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\begin{document}
\title{
{\Huge The Mission Primer}\\[2ex]
{\LARGE \em Four Steps to an Effective Mission Statement}\\[2ex]
}
\author{Richard and David O'Hallaron
}
\maketitle
\vspace*{2.5in}
\noindent
{The Mission Primer: Four Steps to an Effective Mission Statement\\
Copyright \copyright 1999 by Richard O'Hallaron and David O'Hallaron\\[2ex]
Richard O'Hallaron\\
Mission Incorporated\\
2908 Skipton Road\\
Richmond, VA 23235-1351\\[2ex]
{\em 
phone: (804)272-4904\\
fax: (804)272-1941\\
email: rdoh@hsc.vcu.edu\\
www: \verb|www.erols.com/rdoh|\\[2ex]
}
David O'Hallaron\\
School of Computer Science\\
Carnegie Mellon University\\
Pittsburgh, PA 15213-3891\\[2ex]
{\em 
phone: (412)268-8199\\
fax: (412)268-5576\\
email: droh@cs.cmu.edu\\
www: \verb|www.cs.cmu.edu/~droh|
}
}

\newpage
\pagenumbering{roman}
\tableofcontents


\chapter*{About this book}

{\em The Mission Primer} is a concise guidebook that teaches you how
to develop, evaluate, and manage an effective mission statement for
your organization.

It is intended for {\em any} group of people who are organized for
{\em any} purpose. No matter what type or size of organization you
belong to, {\em The Mission Primer} will show you how to develop an
effective mission statement for your organization. It works for
industrial concerns, non-profits, schools, hospitals, churches,
charities, or government agencies; from small three-person sections,
to large departments, to giant multinationals.

The book outlines a simple four-step method for developing effective
mission statements. Our unique method is structured, quantifiable, and
has a distinct beginning and end. We have used it successfully with
dozens of corporate, university, and non-profit clients.  The method
is based on a set of six laws --- what we call {\em Gast's laws} ---
that describe the culture of a successful organization.  The central
idea is that a {\em good} mission statement describes how the
organization intends to comply with Gast's laws.

Although we are sometimes met with initial skepticism from our
clients, it never lasts long.  Apparently, Gast's laws are based on
fundamental and enduring properties of human beings, and thus they
resonate strongly with the people who are exposed to them.  Gast's
laws provide a direction and a clarity that make the process of
writing a mission statement focused, time-limited, and rewarding. If
you are leading or participating in an effort to develop or evaluate a
mission statement for your organization, then you can benefit from the
ideas in this book.

\newpage
\pagestyle{headings}

\chapter{Introduction}
\pagenumbering{arabic}
\setcounter{page}{1}
\label{chap:intro}

A well-crafted mission statement that is used on a daily basis is the
hallmark of many great organizations. British Air, Ford Motor, and
Johnson \& Johnson are shining examples. An effective mission
statement is a core document that defines the fundamental objectives
of the organization.  It is also a cultural contract between the
organization and all of its constituents, including employees,
suppliers, customers, and owners. When used effectively, it clarifies
the long-range goals of the organization, as well as defining how the
organization behaves as it strives to reach those goals.

As a leader in an organization, whether a CEO, officer, educator,
section head, or shop foreman, you must know how to create, evaluate
and manage an effective mission statement.  But writing an effective
mission statement is hard for most of us.  There are many books and
articles that talk about the importance of mission statements, but
very few that describe how to write an {\em effective} one.  For most
of us, the process of writing a mission statement is uncertain, the
goals of the process are vague, and the result is often a warm and
fuzzy blob that is ignored or ridiculed.

For example, Scott Adams, the creator of the Dilbert comic strip,
exploited the uncertainty about writing mission statements in a famous
hoax that he perpetrated on some senior executives of Logitech
International, the world's largest manufacturer of computer mice.  He
pulled off the deception with the cooperation of the co-founder and
Vice Chairman of the company. An account appeared in the San Jose
Mercury News and later in newspapers across the country.

In October, 1997, the Vice Chairman called executives to a meeting with
Mr.~Adams --- alias Ray Mebert --- whom they were told was a
consultant.  The purpose of the meeting was to draft a new mission
statement for Logitech's New Ventures Group.  Mr.~``Mebert'' told the
group that his credentials included work on Procter and Gamble's {\em
Taste Bright Project}, which he claimed was a secret effort to boost
sales by improving the taste of soap.

Executives nodded agreement. Having established his credential as a
consultant, Mr.~Mebert ridiculed the New Ventures Group's existing
mission statement: ``The New Ventures Mission is to provide Logitech
with profitable growth and related new business areas.''  He then led
an exercise in which managers suggested words and ideas that could
eventually be included in a new mission statement. The result of this
process was the following mission statement:
\begin{quote}
The New Ventures Mission is to scout profitable growth opportunities
in relationships, both internally and externally, in emerging, mission
inclusive markets, and explore new paradigms and then filter and
communicate and evangelize the findings.
\end{quote}
Adams's hoax is a funny story that raises a serious question: How could
a group of smart people put up with this silliness and accept such a
poor mission statement for their organization?  It's hard to say for
sure, but here is one explanation.  The Logitech executives were
uncertain about how to go about writing and evaluating mission
statements.  They probably felt uneasy about the process that 
Mr.~Mebert was putting them through and about the resulting mission
statement. But the boss seemed to have a high opinion of the guy, and
if they criticized him they might be asked to suggest something better
and then justify it.  Without a clear understanding of what
constitutes a good mission statement, the Logitech execs probably
decided that silence was the wiser course.

Hal Lancaster also wrote about the confusion surrounding mission
statements in his Wall Street Journal column. At some point, 
Mr.~Lancaster decided to write a personal mission statement. Before
undertaking this daunting task, he asked his readers for suggestions.
He received over two hundred replies from consultants, coaches,
executives, and professionals. In his estimation, these replies made
his task more difficult rather than easier because there was so little
agreement on what constitutes a good mission statement and how to
write one.  If people can't agree on how to write a mission statement
for a single person, then how are they supposed to write a mission
statement for an organization with hundreds or thousands of people?

We've noticed this uncertainty in our management consulting business.
Clients routinely complain that they have been working on their
mission statement, but are bogged down and need some outside help.
For example, a few years ago we were approached by a health care
organization in Maryland whose board was having trouble formulating a
mission statement.  When we investigated, we found that they lacked a
conceptual framework around which to build their mission statement,
and were bogged down with unresolved objectives about what the
organization should be doing. The result was confusion and
frustration.

On another occasion we were approached by the CEO of a large health
care system in Florida. The health care industry was in the midst of
gut-wrenching change, and his organization was attempting to develop a
new mission statement that would articulate the strategies they would
need to survive. Two previous attempts at developing the mission
statement had failed, and again the main culprit was the lack of a
coherent framework.


\section{The method in a nutshell}

Our point is that there is a great deal of uncertainty in the business
world about what constitutes a good mission statement and how to go
about developing one.  To clear up the uncertainty, we have developed
a simple four-step method for developing effective mission
statements. Our method is structured, quantifiable, and has a distinct
beginning and end. We have used it successfully with dozens of
corporate, university, and non-profit clients, including the
organizations in Maryland and Florida mentioned earlier in this
chapter that contacted us for help.

Here is the method in a nutshell (also listed in
Appendix~\ref{app:steps}):
\begin{enumerate}
\item Organize a mission team.
\item Use {\em Gast's laws} to construct the fundamental objectives 
of the organization. 
\item Use the fundamental objectives to construct the mission statement.
\item Use the mission statement regularly and strategically.
\end{enumerate}
For Step 1 we will give you some practical suggestions for organizing a
mission team and getting it to work together as a unit. In particular,
two techniques called the {\em value vote} and the {\em group interview}
are especially useful ways to get the process going.

Step 2 introduces the unique and central framework behind our method:
a set of six laws (or obligations) that a business must satisfy in
order to be successful. These laws were identified by the late
Prof.~Walter Gast at St.~Louis University in the mid 1950s, so we call
them {\em Gast's laws} in his honor. They are listed in 
Appendix~\ref{app:laws} for your reference.

A mission statement describes the fundamental objectives of a
business, and Gast's laws describe the fundamental objectives of a
{\em successful} business.
\begin{quote}
{\em Thus, our method is based on the
central idea that a good mission statement describes how an
organization intends to comply with Gast's laws.}
\end{quote}
Our notion of a mission statement is more inclusive than most.  A
mission statement should describe the fundamental objectives of the
business, and as such includes what people variously refer to as
missions, values, guiding principles, credos, corporate
philosophies, visions, strategic intent, goals, key processes,
beliefs, management actions/behaviors, codes of conduct, quality
statements, and so on. For example, certain Catholic hospital systems
refer to their mission statement as ``Our Collective Expression of
Mercy, Mission and Shared Values and Beliefs'' and ``The Philosophy
of the Bon Secours Health System''. Some Japanese managers refer to
their mission as their ``Inner Identity''. We'll use the term {\em
mission statement} to subsume all of these terms.

Given this definition of a good mission statement, writing a good
mission statement is straightforward: Consider each of Gast's laws one
at a time, and for each law, decide what the organization should be
doing to satisfy that law.

You can also use Gast's laws to evaluate an existing mission
statement.  For each of the six laws, assign a numbers between 0 and 1
that reflects how well the mission statement address that law. The
result is a score, on what we call the {\em Gast scale}, that measures
how well a mission statement addresses Gast's laws, and thus
quantifies how good the statement is.

Since our method uses Gast's laws as the framework for both writing
and evaluating mission statements, it will only be as useful to you
--- someone who is leading or participating in the effort to write a
mission statement for your organization --- as your belief in the truth of
the laws. So there is an easy way to evaluate whether or not this book
will be helpful to you.  If you think Gast's laws describe the culture
of a successful organization, then we can provide you with a clear and
concise way to develop a good mission statement. If not, then our
method won't be helpful to you, and you should look elsewhere for
ideas.

We'll describe Gast's laws in more detail in Chapter~\ref{chap:gast},
but since they are the core of the method, we summarize them briefly
here.  Gast's laws are intriguing and possibly controversial to some
because they suggest that making a profit is not the main purpose of a
business.  Gast's laws say that in order for a business to be
successful in the long term, it must not only provide a just return on
capital, but it must also do things such as produce a useful commodity or
service, increase the wealth of society, provide productive employment
opportunities, help employees find meaningful and satisfying work, and
pay fair wages. In return, employees (both managers and workers) have
an obligation to make the most productive use of their labor and the
organization's capital.

Gast's laws are powerful and general because they are based on
enduring properties of human beings, and not on the specifics of a
particular economic, political, or social environment.  For example,
people have a deep need for meaningful and rewarding jobs, and Gast
claimed that businesses that do better at satisfying that need will be
more successful than those that don't.

Because they are based on enduring properties of human beings, Gast's
laws resonate strongly with people. The laws have a sense of rightness
and justness that people respond to deeply. People often approach the
job of developing a mission statement with skepticism and cynicism,
yet we have never had a negative experience with any of our clients
when we help them develop a mission statement based on Gast's laws.

But you don't have to take just our word for it. It is no accident
that the publicly-traded winners of the Malcolm Baldrige National
Quality Award, which is the most significant award for quality that a
U.S. company can receive, have outperformed the Standard \& Poors 500
stock index by a 3-to-1 margin since 1994, and also have mission
statements that have an extremely high compliance rate with Gast's
laws.

Once you have identified a set of fundamental objectives for your
organization that satisfy Gast's laws, then you are ready for Step 3,
which is to use the fundamental objectives from Step 2 to construct
the actual mission statement. Later in the book, we will give you some
practical suggestions for turning the fundamental objectives into an
actual mission statement, using mission statements from real companies
as examples.

The first three steps help you develop a {\em good} mission statement,
one that describes how the organization intends to address each of
Gast's laws. However, in order to turn a good mission statement into
an {\em effective} one, you must use it regularly and strategically in
your organization. This is the purpose of Step 4. Later in the book we
will describe many real-life examples of organizations whose mission
statements play a powerful role in the daily and strategic business of
the organization.

Our four-step method is effective for a number of reasons:
\begin{enumerate}
\item It is simple to understand and implement.
Complicated schemes cannot be successfully implemented in most
organizations.

\item It has a distinct beginning and an end.  
People who use our method don't get lost or bogged down in the process
of building the mission statement.

\item It produces a mission statement that addresses the needs 
of all of the constituents of an organization. The resulting mission
statement resonates with people, and thus they are more inclined to
accept it, promote it, and use it in their daily work lives.
\end{enumerate}
The bottom line is that our method produces mission statements that if
well-managed could improve the long-term effectiveness of your
organization in many ways, including increased profitability,
productivity, return on investment, employee satisfaction, and general
prosperity.

\section{Overview of the rest of the book}

This book is meant to be a concise guidebook to help you develop an
effective mission statement for your organization, whether it is a
small section or department, a regional business, a school, a
department in a school, a church, a government agency, a military
unit, or a non-profit organization.\footnote{Throughout this book we
will use the words {\em organization} and {\em business}
interchangeably to refer to any group of people organized for some
purpose.}  We've used the method outlined in this book successfully
with all of these different types of organizations.

In the remainder of the book we'll explain what a mission statement
is, how mission statements are used by businesses, and most important,
what constitutes a good mission statement. We'll show you how to use
Gast's laws to evaluate and modify existing mission statements, how to
write new ones from scratch, and how to manage the resulting
statements.  When you have finished the book, you will have learned a
powerful new tool for developing an effective mission statement.

\chapter{Gast's Laws}
\label{chap:gast}

The late Walter Gast was a Professor in the School of Commerce and
Finance at St.~Louis University during the 1940s and 1950s.  In 1958
he joined the faculty of the School of Business at Marquette
University, in Milwaukee, WI.  He chaired the Marquette MBA program
before retiring in the 1960s.  While at St.~Louis University,
Prof.~Gast taught a course on Principles of Business Management to
Dick O'Hallaron (the first author of this book) during the mid-1950s. 
He would later become Dick's advisor and mentor.

Prof.~Gast opened the first class in his course by saying, ``I am
going to prove to you that making money is not the main purpose of
General Motors.'' Dick's initial reaction to this was, ``This guy is
crazy!'' However, Gast was true to his word, and during the next
15 weeks he managed to convince Dick and most of the other students
that making money, while extremely important, is not the only purpose
of General Motors, or any well-run organization for that matter.

Gast was neither naive nor a socialist, and he certainly
recognized that making money is an essential purpose of a
business. However, his point was that for an organization to perform
well in the long run, it must recognize that it has other obligations
in addition to making a fair rate of return. In particular, Gast
claimed that a business must satisfy the following obligations in
order to be most successful:
\newpage
\begin{enumerate}
\item Produce a want-satisfying commodity or service and continually
improve its ability to meet needs.
\item Increase the wealth or quality of life of 
society through the economic use of labor and capital.
\item Provide opportunities for the productive employment of people.
\item Provide opportunities for the satisfaction of normal occupational 
desires.
\item Provide just wages for labor.
\item Provide a just return on capital. 
\end{enumerate}
Prof. Gast never gave these six items a formal name, but we refer to
them as {\em Gast's laws} in his honor. We've listed Gast's laws in
Appendix~\ref{app:laws} for easy reference.

You can view Gast's laws in a couple of different lights. On the one
hand, they summarize the obligations that a business has to its
society (Laws 1-3), to its employees (Laws 4-5), and its owners (Law
6), as well as the obligations that its employees have to the business
(Law 2). On the other hand, if we accept that Gast's laws are general
attributes of a successful business, then satisfying them should be an
objective of that business. In this sense then, Gast's laws can also
be viewed as long-term strategic goals of any business or
organization. According to Andrew Campbell, Director of the Ashridge
Strategic Management Centre in London, England, and one of the
foremost authorities on the subject of organizational mission, Gast's
Laws are the cornerstone of stakeholder theory. Let's look at them
more closely.

\section*{Law 1}
\begin{quote}
{\em Law 1: A business must produce a want-satisfying commodity or
service, and continually improve its ability to meet needs.}
\end{quote}
Law 1 says that an organization must have a clear idea of its
customers and their needs, and that it must provide a commodity or
service to the customers that meets those needs. The organization must
also continually improve its ability to recognize and meet the needs
of its customers; a business cannot rest on it laurels. Law 1 reminds
us that an organization must have a clear idea of its core businesses,
and it must always be working to improve its ability to compete in
those businesses.


\section*{Law 2}
\begin{quote}
{\em Law 2: A business must increase the wealth or quality of life of 
society through the economic use of labor and capital.}
\end{quote}
Law 2 addresses the obligation of a business to contribute to the
wealth or quality of life of society. In other words, the organization
must improve society in general, and the communities where it does
business in particular. 

By requiring that the organization make
productive use of labor and capital as it increases the wealth of
society, Law 2 tells us that employees --- both workers and managers
--- have an obligation to ensure that the organization produces high
quality goods or services in a cost-effective way.  The obligations of
employees are a vitally important aspect of Gast's laws. 
Both the business and its employees have obligations to live up to.

\section*{Law 3}
\begin{quote}
{\em Law 3: A business must provide opportunities for the productive
employment of people.}
\end{quote}
Law 3 describes the obligation of a business to society to provide
productive employment to people in that society. This is the most
controversial and important of Gast's laws because it defines the
basic relationship between an organization and its employees, based on
respect and trust. (Because of its importance, we will spend a great
deal more time discussing this law than the others.)  

Law 3 says that a business must have respect for people and that
people must be able to trust the organization.  A business does not
own its employees; employees who join a business do so with intrinsic
rights and responsibilities.  A business is not obligated to hire
people it doesn't need.  But if and when it does hire them, it has a
responsibility to keep them productively employed. If business is
slow, the business should exhaust every means to keep their people
productively employed, even when it would be more expedient to simply
flush them.

Of course, layoffs are unavoidable in some cases, but Law 3 tells us
that because of the respect that it has for all its employees, a
business lays off those employees only as a last resort, when
absolutely necessary for the survival of the business.

When Prohibition began in the 1920's, Adolphus Busch, the owner of the
Anheuser-Busch breweries, had a serious problem. His only product was
illegal, and it was not clear what to do with the plant, equipment,
and labor designed to produce that product. Perhaps the simplest and
most profitable solution in the short-term would have been to just
shut down the plants, lay off all the people, and sell the assets.

This was exactly the solution adopted by many other brewers. But
Mr. Busch rejected this option, choosing instead to keep his workers
employed in other related tasks. Barrel makers made wagons and
furniture. The breweries produced bottled water and other
non-alcoholic beverages. The grain distribution system was reworked
into a new animal feed business.  

When Prohibition ended, Anheuser-Busch was light years ahead of the
competition, and today they are the leading beer manufacturer in the
world.  The bottom line is that Mr. Busch felt responsible for his
employees and went to enormous lengths to keep them employed, even
when it would have been more profitable in the short-term to flush
them. Mr. Busch had a good understanding of Law 3!

Malden Mills, in Lawrence, MA, manufactures the wildly popular
fabrics known as Polartec and Polarfleece that are used by upscale
clothing manufacturers such as L.L. Bean, Eddie Bauer, and Patagonia.  On
December 11, 1995, a catastrophic fire destroyed the textile plant,
threatening to put its 3,000 workers out of work. Instead, the owner of
the firm, Aaron Feuerstein, did a remarkable thing. He kept the
employees on the payroll for three months, at a cost of millions of
dollars, while he rebuilt the plant.

When asked why he made such a remarkable gesture in an interview for
Parade magazine, he explained that he considers his workers an asset
rather than an expense. Further, he believes that his job goes beyond
making money for the shareholders. Says Mr. Feuerstein, ``I have an
equal responsibility to the community.  It would have been
unconscionable to put 3,000 people on the streets and deliver a death
blow to the city of Lawrence.''

Mr. Feuerstein not only understands the responsibility that his
business has to his community, he also has built a business with a
deep respect for its employees. With respect to layoffs, Mr. Feuerstein
says, ``That goes straight against the American Dream. You work hard
and should make a good living and have a good retirement. I could get
rid of the workers who earn \$15 an hour and bring in a contract house
that will pay \$7 an hour. But that breaks the spirit and trust of the
employees. If you close a factory because you can get work done for
\$2 an hour elsewhere, then you break the American Dream.'' 

Both the responsibility that he feels toward his community and the
respect that he has for his employees are based on good business
sense.  Says Mr. Feuerstein, ``The quality of our product is paramount,
and it's the employee who makes the quality. If quality slips, the
employee is in a position to destroy your profit.''

