MOST Analysis

Mission Statement

This first workshop involves the top executive or Owner and his or her senior staff. The purpose of this workshop is to introduce this executive team to the components of the Business Optimization Process, referred to as the BOP, and to begin the first steps in implementing the BOP. The senior staff includes those who are responsible for the various disciplines within a company. These disciplines usually include sales, operations, distribution, financial management, and human resource management. Depending on the type and organizational structure of the company they can also include marketing, creative design, engineering and product development.

The BOP is mission driven. It is a corporate focused, team building process that teaches the types of skills needed to effectively improve an organization’s performance. It accomplishes this by training employees to systematically identify and solve the root cause of the problem that is most constraining the performance of the organization. It is a continuous improvement process that once implemented results in a higher level of satisfied customers and a more enjoyable work environment for the employees. These results lead to a financially stronger organization that brings long-term stability and better rewards and job security for everyone. The key components of the BOP include Systems Theory and Thinking, the Theory of Constraints, and Transformational Leadership principles.

The first objective in this workshop is to develop a mission statement for the BOP that is initiated by you, the Owner. This statement helps you explain why you are pursuing the BOP and provides clarity of purpose and direction for the organization during the implementation of the BOP.

Along with the BOP Mission Statement there needs to be a vision statement for the BOP. Whereas a mission statement clarifies the why, a vision statement shows the what. A vision inspires and challenges people to accomplish the mission. It is the vision that people grasp. Visions create the emotional energy necessary in motivating people to action. Visions let people see what it looks like when the mission is accomplished. Visions provide the realism and create the belief that accomplishing the mission is achievable. The BOP Vision Statement shows what it looks like when the mission of the BOP is accomplished.

Along with establishing the BOP Mission Statement and the BOP Vision Statement the participants in this workshop will begin to understand Systems Theory and Thinking as it applies to your organization. Organizations are systems and as such obey certain laws, have certain characteristics and follow certain principles that govern how systems function. Understanding these laws, characteristics, and principles make organizational change more successful. Therefore it is important that you begin to understand how the various parts of this organization interact and interconnect with each other.

In summary, the purpose of this workshop is to introduce you to the components of the BOP and guide you through the initial steps of the BOP beginning with developing the BOP Mission Statement and the BOP Vision Statement. Along with these initial steps you will learn the basics of System Theory and Thinking and how to incorporate System Theory and Thinking into your improvement efforts. Establishing a mission and vision at the beginning helps you tailor the BOP to the specific needs of your organization.

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Objectives

1) BOP Mission Statement: Develop the BOP Mission Statement that defines and clarifies why you, the Owner are implementing the BOP.

2) BOP Vision Statement: Develop the BOP Vision Statement that expands the mission statement with emotion-based and image-based words used to motivate and inspire the people in your organization to accomplish the BOP mission.

3) Initial Announcement: Develop a written introductory announcement explaining in general terms that your company is beginning the implementation of the BOP.

4) Top Concerns: A list from each participant of the top three concerns the participant has concerning the implementation of the BOP.

5) Suggestions: A list from each participant of three suggestions the participant thinks the company could do to overcome these concerns.

6) Entropy: A demonstrated understanding of organizational entropy with a list from each participant of four areas in which the participant believes entropy is most apparent within the organization.

7) Inertia: A demonstrated understanding of organizational inertia with a list from each participant of two areas in which the participant believes resistance to change will be the greatest and two where he or she thinks it will be the least resistant.

8) Synergy: A demonstrated understanding of organizational synergy with a list from each participant of two areas the participant believes synergy is the strongest and two areas the participant believes synergy is the weakest.

9) Permeability: A demonstrated understanding of permeability of the boundary that separates this company from the environment in which it exists with a list from each participant of two areas where the participant believes permeability is the best and where he or she thinks it is the poorest.

10) Controllability: A demonstrated understanding of the controllability of the permeability of organizational system boundaries with a list from each participant of the top three areas the participant believes employees have the greatest ability to affect and the least ability.

