Tuesday, April 27, 2010
The Mission Primer by Richard and David O'Hattaron
Gast’s laws are based on enduring properties of human beings, and not on the specifics of a particular economic, political, or social environment..
GAST'S LAW
Making a profit is not the main purpose of a business.
THE METHOD
1. Organize a mission team.
2. Use Gast’s laws to construct the fundamental objectives of the organization.
3. Use the fundamental objectives to construct the mission statement.
4. Use the mission statement regularly and strategically.This book is a concise guidebook to help you develop an effective mission statement for your organization, whether it is small or large.
Walter Gast was a Professor in the School of Commerce and Finance at St. Louis University during the ’40 and ‘50’s.
GAST'S LAWS:
Law 1: A business must produce a want-satisfying commodity or service, and continually improve its ability to meet needs..
Law 2: A business must increase the wealth or quality of life of society through the economic use of labor and capital..
Law 3: A business must provide opportunity for the productive employment of people.
Law 4: A business must provide opportunities for the satisfaction of normal occupational desires..
Law 5: A business must provide just wages for labor..
Law 6: A business must provide a just return on capital.
Values of Trust
Gast's laws are based on basic values of trust, respect for people, and quality that resonate strongly and naturally with all of us. The premise of this book is that Gast’s laws describe the objectives of a successful organization.
Mission Statement Required
A mission statement identifies the fundamental objectives of a business. . . .that is, a set of high-level goals that are neither time-specific nor quantified. Mission statements are used to guide organizations strategic planning effort, to help set day to day priorities, to evaluate new or on-going programs and to evaluate the policies and practices of the organization.
WHAT’S A GOOD MISSION STATEMENT?
A good mission statement consists of a set of fundamental objectives that describe how an organization intends to comply with Gast’s laws.
Organize a Mission Team:
1. Use a representative cross section of the organization and charge them with the task of developing a mission statement. Brainstorm to list an initial set of values. Identify the values that are the most important to the group.
2. List values: Here’s a list of 40 values to show what a value is considered:
Accessibility accountability appreciation for resources citizenship clear identity cooperation dedication dignity empowerment encouragement enjoyment enthusiasm equity excellence financial fulfillment flexibility freedom fulfillment of potential globalistic happiness humor innovation integrity loyalty mentorship personal growth pride quality product respect for diversity responsibility reward security selfishness sensitivity teamwork unity urbanism
IDENTIFY Objectifies
Write down all of the suggested objects on tear sheets and fill up the sheets, paste them on the wall. Go over one by one. Eliminate some. Add some.
OBJECTIVES
Law 1:
A business must produce a want-satisfying commodity or service, and continually strive to improve its ability to meet needs.--the need to clearly understand the core business of the organization both now and in the future and – the need to continually improve its ability to engage in its core business.You can ask these questions:
1. What industry are we in?
2. What is our core business now?
3. What do we envision our core business being in the future.
4. Who are our customers?
5. Who are our competitors?
6. What geographic area do we serve?
7. How are we different from our competitors?
8. Where should we rank relative to our competitors? It is extremely rare to find a successful company that doesn’t continually improve its ability to meet customer’s needs. . . thus it is important to include that in your mission statement.
LAW 2
A business must increase the wealth or quality of life of the society through the economic use of labor and capital.This says that a both workers and managers have an obligation to contribute to society and to ensure that the organization produces high quality goods or services cost-effectively. The organization must provide appropriate management, systems, and resources. Employees must work hard to make the best use of the resources they are given.
Questions:
1. How does our organization help or hurt the community?
2. Should we be doing more to help?
3. Should we be doing less to hurt? Recognition of the obligation to society and community appears in all of the model mission statements.
LAW 3
A business must provide opportunities for the productive employment of people. –This says a business is not required to hire people it doesn’t need, but if and when it does hire them, it assumes an obligation to work as hard as possible to keep them productively employed. Employees are respected and valued by the organization.This law describes a fundamental relationship between an organization and its employees, contractors, and suppliers that is based on trust and respect. Every mission statement must speak directly to these key values of trust and respect.
LAW 4
A business must provide opportunities for the satisfaction of normal occupational desires.—The organization has an obligation to create a great quality of work life for the employees. . . so that people enjoy coming to work and participating in the activities and goals of the organization. Such a place has its own built-in quality improvement program carried on by employees who want to see the organization improve and succeed.
Ask: 1. What are we doing to help employees learn and grow in their jobs.
2. What aren’t we doing that we should be doing?---This objective is to recognize the need to create a great environment for people to work, to help them develop professionally, and to be the best employees that they can be.
LAW 5
A business must provide just wages for labor.Providing fair compensation to all people that an organization deal with including employees, vendors, and subcontractors is completely consistent with the notion of respect for people. (from law 3-4)LAW 6A business must provide a just return on capital to the owners. CONSTRUCTING THE MISSION STATEMENT for the organization….it is important to for as many people as possible to review and buy into the statement so that it is a useful tool in the day to day operation of the organization.
USING THE MISSION STATEMENT
First. The head of the organization must believe in the mission completely and recognize it as an important tool. Second the most effective mission statements address all of Gast’s laws. Third, the mission statement is used on a daily basis and plays a significant role in the operation of the business. – in strategic planning, problem solving, in day-to-day decision making and in promoting the objectives of the organization.
If there was one book I would have as a reference book to use in today's open, transparent business world this is it. I suggest you buy this book and read it, digest it, and get to work on your mission statement as soon as possible
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