His loyalty has been repaid in higher productivity. ``Before the
fire, that plant produced 130,000 yards a week. A few weeks after the
fire, it was up to 230,000 yards. Our people became very creative. 
They were willing to work 25 hours a day.''

Mr. Feuerstein has probably never heard of Gast's laws, but he
intuitively understands all of them, in particular the respect for
people that is central to Law 3.

It is reasonable to wonder if Law 3 (which was conceived 50 years ago)
is still valid today. The business environment is certainly much
different now than it was then. Competition is fierce and
conducted on a global scale. Organizations are subject to mergers and
acquisitions at a dizzying rate. Jobs are being outsourced to foreign
countries. However, we claim that none of these phenomena are really
new. Although the rate and magnitude of the changes are different, the
fundamental responsibilities of a business have not changed. Thus,
Gast's Laws in general, and Law 3 in particular, are more important than
ever. 

Here are three examples of business executives, each with a good
intuitive understanding of Law 3, who were recently involved in
mergers and acquisitions. Two of them (Crutsinger and Goodwin) were
involved in the sales of large companies. The third executive 
(Renz) has acquired a number of companies.

Bob Crutsinger, the former President and Vice Chairman of Wetterau
Incorporated, St.~Louis, MO, described his experience with a
merger in 1992 between Wetterau and Supervalue, of Minneapolis, MN.
Wetterau had been in business since 1869, did an estimated 6.4 billion
dollars a year in business, and had operations in 34 states throughout
the U.S.

In a recent interview we asked Crutsinger about Wetterau's mission,
how influential it was within the organization, and what impact it had
on the merger strategy. Here is his reply:
\begin{quotation}
Wetterau had an excellent mission statement called the {\em Wetterau Creed}, developed by Ted Wetterau.  It was very influential
in shaping our strategic plans and helping us make policy and business
decisions.  It was well known, understood and for the most part well
appreciated by management and 16,000 employees.  As a matter of fact
it was not unusual for an employee from a store, or a truck driver in
the field to make an appointment with Mr. Wetterau or myself to discuss some policy or
action the individual thought might be in conflict with the Wetterau
mission.  When it was deemed that the employee was right, remedial
action was taken.  

The mission created a culture throughout the organization that the
employees liked.  Management worked very hard to preserve this
culture.  One example of our efforts was our Christmas travel.  We
spent several weeks each Christmas traveling throughout our company
locations just to meet with employees on the job, shake hands with
them, wish them and their families a Merry Christmas, and get to know
them better.  Ted Wetterau and I worked at this, and we knew many of
our employees by their first and last name.  It was important to us
and to the employees.  After the company was sold, one of the things
the employees missed the most was the previous culture of the
organization.  We were a close family.
\end{quotation}
It sounds great, but if Wetterau thought so highly of their 
employees, then why did they sell the business?
\begin{quotation}
We had to look at what we visioned the grocery business to
look like in the new millennium.  We could see that Wetterau had to
grow considerably to meet the competition, and stay healthy in most of
the areas we already served.  That would take a great deal of capital.
We didn't have the ability to raise that capital, so the next best
thing was to merge with a company that fit with our organization.
Supervalue fit that profile.  If we had not done this, our employees
would have suffered greatly, after the turn of the century.  Many
people would have lost their jobs.  Not only that, many of our
employees were heavily invested in the company through stock options,
and they would have lost accumulated savings in that respect.
\end{quotation}
Did the mission of Wetterau have any impact on the sale condition; did
Wetterau do anything to protect the employees?
\begin{quotation}
Yes we did. From the very beginning we had our employees in mind.
Wetterau had for many years a stock option program for employees.
This program would vest on a graduating scale after 5--10 years of
employment.  Our goal was to reward long-term employees with options,
and to encourage our people to stay with us.  The program worked and
was well received.  

The problem was that with the sale many employees were caught in
between vesting anniversaries.  So we insisted that on the day of the
sale, all employees were vested, regardless of where they were in the
time warp.  We also knew that some of our people, especially at the
headquarters level were going to be redundant.  We did everything to
help them find other jobs (with Supervalue or elsewhere), provided
outplacement services, gave special separation bonuses and did
everything we could to soften the blow.  

Our feeling was that everyone was important, each person involved had
helped make Wetterau successful, and we did not want to leave the
company without doing our best to work with all concerned to make the
merger as fair as possible.  I think we succeeded in this effort.
\end{quotation}
Did Supervalue have the same interest in the Wetterau employees?
\begin{quotation}
Supervalue did not have the personal attachment we had to our fellow
employees, but they recognized that it was our employees who made
Wetterau such a success.  They valued our employees.
\end{quotation}

William H. Goodwin Jr., who heads up CCA Industries Inc. in Richmond,
VA, is another executive who was concerned about his
employees when they were involved in a company sale.  Goodwin sold his
company, AMF, for over a billion dollars in 1996.  When the sale was
completed, he took 50 million dollars of his proceeds, and distributed
it among the employees. Here is his account:
\begin{quotation}
I felt a responsibility for the sale, and
for the people who built the business.  Everybody got a bonus of
approximately 2 months salary.  Some got more.  The idea was to give a
bonus, so that in those cases where people were not able to stay with
the new company, this would help give a kick to their severance
packages.  We also negotiated a severance pay package for any employee
who was laid off within the first two years after the sale.  This gave
the new company and employees a chance to get used to each other, yet
made it a bit painful to terminate within two years.

I did this for a couple of reasons.  First of all, I made so much
money on this sale, I could never spend it all.  Secondly, I felt a
responsibility to share the profit with those who had built up the
company in the first place.  Thirdly, it was tax deductible. I also
gave a bonus to a half a dozen or more people who were not with the
business for one reason or another, but who had contributed
substantially to it before they left.  I called one person in England
to tell him I was writing him a check for \$100,000.  Another person
received \$50,000.  Both of these people worked for AMF and at one time did
a lot for the company, but for one reason or another left the company.
Some of those who received a bonus were former directors, or
consultants who were a great help.  One of our past officers received
three million dollars.
\end{quotation}
Do all businesses have this responsibility to their employees and
constituents?
\begin{quotation}
The buyer doesn't feel the responsibility to employees of the company
bought.  The seller, on the other hand, has worked with the people
involved and does have a responsibility, and should feel this.  In my
opinion, a seller has the obligation to negotiate for the employees of
the company being sold, especially for those one knows will be out of
a job, or will be terminated within the next two years.  You must take
care of those you know who will be displaced, and then make it painful
to terminate within two years.  This keeps everyone honest.

I hope your story is going to address the responsibilities of the
employees to the company.  Even though the company has a lot more
power than the employee, it is still a two way street, and many
executives are disheartened by the shoddy way some employees treat the
company.  Let me give some examples.  I am on the board of one of our
large universities in Virginia.  We recently had one of our key
employees, abruptly leave a \$200,000 plus job dealing with the Y2K
problem.  The individual left right in the middle of a crisis.  Another
example involved a young lady with a very good job with one of the
large consulting firms.  She became pregnant with twins, and because
of this was given a three month early paid leave of absence.  On top of
that she got the usual three months paid leave.  After she took six
months of paid leave, she then told the company she would not return
to work.  Is that fair?
\end{quotation}
Any regrets?
\begin{quotation}
Only one. I wish I had given twice the amount, especially to the
lower paid people.  I kept track of all the notes I received after the
distribution of the bonuses.  I still have them.  I hope some day to
sit down and read them all again, before I meet the Good Lord.  The
nicest notes seemed to come from the lowest paid people.  Some were
written in pencil, and they could hardly be read, but they were
beautiful.  I wish I had done more, especially for the lower paid
people.
\end{quotation}

Daniel J. Renz, President and CEO of Summit Marketing Group Inc. in
St. Louis, MO, mirrors Gast's views on Law 3 with respect to the
touchy issue of layoffs.  He believes that business executives are not being held accountable regarding the issue of large layoffs.  Many of them announce
big cuts, and then are rewarded like heroes for biting the bullet.  For the
most part, however, the problem is that undisciplined management allowed the
companies to become bloated in the first place.  This management practice is an injustice to the employees who must pay the
price. 

Renz believes, as does Gast, that business executives have an
obligation to see to it that no more employees are hired as full-time
permanent employees than will be needed long term.  First, he does not
subscribe to lifetime employment philosophies, but feels that when an
employee is hired he or she has a reasonable opportunity to stable
employment.  Secondly, he believes top management must manage in such
a way as to find other alternatives to layoffs during adversity.  He
gave an example of one of the companies owned by his group that lost
30\% of its business, due to outside mergers involving some of their
key customers.  Rather than lay off a substantial number of the people
effected, he worked with the division managers to find ways to regrow
the business so these people did not have to be laid off.  The
division was given six months to work things out.  By the end of the
six month period, the division had not only recouped the original
amount of business lost, but had exceeded by 15\% the volume of
the original business.

According to Renz, whose organization has been involved in 8
acquisitions within the last few years:
\begin{quotation}
We spend from 6-18 months in
discussions with a company before acquiring it.  This is a long time
when considering industry averages.  Our purposes, however, are to get
to know the people we are considering acquiring, and make sure they
will fit our management profile.  We are also up front with them about
how our method of operation will effect the people involved.  We will
identify ahead of time those who may have to be laid off.

Our philosophy is to provide these people with every resource we have
to help them find other suitable employment.  We research the local
practices for severance packages and try to do one and half to two
times the standard.

We are very aggressive in our efforts to keep the full time permanent
employment to an optimum size.  We have had times when we would bring
in temporary people to cover for a year or so.  However, we made it
clear the jobs involved were temporary, but did give them an
opportunity to apply for a permanent job if one became available
during the temporary period.

Layoffs are not a statistical matter.  When laying off people you are
dealing with human beings who depend on the job in question.  They
have goals of their own, and in many cases a spouse and family
depending on that job also.  A person's job is one of the most
important things in a person's life.  It has to be treated as such.
\end{quotation}


\section*{Law 4}
\begin{quote}
{\em Law 4: A business must provide opportunities for the satisfaction of normal occupational desires.}
\end{quote}
Law 4, like Law 3, is based on the crucial values of respect and trust.
This law is based on the premise that people take their jobs
seriously. They are not intrinsically lazy and trying to get by with
the least possible effort. Their jobs and careers are important.  They
have a strong desire to make them as useful and fulfilling as
possible. People naturally dream of meaningful work, just
compensation, leadership, recognition, training, fairness, challenges,
security, acceptance by their peers, physical safety, opportunities
for creativity, advancement, and a sense of participation in the
conditions and rewards of the business.  Law 4 reminds us of the
responsibility of each business to try to provide opportunities for
employees to satisfy these normal occupational desires. We think of
satisfying Law 4 as striving to provide a great quality of work life
for the employees, an environment where people look forward to coming
to work every day.

\section*{Law 5}
\begin{quote}
{\em Law 5: A business must provide just wages for labor.}
\end{quote}
The need for just compensation is so important that it is addressed
separately by Law 5.  Depending on the particular business, this can
include compensation for labor performed by employees (including
workers and managers), and subcontractors, or products or services
supplied by vendors. Of course, what constitutes fair compensation is
a very difficult question. The essence of Law 5 is that a business
recognizes the importance of compensating its employees,
subcontractors, and vendors fairly, and works diligently toward that
end.

Bobby Ukrop, one of the owners of Ukrop's Super Markets in
Richmond, VA, tells an interesting story about the importance of
valuing vendors and treating them fairly. Ukrop's is a regional
grocery chain with a national reputation for being well-managed.
It has been written up in Fortune and Time magazines. On January 12, 2000, Ukrop's made Fortune magazine's listing of the 100 best companies to work for. 

When Bobby was a young boy, he and his father went to the wholesale
market one morning to buy vegetables for their stores.  They bought a
load of potatoes from the potato vendor at a certain price early in
their shopping expedition. Later in the morning they realized they
needed another load of potatoes. When they returned to the potato
vendor's stall, he was just getting ready to leave and had sharply
reduced the prices for his potatoes. To the son's surprise, the father
paid the original price for the extra load of potatoes rather than the
reduced price. When the son asked why, the father explained that it
was his mistake in not knowing how many loads of potatoes he needed,
and the vendor shouldn't have to pay the price for the father's
mistake. He had a long-term relationship with the vendor, and by
paying the original price, helped create trust and loyalty in the
vendor that would more than offset the expense of paying full price
for the second load of potatoes.

\section*{Law 6}
\begin{quote}
{\em Law 6: A business must provide a just return on capital.}
\end{quote}
Finally, Law 6 refers to the obligation that an organization has to
provide a just (reasonable) return to the people who invest in or
contribute to the organization. By a just return, Gast means that a
business should attempt to maximize its profits, subject to the
constraints imposed by the other five laws. For example, a business
shouldn't attempt to maximize profits by paying slave wages to its
employees or by laying off employees unnecessarily.

For a private business, Law 6 identifies the obligation of the
business to stockholders or owners who expect their investment to
increase in value. For an educational institution, the obligation is
to its financial supporters, families, students, and outside
organizations who pay tuition, and to its research sponsors. For a
government agency, this obligation is to the taxpayers who are paying
the bills.  For the non-profit charitable organization, the obligation
is to the sponsors, the contributors, and the community served.  In
each case, those who contribute capital to the business expect it to
be used wisely and productively.

Many people incorrectly assume that turning a profit is the only
purpose of a business. Gast's essential insight is that while profit
is obviously important, it is not the only purpose of a
business. Other obligations, embodied in the other five laws, are
equally important. 

\begin{center}
$\Box \Box \Box$
\end{center}

Gast's laws are natural laws in the sense that they are based on
fundamental and unchanging properties of human beings, and not on any
particular economic or political system.  They are based on basic
values of trust, respect for people, and quality that resonate
strongly and naturally with all of us.  Thus they apply to any type of
organization, including private businesses, non-profit businesses,
churches, schools, and government agencies.  The laws also apply to
smaller groups of people within these larger entities.

{\em The premise of this book is that Gast's laws describe the
objectives of a successful organization.} Even in very competitive
environments, businesses that adhere to Gast's laws will tend to
perform better than those that don't. To a hard-nosed executive
struggling in a downsized firm to make aggressive quarterly goals,
Gast's laws might seem overly idealistic and naive.  However, the laws
can be directly tied to financial performance.

In 1987 the Congress of the United States created the Malcolm Baldrige
National Quality Award to recognize U.S. companies that significantly
improved the quality of their products. The Commerce Department was
assigned to manage the competition for the awards, which are given out
annually to up to six companies. Since 1988, 31 different companies
have won the award. One company, Solectron, has won the award
twice. Appendix~\ref{app:baldrige} gives the complete list of winners.

The Commerce Department's research arm, the National Institute of
Standards and Technology (NIST), formerly known as the National Bureau
of Standards, studies the performance of the Baldrige Award winners in
order to help justify the value of the awards (and indirectly the
value of the government agency that administers the awards).  In a
stock investment study performed in February, 1997, NIST determined
that the publicly-traded winners of the Baldrige Award have
outperformed the Standard \& Poors 500 stock index by a 3-to-1 margin
since 1988. Interestingly, organizations that made it to the final
site-visit stage of the competition, but did not win the award, still
outperformed the Standard \& Poors 500 by a 2-1 margin.

Clearly, the Baldrige Award winners are high-performing organizations,
and if Gast is right, then we would expect the mission statements of
these high performing organizations to address all six of his laws. So
we set about trying to obtain the mission statements from as many
Baldrige Award winners as possible.  Ultimately we were able to obtain
copies of mission statements from 12 of the 21 winners in the
period 1988 --- 1994, and we checked them for compliance with Gast's
laws. We assigned each mission statement a maximum of six points, one
for each law. For each law, if the mission statement indicated that
the corporation was trying to adhere to that law, then we assigned 1
point, otherwise we assigned 0 points.

The results were quite interesting. The Baldrige Award winners scored
67 out of a possible 72 points, which is a compliance rate of 93\%. So
Baldrige Award winners, which outperform the Standard \& Poors 500
stock index by a factor of 3-1, also have a very high compliance rate
with Gast's laws. The point we want to drive home is that Gast's laws
are not simply idealistic, naive, and wishful thinking. Rather, they
reflect the cultures of some of the best performing businesses in the
U.S.

Of course, Prof. Gast was not the only person to recognize that a
business has obligations besides achieving a just rate of return for
its owners. Other great business leaders have had similar insights.
For example, Donald Peterson of Ford Motor Company led a revolution in
the culture of the American automobile industry that helped save the
industry. The mission statement that Mr. Peterson crafted for Ford
recognizes that while profit is important, it represents a measure,
not the purpose, of the organization. Mr. Peterson says, ``Profits are
the ultimate measure of how efficiently we provide customers with the
best products for their needs.'' The differences are very subtle, but
they have helped to substantially change the culture of the Ford Motor
Company and turn around it's financial performance. In fact,
Mr. Peterson claims that the day that the Board of Directors adopted
the new mission statement marked the beginning of the turnaround for
Ford.

As another example, Konosuke Matsushita, the late founder of the huge
Matsushita Corporation, had a surprisingly similar view of profits.
``Profit is a yardstick with which to measure the degree of social
contribution made by an enterprise. Thus, profit is a result rather
than a goal.''

When Gast introduced his laws, many were skeptical.  Many highly
successful companies didn't seem to care about customers, employees,
or the community.  The major emphasis of these companies was to make
money. People were a means to this end, and products and services were
produced on pretty much a take it or leave it basis.

We knew that companies in industries such as the automotive industry,
the steel industry, some unions, and the railroad industry had little
regard for the principles behind Gast's laws, and yet they seemed to
be successful.  What we have come to believe since then is that
although these companies were successful at one time, they ultimately
failed (or almost failed in the case of the automotive industry)
because they didn't understand the business they were in, and were
concerned primarily with short term success, which they measured for
the most part by the bottom line. They ignored Gast's laws and
ultimately paid the price.

Of course, business management is not a science, and there is no way
to either prove or disprove the validity of Gast's laws in a
scientific sense. However, 40 years of running large organizations and
consulting with other organizations have convinced us that Gast's laws
represent a clear and sound guide for running a successful
business. As such, they constitute the crucial framework for
developing a mission statement that has impact on the daily life of
your organization.

\chapter{Model Mission Statements} 
\label{chap:mission}

A mission statement identifies the fundamental objectives of a
business. 

By {\em fundamental objectives} we mean a set of high-level
goals that are neither time-specific nor quantified. For example,
``providing low-cost high-quality rental cars to business travelers''
might be an appropriate fundamental objective for a company like
Avis. On the other hand, ``providing business travelers with GM cars
at less than
\$25 per day'' is not appropriate because it is too
quantified. Similarly, ``providing a reasonable return for our
stockholders'' is appropriate, while ``achieving annual revenues of
\$100M within the next two years'' is not appropriate because it is
time-specific and quantified. These types of specific quantified goals
are more appropriate for a traditional strategic plan, not a mission
statement.

Companies use mission statements in a variety of ways, some more
effectively than others. Some companies create a mission statement,
frame it, hang it on the wall, and then never refer to it again,
except maybe in the annual report.  Other companies might use the
mission statement sporadically to help attract new business, to
recruit employees, or to enhance the image of the company. Clearly,
these companies don't get much benefit from their mission statements.

Not everyone is sold on the value of mission statements. One of our
graduate students, a practicing physician and chairman of his group
practice, once told the class, ``We don't have a written mission
statement. We know what we are about.'' This may be true, but if
you've ever tried to write about some idea you have, then you quickly
learn that the process of putting ideas down on paper exposes gaps and
fuzziness in your thinking.  

Other businesses use their mission statement more effectively, as a
tool to guide the organization's strategic planning effort, to help
set day-to-day priorities, to evaluate new or ongoing programs, and to
evaluate the policies and practices of the organization.

Appendices \ref{app:ab} through \ref{app:vcusahp} contain examples of
model mission statements that are {\em good} in the sense that they
address Gast's laws, and {\em effective} in the sense that they play a
powerful role in the daily life of their organization.  Some of the
model mission statements were developed by our clients using the
method described in this book (a unit of Anheuser-Busch, the Virginia
Commonwealth University/Medical College of Virginia School of Allied
Health Professions, and the Virginia Commonwealth University
Department of Psychology).  Others were developed independently by
outstanding companies who weren't aware of Gast's laws, but produced
excellent mission statements nonetheless (British Airways, Ford Motor,
Johnson \& Johnson, and Ukrop's Super Markets).

