Management by Walking Around (MBO)

Leadership demands information about what is really going on in the organization. Managers, who never leave the office, and who rely on formal communication channels, may receive only the information that places subordinates in a favorable light. To overcome their isolation, managers need to supplement their formal communications with the informal ones.

In their search for excellent companies, Thomas Peters and Robert Waterman noted that managers of the United Airlines practice what has been labeled “management by walking around.” A similar practice is called “management by wondering around” at Hewlett-Packard. The belief is that managers will improve informal communication channels by walking through the plant.