee talents and behavioral styles
• Employees draft personal Big-Dream Objectives (B-DO)
• Managers consult and collaborate with employees pursuing B-DOs
• Employees describe their ideal job based on their unique talents and behavioral styles.
• A follow-up questionnaire measures changes in the quality of the workplace climate and the level of employee engagement

Executive responsibilities

LBO starts at the top. The top person in an organization is expected to:

1. Personally commit to Leadership by Objectives.
2. Authorize use of an online Workplace Survey.  See the sample survey
3. Declare the organization’s commitment to the process and spirit of Leadership by Objectives.
4. Assume the role of a manager and request that direct reports work through the LBO Employee Workbook.
5. Fine tune the organization’s “Core Ideology” and “Common Purpose” statements.  Use the Company Compass Worksheet as an articulation aid.
6. Broadcast, narrowcast, and iterate the organization’s mission and vision at every possible opportunity.

Excerpts from the LBO Executive Manual:

Leadership by Objectives is about people, not technology. Many workers value their knowledge, competence, recognition and prestige more than their jobs. They are motivated by pride, feelings of accomplishment, and professional relationships.

In any organization, someone must be in charge. The CEO provides a balance between managing today and building for the future. The CEO forms and nurtures an organization’s personality, as well as setting the ethical tone. If employees are going to be passionate about their work, they need the right signals from the top. Vision is the catalyst for success, yet it is only a dream until it is on paper. Then it will give focus.

The challenge is to learn to lead people effectively. Human nature is often resistant to change. CEOs, boards of directors, and even well-paid managers hang onto old methodology.  Workers require a different management style. Traditionally, the intent of management was efficiency—the ability to get things done. Effectiveness, on the other hand, is doing the right thing. Effectiveness is more important than efficiency. A company is its people. Management is about integrating people in a common venture. The importance of respecting employees’ capabilities and investing in them has never been greater. 

LBO: A New System for Today’s Workforce

The system made the traditional workforce productive. Frederick Winslow Taylor’s “The Best Way,” Henry Ford’s assembly line, and W. Edward Deming’s “Total Quality Management” improved productivity. The system is still what makes a workforce productive—not an outmoded system based on efficiency. 

In the traditional approach, workers served the system. An effective system serves the worker by setting employees up to win by playing to their unique strengths. By bringing the company’s strength and employees’ talents together, LBO creates a transformational synergy. 

Leadership by Objectives is a simple, straight-forward system for reinventing organizations through the magic of a turned-on workforce. 

LBO motivates common people to do uncommon things—by drawing upon employees’ unique strengths.

LBO is a living, dynamic system based on behavioral science concepts and organizational research.

LBO increases the level of engagement of everyone in the workforce.

With full implementation, every employee will contribute to moving the company in the intended direction.

Course correction is built into LBO to keep everyone on track.

LBO is a system to maximize each worker’s contribution, including interpretation, translation and problem solving—the use of gray matter more than muscles.  Employee engagement is what matters. 

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