The Anheuser-Busch Technology Acquisition Team is a section within
Anheuser-Busch that negotiates contracts for computer and
communications equipment and hires data processing consultants for the
company.  This is a good example of a mission statement written for a
group within a large organization. It has been in daily use since
1994.

Sir Colin Marshall, Chairman of the Board, arrived at British Airways
in 1983.  In 1986 he and his colleagues developed British Airways'
first formal mission statement.  In the ensuing years he and his
colleagues turned the airline around and transformed it into one of
the top-rated airlines in the world. Mr. Marshall shared with us the
following insights about the role of the mission statement at British
Airways:
\begin{quotation}
Our own {\em Mission and Goals} forms a credo that commits us to
standards of excellence in the way we conduct our business, the way we
serve our customers, and the way in which we play our part in the
community at large. We also believe firmly that excellence in the way
we serve and support each other within British Airways is the only
true way of building long-lasting integrity into our products and
services. In other words, we can only expect the customer to believe
in us if we believe in ourselves. Our {\em Mission and Goals} are 
our railroad tracks to success.
\end{quotation}
Donald Peterson, the visionary who revolutionized the culture of the
American automobile industry, shared with us the following insight on
Ford Motor Company's mission statement:
\begin{quotation}
Our mission statement represents the foundation of how we conduct our
daily business.  Furthermore, it has provided since the early 1980's
the cornerstone for our present success, and importantly, guided our
understanding that continuous improvement is a necessity for
continuing prosperity in the future.
\end{quotation}
When Mr. Peterson took over as Ford's president and chief operating
officer in 1980, Ford was going through difficult times. Says
Mr. Peterson, ``In 1980 alone we lost more than \$1.5 billion, then
the second highest one-year loss in U.S. corporate history.  To make
matters worse, our market share was slipping steadily, and customers
were increasingly disenchanted with our cars.''  

By the time he retired in 1990, Mr. Peterson had turned the company
around, and Ford Motor Company was profitable and healthy.  Shortly
after his retirement was announced, Mr. Peterson was asked if he could
identify a moment that marked Ford's turnaround.  He said, ``Ford's
comeback stems from a management meeting in 1984 when the company's
leadership adopted the {\em Company Mission, Values, and Guiding
Principles}.''

The oldest and perhaps most famous mission statement is the elegant
Johnson \& Johnson Credo, which was first written in 1943 by the
company founder Robert Wood Johnson.  As early as 1935, in a pamphlet
entitled ``Try Reality'', Mr. Johnson was advocating a view similar to
Mr. Gast's that emphasized a corporation's responsibilities to
customers, employees, community, and stockholders. Eight years later,
Mr. Johnson published these ideas as a one page {\em Credo}, which he
sold throughout the corporation, urging his management to apply it as
part of their everyday business philosophy.  By discussing customers
first and stockholders last, the Credo reflects Mr. Johnson's
practical minded view that the business and stockholders were best
served by putting the customer first.

While the Johnson \& Johnson Credo has been updated over the years
to recognize concern for the earth's environment and the balance between
work and family life, the spirit of the document remains unchanged,
and in the words of a Johnson \& Johnson spokesperson, 
\begin{quotation}
$\ldots$ Its principles have become a constant goal, as well as a
source of inspiration, for all who are part of the Johnson \& Johnson
family of companies.  About fifty years after it was first introduced,
the Credo continues to guide the destiny of the world's largest and
most diversified health care company.
\end{quotation}
The same spokesperson credits the Credo with helping to successfully
guide the company through the Tylenol crises of 1982 and 1986, when
the company's product was adulterated with cyanide by a criminal and
turned into a murder weapon. ``With the future of the company at
stake, Johnson \& Johnson managers and employees made countless
decisions that were inspired by the philosophy embodied in the
Credo.''

Smaller regional organizations also take their mission statements to
heart and use them effectively.  Ukrop's Super Markets --- the number
one grocery chain in central Virginia, with over 24 stores --- has an
excellent mission statement that was written with input from hundreds
of employees (or associates in the Ukrop's terminology) throughout the
company.  According to a company spokesperson, the Ukrop's mission
statement is an important part of the daily work life:
\begin{quotation}
The widespread participation of associates in this process has
strengthened their commitment to and alignment with our vision,
mission, and shared values. We have encouraged our associates to
memorize and recite the vision, mission and shared values of our
company. After doing so, they receive a ``Shared Values'' pin, and their
name is listed on the ``Shared Values Honor Roll'' in their store. During
the 1994 fiscal year, more than 2,600 of our 5,000 associates recited
their shared values.
\end{quotation}
Schools and departments can also benefit from mission statements.  The
Virginia Commonwealth University Department of Psychology in
Richmond, Virginia, one of our clients, developed an excellent mission
statement as part of a restructuring of the Department in the mid
1990's.

The Virginia Commonwealth University/Medical College of Virginia
School of Allied Health Professions is another one of
our clients who developed a new mission statement in the mid 1990's.

We'll refer to these model mission statements throughout the rest of
the book.

\chapter{What is a Good Mission Statement?} 
\label{chap:evaluate}

We've seen in the previous chapter that a good mission statement can
be an effective tool that powerfully affects the success of an
organization.  But what in the world is a {\em good} mission
statement?

A mission statement is a document that describes the fundamental
objectives of a business.  Since Gast's laws capture the fundamental
objectives of a {\em successful} business, {\em a good mission
statement consists of a set of fundamental objectives that describe
how an organization intends to comply with Gast's laws.}

We measure the quality of a mission statement using a tool called the
{\em Gast scale}.  For each law, we assign a number between 0 and 1,
for a maximum total score of 6.  For a given law, if the mission
statement doesn't address the law, then it gets a 0 for that law. If
the mission statement addresses the law perfectly, then the score for
that law is 1. If the statement partially addresses the law, then we
assign a partial score between 0 and 1. The sum of the scores is our
estimate of the quality of the mission statement on the Gast
scale. Each law receives an equal weight in our scoring scheme because
we feel that all of the objectives are equally important.

For example, Mr. Mebert's mission statement for the Logitech New
Ventures Group receives a 1 out of 6 on the Gast scale because it only
addresses Law 1. This quantifies our initial qualitative sense that it
wasn't any good.

As another example, let's look at how we might use the Gast scale to
evaluate and improve a real mission statement culled from the annual
report of a major bank that we'll refer to as {\em GoodBank}.
\begin{quotation}
GoodBank's mission is to provide the maximum economic return to our
shareholders over the long term, and to contribute to the economic
vitality and quality of life of our communities.

We believe this is accomplished by providing an environment that
encourages the individual potential of our employees and emphasizes
the highest quality services for our customers.
\end{quotation}
Is this a good mission statement? On the Gast scale, it receives
3.3 (out of 6) points, so there would appear to be room for
improvement.  Let's look in detail at how we arrived at this
score. For each law, we will discuss how well the statement addresses
that law, assign a score, and then modify the statement
so that it does a better job of addressing the law. The modifications
are shown in boldface type.

\section*{Law 1}
There are a number of problems in this mission statement
with respect to Law 1.  First, the statement is unclear about the core
business (or businesses) of the bank.  Second, the statement could be
more specific about the nature of the bank's customers.  Third, the
statement doesn't address the need for continual improvement of its
services.  Finally, the key notion of providing a service to customers
is buried in the second paragraph, almost as an afterthought. 
{\em Score: 0.5.}

Here is the revised version that does a better job of addressing Law
1.  We've revised the statement to be more specific about the core
business, the customers, and the need for continuous improvement, and
we have given first-class status to the objective of providing service to
customers.
\begin{quotation}
Goodbank's mission is to provide {\bf the highest quality financial
services for the individuals, businesses, and financial institutions
that we serve}, to provide the maximum economic return to our
shareholders over the long term, and to contribute to the economic
vitality and quality of life of our communities.

We believe this is accomplished by providing an environment that
encourages the individual potential of our employees {\bf and that
continuously improves our ability to serve our customers.}
\end{quotation}

\section*{Law 2} 

The statement recognizes the bank's obligation to
increase the economic vitality and quality of life in the
community. However, it fails to recognize the obligation of the
employees, including managers and workers, to be productive
and efficient.  
{\em Score: 0.5.}

Here is the revised version that addresses the need for employees to
be efficient so that the bank can provide cost-efficient services.
\begin{quotation}
Goodbank's mission is to provide the highest quality financial
services {\bf at a reasonable cost to} the individuals, businesses,
and financial institutions that we serve, to provide the maximum
economic return to our shareholders over the long term, and to
contribute to the economic vitality and quality of life of our
communities.

We believe this is accomplished by providing an environment that
encourages the individual potential of our employees and that
continuously improves our ability to serve our customers.
\end{quotation}

\section*{Law 3} 
The GoodBank mission statement is on the right track with its
encouragement of individual potential.  However, it doesn't speak
directly to the importance of the people in the organization. {\em
Score: 0.9}.

Here is the revised version for Law 3, with an explicit
reference to the importance of the people that contribute
to the bank's mission.
\begin{quotation}
Goodbank's mission is to provide the highest quality financial
services at a reasonable cost to the individuals, businesses, and
financial institutions that we serve, to provide the maximum economic
return to our shareholders over the long term, and to contribute to
the economic vitality and quality of life of our communities.

We believe this is accomplished by providing an environment {\bf that
recognizes the people of GoodBank as our greatest asset}, that
encourages the individual potential of our employees, and that
continuously improves our ability to serve our customers.
\end{quotation}


\section*{Law 4}  
With its emphasis on encouraging individual potential, the GoodBank
mission statement does a good job of addressing Law 4. However, a
minor criticism is that the statement could be even more aggressive by
recognizing GoodBank's obligation to help employees {\em maximize}
their potential. {\em Score: 0.9}.

Here is the revised version for Law 4:
 
\begin{quotation}
Goodbank's mission is to provide the highest quality 
financial services at a reasonable cost to the individuals, businesses, and financial
institutions that we serve, to provide the maximum economic return to
our shareholders over the long term, and to contribute to the economic
vitality and quality of life of our communities.

We believe this is accomplished by providing an environment that
recognizes the people of GoodBank as our greatest asset, that {\bf
maximizes} the individual potential of our employees, and that
continuously improves our ability to serve our customers.
\end{quotation}

\section*{Law 5} 
The subject of compensation for employees, vendors, and contractors
is ignored in GoodBank's mission statement. {\em Score: 0.0}.

Here is a revised version for Law 5:
\begin{quotation}
Goodbank's mission is to provide the highest quality financial
services at a reasonable cost to the individuals, businesses, and
financial institutions that we serve, to provide the maximum economic
return to our shareholders over the long term, and to contribute to
the economic vitality and quality of life of our communities.

We believe this is accomplished by providing an environment that
recognizes the people of GoodBank as our greatest asset, that
maximizes the individual potential of our employees, that continuously
improves our ability to serve our customers, {\bf and
that provides fair compensation to our employees, vendors, and
subcontractors.}
\end{quotation}

\section*{Law 6} 
By focusing on maximum return for share holders, the
statement could be perceived as diminishing the organization's
obligations to its other constituents, such as employees, contractors,
suppliers, and the community.  {\em Score: 0.5}.

Here is the revised statement, modified to better satisfy the spirit of
Law 6. We use the phrase ``reasonable economic return'' rather than
``maximum economic return'' to give the impression that while profits are a
serious and important obligation, they are not the only obligation.
\begin{quotation}
Goodbank's mission is to provide the highest quality financial
services at a reasonable cost to the individuals, businesses, and
financial institutions that we serve, to provide a {\bf reasonable}
economic return to our shareholders over the long term, and to
contribute to the economic vitality and quality of life of our
communities.

We believe this is accomplished by providing an environment that
recognizes the people of GoodBank as our greatest asset, that
maximizes the individual potential of our employees, that continuously
improves our ability to serve our customers, and that provides fair
compensation to our employees, vendors, and subcontractors.
\end{quotation}
The final version of the GoodBank mission statement now receives a
perfect score of 6.0 on the Gast scale. By this measure at any rate,
it is significantly better than the original mission statement.
\begin{center}
$\Box \Box \Box$
\end{center}

It is important to realize that a mission statement with a perfect
score on the Gast scale is not necessarily a perfect mission statement
that can't be improved. The Gast scale is a helpful tool that measures
compliance with Gast's laws; it says nothing about the beauty of the
language used in the mission statement or about its ability to
inspire people.

The real value of the Gast scale is that it provides us, for the first
time, with a quantifiable measure of how well a mission statement
adheres to fundamental objectives that are common to
successful organizations.

So how do our model mission statements in the appendices
stack up on the Gast scale? Here is a summary of the scores.
\begin{center}
\small
\begin{tabular}{|l||c|c|c|c|c|c|c|}
\hline
Organization/Law & 1 & 2 & 3 & 4 & 5 & 6 & Total \\
\hline
\hline
AB Tech. Acq. Team      &1 &1 &1&1&1&1&6\\
Bon Secours             &1 &1 &1&1&1&1&6\\
Coastal Hospice         &1 &1 &1&1&1&1&6\\
British Airways         &{0.5}&1&1&1&{1}&1&5.5\\
Ford Motor              &1 &1 &1&1&{0}&1&5\\
Johnson \& Johnson      &1 &1 &1&1&1&1&6\\
Ukrop's                 &1 &1 &1&1&1&1&6\\
VCU Dept. of Psych.
&1 &1 &1&1&1&1&6\\
VCU/MCV School of AHP
&1 &1 &1&1&1&1&6\\
\hline
\end{tabular}
\end{center}
According to our interpretation of the Gast scale, all of the mission
statements in the appendices are pretty good.

The British Airways statement, with a score of 5.5, is appealing
because it is concise and elegant.  Its only flaw is that it fails to
address the importance of continually improving its ability to engage
in its core businesses.

Ford Motor, with a score of 5, loses a point because it fails to
address the issue of compensation (Law 5). But it is otherwise an
excellent statement and has had a tremendous impact worldwide.

The other statements all receive perfect scores. Of these, the Johnson
\& Johnson mission statement is perhaps the most remarkable because it
was written so long ago, and yet, with only minor additions, is still
fresh and current today. It remains an integral part of the life at
the Johnson \& Johnson. The longevity and usefulness of this document
is one of the key factors that convinced us of the generality and
truth of Gast's laws. In the chapters to follow, we will outline a
method for using Gast's laws to develop mission statements.

\chapter{Four Steps to an Effective Mission Statement} 
\label{chap:method}

We have developed a step-by-step method that uses Gast's laws as a
framework for developing mission statements.  We have used this method
successfully with dozens of our clients. It works because it provides
people with a clear structure and a set of specific tasks that keep
them from getting bogged down in the sort of endless circular
arguments that often arise when people try to resolve difficult
strategic issues. This chapter gives an overview of our
method. Chapters~\ref{chap:step1} through \ref{chap:step4} will
elaborate.

Our method consists of four steps:
\begin{enumerate} 
\item Organize a mission team.
\item Use Gast's laws to construct the fundamental objectives of the organization. 
\item Use the fundamental objectives to construct the mission statement.
\item Use the mission statement regularly and strategically.
\end{enumerate}
For the first step, organize a cross-section of the people in your
organization whose job is to develop the mission statement. This group
is called the {\em mission team}. For the second step, the mission
team considers Gast's laws one by one.  For each law, make a list
of the fundamental objectives that are necessary to help the
organization satisfy the obligations described by that law. These
objectives form the raw material that a subset of the mission team
will eventually craft into a mission statement in Step 3. If you
follow these first three steps, you will have developed a {\em good}
mission statement. But it will only be an {\em effective} mission
statement if it is used regularly and strategically by the rest of
your organization, which is the purpose of the fourth step.

The next four chapters describe our method in more detail.


\chapter{Organize a Mission Team}
\label{chap:step1}
A mission statement can be effective only if there is consensus that
it truly reflects the objectives of both the people in the
organization and the stakeholders affected by it.  We can't
overemphasize the importance of achieving this consensus.  A mission
statement must speak not only to the employees, but also to the
vendors, stockholders, customers, and, in general, all of the
constituents of that business. These people must believe that they
will benefit from the mission statement.

In our experience, the best way to get this consensus is for the
leader of the organization to charge a representative cross section of
people, called the {\em mission team}, with the task of developing the
mission statement.  Each member of the team should have an equal vote.

This group approach has several advantages. By including a cross
section of people in the organization, you increase the chances of
coming up with a set of objectives that truly reflect the organization.
The resulting mission statement is also easier to sell to the rest of
the organization because the members of the mission team have already
bought in, and thus can sell it effectively to their co-workers.

For example, over 80 people were involved in some phase of writing or
reviewing the mission statement for the School of Allied
Health Professions. With so many people actively involved, we avoided
the sense that the mission statement was being imposed from above, and
the final document was accepted and internalized by the members of the
school.

As another example, a Navy medical service corps that we worked with
sent a draft of the mission statement to over 900 members of the
medical service corps, asking for their comments before making the
final revisions.

On the other hand, we were once asked to review the mission statement
of a division of General Electric, to see why people didn't seem to
like it.  Two weeks after it was issued, it was difficult to find a
copy for us to review; apparently most people had just thrown it in
the wastebasket.  No one knew who had worked on the statement.  The
mission statement was prepared without any contribution by those it
affected, was not sold to the rest of the organization, and thus had
no impact.

There are a couple of important principles to keep in mind when
forming a mission team.  First, the head of the organization must lead
the effort and must be willing to make a long-term commitment to its
success. Second, the leader must choose people for the mission team
who are upbeat, positive, and who really want to see the team succeed.

We have been asked a number of times to help revive a failed mission
effort.  In most cases they failed because they had the wrong people
on their mission team, people who were not committed to its
success. On the other hand, we have found that mission teams composed
of the right people invariably succeed.

While we prefer the group approach, we should point out that excellent
mission statements can and have been developed in isolation by
individuals and then sold successfully throughout the business. For
example, the excellent Johnson \& Johnson mission statement was
developed by the CEO and then later accepted and internalized by the
organization.

\section{The value vote}

When we work with mission teams in our consulting practice, the first
thing we do with the team is to hold a {\em value vote}.  A value vote
is a technique that helps a mission team articulate the values that
the team would like to see in the culture of the organization. A
series of votes results in a small list of values.  These can be
values that are already part of the culture, or they can be new values
that the team would like to see become part of the culture.

We have found the value vote to be enormously helpful for a number of
reasons.  The process of reaching a consensus on the shared values of
the organization helps to unify the team and give it a sense of unity
of purpose. But more important, the small set of shared values that
the team identifies helps the group to reach consensus later on when
they use Gast's laws to identify the fundamental objectives of the
organization.

Before you conduct a value vote with your team, you will need to
gather the following materials: a flip chart, a felt tip marker, and
for each person on the team, five red stick-on dots, and three blue
stick-on dots (You can buy these color stick-on dots at any
office supply store). Once you have the materials, follow these steps:
\begin{enumerate}
\item Designate one member of the team as the facilitator (this is the role
we assume when we work with client mission teams). The facilitator
leads the group through the remaining steps.

\item Instruct the group to brainstorm for 15--30 minutes to develop 
an initial list of values. These can be either values that are
currently part of the culture, or values that the team would like to
see become part of the culture. When we did this exercise
with the mission team for the School of Allied Health Professions, the
team came up with this initial list of 40 values: {\em accessibility,
accountability, appreciation for resources, citizenship, clear
identity, cooperation, dedication, dignity, empowerment,
encouragement, enjoyment, enthusiasm, equity, excellence in academics,
financial fulfillment, flexibility, freedom, fulfillment of potential,
globalistic, happiness, humor, innovation, integrity, love,
loyalty, mentorship, personal growth, pride, quality product, respect
for diversity, responsibility, reward, security, selfishness,
sensitive, service, teamwork, unity, and urbanism.}  

\item Write the list of values from Step 2 on the flip chart, merging 
any duplicate values.

\item Give each team member five red dots and three blue dots.

\item {\em Red vote.} 
Invite each team member to walk up to the flip chart and to stick
their red dots on the values that they feel are most important to the
culture of the organization. You may stick one dot on five separate
values, five dots on one value, or any combination in between.
However, don't use your three blue dots yet.

\item Identify the 10--15 values that 
received the most votes during the red vote and cross out the rest.
For the School of Allied Health Professions, these
11 values survived the red vote with an arbitrary cutoff of at least 4
votes: {\em accountability, commitment, cooperation, dignity, enjoyment,
excellence in academics, freedom, fulfillment of potential,
innovation, integrity, and security.}

\item {\em Blue vote.} 
Repeat the vote, this time using the three blue dots on 
the values that survived the red vote.

