When I worked for a multi-national company, management decided to apply the MBO management model introduced by Peter Drucker. Finally, an MBO expert consultant was brought to the company and socialization was carried out to all levels of leadership and leaders to understand and understand how to apply it.

And, a written policy emerged to implement the MBO Concept as in the book. We were called by the HR Manager and instructed by all of us staff to compile our own Objectives or Targets. We didn't know what to write because that was the only instruction. Here I felt that there were obstacles that arose with the MBO, including:

1. We only know that MBO is a very famous Management Model

2. The little I read of the MBO Concept is that it is a meeting and communication between superiors and subordinates to jointly determine the Work Objectives to be achieved in the year of the performance period. So we staff set our own Work Objectives.

3. At that time, we were not ready to set our own Work Objectives because we had only been working and being managed in the company with the Mindset as Employees waiting to be given work from our superiors every day.

4. The Job Description that was available contained a list of tasks from our respective positions. And the list of tasks we have routinely done so far. We staff are confused, what kind of work objectives should we make?

From this true story, a few notes emerge:

1. Mr. Peter Drucker developed the concept of MBO, which was worldwide, of course by conducting research or analysis of the industrial environment in certain countries with different environments and regulations from the regulations and culture in Indonesia.

2. Mr. Peter assumed that the level of readiness of superiors and subordinates in our company to provide Business Values in their respective positions was really ready. At that time we were not ready to be managed with the Human Capital Model.

3. The company's organizational framework at that time was not adjusted at all for the MBO implementation.

4. Finally, the MBO Model did not touch the Company's Business Mission Achievement. Initially, the company's hope was that with MBO, Performance KPI Management would be more clearly directed towards the Company's Business Mission. But this did not appear.

5. On various occasions when there are groups of guests visiting the company, one of the points conveyed by the Chairman in his speech is about MBO which is the Management Model (Efforts to bring up the Company Image in terms of the quality of management). Meanwhile, we the staff in our work team do not feel the benefits for the company and for us the staff in our team with the MBO Model.

From the experience of implementing the MBO Model according to the original concept, the term MBO was inspired:

1. The term "MBO" (not MBO Model) can be used to develop a PERFORMANCE HIRARCH STRUCTURE geared directly to the Company's Business Mission.

2. The term "MBO" can be used to adopt the newer form of performance management, namely: "Management By Outcome". This adopts the principle of Steven Covey (7 Habits of Highly Effecyive People), namely: "Begin With The BIG END in mind". Performance starts from the clarity of "What, When, Indicators, Why".

3. The OUTCOME TARGET structure is developed by the Company to ensure that when the Outcome Target Structure is achieved, the Company's Business Mission can be achieved.

4. There is engagement or clarity of: "Company Business Mission => Departmental Business Values => Departmental Work Output => Departmental Work Outcome (KPI)".

5. And, proceed with designing how to realize the Outcome in the most effective, efficient and legal way. Finally, the OUTCOME STRUCTURE is complete and comprehensive down to the lowest position.

6. Finally, we have the "MBO3" Model where "O3" consists of:

a. Organization Capital Analysis of the Work Unit (O1 - is FIXED)

b. List of OUTPUTs produced by the Work Unit (O2 - fixed)

c. Determination of KPI (OUTCOME) for each Output above (O3 - is SITUATIONAL STRATEGIC: determined by the Company according to the Target of How Business Progresses.

7. "OUTCOME" is "Output + KPI". KPIs are indicators of successful performance (usually in the form of NUMBERS) embedded in the OUTPUT of WORK where the numbers set will be able to realize the Target to be achieved.

8. The "MBO3" model is very easy to implement for the BUSINESS Unit group and the SUPPORT Unit group to the lowest level.

9. With this "MBO3" Model, HR only needs to implement or realize the Targets of the Company's Outcome Structure which has been strategically designed with the right business principles (Business Principles: "Managing Profit, Cost, Law Compliance").

10. On a regular basis (in months), the level of achievement of the KPIs set in the Outcome Structure of each position is reported to the Company Management. From this report, it can be identified whether the Work Unit has provided the right Business Value for the Company or not. This data or information becomes very important as the basis for various HR evaluation and development programs with the right direction and the right way (Effective and Efficient).

11. So, there is a difference in the basis of thinking from the "MBO" Model of Mr. Peter Drucker and the "MBO3" Model. Peter Drucker's "MBO" emphasizes the communication process between superiors and subordinates to jointly set work targets. On the other hand, "MBO3" emphasizes the preparation of the OUTCOME Structure to achieve the Company's Business Mission and HR only needs to develop its work steps to realize the Outcome Structure.

12. With "MBO3", HR has a Clear and Firm Work Target. There is no need to think about what to achieve. The task and responsibility of HR is to find the most effective way to realize the Work Target.

13. What is remarkable is:

a. There is uniformity in managing Work Unit Performance, namely all using the "MBO3" Model. With the uniformity of the Management Model, the Company Management can maintain the consistency of the OUTCOME Target Achievement and at the same time maintain the consistency of the Company's Business Target achievement.

b. My experience when visiting various companies and I threw a question to the leadership: "What Management Model do you use in managing Work Units in this company?". And the series of answers I received:

a. "What is the Management Model? We are doing it the way we are currently doing it is following what the previous official did."

The conclusion: each Head of Work Unit manages the Work Unit with their own pattern. Well, conditions like this will give rise to different Management Languages in the Head of Work Unit meeting session.