Tag Archives: accountability

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Must Do: Personal Goal Setting With Employees!

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This past Saturday morning, I participated in what is likely the most powerful meeting I have seen in my history with our company! I know those are strong words, but I can back them up. In fact, if you asked any of the other participants, they would confirm it for me. The purpose of this meeting was to allow everyone in our Sales Department to share their own personal goal setting results for 2012.

personal goal setting

Brief History

Before I go into detail about what made the meeting so powerful, I want to give you a brief history of what led to it. Back in October, as I have mentioned often in this blog, I attended the Catalyst Conference. I learned more during this conference than I have at any other I have attended.

personal goal settingToward the end of the conference, every attendee was given a cardboard cut-out of a “call-out” like you would see in a comic strip or cartoon (see picture at left). We were told to write on this cardboard call-out any commitment(s) we were making as a result of what we had heard during the conference. Then, at the end of the last session, we were all to hold up our call-out commitments for everyone to see.

Applied to Work

Because I thought this was a great idea, I brought a blank one back to work with me. We had duplicates made and gave one to every employee in the sales department. Everyone was told to come back a week later with their personal and professional goals written on the cards, ready to present them to the group. We gave examples of what they might write, but left it wide open.

All week, our sales managers worked with the salespeople in planning their performance goals for 2012. They also helped the salespeople think about their personal goals, asking questions to help prod them to think bigger. We encouraged them to “Get A Bigger Frying Pan!” as it related to their performance as well as how that could impact their lives outside of work.

Exceeded Expectations

I have to be honest, knowing that many of these people had never spent any time planning out their income, performance, or personal goals before, I was not expecting much. I was hoping for a few bright lights to make the exercise worthwhile. Even then, I was not convinced I would not be disappointed. My expectations were not reflective of the quality of the people, just their lack of experience with this kind of thinking.

As I alluded to at the beginning of this post, I was flat blown away. Folks, I simply cannot describe to you the power I saw in this exercise. This is one of those times where my vocabulary and lack of professional writing skills fails me (and you)! I just cannot do it justice.

Genuine Personal Goal Setting

What I witnessed was a group of 25-30 co-workers pour their hearts into sharing with the group what their real desires were for the new year. I saw souls bared and masks removed. I saw people looking to others for true acceptance and encouragement, seemingly without fear of rejection. I saw real, raw life goals come out in virtually every single presentation.

One young lady shared that she had been in a bad car accident over a year ago and only recently began driving again due to severe anxiety and fear. Her goal: to make enough money this year to buy a car for cash…not only for the purpose of having a car, but to overcome the fear and put it behind her.

Another young man has been unable to be involved at all in the life of his 5 yr old son until the past few months. His goal: to make enough money to be able to take that son on vacation for the first time ever.

One of the older salesmen has set a goal for increased income so he can better support a local family of 14. The unusual part is this: he is not related to them. He simply wants to give back out of his abundance.

Use This Idea!

personal goal settingI could go on and on, but I do not have the room here. Trust me that I witnessed the early signs of some lives changing in significant ways. I must encourage you in the strongest words possible to take this idea and implement it. It is simple and virtually free, but the effects can be monumental.

I cannot wait to report back on these goals next year!

Have you ever done personal goal setting like this with your employees?

What kind of results do you think you would get?

Why would you not try this idea?

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Are You Willing To Walk Away?

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I love movies. One of my favorites is the movie Heat, with Robert Deniro and Al Pacino. Likely my favorite scene in that movie is the coffee shop scene. During this scene, Deniro, a bank robber, is talking face to face with Pacino, a cop. During this conversation, Deniro shares advice he once received about being willing to walk away from anything.

walk away

Don’t let yourself get attached to anything you are not willing to walk out on in 30 seconds flat if you feel the heat around the corner.

While Deniro is referring to “heat” in the sense of law enforcement catching up to him and his crime-filled lifestyle, I think we can apply this same advice to our own lives and even our businesses.