\item Identify the 6--8 values that received the most votes in the
blue vote and write these down on a clean flip chart sheet. 
For the School of Allied Health Professions, these
values received the most blue votes, and became the list of shared
values that helped guide the rest of the mission statement
development: {\em enjoyment, excellence in academics, accountability,
fulfillment of potential, cooperation, dignity, integrity, and
innovation.}
\end{enumerate}
After the value vote, lead the mission team in a discussion about the
resulting list of values, and what the list reveals about the
organization. Which values are a cherished part of the current
culture? Which are not part of the culture but should be?

At the end of the session encourage the participants to write down the
final list of values, and to keep these in mind as you use Gast's laws
to develop the fundamental objectives for your organization.

We have found the value vote to be an excellent ice breaker.  The
technique can be used with almost any size group; we have used it with
very small groups, and with groups as large as 267 participants (at a
seminar in South Korea). In any case, the exercise usually takes only
30--40 minutes to finish.  Appendix~\ref{app:values}
contains some example values.

\section{The group interview}
\label{sec:groupinterview}
Another technique that we use to help warm up the mission team is the
{\em group interview}. This technique can extract a great deal of
information from a group in a relatively short time.  It helps identify
concerns about mission statements in general, previous attempts
to develop mission statements, and the upcoming effort to construct
a new one. It can also help to build a sense of team and purpose
among the members of the mission team.

The technical details of conducting a group interview are described in
Appendix~\ref{app:group}. The basic idea is that the leader of the
mission team poses a collection of questions, and then uses the group
interview technique to get a summary of the team's answers to those
questions.  For example, here are some example questions that we pose
when we conduct group interviews with mission teams:
\begin{enumerate}
\item Is it important for an organization to 
consider the mission statement during the planning process?

\item Is a mission statement important to this organization? Give
one reason why or why not.

\item Will a good mission statement help improve the bottom line?

\item How long should it take for this organization to develop a
strong sense of its mission.

\item What is the most serious obstacle the organization
will face in trying to live the mission statement on a daily basis.

\item Is just having a mission statement enough to make it valuable?

\item Does the organization follow the ideals of the current 
mission statement?

\item Is it important to explain the organization's values in the
mission statement?

\item What does it mean to manage a mission?

\item How should the organization change its behavior?
Give one example.
\end{enumerate}

\chapter{Use Gast's Laws to Identify Objectives}
\label{chap:step2}

In this step, the mission team attempts to reach a consensus on the
fundamental objectives that the organization should attempt to achieve
in order to comply with Gast's laws.  

There are two basic ways to
organize this activity. The entire group can consider each law in
turn, one after the other. Or the group can be divided into subgroups,
the laws partitioned among these subgroups, and considered in
parallel.  There are advantages and disadvantages to each
approach. Having the entire group consider each law has the advantage
of a consistent treatment and understanding of all of the laws. The
disadvantage is that it takes more time, which is a valuable resource
in a busy organization. We've used both approaches successfully, so
feel free to use the approach that makes the most sense for your
situation.

The fundamental objectives that the mission team comes up with can be
either new objectives or objectives that the organization already
embraces.  When we are working with a mission team on a particular
law, we encourage the group to first produce a list of potential
objectives, being careful to avoid any criticism or evaluation until
everyone has made their suggestions.  We typically write down all of
the suggested objectives on tear sheets, and as the sheets fill up we
attach them to the walls so that everyone can see them.  Initially,
the objectives don't have to be beautifully crafted sentences;
sentence fragments or even individual words are OK at this stage. The
important thing is to get as many suggestions as possible from the
members of the group.

Once you have a complete list of suggested objectives, go over them
one-by-one, discarding some, modifying others, and possibly adding new
ones, until you arrive at the final list of objectives for that
law. If you find yourselves deadlocked on some particular objective,
discard it. Here are guidelines to help you develop the objectives
for each law.

\section{Objectives for Law 1}
\label{sec:law1}

\begin{quote}
{\em Law 1: A business must produce a want-satisfying commodity or
service, and continually improve its ability to meet needs.}
\end{quote}
Law 1 consists of two parts. The first part addresses the need to
clearly understand the core business of the organization, both now and
in the future.  The second part addresses the need for the
organization to continually improve its ability to engage in its core
business.

Without a doubt, Law 1 is the most important and difficult of the six
laws to articulate clearly. You can expect the discussion for this law
to take nearly as much time as the discussion for all of the other
laws combined. Because of its importance, if you decide to break the
mission team into separate parallel subgroups, then the head of the
organization should be assigned to this subgroup.

Here are some basic questions to help you with the first part of Law 1:
\begin{enumerate}
\item What industry are we in? 
\item What is our core business now?
\item What do we envision our core business being in the future?
\item Who are our customers?
\item Who are our competitors?
\item What geographic area do we serve?
\item How are we different from our competitors?
\item Where should we rank relative to our competitors?
\end{enumerate}
Answering these questions will provide you with raw material that will
help you describe precisely the core business of your organization.

For example, the School of Allied Health Professions came up
with 10 major objectives for Law 1. Examples included producing
competent allied health professionals, effectively representing and
serving the departments in the school, facilitating distance learning,
and fundraising. These were eventually summarized into the following
general objectives: ``The School of Allied Health Professionals serves
as an international leader in the education of excellent, innovative,
and responsible allied health professionals.''

The VCU Department of Psychology came up with eight pages of material
for Law 1, focusing on identifying their customers, the needs of those
customers, and objectives that would satisfy those needs.  These eight
pages were eventually summarized in the following concise statement:
``The Department of Psychology is a national leader promoting the
understanding of behavior through the integration of scholarly
inquiry, teaching, and service.''

The basic lesson from these examples is that it is most effective to
work from the specific towards the general. Start with a lot of
detailed raw material, then condense and generalize into a small set
of objectives that accurately represent the core business of your
organization.  Your objectives must be general enough so that they
don't overwhelm with detail, but specific enough to accurately
describe the business of your organization. Detailed objectives are
better handled by conventional strategic planning processes rather
than in mission statements.

Finding the proper balance between detail and generality can be
difficult. Let's look at how the model mission statements in the
appendices handle this tradeoff. The Anheuser-Busch Technology
Acquisition Team aims ``to provide key procurement services to
Anheuser-Busch Companies, Inc. and its affiliates for all information
technologies. These services include negotiation, risk management,
vendor/product selection expertise, leadership in knowledge of
industry trends, and other activities that promote the success of our
customers.'' Notice how they identify the core business of the unit
without limiting their options to find new markets.

British Airway's objective is to be the ``undisputed leader in world
travel.'' Notice that they don't say anything about airplanes.
Rather, they view their core business as providing people with ``world
travel''. While airplanes may be the best technology currently
available for providing world travel, British Airways correctly views
airplanes as a means to an end, rather than an end in themselves.

Ford Motor Company's statement of its core business is more precise,
but still fairly general.  ``Ford Motor Company is a worldwide leader
in automotive and automotive-related products and services as well as
in newer industries such as aerospace, communications, and financial
services.''

Johnson \& Johnson defines its core business as follows: ``We believe
our first responsibility is to the doctors, nurses and patients, to
mothers and all others who use our products and services.'' Notice
that Johnson \& Johnson view their core business as meeting the needs
of a certain group of customers, rather than producing specific
products. While very general, this statement still manages to provide
a clear notion of the purpose of the organization.

Ukrop's aims to be a ``world-class provider of food and services.''
The view of providing services in addition to selling food is crucial,
allowing for the possibility of expansion into new markets.  In fact,
Ukrop's has recently added banking and pharmacy services to its stores.

In almost every mission team that we work with, people suggest
objectives that don't accurately reflect the core business of the
organization.  The group must be aware of this possibility and be
willing to eliminate inappropriate objectives.

For example, we once had the opportunity to help the U.S. Navy's Medical
Service Corps develop a new mission statement. The Surgeon General of the
Navy asked us to review a draft of the mission statement, and the
following objective stood out like a sore thumb: ``Our mission is to
fight and win.'' It seemed to us as though the medical department
shouldn't be doing any fighting, but rather supporting the fighting
forces by providing the best possible medical care to them and their
families. Our clients agreed, the mission was reworked, and the
revised statement was adopted by Navy medical forces worldwide after
being reviewed by over 900 people.

The second part of Law 1 focuses on the importance of continually
improving the ability of the organization to engage in its core
businesses. It is interesting that Gast was espousing the
importance of continuous improvement at the same time that W.~Edwards
Deming was advocating a similar approach in Japan in the 1950's.
Deming's ideas were not accepted in this country until the early
1980's, but since then they have had a tremendous impact on American
industry and its subsequent success.

Unfortunately, mission statements usually skip this important part of
Law 1. However, it is extremely rare to find a successful company that
doesn't continually improve its ability to meet customer needs. Thus
we rarely have a problem getting our clients to agree on the need for
continual improvement, and including a statement to that effect
in their mission statement.

For example, the Anheuser-Busch Technology Acquisition Team has a
``fundamental commitment to continuous improvement of our services,
targeted to ultimately achieve customer delight.''  British Airways is
mum on the need for continuous improvement.  Ford Motor, on the other
hand, is quite clear: ``Our mission is to improve continuously our
products and services to meet our customer's needs.''  Also,
``continuous improvement is essential to our success.  We must strive
for excellence in everything we do.''  Johnson \& Johnson elegantly
addresses the need for continuous improvement: ``We must experiment
with new ideas.  Research must be carried on, innovative programs
developed and mistakes paid for. New equipment must be purchased, new
facilities provided and new products launched.''  Ukrop's recognizes
the importance of ``minimizing waste and vigorously pursuing
continuous improvement''.  The School of Allied Health
Professions ``nurtures continuous growth in their knowledge base and
productivity''.  Similarly for the VCU Department of Psychology: ``We
achieve excellence by continuously measuring our performance and
productivity as scholars, teachers, contributors to society, and as a
Department in order to effectively meet the changing needs of our
consumers, whether they be students, staff, faculty, the Commonwealth
of Virginia, or society.''  This, by the way, is an unusual and
powerful commitment by an academic mission statement to improve
productivity.

In sum, Law 1 is the most difficult of the six laws for a mission team
to articulate clearly and to reach a consensus on. And yet it is
extremely important because it involves understanding the core
business of the organization. 

Peter Drucker claims that most business people do not know what
business they are in.  We have found that most managers feel that they
understand the purpose of their business.  However, when asked to
actually write it down, they often struggle, because articulating the
purpose of a business involves a more in-depth generic inspection of
what the organization does.  

For example, in the mid 1990's European airline executives were asking
the following question, ``Is our business flying airplanes or
arranging transportation?'' Airlines already outsource food service,
and lease of airplanes.  Will they someday outsource pilots, baggage
handling, cargo and flight attendants?  Bertrand d'Yvoire, president
of Consultair in Paris, contends that ``an airline's real business is
managing reservation and traffic systems.''  The key to the thinking
involved here is to go beneath the surface of the organization's
apparent business, and to look at fundamentals.

As another example, when we examine the generally excellent mission
statements of the Baldrige Award winners, we find that we can easily
understand the overall purpose of the organizations, but cannot
usually identify the particular products that the organizations
produce.  For instance, consider the Solectron mission statement:
``With integrity and ethical business practices, provide worldwide
responsiveness to our customers with the highest quality, lowest total
cost, customized integrated manufacturing services through long term
partnerships.''

Gast defined the requirement to improve our ability to meet needs in
1952.  Is this still required?  Have times changed so much that these
societal requirements no longer apply? We believe that knowing what
our business is, to continually improve, to be kind to the environment
and have respect for people, and other laws defined by Gast, are as
essential today as ever.  Global competition, millisecond
communication, advanced technology and productive capacity don't
change these societal requirements. And in fact, they are more
important today than ever.  We have the capacity to do more positive
things than we have ever had.  We also have the capacity to injure
more people, more quickly, to do more damage to the local and global
economy, the environment and society than ever.

Interestingly, many people make the mistake of using the mission
statement to describe the core business of the organization, and
nothing more. However, organizations have other responsibilities
besides conducting their core business, and a good mission statement
will address these as well. The next sections describe some of these
responsibilities and how they can be incorporated in a mission
statement.

\section{Objectives for Law 2}
\label{sec:law2}

\begin{quote}
{\em Law 2: A  business must increase the wealth or quality of life 
of society through the economic use of labor and capital.}
\end{quote}
This law, like the previous one, consists of two parts. The first part
addresses the obligation of a business to contribute to society in
general, and to the communities where it does business in particular.
By requiring that the organization make economic use of labor and
capital as it increases the wealth of society, the second part of Law
2 tells us that employees --- both workers and managers --- have an
obligation to ensure that the organization produces high quality
goods or services cost-effectively.

Here are some questions to help you identify objectives for the first
part of Law 2:
\begin{enumerate}
\item How does our organization help or hurt the community? 
\item Should we be doing more to help?
\item Should we be doing less to hurt?
\end{enumerate}
Almost every organization has some positive impact on their
communities and their societies. Some organizations may have negative
effects such as pollution, bribery, or political corruption. A
thoughtful and honest assessment of the positive and negative impacts
of your organization is a fascinating and important exercise.

The notion of a business making a contribution to its community and
its society resonates strongly with the mission teams we have worked
with in the past. As one participant told us, ``If my company helps
the community, then by my participation in the work of the
organization, I too am helping the community.  I am proud of this
contribution.''

If an organization does not take a clear proactive stance, it probably
will not do much, if anything, that it isn't required to by law and
regulation.  The mission statement is where an organization can decide
to be proactive and to make a positive difference to society and the
community. In particular, the issue of the environment is 
becoming increasingly important in modern mission statements.

Recognition of the obligation to society and community appears in all
of our model mission statements. 

According to the Anheuser-Busch Technology Acquisition Team: ``Our
contribution to the quality of life is to promote the organization's
responsibilities for our impact on the environment and society.'' 
British Airways wants to be a ``global and caring good
neighbor.''  Ford Motor recognizes that ``the conduct of our company
worldwide must be pursued in a manner that is socially responsible and
commands respect for its integrity and for its positive contributions
to society.''

Johnson \& Johnson devotes a major part of its mission statement to
societal responsibilities: ``We are responsible to the communities in
which we live and work and to the world community as well.  We must be
good citizens - support good works and charities and bear our fair
share of taxes.  We must encourage civic improvements and better
health and education.  We must maintain in good order the property we
are privileged to use, protecting the environment and natural
resources.''  This is incredibly enlightened, especially given that
most of it was written over 50 years ago.

Ukrop's notes that ``the mission of Ukrop's is to serve our customers
and community'', and also recognizes the need for ``improving the
lives of our families and well-being of our community.''  The VCU
Department of Psychology aims to ``lead the way in improving the
quality of life in society through the development of knowledge and
technology, finding ways of addressing human problems, and educating
people to be responsible citizens and effective leaders.''  The School
of Allied Health Professions recognizes that ``the School, responsive
to the needs of society, promotes excellence in health care service.''

The second part of Law 2 addresses the responsibility of employees to
be as productive as possible, producing high quality products 
cost-effectively. Gast was addressing what we usually refer to today
as quality control or quality management. A commitment to quality and
productivity improvement should appear in every mission statement.

The issue of productivity and quality improvement is already important
to most industrial businesses, and it should be a high priority for
all organizations, including churches, schools, government and
non-profit organizations.  Gast's intent with the second part of Law 2
is to recognize the responsibilities of both managers and workers to
improve productivity.  Managers must provide an environment that
promotes productivity and workers must work hard and smart within that
environment.

Most of our model mission statements do a good job of recognizing the
importance of quality and productivity.

The Anheuser-Busch Technology Acquisition Team vows
that ``our commitment in providing our services is to be {\em the
best} --- efficient, effective, and constantly improving our ability
to meet or exceed our customers' expectations.'' They also recognize
the importance of ``providing our customers with the highest ideals of
timeliness, accuracy, consistency, and completeness in our work.''
British Airways aims for ``superior value in world travel.''

Ford Motor refers to quality and productivity again and again in their
mission statement, promising ``to improve continually our products and
services to meet our customers' needs, allowing us to prosper as a
business and to provide a reasonable return for our stockholders, the
owners of our business.''  Ford also believes that ``Quality comes
first --- To achieve customer satisfaction, the quality of our
products and services must be our number one priority.'' In the Ford
view, profits are tied directly to quality: ``Profits are the ultimate
measure of how efficiently we provide customers with the best products
for their needs. Profits are required to survive and grow.''  And we
also see a strong commitment to the customer: ``Customers are the
focus of everything we do --- Our work must be done with our customers
in mind, providing better products and services than our
competition.''

Johnson \& Johnson states that ``in meeting their needs everything we
do must be of high quality.  We must constantly strive to reduce our
costs in order to maintain reasonable prices.  Customers' orders must
be serviced promptly and accurately.''  Ukrop's promises to ``provide
the greatest value possible by offering a wide variety and excellent
service, while fulfilling our customers' desire for high quality,
uncompromising freshness, and low prices.''  Ukrop's also values
``minimizing waste and vigorously pursuing productivity
improvements.''  The School of Allied Health Professions ``nurtures
continuous growth in their knowledge base and productivity.''  The VCU
Department of Psychology maintains that ``in all our endeavors, we
strive to use resources cost-effectively.''

To summarize, Law 2 describes the obligations of a business to its
community and society in general, and the obligations of its employees
to produce quality goods or services cost-effectively.  Law 2 is
interesting because it recognizes that the obligation to be productive
is a two-way street. The organization must provide appropriate
management, systems, and resources. Employees must work hard to make
the best use of the resources they are given.

\section{Objectives for Law 3}
\label{sec:law3}

\begin{quote}
{\em Law 3: A business must provide opportunities for the productive
employment of people.}
\end{quote}
Law 3 is the most controversial of Gast's laws, and yet it is probably
the most important because it defines the basic relationship between
an organization and its employees. Law 3 says that 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.

In an organization that really practices Law 3, employees are
respected and valued by the organization. They are not disposable
parts that can be flushed whenever it is expedient. So while on the
surface, Law 3 is about providing productive employment for people, at
its core it is about creating a work environment where people trust
and respect each other. For this reason, when we work with mission
groups on Law 3, we focus on the values of trust and respect for
people.

Valuing people is a relatively new principle in management, and Gast
was way ahead of his time in this respect. Unfortunately, there are
still many organizations that do not practice the values of trust and
respect embodied in Law 3. Scott Adams's Dilbert cartoon strip derives
its humor and its legions of fans from companies who don't follow Law
3.

The basic claim of Law 3 is that companies that care for their
employees will do better in the long term than those that do not. We
can't prove this assertion, but we can offer some anecdotal evidence
from our own observations and experience.

When Prof.~Steven Robbins was appointed as chair of the VCU
Department of Psychology, the department was in difficult straits, with a
long history of unhappy faculty.  As one of his first tasks,
Prof.~Robbins used our method to implement a new departmental mission
based on respect, trust, and fairness.  

He reorganized the work load of the faculty so that responsibilities
were evenly divided.  He gave credit to faculty who were making a
significant contribution to the department, and counseled those who
were not.  The faculty adopted a system of annual reviews that was
comprehensive and fair, and included professional improvement plans
and goals. In spite of the fact that these changes caused some
unhappiness and even defections, his rating by the faculty went up
each year.  We believe that this happened because he cared for the
people in his department, he established a reasonable level of
expected discipline, and created an environment that treated people
fairly.

As another example, a small section in a large financial organization
had a long history of unhappy workers whose work was error-prone, and
whose productivity was the lowest of any comparable section in the
organization.  One of the corporate vice presidents, Dave Thomas, was
put in charge of the section and told to clean out the entire work
group, and to rehire and train new people.  Instead, he first looked
at the people and their problems.  He could see they suffered from
lack of direction and goals.  So Mr. Thomas used our method to develop
a new mission for the section that spoke of mutual respect and he
helped the existing employees develop a simple work improvement
effort.  The end result was that within six months the section behaved
quite differently.  The desks throughout the office had been
rearranged to improve communication and the flow of work.  The
employees felt good about themselves and each other.  Communications
improved.  New simplified systems were developed.  Productivity went
up dramatically, and the section eventually became the most productive
in the company.

Another example in a different industry involved a small 5-person
section of a large company.  Again, it was taken over by a new leader
who found the morale and productivity of the people in poor shape.
Using our method, the new section leader worked with the employees to
develop a new mission statement, and he began using the mission
statement in his decision making.  The statement emphasized how
important the people in the department were, and how innovation
was an expected behavior.  The end result was that both morale and
productivity improved throughout the section. Service to the internal
customers this section served was improved and recognized. In three
years, the section grew from 5 people to 25 people, in recognition of
its increased value to the company.