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Strategies

1) BOP Mission Statement:

a) A step-by-step process that guides you, the Owner in identifying your personal reasons for wanting to implement the BOP and using these personal reasons to create an initial draft of your mission statement for the BOP.

b) A step-by-step process that guides you and your senior staff is crafting a second draft of the BOP Mission Statement using your initial statement.

c) A process by which a few selected trusted and skilled employees edit this second draft that ends up being the approved BOP Mission Statement.

2) BOP Vision Statement

a) A step-by-step process that guides you and your senior staff in drafting the BOP Vision Statement based on the draft of the BOP Mission Statement.

b) A process by which a few selected trusted and skilled employees edit this second draft that ends up being the approved BOP Vision Statement.

3) Initial Announcement:

a) A process that guides you and your senior staff in drafting an initial communication message that gives an introduction of the BOP.

b) A process by which a few selected trusted and skilled employees edit this draft that ends up being approved for release to the rest of the organization.

4) Top Concerns: A form each participant fills out after the workshop after the mission and vision statements are approved. See Attached Form 1

5) Suggestions: The same form as above that each participant uses to list three suggestions the participant thinks would overcome these concerns. See Attached Form 1

6) Entropy: A form each participant follows after the workshop to review organizational entropy and to list three areas within the organization where the participant thinks entropy is the most apparent. See Attached Form 2

7) Inertia: A form that each participant follows after the workshop to review organizational inertia and to list two areas in which the participant believes resistance to change will be the greatest and two where he or she thinks it will be the least. See Attached Form 3

8) Synergy: A form that each participant uses after the workshop to review organizational synergy and to list two areas within the organization where the participant thinks synergy is the strongest and where he or she thinks it is the weakest. See Attached Form 4See Attached Form 5

10) Controllability: A form that each participant uses after the workshop to review boundary characteristics and to list three areas within the organization where the participant thinks employees have the least ability to effect. See Attached Form 6

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Tasks

1) BOP Mission Statement:

a) Prior to the workshop the Owner uses the process explained in the Planning section of the Introduction and writes his or her initial draft of the BOP Mission Statement and brings this draft to the workshop.

b) Prior to the workshop members of the senior staff work through the last part of the same process and bring their ideas about what they would like to see from the BOP to the workshop.

c) During the workshop participants will follow a decision making process and use a mission statement template to write a draft of the mission statement.

d) After the workshop three qualified and trusted employees will review and wordsmith this draft to help ensure that the mission statement will be understood and received positively by the employees.

e) The Owner will review and approve this version making it the official mission statement for the BOP.

2) BOP Vision Statement:

a) During the workshop participants will follow a vision writing and decision making process and use a vision statement template to write a draft of the BOP Vision Statement.

b) After the workshop three qualified and trusted employees will wordsmith this to help ensure that the vision statement will be motivational and inspirational and received positively by the employees.

c) The Owner will review and approve this version making it the official vision statement for the BOP.

3) Initial Announcement:

a) During the workshop participants will follow an example for an initial announcement and write a draft of the initial announcement of the BOP.

b) After the workshop three qualified and trusted employees will wordsmith this draft to help ensure that the announcement gives a general introduction to the employees concerning the BOP in a way that will be received positively and alleviate any potentially concerning thoughts or anxiety on the part the employees.

c) The Owner will review and approve this wordsmithed version making it official and ready for release.

4) Top Concerns: Each participant after the workshop reviews the final approved mission and vision statements and using a form (See attached Form 1) lists three concerns he or she has about implementing the Business Optimization Process.

5) Suggestions: Each participant after the workshop reviews his or hers concerns and using the same form as above (See attached Form 1) lists three suggestions that he or she thinks would alleviate or overcome these concerns.

6) Entropy: Each participant reviews the definition of organizational entropy and using a form (See attached Form 2) lists three areas within the organization where he or she thinks it is the most apparent.

7) Inertia: Each participant reviews the definition of organizational inertia and using a form (See attached Form 3) lists two areas in which the participant believes resistance to change will be the greatest and two where he or she thinks it will be the least.

8) Synergy: Each participant reviews the definition of organizational synergy and using a form (See attached Form 4) lists two areas within the organization where he or she thinks employees have the greatest ability to effect and two where he or she thinks employees have the least ability.