Strangers In This World

See, we are strangers in this world (1 Peter 2:11). It is not our home (Philippians 3:20). We will only be here a short time (Job 8:9). Everything we have here will be destroyed by moth and rust (Matthew 6:19). It will burn one day (1 Corinthians 3:12-15).

At the same time, we are disciples of Jesus…not just for this life, but also for the life to come. We are God’s children, now and forever. The treasure we lay up for ourselves in heaven is also eternal. It will never be destroyed by moth or rust. It will never burn.

Can you see the contrast here? Our relationship with this world we live in is temporary. Our relationship with our Lord and Father is eternal. Therefore, our attachment to the things of this world should be temporary and our attachment to the things of God should be eternal.

How Does This Apply?

How does this look in our daily lives? How does it look in our businesses? How should it look in our relationships?

I think we are to take the mindset of Deniro and apply it here. We should not become so attached to anything here in this life that we are not willing to walk away from it. We should be be so consumed with our love for Jesus and the life we want to live for Him that we would not hesitate to walk away from anything if He asks.

Would You Walk Away?

What if He asks us to walk away from a highly profitable business deal because it would require us to be unequally yoked with an unbelieving partner? What if He asks us to walk away from our home town because He has another plan for us? What if He asks us to walk away from our dream home so we can have more resources to give? What if He asks us to walk away from some friendships we enjoy because they are damaging our commitment to Him?

Do you get the picture? Whether material things, business deals, or relationships, I believe the Bible is clear that we are to have a detached mindset and a willingness to walk away from them. Here is a quote from Watchman Nee in his book Love Not the World.

I am not suggesting by this that we must try to dispose of everything; that is not the point. The point is that as God’s children, you and I may not accumulate things for ourselves. If I keep something it is because God has spoken to my heart; if I part with it, it is for the same reason. I hold myself in the will of God and am not afraid to give if God asks me to give. I keep nothing because I love it, but I let it go without regret when the call comes to leave it behind. That is what it means to be detached.

God Honors The Decision

I went through this very process myself roughly eight years ago. I posted about it here (Why I Decided To Walk Away…). While I have not yet seen the end of this path, I can give you my word that I would not change my decision for anything in this world! God has honored that decision many times over since then. I have confidence He will continue to do so going forward.

I still struggle with this mindset in every area of my life. It is not easy to maintain a willingness to walk away. I fail at it as much as I win, but I will continue to fight. I am determined not to attach myself to a temporary world. I will trust Him instead.

What attachments do you have?

Have you seen God honor your decision to walk away from something?

Is He asking now?

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How To Face Your Anti-Audience

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In my previous post, I quoted from L.L. Barkat, in her post The Perverse Monstrosity of our Beautiful Work over at The High Calling blog community. In my post, I described how our “good work” as Christian leaders will meet opposition and criticism in this world. Using Barkat’s quote, I labeled this rejection as “anti-audience.”

“Good work doesn’t just find audience; it also finds anti-audience.” – L.L. Barkat

anti-audience

Knowledge of Anti-Audience Enough?

While it would be nice if the simple knowledge of this “anti-audience” was enough to give us the strength to press on in acting out our Christian faith, I am sure that it is not. It is not enough for us to know this any more than it is enough to tell your husband or wife you love them on your wedding day and expect them to know it from then on!

We are just not that good. We forget the things we learn. We forget important truths and fail to recall them when we need them most. I think that is the primary reason God has given us the Bible. With His Word in our hands, we can regularly remind ourselves of His promises and truths. By memorizing His Word, we can refer to it when we need it.

Everyday Battle

As Christian business owners and leaders, we go into battle everyday. We battle this anti-audience (the world) as well as the enemy that is in charge of it for a time (Ephesians 6:12). Every time we try to impact someone else for eternity, we are going to face this anti-audience. Whenever we make strides to grow closer to God and bring others along with us, we will get resistance from the world that hates us (John 15:19).

