45 Examples of Management By Results

John Spacey, June 17, 2023

Management by results is the process of managing employees in terms of measurable results alone. This would allow employees greater work freedom by forgoing qualitative elements of management. Management by results can include internal performance metrics and outcomes as followed.

Performance Metrics

Indicators of an employee's performance that are independent of business results.

Productivity rate	Work throughput
Response times	Turnaround time
On-time performance	Schedule variance
Budget variance	Defect rate
Error rate	Quality scores
Peer feedback	Stakeholder feedback

Outcomes

The focus of management by results is to try to measure performance in terms of business outcomes. The following are examples of outcome KPIs.

Revenue and revenue growth rate	Gross margins
Net margins	Market share
Customer satisfaction	Customer complaints
Customer churn	Customer lifetime value
Customer acquisition cost	Customer loyalty
Brand recognition	Brand awareness
Risk exposure	Cost reduction
Cost of quality	Customer perceptions of quality
Adoption rate of products, services, features and functions	Throughput such as units per hour
Time to market	Turnaround time
Cycle time	Cost per result such as cost per lead
Conversion rate	Engagement rate
Resource efficiency	Incident rate
Reliability rate	Inventory turnover ratio
Inventory stockout rate	Return on investment
Safety incident rate	Compliance rate
Corporate social responsibility measures such as energy consumption

Management by results is prone to be careful what you measure problems where employees will heavily optimize for anything that is measured at the expense of anything that is not. For example, if you measure the performance of salespeople by how much revenue they close they may ignore data entry or post-sales customer relationships and satisfaction.

Next: Business Outcomes

More about management by results:

Business Outcomes

Goal Setting

Management Outcomes

Performance Management

Project Outcomes

Services

Team Outcomes

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