It is not easy to create an environment based on trust and respect,
even with the best of intentions. In the mid 1980s, Dick O'Hallaron
was a regional vice president for a large health care organization.
In addition to his own unit, he was responsible for three other
operations with about 3,000 employees.  One of these units underwent a
solicitation by union organizers. When Dick chartered an outside
firm to conduct an employee survey to learn how management was
perceived by the employees, the results showed a number of problems.
In particular, it appeared to the employees that management did not
care about them.  This was not true, but the perception was there
nonetheless.  The CEO took some immediate steps to correct this
perception and in the end the union was not voted in by the employees.

After this incident Dick began to wonder about the way that the 1,200
employees in his own unit felt about management.  He had always tried
to create an environment based on trust and respect for people and was
confident that there wasn't a similar problem in his own unit. But
just to be sure, he asked the same outfit to do a similar survey of his
own organization.  To his dismay, the results of the survey were
almost identical to the unit that had the union problems. He
took corrective action and eventually fixed the problem, but it is
interesting to realize that good intentions are not always enough.

The objectives for Law 3 do not need to be detailed. But they must
convey a strong sense of interest and respect for the people in the
organization.  

For example, the Anheuser-Busch Technology Acquisition Team stresses
``the fundamental respect and dignity for each individual with whom we
have contact in the pursuit of our vision.''  British Airways
recognizes the need for its people to be ``safe and secure'', to be a
``caring good neighbor'', and to have `` inspired teams of people
building and benefiting from the company's success, sharing a cause,
feeling good about working together and delighting the customer.''
Ford Motor emphasizes the importance of people with this statement:
``Our people are the source of our strength.  They provide our
corporate intelligence and determine our reputation and vitality.''
Johnson \& Johnson states that ``we are responsible to our employees,
the men and women who work with us throughout the world.  Everyone
must be considered as an individual.  We must respect their dignity
and recognize their merit.  They must have a sense of security in
their jobs.''  Ukrop's recognizes the importance of ``treating our
customers, associates, and suppliers as we personally would like to be
treated.''  The VCU Department of Psychology emphasizes the importance of
mutual respect: ``We value and refuse to devalue other people,
including our staff, faculty, students, members of our University
community, and all other constituents.''  The School of Allied Health
Professions promises to ``respect the value and uniqueness of each
individual.''

Unfortunately, mission statements often fail to address Law 3. In 1996
and 1997, we did a survey of the mission statements from academic
marketing departments. Of the 90 departments contacted, 40 furnished
their mission statements.  Most of these statements focused on
faculty, but few mentioned anything about the other employees in the
department.  As another example, the mission statement for Virginia
Commonwealth University speaks of students and faculty, but is silent
on the issue of non-faculty employees.

The ideas in Law 3 of trust and respect for people also apply to the
suppliers, vendors, and contractors that do business with the
organization. While they are often ignored in mission statements, we
find that the really good organizations remember these people as well.

For example, the Anheuser-Busch Technology Acquisition Team promises
``to do our best to respect our vendors and their investments of time
and resources. We will treat them fairly and honestly in striving to
award our business based on excellent service, superior quality, and
competitive price. We intend to build long-term relationships with the
best suppliers in the industry.''  Johnson \& Johnson believes that
``our suppliers and distributors must have an opportunity to make a
fair profit.''  Ford Motor recognizes that ``Dealers and suppliers are
our partners. The company must maintain mutually beneficial
relationships with dealers, suppliers, and our other business
associates.''  Ukrop's states that ``The mission of Ukrop's is to
serve our customers and community efficiently and effectively while
treating our customers, associates, and suppliers as we personally
like to be treated.''

In sum, Law 3 is crucial (and controversial) because it describes a
fundamental relationship between an organization and its employees,
contractors, and suppliers that is based on trust and respect. Every
mission statement should speak directly to these key values of trust
and respect.
 
\section{Objectives for Law 4}
\label{sec:law4}

\begin{quote}
{\em Law 4: A business must provide opportunities for the satisfaction of
normal occupational desires.}
\end{quote}
Law 4 embodies the same themes of trust and respect that we found in
Law 3. The basic premise of Law 4 is that people take their job
seriously and want to do it well. Law 4 reminds us of an
organization's responsibility to help employees learn, grow, and excel
in their jobs; to be the best employees that they can be.

The idea behind Law 4 is to recognize the obligation of the
organization to create a {\em great quality of work life} for the
employees. In an organization with a great quality of work life, people
enjoy coming to work and participating in the activities and goals of
the organization. Such a place will have its own built-in quality
improvement program, carried on by employees who want to see the
organization improve and succeed.

Unlike the first three laws we have studied, Law 4 tends to be easy
for most mission teams to understand and articulate, mainly because
it is concrete and relates directly to every employee's experience. The
basic questions to ask during this session are:
\begin{enumerate}
\item What are we doing to help employees learn and grow in their jobs?
\item What aren't we doing that we should be doing?
\end{enumerate}
When answering these questions, mission teams typically discuss issues
such as career development, training, challenging work, comfort,
working environment, communications, empowerment, recognition, safety,
and training. When we work with our clients on this law, we find that
about half of the objectives suggested by the mission team pertain to
the good things that the organization is already doing, and the other
half to the things that the group wishes the organization would do,
but doesn't.

We have never seen a mission team get stuck for material for this law.
However, it is important not to turn things into a gripe session.  If
the organization is lacking in certain areas, identify and agree on
objectives that address these failings in a general sense, and then
move on.

The Anheuser-Busch Technology Acquisition Team notes the importance of
``recognizing the contributions of our team members and providing them
with opportunities for satisfying and financially rewarding work with
continuous opportunities for personal development and advancement.''
British Airways wants ``inspired teams of people building and
benefiting from the company's success, sharing a cause, feeling good
about working together and delighting the customer.''  Notice how this
statement covers both Laws 3 and 4.

At Ford Motor there is a belief that ``involvement and teamwork are
our core human values. Employee involvement is our way of life. We are
a team. We must treat each other with trust and respect.''  Johnson \&
Johnson is adamant in their desire to provide a good environment for
their employees: ``Everyone must be considered as an individual.  We
must respect their dignity and recognize their merit.  They must have
a sense of security in their jobs.  Employees must feel free to make
suggestions and complaints.  There must be equal opportunity for
employment, development and advancement of those qualified.  We must
provide competent management, and their actions must be just and
ethical.''  Ukrop's aims for the following for its employees
(associates): ``For our associates, we will promote a pleasant and
challenging work environment where work can be an enjoyable
experience.  We will give our associates an opportunity to grow and
advance according to their proven abilities and demonstrated desire to
improve themselves professionally.''

The School of Allied Health Professions devotes a large part of their
mission statement to Law 4: 
\begin{itemize}
\item Cooperation ---
We collaborate through the practice of open communication, trust, and
respect. 
\item Enjoyment ---  We value internal
well-being, creative enrichment, and a spirit of joyfulness.
\item Excellence --- We practice and promote the highest standard of quality
performance and care of the individual. 
\item Fulfillment of potential ---  We
facilitate continual professional development and personal growth.
\item Innovation --- We encourage and support creativity. 
\end{itemize}
The VCU Department of Psychology states that ``Our work is created
with excellence, conceived in wisdom, and aimed at improving the
quality of life. Our productivity is maintained in an environment of
fairness, mutual respect, and enjoyment.''

In sum, the idea behind Law 4 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.

\section{Objectives for Law 5}
\label{sec:law5}

\begin{quote}
{\em Law 5: A business must provide just wages for labor.}
\end{quote}
This is a relatively easy law to understand and articulate; we all know
that we should be paid more! However, we have a few suggestions
that might be helpful.

Compensation is a sensitive issue, but it must be mentioned in the
mission statement nonetheless. Employees need to know that the
organization is committed to paying them just wages.  We have seen a
number of mission statements that did not address the issue of just
compensation because management felt this was their right alone,
and they did not want employees or anyone else interfering.  

A common question is what to do when the mission team represents an
organization such as a business department/section or government
agency that doesn't control the wage and salary structure. In these
cases, we recommend still addressing Law 5 in the mission statement,
if only to say that the department or section will advocate for fair
compensation for its employees.

Providing fair compensation to all people that an organization deals
with, including employees, vendors, and subcontractors, is completely
consistent with the notion of respect for people embodied in Laws 3 and 4.
Thus we find commitments to providing just compensation to vendors,
suppliers, and contractors becoming more commonplace in mission
statements. For example:

The Anheuser-Busch Technology Acquisition Team promises that ``we will
do our best to respect our vendors and their investments of time and
resources.  We will treat them fairly and honestly in striving to
award our business based on excellent service, superior quality and
competitive price.'' They also acknowledge the importance of
``recognizing the contributions of our team members and providing them
with opportunities for satisfying and financially rewarding work.''
British Airways wants its employees ``benefiting from the company's
success.''  Ford Motor is silent on the issue of compensation.
Johnson \& Johnson states that ``compensation must be fair and
adequate.''  Ukrop's ``will fairly compensate our associates for their
performance and they will share in the success of the company through
profit-sharing bonuses.  To our suppliers, we will do our best to
provide a fair return on their investments of time and resources.''
The VCU Dept. of Psychology is quite up front: ``We advocate fair
compensation, and seek creative means of developing and managing
compensation for our people and Department.''  The School of Allied
Health Professions claims that ``the School fosters fair and equitable
work responsibilities and compensation.''

In sum, compensation is a tricky subject and not easy to agree on.
However, Law 5 tells us that an organization should recognize the
importance of fair compensation and always strive
towards that goal.

\section{Objectives for Law 6}
\label{sec:law6}

\begin{quote}
{\em Law 6: A business must provide a just return on capital.}
\end{quote}
Law 6 is straightforward with respect to for-profit businesses: the
organization should produce a reasonable return on the investments of
its owners. But what does it mean for organizations like schools,
non-profit businesses, churches, and government agencies? 

In fact, Law 6 applies to these organizations as well. They merely
have different notions of return on capital.  The idea of Law 6 is
that an organization must make good use of the money that funds the
organization, whether this money is in the form of stockholder
investments, private investments, tuition, or taxes.

For example, a school is obligated by Law 6 to provide a good
education to students in return for the tuition and taxes that they
and their parents pay to fund the school.  Government agencies must
also work hard to provide cost-effective service to the taxpayers who
provide their operating budgets. Corporate research labs must help
provide new product ideas to the business units that fund
them. Similarly, departments or sections that receive budgets from a
larger organization have an obligation to use their budgets wisely.

It is surprising how many organizations omit this important law from
their mission statements. However, here is how our model mission
statements addressed Law 6.

The Anheuser-Busch Technology Acquisition Team vows to ``insure a
superior return on the investment of our company has made in our team,
by striving to add value, eliminate waste and achieve the lowest total
system cost for our customers.''  British Airways simply wants to
``enjoy strong profitability.''  Johnson \& Johnson is brief and
explicit: ``When we operate according to these principles, the
stockholders should realize a fair return.''  

Ukrop's Super Markets acknowledges the importance of ``long term
profitability and growth --- a measure of success which associates
share through bonuses and new opportunities'' and also hopes to
``achieve profitable growth and long-term financial success.''  Ford
Motor aims to ``prosper as a business and to provide a reasonable
return for our stockholders, the owners of our business.'' Ford also
recognizes the importance of profits as ``the ultimate measure of how
efficiently we provide customers with the best products for their
needs. Profits are required to survive and grow.''  

The VCU Department of Psychology promises that ``in all our endeavors, we
strive to use resources cost-effectively so that we can best achieve
this mission and the missions of the College of Humanities and
Sciences and of Virginia Commonwealth University.''  The School of
Allied Health Professions ``recognizes the importance of being
accountable to the students and their families, the Commonwealth,
faculty, staff, alumni, and other benefactors by using resources
effectively.''

Many Catholic hospitals address Law 6 using statements focusing on
stewardship responsibilities.

In sum, Law 6 applies to any organization, even churches, schools, and
non-profit institutions such as hospitals and charities. Every
organization requires capital in order to survive, and every investor
deserves a reasonable return.  Of course, different kinds of
organizations will have different notions of return on capital
and what comprises a just return.

\chapter{Construct the Mission Statement}
\label{chap:step3}

To this point you have considered each of Gast's laws, and for each
law have identified a set of fundamental objectives for your
organization. In this third step, the mission team hands over this set
of fundamental objectives to the {\em mission writers} --- a subgroup
of the original mission team chaired by the head of the organization
--- who then use these objectives as the raw material from which they
craft the mission statement.

This step is somewhat of an art, and depends a great deal on the taste
and writing ability of the mission writers. However, there are some
identifiable styles, and we'll use examples of existing mission
statements to describe these different approaches.

If developed properly, the list of objectives handed over to the
mission writers will address each of Gast's laws.  For example, the
mission team for the VCU Department of Psychology handed over the
following raw material to their mission writers:
\begin{enumerate}
\item Promote understanding of behavior [Law 1].
\item Promote an environment conducive to learning [Law 1].
\item Promote our traditional commitment to applied 
societally relevant psychology [Law 1].
\item Measure effectiveness of curriculum goals against goals of 
students, undergraduate, post-graduate students, and use the
information to improve the curriculum and process [Law 1].
\item Take effective measures to enhance classroom experiences for 
faculty and students [Law 1].
\item Improve the quality of life in society through the
development of knowledge, technology, finding effective ways of
addressing human problems, providing educated citizens and ethical
leaders and citizens [Law 2].
\item Carry out annual evaluations of faculty and staff, focused
in part on productivity in various areas [Law 2].
\item Enhance mechanisms for the recognition of people's work [Law 3].
\item Provide equitable and fair access to professional growth
and advancement [Law 4].
\item Advocate for fair compensation and be creative in 
developing and managing a fair wage and salary effort [Law 5].
\item Improve the quality of life after graduation [Law 6].
\end{enumerate}
The job of the mission writers is to compose this list of objectives
into a mission statement.  This process is a matter of taste and
style. There are no hard and fast rules, but existing mission
statements do tend to follow a few general approaches.

\section{Styles of mission statements}
\label{sec:styles}
One approach is to write the mission statement as a sequence of
complete sentences, where each sentence describes one or more of the
objectives supplied by the mission team. Of course a great deal of
wordsmithing of the original objectives is likely, but the basic idea
is to simply compose these reworded objectives in some order. Johnson
\& Johnson use this approach very effectively in their elegant mission
statement (see Appendix~\ref{app:jj}). The Johnson \& Johnson
statement is interesting because it simply lists the various
responsibilities of the organization to its employees, suppliers,
investors, and community.

Other organizations partition their objectives into separate sections
with headings such as {\em Vision}, {\em Mission}, {\em Goals}, 
{\em Values}, and {\em Guiding Principles}.  How the objectives are
partitioned into sections and how these sections are entitled is
entirely at the discretion of the mission writers.  We don't know of
any precise definitions for the different sections, and it's probably
not worth the effort to try to define them.  In general, though,
sections with titles like {\em Mission}, {\em Vision}, and {\em Goals}
tend to include objectives related to the organization's core
business, productivity, and financial performance (Laws 1 and 6). We
refer to these as {\em business objectives}.

On the other hand, sections with titles like {\em Values} and {\em
Guiding Principles} tend to relate to objectives that describe how the
organization intends to behave as it engages in its core business
(Laws 2, 3, 4, and 5). We refer to these as {\em behavioral
objectives}.

The British Airways mission statement is an example of a mission
statement that partitions its objectives into separate sections. The
business objectives are listed in the {\em Mission} and {\em Goals}
sections. The behavioral objectives are listed in the {\em Values}
section.  Addendum O has a list of values, or behavioral objectives
with descriptions of the expected behavior.  

Another common approach is to first list {\em all} of the objectives
in one section, followed by a second section that emphasizes the
values or beliefs that are implied by the behavioral objectives listed
in the first section.  For example, the {\em Vision} section of the
VCU Department of Psychology's mission statement is quite clear about
the Department's commitment to helping students learn and to helping
employees grow professionally and to be paid fairly.  These objectives
imply that the people in the department share values such as
productivity, excellence, mutual respect, and fairness. These shared
values are repeated and highlighted in a separate {\em Values}
section.

Again, the decision to use separate sections is a matter of taste. In
practice, most modern mission statements do use separate sections to
highlight the organization's values, for several reasons.  First, a
new or revised mission statement is often used as a management tool to
help change some aspect of an organization's culture (more on this in
the next chapter). Since the culture is summarized by the
organization's behavioral objectives, mission writers will often
highlight and emphasize new values proposed by the mission team.
Second, the mission statement is also used as a sales tool to help
attract new employees, contractors, vendors, and customers. Mission
writers will often highlight shared values that they think will be
attractive to these groups.

In our experience, when the objectives for Laws 2--5 are done
correctly, they always reflect the shared values of respect for
people, mutual trust, and the importance of quality. We believe
strongly that if you do choose to highlight your organization's
values, the list should include these three crucial values.



\section{All mission statements are not alike!}
\label{sec:unique}
Another important issue is to ensure that the final mission statement
reflects the special nature of the organization. We don't want a
mission statement to be boilerplate that could be applied anywhere.

For example, we once worked on the mission statement for a Catholic
welfare agency.  When the local bishop reviewed the final document,
his reaction was, ``This doesn't look like a church sponsored agency.
This could be a welfare agency sponsored by any group.  What you have
done is secularize the statement.  There is no mention of the healing
ministry of Jesus.  There is no mention of the focus of our faith or
the important and necessary spiritual dimensions of this
organization.''

He was right of course. Churches and church groups need mission
statements, and their statements should conform to Gast's laws like
those of any other organization.  But in describing the objectives, we
need to keep in mind the unique nature of the organization and make
sure that the objectives are not too generic. 

Andrew Campbell, Director of the Ashridge Strategic Management Centre
in London, England, and one of the most prolific writers on the
subject of organizational mission, emphasizes the importance of
a mission statement being unique to the organization.  

Writes Dr. Campbell, ``One of the difficulties of mission statements
is making them idiosyncratic.  One professor used to ask his manager
students to give him a copy of their company's mission before class.
He then read out the first one, omitting the company's name and asked
who's it was.  He claimed that at least half of those who had handed
in statements raised their hands.''

Dr. Campbell is absolutely right about the need to make mission
statements unique. Gast's laws do not imply that you simply write a
standard mission statement, like a model legal document, and fill in
the blanks that are left for your company's name and business focus.
Your mission statement must speak to the unique nature of your
organization.


\section{The review process}

In our experience, successful efforts to write mission statements
include an extensive review process. The review process is an
iterative one that goes through several review/modify cycles, with
reviews from the mission team itself, upper management, and the rest
of the organization.

A typical cycle would be to request comments from the rest of the
mission team, make necessary changes, request comments on the modified
version, make more changes, and so on, until the mission group reaches
a consensus on the document. This draft is then distributed to an
appropriate cross-section of the organization for review and comments.
Finally, the final draft of the mission statement should be approved
by the appropriate higher authority.  For example, if the mission
statement is for an entire company, then it should be approved by the
board of directors. If the statement is for a section, then it should
be approved by the section head's boss.

The VCU Dept. of Psychology sent a draft of their mission statement to
every faculty member and employee in the Department for
review. Similarly, by the time the mission statement for the School of
Allied Health Professions was adopted, over 80 people had been
involved as either members of the mission team, mission writers, or
reviewers. Finally, the U.S. Navy Medical Service Corps sent a draft
of their mission statement to over 900 members of the corps worldwide
for review before the final version was published.

The important idea in the review process is to expose the mission
statement to as many people as possible, and to get as many people as
possible to buy in to the proposed statement before it is officially
adopted. Achieving this kind of acceptance is crucial because it
allows the mission statement to become a useful tool that plays an
active role in the day-to-day operation of the organization. If people
in the organization don't know about the mission statement or don't
accept it, then of course it will have little value. But if you have
followed our suggestions and based the mission statement on Gast's
laws, then we can almost guarantee that the mission statement will be
accepted by the people in your organization, and that it will be
effective.

How real managers in real companies use their mission statements on a
day-to-day basis is the topic of Step 4, which is described in
the next chapter.

