Management by objectives (MBO) is an approach that is widely used, but like all general HR practices, the value of an MBO approach is dependent on the integrity of leadership in the implementation of the system. There are also a number of variants that are vogue. Done well, an MBO system is a great tool that defines the key challenges and opportunities for an organization, aligns individuals and teams toward a common endpoint and an effective method of evaluation of the performance of an organization. In my experience, it is important to focus on setting specific measurable meaningful objectives and not allow a list of day–to–day activities, to be substituted for real objectives that move the organization forward. I prefer simple systems that do not try to rank MBOs by some arbitrary percentage of value. To my mind, that substitutes numbers for judgement and implies a precision that I don’t think exists. Because I want people to set challenging objectives, I prefer paying the full bonus if most of the critical objectives are achieved. Demanding 100% achievement of objectives seems to encourage setting of only relatively easy objectives.