You're putting together a performance management system. Which would you rather have as a means to force the highest % of your employees to think about ways they can innovate within the scope of their job?
--MBOs that you've agreed with them on and probably helped them brainstorm related to what to do and how to deliver it. They'll knock out the project. You get the widget. Then it's done. Everyone agrees completion of the task is good. (Example for HR Managers: You recruit, so we decide together that you're going to get us started on social recruiting. We agree on a MBO on what needs to happen by when, with enough specifics for you to know what to do...)
--A performance management system that outlines the big blocks of your job, outlines what you're generally responsible for, and then tells you that in order to crush that area of your goals/objectives, you're responsible for thinking differently and innovating within each area to exceed the company's expectations. Your manager is there to help you stay on track with what that might mean, but you're responsible for coming up with ideas, chasing projects and proving that innovation that helps the business has actually happened.
Which one do you choose? Think carefully - the goal is to force the highest % of your employees to think about ways they can innovate within the scope of their job.