\section{Frequently asked questions}
Here are some questions that people frequently ask when they are
constructing a mission statement. We have already addressed them in
previous sections, but the questions come up so often that we think it
is helpful to explicitly list them:

\vspace*{.5\baselineskip}

\noindent
{\bf Q1:} {\em If we base our mission statement on Gast's laws, won't
it look the same as every other mission statement based on Gast's
laws?}
\vspace*{.5\baselineskip}

\noindent
{\bf A1:} No! Consider the following analogy.  If you were to X-ray 100
people their skeletal formation would look quite similar.  You'd see
bones of hands, legs, body and skull.  Similarly, if you were to X-ray
(analyze) 100 good mission statements you would find that in general
they have very similar objectives (i.e., Gast's laws).

Now put some flesh on the skeleton bones and the differences quickly
become apparent.  Men look much different than women.  Some people
have blue eyes, others brown.  Some have blond hair, others black or
brown hair.  Some have light skin, others various shades of darker
skin. Then add a mind, personality and behavior to the skeleton and 
differences become even more apparent.

A mission statement is similar.  Although most good statements have a
similar skeleton, each can and should be described in a way that puts
a special emphasis on what the organization does and how it intends to
behave.  It must have some meat on the bones to give it a distinctive
personality. 

To illustrate this point with a real (and great) mission statement,
consider the Johnson \& Johnson Credo, which is clearly unique, and yet
neatly addresses each of Gast's laws (and nothing more!). Every sentence
in this statement can be associated with one of Gast's laws:

Law 1 is addressed by the following sentences (note that they are
taken out of order from the Johnson \& Johnson Credo):
\newpage
\begin{center}
We believe our first responsibility is to the doctor, nurses and patients,\\
to mothers and all others who use our products and services.\\
$\cdots$\\
Customers' orders must be serviced promptly and accurately.\\
$\cdots$\\
We must experiment with new ideas.\\
Research must be carried on, innovative programs developed\\
and mistakes paid for.\\
New equipment must be purchased, new facilities provided\\
and new products launched.\\
\end{center}
Law 2 is addressed by the following parts:
\begin{center}
In meeting their needs everything we do must be of high quality.\\
$\cdots$\\
We must constantly strive to reduce our costs\\
in order to maintain reasonable prices.\\
$\cdots$\\
We must provide competent management,\\ 
and their actions must be just and ethical.
We are responsible to the communities in which we live and work\\
and to the world community as well.\\
We must be good citizens - support good works and charities\\
and bear our fair share of taxes.\\
We must encourage civic improvements and better health and education.\\
We must maintain in good order\\
the property we are privileged to use,\\
protecting the environment and natural resources.
\end{center}
Law 3 is addressed by the following:
\begin{center}
Our suppliers and distributors must have an opportunity\\
to make a fair profit.
We are responsible to our employees,\\
the men and women who work with us throughout the world.\\
Everyone must be considered as an individual.\\
We must respect their dignity and recognize their merit.\\
\end{center}
Law 4 is covered by the following statements:
\begin{center}
They must have a sense of security in their jobs.\\
$\cdots$\\
and working conditions clean, orderly and safe.\\
We must be mindful of ways to help our employees fulfill\\
their family responsibilities.\\
Employees must feel free to make suggestions and complaints.\\
There must be equal opportunity for employment, development\\
and advancement for those qualified.\\
\end{center}
Law 5 is addressed by the following:
\begin{center}
Compensation must be fair and adequate,\\
\end{center}
And Law 6 is addressed by the following:
\begin{center}
Our final responsibility is to our stockholders.\\
Business must make a sound profit.\\
$\cdots$\\
Reserves must be created to provide for adverse times.\\
When we operate according to these principles,\\ 
the stockholders should realize a fair return.
\end{center}
With its narrative prose style, the Johnson \& Johnson statement mission is
quite different from any other mission statement we have seen.  Yet it
contains all the generic features of Gast's laws (although of 
course Gast's laws hadn't yet been invented when the Johnson \& Johnson
mission statement was coined). See Section~\ref{sec:unique}
for a discussion on making your mission statement unique.

\vspace*{.5\baselineskip}

\noindent
{\bf Q2:} {\em We see mission statements with different parts labeled
``Mission'', ``Vision'', ``Values'', ``Quality goals'', and
so on. Which of these parts is the mission?}
\vspace*{.5\baselineskip}

\noindent
{\bf A2:} They all are! See Section~\ref{sec:styles} for a discussion
of the different parts of a mission statement.

\vspace*{.5\baselineskip}

\noindent
{\bf Q3:} {\em People tell me that mission statements
must be short enough to be memorized. Is this true?}
\vspace*{.5\baselineskip}

\noindent
{\bf A3:} Not necessarily. It must be long enough to describe how the
organization intends to comply with Gast's laws, no more and no less.
For example, Ukrop's mission has 216 words, Johnson \& Johnson has 308
words, British Airways has 129 words, and Ford Motor Company has 358
words.  These excellent mission statement are probably too long for
most of us to memorize, but many of Ukrop's employees do indeed
memorize their mission statement. However, the main goal should always
be to develop a mission statement that is an effective management
tool.

\vspace*{.5\baselineskip}
\noindent
{\bf Q4:} {\em We know what our mission is.  Why do we need to write it down?}
\vspace*{.5\baselineskip}

\noindent
{\bf A4:} Because you can't be sure that the people in the
organization really understand the mission until you write it
down. Often, ideas that seem clear in our heads are exposed as being
murky, incomplete, or contradictory when we try to put them to
paper. Stating in precise words just what an organization does or
wants to do is perhaps the most difficult thing for a leader to
articulate.  The difficulty is similar to the problem St. Augustine
encountered when he pondered the nature of time. As he wrote in his
{\em Confessions}, ``If no one asks me, I know; but if any person
requires me to tell him, I cannnot.''

\chapter{Use the Mission Statement}
\label{chap:step4}

To this point, you have worked hard to create a good mission statement
based on Gast's laws.  But there are many good mission statements that
hang forgotten on the wall and play no role in the daily life of the
organization.  So how do you turn your {\em good} mission statement
into an {\em effective} one that is used regularly and strategically?

This chapter contains examples of organizations whose mission
statements play a powerful role in the daily life of the
organization. It is our hope that these examples from real
organizations will give you some ideas for making your mission
statement an effective tool. We think that real examples will be much
more helpful to you than any theories we might have on how to make
effective use of your mission statement.

Some of the stories are based on our own business. Others come from
managers from a variety of successful organizations.  The
organizations include a small section in a giant multinational, a
mid-sized regional firm, some university departments, and a health
care system. Here are their stories.

\section{Anheuser-Busch Technology Acquisition Team}

The Anheuser-Busch Technology Acquisition Team is a group of about 25
people who negotiate contracts for computer and communication
equipment and who hire contract programmers for Anheuser-Busch, the
world's leading beer manufacturer.  Gary Foster, the team manager, led
the development of the mission statement, using Gast's laws, in 1994.
According to Mr. Foster, the mission statement has played an active
role in that growth, and it continues to play an important role in the
daily business of the group.

Mr. Foster and his group use the mission statement to drive their
strategic planning process.  In particular, they use the mission
statement to identify a set of long-term goals that they call
``mission targets''. These mission targets are long term goals that
are implied by the objectives contained in their mission
statement. Each year, they try to figure out how to get closer to
these mission targets, and make plans, broken down in quarterly
phases, including time tables, measurable activities, and specific
responsibilities.

The team also uses the mission statement to help with daily and
strategic problem solving. When they are assigned a new function as
part of a reorganization, they look at the new function and determine
if it fits into the core business defined in their mission statement:
the purchasing of all information technologies for Anheuser-Busch. If
it doesn't fit, then they attempt to have the work transferred out of
their section.

For example, in one case the team inherited a security function for
promoting mainframe programs to production status from test status.
This function took the majority of one person's time, but was
inconsistent with the team's mission.  There were two alternatives:
(1) transfer the person out of the group, or (2) automate the function
so the person could work on more appropriate tasks. The group chose
the latter option, automated the task, and put the person to work on
other tasks that were more consistent with the team's mission.

As another example, during one consolidation phase the group was given
the job of hiring consultants for the information service area.  There
was a question initially about whether this new role was consistent
with the mission of the group. However, a reflection on the mission
statement revealed a good fit, and they were able to integrate the new
role smoothly into their operation.

On the other hand, they also use their mission statement to identify
functions being performed elsewhere that should be handled by their
group. For example, at one point, the outsourcing of some computer
programming work to an offshore firm was being handled by another
group within the company.  However, since it fit so well into their
core business, they were able to campaign successfully to incorporate
the outsourcing function into their group.

Mr. Foster also uses the mission statement in developing relations
with vendors, suppliers, internal customers, and employees.  He
includes a copy of the mission statement in the service agreements for
internal customers, as well as in the purchasing guide for vendors.
He displays mission statements in his office, in the group's
conference room, on the story board outside the office, and on the
group's Web page.  He gives a copy to each employee, reviews it with
each employee candidate, and uses it to counsel employees.
Finally, he uses the mission statement to encourage his
employees to make suggestions and to disagree with him when they think
it is important.

\section{Ukrop's Super Markets}

Ukrop's is a world class grocery chain in the Richmond, VA
area. The company is written about regularly in business journals, and
executives from throughout Europe, Great Britain, South America and
the Far East visit Ukrop's stores on a regular basis to learn about
their operation.

According to Jim Ukrop, President, their mission statement was
developed in 1988 as part of the 50th anniversary celebration of the
company's founding.  It has been an integral part of their day-to-day
operation ever since, with only minor changes.  Their mission
statement is an important tool for strategic planning.  Management
also uses the mission statement on a daily basis to help make
decisions about the operation of the company.

The mission statement also plays a key role in evaluating how the
employees deal with customers, with each other, and with vendors.  For
example, a long-term employee who managed the meat department at one
of the Ukrop's stores refused to carry out the company's three-day
expiration policy. He was warned the first time he was caught; the
second time Mr.~Ukrop fired him. When some people objected to the
firing, Mr.~Ukrop's response was ``Considering our mission statement,
how can we not do it?''

Managers at Ukrop's are not bound by as many policies as they used to
be.  Instead they are told to make decisions using common sense and
the mission statement as guidelines.  For instance, Ukrop's used to
have a policy of not cashing any check over \$400.  But if a regular
customer wants to cash a \$500 check, they will cash it, because their
mission statement demands superior customer service.  The \$400 figure
is a guide, rather than a policy.

Ukrop's goes to great lengths in encouraging their employees to learn
about the mission statement.  For a while it was even printed on every
grocery bag.  Employees are encouraged to memorize the
statement. Anyone who can recite the mission statement from memory
gets a special pin and their name listed on the honor roll. Typically
50--70 people qualify each month. There are over 2,500 employees on the
honor roll, out of a total of 5,000 employees.

Ukrop's works hard at recognizing their people.  For example, at the
annual picnic, those employees who have received letters of praise
from customers are entered in the Parade of Champions.  The promotion
system is designed to enable the organization to have plenty of room
for advancement, appropriate work titles, and financial levels. All of
which speaks to the respect of the organization for its people.

Meetings at Ukrop's are usually started with some ``mission in
action'' stories.  These are stories about heroic things that
employees do to carry out the mission.  For example, stories about
employees changing tires, delivering wedding cakes, and helping
customers who have difficulties are common. According to Mr.~Ukrop,
these stories help people to understand the mission and to celebrate
living it.

\section{VCU Department of Psychology}

Steve Robbins, Ph.D., Chair of the VCU Department of Psychology, is
one of the best university level managers we have met. He led the
development of the department's mission statement, based on Gast's
laws, in 1994.

According to Prof.~Robbins, the mission statement serves as the guide
for the department.  He refers to it for guidance on processes he
wants implemented in the department. It creates a structure for the
hiring process, and is used at the insistence of the other faculty as
the basis for their strategic planning sessions.  No faculty or staff
hires are made unless the focus of the hiring (or new position) is
consistent with the mission statement.

The mission statement sets a tone that the members of the department
live their working lives by.  Interestingly, when the department first
created their mission statement, Prof.~Robbins was not impressed with
the part of the mission statement that listed the shared
values. Instead, he was mainly interested in the part that listed the
long range goals of the department.  However, since then, he has
discovered that the part of the mission statement that is used the
most, the part that is most helpful, is the list of shared values. In
Prof.~Robbins's words,

\begin{quote}
The values part serves as a basis for a sense of respect we are trying
to instill in the faculty.  We want people to feel safe to take risks
and to be tolerant. We don't want people to feel that hard work is our
goal, when actually our goal is excellence.  Being held in high regard
is not enough, we must be excellent.  The mission statement represents
the standards I will expect and will enforce, as long as I am Chair of
the department.
\end{quote}
Prof.~Robbins uses the statement daily to frame decisions and to focus
on values and goals.  It serves as a cornerstone, especially when the
department is under stress or changing circumstances.  It gives
continuity.

\section{School of Allied Health Professions}

The VCU/MCV School of Allied Health Professions developed a new
mission statement, based on Gast's laws, early in 1995, under the
leadership of Dean Thomas Barker, Ph.D.

Cecil Drain, Ph.D., the current Dean, has appointed one of his Chairs
as the School Mission Manager.  As a Chair, she attends all School
Executive Committee meetings and reflects the decisions made against
the school's mission statement. This has been an effective technique
and has made the mission statement an important document in the
decision making process.  For example, some decisions most recently
affected by this technique involve the structure of the Executive
Committee meetings, the method and process for the evaluation of
Chairs of all departments, and resolutions about the 
accountability of staff and faculty.

As another example, the mission statement was highlighted in the
introduction of a recent report that Prof.~Drain presented to the
University President's Council. In the report he explained how the
School positioned itself to earn top-10 nationwide rankings for five
of its eight departments in 1998.

\section{Coastal Hospice}

Coastal Hospice, in Salisbury, MD, is a freestanding hospice that
provides hospice and home health services for 4 counties on the
eastern shore of Maryland. Marion Keenan, President, led the effort to
develop a new mission statement, based on Gast's laws, in 1992 (see
Appendix~\ref{app:coastal}).

According to Ms. Keenan, the mission statement is an integral part of
the daily work life.  The mission statement is reproduced on the first
page of the employee handbook. A large framed copy hangs in every room
where decisions are made.  According to Ms. Keenan, ``you can't get
away from it!''.

Employees share the mission statement with every patient.  Managers
carefully review the statement with prospective employee and volunteer
applicants to make sure they are willing to support the mission.

It is also used in daily decision making and in strategic planning,
serving to constantly remind them what they are about.  It has helped
them to stabilize their direction in the face of the
incredible changes that are occurring in the health care industry.  As
the organization ponders gut-wrenching changes, they ask themselves if
the changes are consistent with their mission. If not, they consider
other options. According to Ms. Keenan,
\begin{quote}
Constant change makes it difficult to keep your footing because your
footing is always changing.  It would have been harder for me
personally to not have a mission statement to work with.  I may have
been confused.  A leader needs to be rooted in something important.
\end{quote}
Ms. Keenan tells us that the Coastal Hospice staff literally lives the
mission in their discussions and problem solving.  People are not
afraid to confront her on mission issues. For example, "You say one
thing in the mission, but this decision speaks of another."  The
challenges are not one-upsmanship. They are based on serious concerns
that help keep the staff on track. In her words,
\begin{quote}
I believe in the mission statement as do most of my people.  It is not
hard to get the organization to live it.  It inspires people, and they
take it to heart.  When I see how our people, one on one, work through
tough problems, I know they believe it.
\end{quote}

\section{Bon Secours Health System}

Dick O'Hallaron (the first author of this book) was CEO of St.~Mary's
Hospital in Richmond, VA from 1972--1987, and the regional
vice-president for the Virginia area of the Bon Secours Health System
from 1985--1987.  The Sisters of Bon Secours organized an extremely
successful health system, currently one of the largest Catholic health
systems in the country, in 1983. At the same time they developed a
mission statement for their new system. (See
Appendix~\ref{app:bonsecours} for their most recent version.)

As CEO, Dick had a strong feeling that the mission statement was
understood by most people and had a big impact on the day-to-day
operation of the organization.  The organization had a very caring
environment. It held people in high esteem, including doctors,
employees, volunteers and especially its patients.  It had a special
focus on high quality, whether it was keeping the hospital clean,
serving good meals, or providing quality nursing and medical care.
People were proud of the environment and liked working there.  Bon
Secours had an excellent mission statement, and the organization lived
it. The mission statement was a powerful influence then, and it still
is today.

The same mission statement was used by all 9 facilities in the early
days of the Bon Secours health system, and thus provided continuity in
culture across all the hospitals in the system.  It was an important
factor in the success of the organization, and triggered Dick's
current passion for helping other organizations develop good mission
statements.

The mission statement affected many parts of the organization.  Dick
used the mission statement extensively during orientation and routine
training sessions for hospital employees and board members.  In
general, the organization used the mission statement as the basis for
teaching employees how they should treat patients and each other.

The mission statement also served as the basic document for strategic
planning, and Dick used it numerous times to help with major hirings
and acquisitions.  For example, he used it to screen applicants when
he was hiring a CEO for the Great Britain province of the Bon Secours
system.

He also used it to help rule out the purchase of a group of nursing
homes in the US.  The profitability of the prospective purchase was
built on wage and benefit policies that did not fit the Bon Secours
mission.  What at first looked like a good investment wasn't, when one
examined the employee benefits, which were practically nil.  The
company that owned the chain made their money by paying very low wages
and offering practically no benefits.

In another case, the objective in the Bon Secours mission statement to
care for the poor supported a system-wide policy of never refusing
care to someone because they couldn't pay.  It also helped influence a
decision to open a satellite in Amelia County, one of the poorest and
most underserved areas in Virginia. Bon Secours built a new health
care center and staffed it with doctors, nurses, x-ray technicians,
and lab people. The center took care of anyone who showed up, whether
they could pay or not.  The center won the Citation Award from the
Catholic Hospital Association for outstanding works in the care of the
poor. Eventually it became a self-sufficient enterprise and provides a
continuing service to this day in an area that really needs it.

At one point the organization made the difficult decision to eliminate
a certain job category in the pharmacy and lay off the 100 people that
filled those jobs. Since the mission statement emphasized respect for
people and a responsibility to provide productive employment, the
board required Dick to make a report each month on the status of the
people who had not been rehired yet. Each month, the board quietly
extended the severance packages for the employees who were still
unemployed but were actively trying to find jobs.  At the end of a
year, all but 2 out of 100 had found work, and no one had their
severance package terminated before they were able to find
work. Clearly, Bon Secours was an organization with an intuitive
understanding of Gast's laws.

In the late 1980's Dick was chair of the finance committee of the
Cincinnati based Sisters of Charity Health System.  The members of
this committee included a vice-president of the Federal Reserve,
highly successful business people, academic people, members of
religious orders, and hospital CEOs. An important purpose of the
committee was to review the feasibility and financial impact of major
programs proposed by member organizations of the system.

In many cases, the committee first reviewed the financial impact
of the proposal, and then attempted to evaluate whether the proposal
was consistent with the organization's mission statement. However, a
number of committee members were uncomfortable with their level of
understanding of the organization's mission.  

To address this problem, Dick devised the following simple but
effective technique, called a {\em mission reflection}, to help the
board members learn about the mission of the organization. At the
beginning of each finance committee meeting, one of the committee
members would spend a few minutes describing what the mission meant to
them.  They might focus on some aspect of the mission, or they might
describe how they felt the day's agenda related to the mission.  The
presentations were for the most part extemporaneous and informal.  It
was inspiring to hear each person's feeling about the mission of the
organization and what it meant to the individually personally.  After
about 18 months of this practice, everyone clearly understood what the
mission was all about, but the committee chose to continue the
practice anyway because they valued the comments.

Some of the finance committee members liked the idea of mission
reflections so much that they began doing it with other committees and
boards that they served with.  Over a period of several years, without
any directive or mandate from anyone, the practice of mission
reflections spread throughout the board level committees of the system
and its numerous hospitals.  The practice eventually spread outside of
the Sisters of Charity system. One of the board members of their
Denver hospital, a major stockholder of a multinational corporation,
instituted the practice of mission reflections at the board meetings
of his own organization.

\section*{Concluding remarks}
These are just a few examples that illustrate how different
organizations, large and small, for-profit and non-profit, are using
their mission statements in the day-to-day operations of their
businesses. From these examples, we can draw a few conclusions
about effective mission statements.

First, and most important, the head of the organization believes in
the mission statement completely and recognizes it as an important
tool. Depending on the type of organization (i.e., corporation,
section, or department) this person might be the chairman, president,
or department head. Without support from the top, a mission statement
is not worth the paper it is printed on, and none of the techniques
we have taught you will make any difference.

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.  It is used in
strategic planning, in problem solving, in day-to-day decision making,
and in promoting the objectives of the organization.