9) Permeability: Each participant reviews the definitions of boundary permeability and using a form (See attached Form 5) lists two areas within the organization where the participant thinks permeability is the best and two areas where he or she thinks it is the poorest.

10) Controllability: Each participant reviews boundary characteristics and using a form (See attached Form 6 lists to areas within the organization where the participant thinks employees have the greatest ability to affect the way the company operates and two areas where employees have the least ability.

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Introduction

Planning

The first order of business during the workshop is to develop the mission statement for the BOP. The reason this is first is that it is important to set the stage upfront for why the Company is embarking on the BOP. It is also important that the mission be driven by the Owner since it is the Owner who has decided to implement the BOP.

In order to make the best of everyone’s time and in order to tackle an aggressive agenda it is important that the owner prepare an initial draft prior to the workshop. This draft will be the foundation for developing the BOP Mission Statement that will be used throughout the implementation of the BOP.

In order for a mission statement to be meaningful and effective it must be supported by the members of the organization. It must become a shared mission for those in the organization. The best way to accomplish this is to have multiple people involved in developing the mission. Therefore, it is important that everyone involved in the workshop contribute to the development of the BOP Mission Statement.

Writing the initial draft of the BOP Mission Statement is an individual exercise by the Owner that the Owner will then bring to the workshop. To help you, the Owner concentrate on this task, you should schedule time when you are the most creative and able to relax. Along with scheduling time, you should also find a place that is away from interruptions or distractions. It should be a place that is comfortable and in an environment that is conducive to thinking creatively. This exercise should not be stressful. It should be fun and informative.

In order to help you write your initial draft of the mission statement in a time effective manner you are given a process to follow. The whole process should require no more than an hour or so of your time.

Before you can write your draft of the BOP Mission Statement you need to understand your personal reasons for embarking on the BOP. Only you know what you want to accomplish with the BOP. In order for the BOP to be successful in your mind it must further the success of your company as you define success. Therefore, the process begins with you defining your personal reasons for choosing the BOP. This definition is your personal mission statement. This statement is your beginning point.

The process of writing the initial draft of the BOP Mission Statement starts by answering the five questions below. These questions are aimed at helping you understand your personal mission. You will then use your answers to these questions to complete the three statements that follow. Next, you will apply how you completed these statements to seven questions that relate specifically to this company. You will use your answers to these seven questions to formulate your initial draft of the BOP Mission Statement.

Don’t stop and overthink or analyze how you answer the questions or complete the statements. Just answer them as fast and as simply as you can, minimizing the number of words.

To begin the process, take a clean sheet of paper and write the first question shown below. Then write your answer. Then write down the second question shown below and your answer. Continue through all five questions. Use any writing method that suits you best. You can use a tablet of paper and hand write or you can use a computer or digital tablet. Use what works best for you. The important thing is to accurately record your thoughts. Once you are set up, begin by answering the following five questions.

1) “What is important to me?” Think past your company and your job. Think about your social and community activities, your family and other relationships, or organizations with which you are involved. List no more than three things.

2) “What principles do I try to live my life by?” These are those ideals and values that are morally important to you, things that reflect your values and that apply to your day-to-day activities. Do not over think. Just do a brain dump. Do not spend a lot of time. List no more than three that come to mind.

3) “What are the reasons I do the things I do? This relates to the above questions but gets you thinking about why you do what you do, about what motivates you. List no more than three reasons.

4) “What are the things I want to accomplish with my life?” List no more than three things. The answer to this question is based on your answers to what is important to you, the principles that you try to live by and the reason you do what you do.

5) “How can the BOP help me accomplish these things?” List no more than three things.

After you have answered the above five questions complete the following statements.

I) “Based on what is important to me I would like to see the BOP accomplish:” List no more than three accomplishments you want for the focus of the BOP.

II) “Based on the principles by which I try to live my life, I would like to see the BOP be implemented in the following manner:” This statement has to do with how you want your customers and employees to be effected by the BOP, your priorities, your company’s participation in community activities, etc. List no more than three reasons.

III) “Based on the reason behind what I do, I would like the reasons for implementing the BOP to be based on:” List no more than three reasons.

