Management by results: understand how to adopt this strategy in your company!



How a company decides to guide its management also determines how it will achieve its results and set its priorities over time.

And, although we might think that there is a unique way to manage a business, the truth is that there are different approaches that can be followed.

In Brazil, we are still quite used to the traditional model, based on a company’s processes (that is, on the “how” something is done and delivered to the market).

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But in such a competitive market, isn’t it time to move on to a new path?

In this article, we are going to talk about results management, a model based on goals and objectives, which must be related to what the company wants to deliver to its audience.

If your organization is looking for ways to engage employees around results, this may be the best management choice! Keep reading the article to learn more!

What is management by results?

Management by results is also known as Management by Objectives (MBO) or Management by Results (MBR) and has its origins in the work of author Peter Drucker, considered the father of modern management.

Drucker first mentions results-based management in the 1950s, in his book “The Practice of Management”.

However, here in Brazil, this model began to become popular years later with the arrival of large multinationals, especially in the technology sector, which were already successfully adopting the practices of this form of administration.

In summary, results-based management has as its main focus the achievement of goals. Therefore, the entire company is responsible for the defined objectives, even employees who are not part of the so-called core areas (such as product and sales).

Furthermore, processes lose strength, diminishing the importance of “how” to reinforce the importance of “what” must be done.

And why bet on management for results? See below some of its benefits:

  • Organizational goals and objectives become clear to all employees in the organization
  • Greater connection and integration between different sectors and business units
  • Increased talent retention rate, since it also increases the sense of belonging
  • Increased team productivity
  • Decision making is now based on data, reducing risks
  • The results, of course, also improve.

How to work management for results in the company?

Now that you are better acquainted with results-based management, you must be thinking how positive it would be to bring this model to your business, right?

But calm down! Before that, it is necessary to understand how this can impact the entire culture of the organization.

Companies that are born oriented towards results naturally adopt this type of management. As well as those who already have clear goals and make a structured effort to achieve them.

However, for companies that do not yet have a culture focused on results, the path will certainly be a little more tortuous. Not that they shouldn’t adopt this management model. On the contrary, they can find a new axis for growth with this transformation.

It will only take a lot of planning so that the transition does not completely eliminate the organizational culture that already exists – which can lead to a loss of talent and even a reduction in results.

Therefore, to start managing the company with this focus on optimizing processes and achieving results, it is necessary to follow a journey that includes people, tools and best practices.

And that’s what we’ll talk about next!

8 results-based management practices to adopt

If you’re interested in adopting management for results, we’ve made a step-by-step guide that can help you implement it. Check it out below:

1. Choosing a target model and tracking results

To successfully implement results-based management, a methodology or model for defining and monitoring goals is essential.

Thus, the entire strategy can be “tied” in a method, which determines how the objectives will be defined and monitored by the entire team.

Among the existing models, we recommend the use of OKR (Objectives and Key Results), widely used by technology companies and startups.

In this methodology, the company must define the main objectives to be achieved and the main results that will lead to that goal.

2. Define the company’s overall goals

With the chosen methodology, be it OKR or another one of your choice, it is time to define the goals that must be achieved over the period.

In managing for results, it is extremely important that this process is not restricted to company directors, but that it involves the entire organization.

Employees from different areas should be heard at an early stage of formulating goals, and it is also interesting to invite some of them to a validation process at the end.

3. Define the goals of each area

Having the company’s goals clear, it’s time to set objectives for each area and, if it makes sense, even for each employee.

Remember that all departments must see their role in achieving the overall business objectives.

That is, if one of the goals is to “Increase revenue by 20%”, for example, the Marketing, Finance, Human Resources, among others, need to share this mission – whether with lead generation campaigns, pricing policy and promotion, retention of talents, among others.

4. Change the logic from processes to results

We said earlier that it is necessary to transform the logic from “how it should be done” to “what should be delivered”, right?

In practice, this means that, many times, some processes can be left out, depending on the movement of the market and the organization itself. Process change is also fast, according to the focus needed to achieve results.

5. Choose the right tools

It is not possible to do good results management without providing the team with tools that allow them to actually monitor the results, without any barriers.

The main ones are CRM system, marketing automation platform and real-time dashboards.

6. Engage the entire team

The achievement of results is driven by the engagement of the team around them. Therefore, in this management model, the team needs to be highly motivated and aware of its role and opportunities within the organization.

HR has an important role in this point, but not only. It is the manager of each team who will deliver the tools and messages at the end to maintain engagement.

7. Monitor results

If achieving goals is the main focus of results-based management, they must be analyzed daily by everyone involved.

Company executives need to interpret results, adjust the route when necessary, and maintain full transparency with everyone about what will be possible and what will not be achieved – and what changes may be necessary to achieve this.

Here, again, it is worth involving the team frequently, in brainstorm meetings, results update conferences, among others.

8. Give rewards to the team

And finally, it is important to know that every effort needs to be rewarded!

An important characteristic of results-based management is the reward for achieving goals. This can be done through sales commissions, bonuses, profit sharing or even employee incentive campaigns.

Understand your internal audience and the reality of the business to define what will be a real motivator!

Get ready to manage by results!

Management by results is more than a trend in administration, it is the most suitable way today to ensure that goals are achieved – with a direct impact on commercial management.

Therefore, even if it is not in the company’s current plans, it is worth rethinking the model followed.

To do this, consider the step-by-step steps shown in this article, in addition to seeking other references and good practices in the market.

This knowledge will surely guide you and your company in a more natural and safe transition to the goal-based model!