Finally, the mission is well distributed and visible.  Managers,
employees, vendors, contractors, and customers know about the mission
statement and understand it.

Many successful organizations use their mission statement as a
powerful management tool. If you follow our advice and base your
mission statement on Gast's laws, you too can create an effective
mission statement. Good luck!

\appendix

\chapter{The Four Steps to an Effective Mission Statement}
\label{app:steps}
\begin{enumerate} 
\item Organize a mission team.
\item Use Gast's laws to construct the fundamental objectives of the organization. 
\item Use the fundamental objectives to construct the mission statement.
\item Use the mission statement regularly and strategically.
\end{enumerate}

\chapter{Gast's Laws}
\label{app:laws}
A business must:

\begin{enumerate}
\item Produce a want-satisfying commodity or service, and continually
improve its ability to meet needs.
\item Increase the wealth or quality of life of 
society through the economic use of labor and capital.
\item Provide opportunities for the productive employment of people.
\item Provide opportunities for the satisfaction of normal occupational desires.
\item Provide just wages for labor.
\item Provide a just return on capital. 
\end{enumerate}

\chapter{The Baldrige Award Winners}
\label{app:baldrige}
\begin{description}
\item[1998.] Boeing Airlift and Tanker Programs, Solar Turbines Inc., Texas Nameplate Conpany Inc.

\item[1997.] Merrill Lynch Credit, Xerox Business Services, 
3M Dental Products Division, Solectron.

\item[1996.] ADAC Laboratories, Custom Research, 
Dana Commercial Credit, Trident Precision Manufacturing.

\item[1995.] Armstrong World Industries Building Products Operations, 
Corning Telecommunications Products Division.

\item[1994.] AT\&T Consumer Communications Services, 
GTE Directories Corporation, Wainwright Industries.

\item[1993.] Ames Rubber, Eastman Chemical Company.

\item[1992.] AT\&T Network Systems Group 
Transmission Systems Business Unit, AT\&T Universal Card Services,
Granite Rock Company, Texas Instruments, Defense Systems \&
Electronics Group.

\item[1991.] Marlow Industries, Solectron, Zytec.

\item[1990.] Cadillac Motor Car Company, 
Federal Express, IBM Rochester AS/400 Division, Wallace Company.

\item[1989.] Milliken \& Company,  Xerox Business Products \& Systems.
 
\item[1988.] Globe Metalurgical,  Motorola, 
Westinghouse Electric Commercial Nuclear Fuel Division.

\end{description}

\chapter{Anheuser-Busch Technology Acquisition Team}
\label{app:ab}
\begin{center}
\Large Mission Statement
\end{center}
\begin{center}
\large Vision
\end{center}
The Technology Acquisition Team supports the mission of Anheuser-Busch
Companies, Inc. and the Management Systems Group. Our aim is to
provide key procurement services to Anheuser-Busch Companies, Inc. and
its affiliates for all information technologies. These services
include negotiation, risk management, vendor/product selection
expertise, leadership in knowledge of industry trends, and other
activities that promote the success of our customers. Our commitment
in providing our services is to be {\em the best} --- efficient,
effective, and constantly improving our ability to meet or exceed our
customers' expectations.

We will ensure a quality return on the investment our company has made
in our team, by striving to add value, eliminate waste and achieve the lowest
total system cost for our customers. Our contribution to the quality
of life is to promote the organization's responsibilities for our impact
on the environment and society.

We will do our best to respect our vendors and their investments of
time and resources. We will treat them fairly and honestly in
striving to award our business based on excellent service,
superior quality and competitive price. We intend to build long
term relationships with the best suppliers in the industry.

\begin{center}
\large Values
\end{center}
In working together to achieve our vision, the people of the Technology
Acquisition Team are guided by a set of shared beliefs that make progress
possible. Our task is to strive for constant improvement in making these
beliefs a reality:
\vspace*{.5\baselineskip}

\noindent
{\bf TRUST.} We believe in:
\begin{itemize}
\item A trust among team members that holds each member accountable.
\item Earning trust by recognizing the appropriate priority of our customers'
needs while protecting the interests of the company and our customers.
\end{itemize}

\noindent
{\bf PEOPLE.} We believe in:
\begin{itemize}
\item The fundamental respect and dignity for each individual with whom we
have contact in the pursuit of our vision.
\item Recognizing the contributions of our team members and providing
them with opportunities for satisfying and financially rewarding work with 
continuous opportunities for personal development and advancement.
\item Our team's ability to be open to new ideas and our collective
effectiveness to anticipate future technological and service needs of
our customers.
\end{itemize}

\noindent
{\bf QUALITY.} We believe in:
\begin{itemize}
\item A fundamental commitment to continuous improvement of our services, 
targeted to ultimately achieve customer delight. 
\item Providing our customers with the highest ideals of timeliness, 
accuracy, consistency, and completeness in our work.
\end{itemize}

\chapter{British Airways}
\label{app:ba}
\begin{center}
\Large Mission Statement
\end{center}

British Airways mission is to be the undisputed leader in world
travel.

\noindent
Our values are to be:
\begin{itemize}
\item Safe and secure
\item Honest and responsible
\item Innovative and team-spirited
\item Global and a caring good neighbor
\end{itemize}

\noindent
Our goals are:
\begin{itemize}
\item To be the customers first choice.
\item We want British Airways to be the air line of first choice in our key
markets.
\item We want inspired teams of people building and benefiting from the
company's success, sharing a cause, feeling good about working together
and delighting the customer.
\item To enjoy strong profitability.
\item We need to meet investors expectations and secure the future.
\item To be truly global.
\item With a global network and a global outlook, we want to be recognized
everywhere for superior value in world travel.
\end{itemize}

\chapter{Ford Motor Company}
\label{app:ford}

\begin{center}
{\Large Mission, Values, and Guiding Principles}
\end{center}

\subsection*{Mission}
Ford Motor Company is a worldwide leader in automotive-related 
products and services as well as in newer industries such as aerospace,
communications, and financial services. Our mission is to improve continually
our products and services to meet our customers' needs, allowing us
to prosper as a business and to provide a reasonable return for our
stockholders, the owners of our business.

\subsection*{Values}
How we accomplish our mission is as important as the mission
itself. Fundamental to success for the company are these basic values:
\begin{itemize}
\item People --- Our people are the source of our strength. They provide
our corporate intelligence and determine our reputation and vitality.
Involvement and teamwork are our core human values.
\item Products --- Our products are the end result of our efforts, and they 
should be the best in serving customers worldwide. As our products are
viewed, so are we viewed.
\item Profits --- Profits are the ultimate measure of how efficiently we
provide customers with the best products for their needs. Profits are
required to survive and grow.
\end{itemize}

\subsection*{\bf Guiding Principles}
\begin{itemize}
\item Quality comes first. To achieve customer satisfaction, the 
quality of our products and services must be our number one priority.
\item Customers are the focus of everything we do. Our work must be
done with our customers in mind, providing better products and
services than our competition.
\item Continuous improvement is essential to our success. We must strive
for excellence in everything we do, in our products, in their safety
and value, and in our services, our human relations, our
competitiveness, and our profitability.
\item Employee involvement is our way of life. We are a team. We must
treat each other with trust and respect.
\item Dealers and suppliers are our partners. The company must maintain
mutually beneficial relationships with dealers, suppliers, and our
other business associates.
\item Integrity is never compromised. The conduct of our company 
worldwide must be pursued in a manner that is socially responsible and
commands respect for its integrity and for its positive contributions
to society. Our doors are open to men and women alike without
discrimination and without regard to ethnic origin or personal
beliefs.
\end{itemize}

\chapter{Johnson \& Johnson}
\label{app:jj}

\begin{center}
{\Large Our Credo}
\end{center}

\begin{center}
We believe our first responsibility is to the doctor, nurses and patients,\\
to mothers and all others who use our products and services.\\
In meeting their needs everything we do must be of high quality.\\
We must constantly strive to reduce our costs\\
in order to maintain reasonable prices.\\
Customers' orders must be serviced promptly and accurately.\\
Our suppliers and distributors must have an opportunity\\
to make a fair profit.

\vspace*{.5\baselineskip}

We are responsible to our employees,\\
the men and women who work with us throughout the world.\\
Everyone must be considered as an individual.\\
We must respect their dignity and recognize their merit.\\
They must have a sense of security in their jobs.\\
Compensation must be fair and adequate,\\
and working conditions clean, orderly and safe.\\
We must be mindful of ways to help our employees fulfill\\
their family responsibilities.\\
Employees must feel free to make suggestions and complaints.\\
There must be equal opportunity for employment, development\\
and advancement for those qualified.\\
We must provide competent management,\\ 
and their actions must be just and ethical.

\vspace*{.5\baselineskip}

We are responsible to the communities in which we live and work\\
and to the world community as well.\\
We must be good citizens - support good works and charities\\
and bear our fair share of taxes.\\
We must encourage civic improvements and better health and education.\\
We must maintain in good order\\
the property we are privileged to use,\\
protecting the environment and natural resources.

\vspace*{.5\baselineskip}

Our final responsibility is to our stockholders.\\
Business must make a sound profit.\\
We must experiment with new ideas.\\
Research must be carried on, innovative programs developed\\
and mistakes paid for.\\
New equipment must be purchased, new facilities provided\\
and new products launched.\\
Reserves must be created to provide for adverse times.\\
When we operate according to these principles,\\ 
the stockholders should realize a fair return.
\end{center}

\chapter{Ukrop's}
\label{app:ukrops}
\begin{center}
\Large Vision, Mission, and Shared Values
\end{center}


\subsection*{Vision} 
The vision of Ukrop's is to be a world-class provider of food and
services.

\subsection*{Mission}
The mission of Ukrop's is to serve our customers and community
efficiently and effectively while treating our customers, associates,
and suppliers as we personally like to be treated. We will achieve
profitable growth and long-term financial success while promoting an
atmosphere of mutual trust, honesty and integrity.

\subsection*{Shared Values}
We believe we can best fulfill our vision and accomplish our mission
by living these values daily:
\begin{itemize}
\item Superior Customer Service --- resulting from great execution, a caring
attitude, and a sense of urgency.

\item Honesty and Fairness --- acting openly, equitably and consistently in
all we do.

\item Superior Quality and Freshness --- uncompromising in our commitment.

\item Cost Consciousness --- minimizing waste and vigorously pursuing
continuous improvement, resulting in lower prices and greater values.

\item Teamwork --- coming together as a diverse workforce to achieve our
shared vision.

\item Atmosphere --- fostering an environment that is safe, clean,
challenging, and fun.

\item Health and Fitness --- strengthening our bodies for productive and
creative minds.

\item Competence --- performing our jobs effectively and being informed and
excited about our food and services.

\item Lifelong Learning --- seeking knowledge and enthusiastically sharing it
with others

\item Quality of Life --- committing to improving the lives of our families
and well-being of our community
\end{itemize}

\chapter{VCU Department of Psychology}
\label{app:vcupsych}

\begin{center}
\Large Mission Statement
\end{center}

\begin{center}
\large Vision
\end{center}

The Department of Psychology is a national leader promoting the
understanding of behavior through the integration of scholarly
inquiry, teaching, and service. We promote an environment conducive
to learning, with a special emphasis on applied societally relevant
psychology.

We lead the way in improving the quality of life in society through
the development of knowledge and technology, finding ways of addressing human
problems, and educating people to be responsible citizens and
effective leaders.

We achieve excellence by continually measuring our performance and
productivity as scholars, teachers, contributors to society, and as a
Department, in order to effectively meet the changing needs of our
customers, whether they be students, staff, faculty, the Commonwealth
of Virginia, or society.

We are committed to create and enhance mechanisms for the recognition
of people's work, and to provide access to growth and advancement for
faculty, staff, and students. We advocate fair compensation, and see
creative means of developing and managing compensations for our people
and Department.

In all endeavors, we strive to use resources cost-effectively so that
we can best achieve this mission and the missions of the college of
Humanities and Sciences and of Virginia Commonwealth University.

\begin{center}
\large Values
\end{center}
Our work is created with excellence, conceived in wisdom, and aimed
at improving the quality of life. Our productivity is maintained in an
environment of fairness, mutual respect, and enjoyment.

How we accomplish our mission is as important as the mission itself.
Fundamental to the success of the Department are these basic values:

\begin{itemize}
\item Mutual Respect --- We value and refuse to devalue other people, including
our faculty, staff, students, members of our University community, and all
other constituents.

\item Enjoyment --- We strive to create an environment that we look 
forward to entering each day.

\item Wisdom --- We apply our knowledge and expertise with compassion and 
caring.

\item Fairness --- We treat others as we like to be treated, with trust 
and respect. We maintain clearly and equitable access to resources in
the Department for faculty, staff, and students.

\item Excellence --- Creatively doing whatever we must and whatever we aim
for, with an intent to improve continually, so we can affect others and
be proud of what we have done.

\item Improved Quality of Life --- In order to make our increasingly diverse
society better, we contribute knowledge, educate people, and work
to solve human problems.

\item Productivity --- Teamwork and individual efforts are both parts of a 
productive environment. we value and support our own work and the work of
others.
\end{itemize}


\chapter{School of Allied Health Professions}
\label{app:vcusahp}
\begin{center}
\Large MISSION
\end{center}
The School of Allied Health Professions serves as an international
leader in the education of excellent, innovative, and responsible
allied health professionals. Educational formats that are technologically
advanced and accessible to students through on-campus and distance
learning are emphasized. In addition, the School, responsive to the 
needs of society, promotes excellence in health care service, and
encourages collaborative research that generates state-of-the-art
and specialized knowledge.

The School is an integral part of Virginia Commonwealth University and
its Medical College of Virginia Campus. The School recognizes the
importance of being accountable to the students and their families,
the Commonwealth, faculty, staff, alumni, and other benefactors by
using resources effectively. Strong linkages with clinical educators,
preceptors, and the community are essential to the success of the
School.

The School fosters fair and equitable work responsibilities and
compensation to faculty and staff. It nurtures continuous growth in
their knowledge base and productivity. The School furnishes an
accessible, secure, and pleasant physical setting that enhances the
cohesion, interaction, and morale of the students, faculty, and staff.

The School serves and represents its member departments. It is 
organized in a decentralized structure that empowers the departments
to achieve leadership in each of their respective disciplines. 
The School derives its strength from professional diversity that is
based upon cooperative interdisciplinary education, research, and 
service.

\vspace*{.5\baselineskip}
\noindent
{\em In pursuit of this vision, the School emphasizes the following
values:}

\begin{itemize}
\item Accountability --- We take responsibility for our attitudes, actions,
and judgements.

\item Cooperation --- We collaborate through the practice of 
open communication, trust, and respect.

\item Dignity of the Individual --- We respect the value and uniqueness
of each individual.

\item Enjoyment --- We value internal well-being, creative enrichment, and
a spirit of joyfulness.

\item Excellence --- We practice and promote the highest standard of
quality performance and care of the individual.

\item Fulfillment of Potential --- We facilitate continual professional 
development and personal growth.

\item Innovation --- We encourage and support creativity.

\item Integrity --- We conduct ourselves in a forthright and honorable
manner as demonstrated by actions that are hones and trustworthy.
\end{itemize}

\chapter{Coastal Hospice}
\label{app:coastal}
\begin{center}
\Large OUR MISSION
\end{center}

Coastal Hospice is a health care organization dedicated to preserving
the dignity and quality of life.  We offer both comprehensive hospice
care for the terminally ill and selected home health services to
residents of Maryland's lower Eastern Shore.  In addition to providing
physical care, we promote the emotional and spiritual growth of
patients, enabling them to live their lives to the fullest.  Our mission
includes education in the care of the terminally ill and support to the
bereaved.

As responsible stewards we will use our resources effectively and
productively, conscientiously preserving our assets.  We will
continually improve Coastal Hospice in order to meet our community's
changing needs with the highest quality, cost effective services.  We
will strive to exceed requirements for licensure, accreditation and
other recognized professional standards.

We encourage pursuit of our ideals, professional development and
teamwork.  We value our associates and respect the service given to
patients by staff, volunteers, attending physicians and all others who
support Coastal Hospice.

\begin{center}
\Large OUR VALUES
\end{center}

\begin{itemize}
\item AFFIRMING LIFE. We believe that human life has inherent dignity and is
worthy of celebration.  We hope our patients will live life to its
fullest.  Coastal Hospice will neither hasten nor unduly postpone death
for those who are terminally ill.  We will strive to alleviate pain, to
provide physical comfort, to encourage emotional and spiritual growth,
to foster reconciliation, and to enhance each patient's relationship
with others.

\item RESPECT. We respect the dignity of all who serve and are served by
Coastal Hospice.  We honor each patient's privacy and right to make
decisions concerning treatment.  We encourage each colleague's
professional development.  We will foster a work environment
characterized by effective teamwork, clear direction and recognition of
individual contributions.

\item COMPASSION. We will respond promptly with our presence to patients and
families needing assurance, guidance, and relief from suffering.  We
encourage caring support, comfort, communication, understanding, empathy
and listening.

\item TRUST.  Trust is the bond which holds a community together; open and
honest communication is essential for our work.  Our patients and
families have unique responsibilities and capabilities for providing
care and we trust them to make good decisions.  Reciprocally, we hope to
deserve their trust and that of our community.

\item COMMITMENT. We are committed to the highest standards of care and
recognize that personal relationship with each patient this requires.
We pledge to provide care regardless of a patient's ability to pay.  We
will lead in educating others about hospice and home care.  We will
fulfill our responsibilities to staff, volunteers, attending physicians,
colleagues in health care, clergy, supporters, media, and the community
at large.

\item QUALITY.  We will improve the quality of our services continually.  Each
associate is a partner in fostering Coastal Hospice's growth and
development and is empowered to respond caringly to our patients and
their families.
\end{itemize}

\chapter{Bon Secours Health System}
\label{app:bonsecours}
\begin{center}
\Large MISSION
\end{center}
Recognizing the dignity of all persons, we provide compassionate
health care services contributing to the physical, social, emotional,
and spiritual well-being of those we serve. We commit ourselves to
help bring people to wholeness by:
\begin{itemize}
\item understanding and responding to health care needs 
(especially unmet needs).

\item developing the potential of those who serve with us.

\item advocating a just and equitable public health policy.
        
\item modeling justice in the workplace.
\end{itemize}
Guided by our values and our responsibility to the communities we
serve, we will achieve planned growth in response to community need,
while continually improving our systems and services so as to become
ever more faithful to our Mission.
\begin{center}
\Large VALUES
\end{center}
\begin{itemize}
\item {\bf Respect.} We treat all people well because we believe each 
person has dignity.

\item {\bf Justice.} We support, protect and promote the rights of all 
individuals and have special concern for the poor.

\item {\bf Integrity.} We are honest in our dealings; 
our behavior is consistent with our thoughts, feelings and values.

\item {\bf Stewardship.} We use all of Bon Secours 
resources in a responsible way.

\item {\bf Innovation.} 
We look for new ways to meet people's needs and improve our service.

\item {\bf Compassion.} 
We experience and express empathy with the life situations of others.

\item {\bf Quality.}
We continuously improve our service through understanding and acting
on the needs and expectations of being served.
        
\item {\bf Growth.} 
We strive to expand our services to meet new needs, and we promote the
development of our co-workers.
\end{itemize}
        
\newpage
\chapter{Examples of Organizational Values}
\label{app:values}
Here are some examples of organization values and their descriptions
that you can use as a point of departure when you write your mission
statement. They are included to help you understand what we mean by
the notion of an organizational value. Use these as starting points
only; always write your mission statement in your own words
so that it describes the unique nature of your organization.

\begin{description}
\item[Accountability:]
Individual faculty, staff, and students are accountable to each other, the 
department Chair, the school, the university, and the larger society.

\item[Accountability:] 
We take responsibility for our attitudes, actions, and judgments.

\item[Affirming life:]
We believe that human life has inherent dignity and is worthy of
celebration.  We hope our patients will live life to its
fullest. Coastal Hospice will neither hasten nor unduly postpone death
for those who are terminally ill.  We will strive to alleviate pain,
to provide physical comfort, to encourage emotional and spiritual
growth, to foster reconciliation, and to enhance each patient's
relationship with others.

\item[Ambition:]
We encourage our people to be ambitious in their pursuit of knowledge,
and work toward advancement within the organization.

\item[Anticipation:]
Anticipation of, and planning for the future health care needs of our
service area, is important to our constituents.

\item[Appreciation for resources:]
Company assets and financial resources are investments in our future
and receive our utmost respect.