After you finish these three statements answer the following seven questions based on your responses above.

A) “What are the top three benefits I think my company provides?”

B) “What are the top three things I admire about my company relating to how it provides these benefits?”

C) “What do I see as my company’s three main successes pertaining to the recipients of these benefits?”

D) “What three things would I like for my company to do to expand its customer base as a result of the BOP?”

E) “What three things would I like my company to do to improve the environment for its employees as a result of the BOP?”

F) “What three things do I think my company should do to improve its profitability as a result of the BOP?”

G) “What one thing would I like to see my company accomplish outside of business related areas?” These include such things as contributions or involvement in charitable organizations, community functions, professional organizations and political action committees.

Now write down your thoughts in the form of an initial mission statement. This form should address four criteria: 1) a reflection of who your company is, its personality, character, etc.; 2) a description of how your customers will benefit from the BOP; 3) a description of how your employees will benefit from the BOP; and 4) a description of how you as the Owner will benefit from the BOP. The following is a suggested template:

“We are embarking upon the Business Optimization Process to help (Your Company Name) provide (Answers to Question A) by (Answers to Question B) which has resulted in (Answers to Question C). By implementing the BOP we will increase our customer base by (Answers to Question D) and improve our work environment by (Answers to Question E). We will increase our profitability by (Answers to Question F). In addition, it will help us contribute to an outside cause by (Answer to Question G).

When you have completed this exercise your initial statement should be able to explain your purpose for wanting to pursue the BOP. We live in a dynamic world where companies grow and change, where technologies change rapidly, and where marketplaces fluctuate. Therefore, in order for the mission statement to be effective it must be based on current business opportunities and challenges so that everyone involved knows why you wat to implement the BOP and the direction you want the BOP to take.

You are to bring your initial draft to the workshop.

Another thing you are to bring to the workshop is a template of a draft of an announcement that will be given to the people in your company after the workshop. The template is in an attached Word document. The use of this document is detailed in the Communication section the Course Manual and in the Communication section of the Project Study. See Illustration 1

As Owner you need to establish the direction for the BOP by articulating your thoughts. In order to ensure that your thoughts are best articulated and supported, you will be soliciting input from your senior staff during the workshop. During the workshop a process will be followed where all participants will contribute their thoughts concerning the mission statement. These thoughts will help you finalize a draft of the BOP Mission Statement. To this end, your senior staff member should come prepared to the workshop with their answers to the seven questions A – G.

After the draft of the mission statement is completed everyone will follow a similar process to develop a vision statement based on the consensus of what everyone feels it looks like when the BOP mission is accomplished. While the mission is based on your reasons for wanting to implement the BOP, developing the vision statement is a joint effort where everyone equality participates. This vision statement reflects how as a group you see your company when the mission is accomplished.

During the workshop and after completing a draft of the mission and vision statements, the basic concepts of Systems Theory and Thinking will be explored. By definition every system is a subsystem of the environment in which it exists. Since a company is an organization and since organizations are systems your company is a system that functions within a defined environment. This environment includes the marketplace, the country in which your company operates and the community in which it is located.

Every system by definition has a permeable boundary through which inputs and outputs transfer. Inputs include labor, raw materials, subcontractor or other types of outside services, and information. Outputs include finished products and services, information, and scrap and waste.

In addition to having permeable boundaries every system consists of interrelated and interdependent activities that convert inputs into outputs. Inputs are drawn from the environment and outputs are injected back into the environment through the permeable boundary. In order to control the way a system functions, systems have communications processes that communicate information to the environment, receive information from the environment, and process information within the boundary of the system.

Systems Theory and Thinking as it applies to business organizations state that in order for anything to be produced, whether a product or a service, there must be a set of interrelated and interconnected activities. These activities work in conjunction with each other within the boundary of the organization and across the boundary into the environment in which the organization exists. It further states that each activity contributes in some way to the output of the organization. In order to predict and control the output from the organization, the activities associated with the organization and their interrelatedness must be understood. The effectiveness of an organization can only be improved by improving the activities associated with the organization, how these activities interrelate with each other within the organization, and how the organization as a whole relates with the environment within which it exists. These system characteristi