Heavy losses caused a well known Airline to introduce a major change in its organisational structure. That brought to light a number of weaknesses, and placed added responsibility on managers at lower levels. Following an initial trial of management by objectives MBO, a procedure was developed which has now become standard throughout the Airlines marketing management activities. Their CEO outlines its approach, and provides samples of how it works in practice. These samples also provide a rather good indication of the sort of results an organisation can expect from a well-run MBO programme. He admits that there have been some failures in the programme, but adds that these have provided some valuable lessons for the future. Overall, MBO has proved its value as an improver of management performance in marketing, and is now being extended to the Airlines other functions. The company’s objectives are clear. Now it is there to develop their managers such to achieve those objectives ………………….
After participating in an output orientated seminar based on the ideas in this Bill Reddin book this managing owner of an air conditioning installation firm (counting circa 80 employees) made many changes. He decided to base his firm on outputs, rid his desk, and hold team meetings as described in Chapter 6 and to change many other things. Change is slightly nervy but he had the nerve to do it. Profits doubled the next year, and then doubled the year after. He has now secured his family fortune. He took a risk and it succeeded. He wrote this letter to the trainer delivering the seminar. ………………….