\item[Atmosphere:]
We will work to create an atmosphere within this plant that is safe,
clean, challenging, and fun.

\item[Attentiveness:] 
We attend to the medical needs of the families of our active duty
members, our retirees and their families, whenever we are able, for
just as the family supports the force, so must we support the family.

\item[Bravery:] 
We admire those in our organization who have demonstrated bravery in
the pursuit of their rescue efforts.

\item[Caring:]
We care for all persons as unique human beings worthy of our courtesy,
compassion and respect.

\item[Caring:]
We will always have a caring and responsive attitude toward patients,
their families and guests.

\item[Choices:]
We pursue the highest ethical standards in our decisions and in our
actions.

\item[Christian identity:]
The Christian Identity of our work is paramount to the motivation of
our mission.

\item[Citizenship:]
We will support civic activities to improve the quality of life for
our fellow man.

\item[Collaboration:]
We work together in a spirit of teamwork to serve others.

\item[Commitment:] 
We are committed to the highest standards of care and recognize the
personal relationship with each patient this requires.  We pledge to
provide care regardless of a patient's ability to pay.  We will lead
in educating others about hospice and home care.  We will fulfill our
responsibilities to staff, volunteers, attending physicians,
colleagues in health care, clergy, supporters, media, and the
community at large.

\item[Communication:]
We will promote honest, current and continuous two-way
communication throughout the organization.

\item[Compassion:]
We will respond promptly with our presence to patients and
families needing assurance, guidance, and relief from suffering.  We
encourage caring support, comfort, communication, understanding,
empathy and listening.

\item[Compassion:]
We enhance the dignity of all people by demonstrating care
and respect.

\item[Competence:]
We pursue excellence in our healing efforts.

\item[Consistency:]
We will encourage a consistent level of excellent service
to all our constituents.

\item[Continuous improvement:]
We will promote continuous improvement in the
quality of the work of faculty, staff, students, and alumni.

\item[Continuous improvement:]
Continuous improvement is essential to our
success.  We must strive for excellence in everything we do: in our
products, in their safety and value--and in our services, our human
relations, our competitiveness, and our profitability.

\item[Continuous improvement:]
We will continuously improve in all aspects of
our enterprise.

\item[Contribution:]
We empower each person to fully use gifts and talents,
and hold each other accountable to the fullest extent.

\item[Cooperation:]
We collaborate through the practice of open communication,
trust, and respect.

\item[Cost consciousness:]
We will minimize waste and vigorously pursue 
productivity improvements

\item[Creativity:]
We seek the best way to serve and to use the resources
entrusted to us.

\item[Customers:] 
Customers are the focus of everything we do--Our work must
be done with our customers in mind, providing better products and
services than our competition.

\item[Dealers and suppliers as partners:]
The Company must maintain mutually
beneficial relationships with dealers, suppliers, and our other
business associates.

\item[Dependability:]
We will be known as dependable dedicated providers of
service to all our constituents.

\item[Development:]
The development of each of our associates is key to the
success of our customer service mission.

\item[Dignity of the individual:]
We respect the value and uniqueness of each
individual.

\item[Diligence:]
We will be diligent in our effort to provide high quality at
all times.

\item[Diversity:]
Diversity is a strength upon which this organization is built.

\item[Efficiency:] 
We will be efficient in the use of our resources.

\item[Employee involvement:]
Employee involvement is our way of life-- We are a team, and we must
treat each other with trust and respect.

\item[Enjoyment:]
We strive to create an environment that we look forward to entering each day.

\item[Enjoyment:]
We value internal well being, creative enrichment, and a spirit of joyfulness.

\item[Ethical conduct:]
Ethical conduct is a way of life expected by all who work with our
organization.

\item[Excellence:]
We practice and promote the highest standard of quality performance
and care of the individual.

\item[Excellence:]
Superior quality in every task is our minimum standard.

\item[Fair Return:]
We will provide a fair return to participants and support organizations.

\item[Fairness:]
We treat others as we like to be treated, with trust and respect.  We
maintain clearly defined and equitable access to resources in the
Department for faculty, staff, and students.

\item[Fairness:]
We believe in fairness in matters of compensation, benefits, promotion and 
tenure, scheduling, grading, resource allocation, and handling disputes.

\item[Faithfulness:]
We will be faithful to the commitment we have made for excellence in the 
provision of services and products.

\item[Fulfillment of potential:]
We facilitate continual professional development and personal growth.

\item[Growth and application of continuous quality improvement:]
Provide help and seek to influence business, educational and governmental 
entities in pursuit of continuous quality improvement.

\item[Growth and development of people:]
Create an environment where in individuals may grow through a process of 
reciprocal sharing of knowledge and experience.

\item[Health and fitness:]
Essential for productive and creative minds.

\item[Honesty and fairness:]
Treating others as we personally would like to be treated.

\item[Honesty and integrity:]
All business is conducted in a forthright and trustworthy manner.

\item[Improved quality of life:]
In order to make our increasingly diverse society better, we contribute 
knowledge, educate people, and work to solve human problems.

\item[Improvement:]
We will improve the quality of life and 
respond to opportunities to improve the 
economic viability of the community.

\item[Innovation:]
Innovation is the rule, not the exception.  Creative and constructive
ideas are sought from all employees.

\item[Innovation:] 
We will identify opportunities arising from new human needs and new
professional technologies and promptly assemble the talent and
resources to exploit these opportunities.  Our innovative capability
is one of the foundations upon which our leadership capacity is built.

\item[Innovation:]
We encourage and support creativity.

\item[Integrity:]
Integrity is never compromised --- The conduct of our Company worldwide
must be pursued in a manner that is socially responsible and commands
respect for its integrity and for its positive contributions to
society. Our doors are open to men and women like without
discrimination and without regard to ethnic origin or personal
beliefs.

\item[Integrity:]
We conduct ourselves in a forthright and honorable manner as demonstrated by 
actions that are honest and trust worthy.

\item[Justice:]
We will be just in our decisions and rewards.

\item[Kindness:]
Kindness is a quality we look for in all our associates.

\item[Leadership:]
We believe in leadership through excellence and will establish new
directions by talent and example, influencing the behavior of other
institutions.

\item[Learning:] 
We will build on our heritage of the Carnegie Plan and become the leading 
institution that combines first rate research with outstanding undergraduate 
education through our focus on learning and problem solving.

\item[Life-long learning:] 
Life long learning is necessary for personal and career growth.

\item[Long-term profitability and growth:]
This is a measure of success which associates share through bonuses and new 
opportunities.

\item[Loyalty:] 
Loyalty is shared. The individual is true to the organization and the 
organization is true to each person.

\item[Mutual respect:]
We value and refuse to devalue other people, including our staff, faculty, 
students, members of our University community, and all other constituents.

\item[People:]
Our people are the source of our strength. They provide our
corporate intelligence and determine our reputation and
vitality. Involvement and teamwork are our core human values.

\item[People:] 
We believe in the fundamental respect and dignity for each individual
with whom we have contact in the pursuit of our vision. Recognizing
the contributions of our team members and providing them with
opportunities for satisfying and financially rewarding work with
continuous opportunities for personal development and advancement. Our
team's ability to be open to new paradigms and our collective
effectiveness to anticipate future technological and service needs of
our customers.

\item[People:]
People are our greatest asset.  We could not function without our
people; they are the keys to our organization's success.

\item[Personal development:]
Personal development is the foundation of our long-term ability to serve our 
customers well.

\item[Productivity:] 
Teamwork and individual efforts are both parts of a productive
environment.  We value and support our own work and the work of
others.

\item[Products:]
Our products are the end result of our efforts, and they should be the best in 
serving customers world wide. As our products are viewed, so are we viewed.

\item[Profits:]
Profits are the ultimate measure of how efficiently we provide customers with 
the best products for their needs.  Profits are required to survive and grow.

\item[Quality:]
We will improve the quality of our services continually.
 
\item[Quality:]
We believe in a fundamental commitment to continuous improvement of our 
services, targeted to ultimately achieve customer delight.  Providing our 
customers with the highest ideals of timeliness, accuracy, consistency and 
completeness in our work.  

\item[Quality:]
We will focus our energies on understanding the needs of the communities we 
serve while applying Quality principles to continuously improve our efforts in 
fulfilling these needs.

\item[Quality of life:]
The quality of work life within this organization is a key factor.

\item[Quality service:]
Our quality of service is consistently high.

\item[Reliability:]
Reliability is the trademark of our service.

\item[Respect:]
We respect the dignity of all who serve and are served by Coastal
Hospice.  We honor each patient's privacy and right to make decisions
concerning treatment.  We encourage each colleague's professional
development.  We will foster a work environment characterized by
effective teamwork, clear direction and recognition of individual
contributions.

\item[Respect:]
We foster great respect for the dignity of each individual including
our employees, volunteers and medical staff and their individual
commitment and contributions.

\item[Respect for the individual:]
People are our most important asset.  We strive to treat one another with 
dignity, respect and as a vital part of our organization.

\item[Responsibility:]
We recognize the responsibility each of us has for our own actions.

\item[Responsiveness:]
We will make every effort to be responsive to the needs of our
students, faculty and employees.

\item[Risk taking:]
We respect those in the organization who are innovative thoughtful risk takers.

\item[Safety:]
Safety is one of our highest priorities to protect our employees and customers.

\item[Service to our customers:]
Our customers are the only reason for our business.  Meeting their
needs is our most important concern.

\item[Stability:] 
We will aggressively work to provide stability and security to our staff.

\item[Staff development:] 
The development of our staff is the key to excellence.

\item[Stewardship:]
We will be good stewards of the resources entrusted to our use.

\item[Superior customer service:]
The result of great execution, a caring attitude, and a sense of urgency.

\item[Superior customer service:]
Our purpose is to delight our customer.

\item[Support:]
We support the combat readiness of the Navy and Marine Corps.

\item[Teamwork:]
Where leadership and cooperation come together.

\item[Teamwork:]
Teamwork binds us together.  Pride in our accomplishments comes from
cooperation among students, faculty, staff, and alumni.

\item[Transcending disciplinary boundaries:]
We are a seamless university without traditional departmental boundaries.

\item[Transfer to Society:]
We affirm our responsibility to serve society through the transfer of
technology, continuing education programs, public service and
enrichment of the community through the arts.

\item[Trust:]
Trust is the bond which holds a community together; open and honest
communication is essential for our work.  Our patients and families
have unique responsibilities and capabilities for providing care and
we trust them to make good decisions.  Reciprocally, we hope to
deserve their trust and that of our community.

\item[Trust:]
We believe in a trust among team members that holds each member
accountable. Earning trust by recognizing the appropriate priority
of our customer's needs while protecting the interest of the company
and our customers.

\item[Truth:]
Being truthful to our constituents is a value we never compromise.

\item[Understanding:]
Trying to understand the problems of our constituents is the only way we will 
learn to build solutions to their problems.

\item[Value:]
The best combination of price and quality.

\item[Value oriented management:]
We seek value-added contributions from our managers and associates.

\item[We care:]
We care for each other just as we care for our patients.  This is the basis of 
the teamwork and trust that must exist for us to succeed.

\item[Wisdom:]
We apply our knowledge and expertise with compassion and caring.

\item[Witness to Gospel values:]
The Gospel values are an essential part of our mission.
\end{description}

\newpage
\chapter{The Group Interview}
\label{app:group}

The {\em group interview} is a powerful and general way for a workshop
or work group leader to get a group's opinion on a collection of
interview questions. In the context of developing mission statements,
we use the group interview as a way to ask newly formed mission teams
various questions about mission statements in general, their existing
mission statements, and their feelings about developing a new mission
statement. Section~\ref{sec:groupinterview} gives examples of some of
the questions we like to ask. However, in this section, we will
describe the group interview in a general workshop or work group
context.

The basic idea behind the group interview is to provide a
structured way for group members to pair up and ask each other
questions. Having the group members ask themselves the questions 
in this way has a number of benefits:

\begin{enumerate}
\item {\em Active involvement:} 
All participants are actively involved, reporting answers and
asking questions.  No one is able simply to sit back and listen.
Everyone talking at once creates excitement and energy.

\item {\em Anonymity:} All answers are recorded anonymously so that each
person's opinions will be given equal consideration regardless of his
or her role or position in the organization.  It levels hierarchy and
mixes "in groups" and "out groups."  It is very effective with mixed
groups (professional-lay, provider-consumer, adult-juvenile, etc.).

\item {\em Candor:} When people talk in pairs, they tend to be more open and
honest.  In larger groups they become overly concerned about what
others think. Peer pressure and superiority cannot operate.

\item {\em Informality:} Participants have the opportunity to meet and talk
privately with their colleagues, some of whom they may not have known.
The exercise helps people get to know one another around a substantive
exchange, rather than just names and positions.

\item {\em Objectivity:} The interviewer can only ask clarifying questions
about his or her opinions and is not permitted to argue or contend
responses.  Likewise, the spokespersons in the group summaries are not
allowed to let their own opinions influence their reporting.  Thus,
the design seeks objectivity as it casts the participants in the role
of social scientists gathering data.

\item {\em Involvement in analysis:} Instead of outside experts analyzing
data, participants experience the difficulty of consolidating the data
to a few key points and must confront the diversity of viewpoints.

\item {\em Exposure to ideas:} Participants ask questions, listen to responses
rather than argue, ask more questions to fully understand answers, and
when the data is fed back, become exposed to the opinions,
perceptions, and concerns of their peers.  This enables them to relate
their own ideas to those of their co-workers.
\end{enumerate}

\section*{STEP 1: Develop the questions}

The questions are usually developed beforehand, either from prior
interviews with prospective participants or by workshop planners,
to elicit information on questions of relevance to the goals of the
workshop.  A good interview question would require some thought
and reflection and direct the respondent to organize their experience
into some useful categories.  It is often helpful to ask for a
specific number of ideas.  Here are the types of workshop questions 
that might be posed.
\begin{enumerate}
\item Can you identify two or three ways in which your relationships
with your superiors are similar to how you, in turn, relate to your
subordinates?  Can you identify several differences?

\item What are the three greatest barriers you face in your organization
in getting one of your ideas accepted and implemented?

\item What are your goals and expectations for the workshop?  What may
inhibit you in achieving these goals?

\item What do you feel will be the greatest changes in your field in the
next twenty years?
\end{enumerate}

As the questions illustrate, they can cover substantive ideas (4),
workshop goals (3), management issues (1), or change issues (2).  One
concern should be to develop a set of questions of similar complexity
so that they can be answered in the 3--5 minutes allotted.  The set
should explore different issues.

Experience has shown that 6--12 questions is appropriate,
so that interviewing and reporting do not take
too much time (1 1/2--2 hours).  It is always helpful to have a few
more questions than you plan to use, in case there are more
participants than anticipated. However, as described in Step 3,
the number you use depends on the size of the group.

\section*{STEP 2: Prepare the interview sheet}

To prepare for the workshop, each question should be typed at the top
of an {\em interview sheet}. One complete set of questions should
be made for each {\em interview line}. The notion of an interview
line is explained next in Step 3.

\section*{STEP 3: Design and run the group interview}

\subsection*{A. Configure the interview lines}

In a group interview, pairs of people sit across from each other at
one or more tables. Each person is called an {\em interviewer}. 
The group of interviewers sitting on one side of a table
is called an {\em interview line}. Each table has two lines.  One line
is designated the {\em stationary line} and the other line is
designated the {\em moving line} (more on these in Step 3-C).

For example, suppose we have 20
interviewers sitting at 2 tables, with 5 per table side.
Then we would say that we have 4 interview lines, each of size 5. On
the other hand, if the 20 interviewers were sitting at one table, with 10
per side, then we would say we have 2 interview lines, each of
size 10.

The most difficult aspect of designing a group interview is matching
the number of questions with the number and size of the interview
lines.  For groups divisible by 4, it is easy, as illustrated below:

\begin{center}
\small
\begin{tabular}{|c||c|c|}
\hline
Group size &No. and size of interview line& No. of questions \\
\hline
\hline
	20&		2 lines of 10               &		10\\
        20&             4 lines of 5                &            5\\
	24&		4 lines of 6                &		6\\
	24&		2 lines of 12               &           12\\
	28&		4 lines of 7		    &		7\\
	32&		4 lines of 8	            &		8\\
	36&		4 lines of 9		    &		9\\
\hline
\end{tabular}
\end{center}
If you have an uneven number of group members, you can have each
extra group member double up with an interviewer on one
the stationary lines.

It is important to have the full group
in attendance before starting.  Sometimes it is useful to begin with some other short
activity --- such as workshop goal-setting --- to wait until all are
there.  It is a powerful beginning because once under way, people are
involved in the interview until it is finished.

\subsection*{B. Distribute the question sheets}

After the interview lines are formed and the interviewers 
are seated in their interview lines, pass out the question sheets, one per
person so that each interview line has a full set of questions. Each
interviewer gets exactly one question. The order that
questions are handed out is not important.

\subsection*{C. Conduct the group interview}

At this point you are ready to conduct the group interview:
\newpage
\begin{enumerate}
\item Each interviewer should have exactly one question, and
each interview line should have a full set of questions. 

\item The next step is to start the group interviews.
The interviewers in each
stationary line should ask the person seated directly across from them
the question on their interview sheet.  Each person who is asked a
question has about 1--2 minutes to answer the question. The person
who asks the questions should write down a brief summary of the reply
on their question sheet.

\item Next, repeat the process, with the people on the moving line
asking the questions of their partners on the stationary line.

\item After about 5 minutes, the group leader should call everyone
to attention, and then ask the people in each moving line to
stand up with their question sheet in hand, and rotate one chair
to their left.

\item Repeat Steps 2--5 until the original partners
are again facing each other across the table. 
At this point, the interviews are
finished. 
\end{enumerate}

\subsection*{STEP 4: Analyze the data}

After the group interview in Step 3 is finished, assemble an analysis
team for each question. The analysis team for a particular question
consists of all the interviewers who were responsible for asking that
question. For example, if the group interview had five questions, then
all the people responsible for asking the first question would gather
in some part of the room. Similarly for the other four questions.

Each analysis team should select a team leader and a recorder.  Each
team should then produce a brief written report that summarizes all
the responses to their team's question.  The idea is to identify and
summarize the key themes in the responses. Do not, under any
circumstances, identify the source or sources of any responses.
Responses must be anonymous for the group interview to work.

\subsection*{STEP 5: Report}

When the analysis teams have finished, reassemble the entire
group. The team leaders for each analysis team gives a 
brief report (2--3 minutes) on the findings of the team.
Questions and comments can be taken after each report.

The workshop leader should make arrangements to have the
reports from the analysis team written up so that there is
a record of the reports and so that follow up can be encouraged.
Be sure to thank everyone involved, and then close the 
group interview.

\newpage
\chapter{About the Authors}

\subsection*{RICHARD O'HALLARON}

Richard O'Hallaron is a former Affiliate Professor at the Medical
College of VA, Virginia Commonwealth University, Richmond, VA.  He has
also served on the faculty at Washington University in St.~Louis,
Missouri.  He is a Life Fellow in the American College of Healthcare
Executives, as well as a Life Fellow in the American Academy of
Healthcare Administrators.

Richard received his BS and MHA from St.~Louis University.  Since 1958
he has published over 30 articles in local, national and international
publications focusing on a range of subjects such as ethics,
marketing, quality improvement and organizational mission.  He has
served on local, national and international boards, and has been
recognized for a number of innovative achievements. He spent 30 years
as a senior healthcare executive, serving as an assistant, associate,
CEO, regional vice president, and system vice president of
development, before retiring in 1988.  Since then he has taught
business management and strategic planning at MCV.  He also runs a
consulting business called Mission Incorporated, which focuses on
helping organizations articulate their mission and values, as well as
managing these issues. Richard has lectured throughout the U.S., the
Far East, and Great Britain, with a particular interest in and
recognized as an expert on the subject of organizational mission and
values. Richard and his wife Phyllis have seven children and have been
married for 45 years.  For more information, please see
www.erols.com/rdoh.


\subsection*{DAVID O'HALLARON}
David O'Hallaron is an Associate Professor of Computer Science and
Electrical and Computer Engineering at Carnegie Mellon University.  
He is the co-author of {\em iWarp: Anatomy of a System} (MIT Press, 1998),
and {\em Computer Systems: A Programmer's Perspective} (Prentice-Hall, 2002).
He lives with his wife and four sons in Pittsburgh.  For more
information, please see www.cs.cmu.edu/$\sim$droh.

\newpage

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