Today, the "Scanlon Plan", as it is called by the many companies who follow his concepts, is recognized as a system for total organization development, with four essential component parts:
(1) Identity: the process of clarifying the organization's "mandate" or mission and the recognition by the majority of employees of the need for change in order to achieve the organizational objectives.
(2) Participation: acceptance by all employees of responsibility for the achievement of the mandate.
(3) Equity: the assurance of a balance between a return for customers (in the form of quality service) and a return for staff (in the form of job progression and security, and benefits).
(4) Managerial: the requirement for "leadership" and the creation of a climate, where continuous improvement can be achieved.