Tools For Battle

In an effort to help you in this battle, I want to give you some tools that you can use when you face opposition. This list is not an exhaustive list. I am sure you can add some of your own favorite verses or tools that have helped you in similar situations. Either way, I hope you find this list to be helpful.

1. Memorize God’s promises – Pick out a handful of verses that clearly speak to your heart about God’s promises regarding the plans He has for you. Memorize these verses and practice calling them to mind when trouble comes. God’s Word is living and breathing…use it! Here are a few that I recommend for a start.

Even if you (likely) have read these before, try to read them again for the first time, as if offered by the most esteemed mentor you can imagine. Don’t just memorize the words, but internalize them.

    Matthew 6:33 – Seek first the kingdom of God, and all these things will be given to you.

    Romans 8:39 – For I am convinced that neither death nor life, neither angels nor demons, neither the present nor the future, nor any powers, neither height nor depth, nor anything else in all creation, will be able to separate us from the love of God that is in Christ Jesus our Lord.

    Isaiah 54:17 – No weapon formed against you will prosper.

    Psalm 37:5-6 – Commit your way to the LORD; trust in him and he will do this: He will make your righteous reward shine like the dawn, your vindication like the noonday sun.

    Romans 8:31 – If God is for us, who can be against us?

2. Find an accountability partner – Find someone of like mind that can understand the fight you are in. Someone who is not out on the field of battle themselves, but is instead on the sidelines, likely won’t make a good partner in this case.

Find someone that has been bloodied a few times themselves. This person will understand what you are going through and can encourage you when you need it most. You can do the same for them!

3. Begin a journal – If you will start by taking roughly 10 minutes a day to write (or type) your thoughts and experiences, you will benefit greatly. First, it always helps to get your thoughts out of your head and onto paper (or the screen). For some reason, this just makes it easier to deal with.

You will also find that you can go back during those times of heavier opposition from the anti-audience and read about your past successes. This does wonders for your confidence! Many electronic journals (I use LifeJournal) allow you to tag and categorize entries for easier searching later.

4. Get in the habit of prayer – Of course, this seems like a no-brainer. It is also really tough to do because so many people feel like their prayers need to be clean and organized. I read something the other day about praying sloppy (I know the grammar doesn’t work, but it fits!).

God does not need us to clean up our thoughts before we pray any more than He wants us perfect before we enter the church. Give God everything on your mind AS IT IS in your mind. He can handle it! The more you do this over time, through smooth AND rough times, the more peace you will have.

5. Keep reminders of your positive results – Build a scrapbook, Evernote folder, or other method for organizing any evidence of past results. I have an Evernote folder where I store such reminders as “Thank You” notes, letters, voice mails, and other scraps that remind me of successes I have had in the past. I return to these when I am feeling worn down by the anti-audience!

I hope these tools help you. If you have other ideas I can add to the list, please include the in the comments section below! I would love to hear your thoughts.

Which of these do you need to add to your arsenal?

What has worked for you in the past?

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Reconcile and Forgive Immediately!

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This post is based on material from Dave Anderson’s book, How to Run Your Business by THE BOOK. It is the final post in a series of five in which we will address common character issues for leaders. The character issue we are addressing concerns the ability to reconcile and forgive immediately.

forgive

My Confession

I have a confession to make. In fact, I really do not even want to cover this subject. Unfortunately, I would feel even worse if I cut Dave Anderson’s five point list down to four and moved on! And so I plow on…

My confession is this – I have a backpack that I carry around most of the time that has a pocket on it just for grudges! These are not huge, unwieldy grudges that cause a sore back and aching muscles.

My Grudges

No, these are nice and compact little grudges that fit perfectly in the pockets of the backpack. They are very quiet grudges and do not make their presence known except in certain circumstances. Sometimes I forget they are even there.

These little grudges are born for me when someone local goes out of town to purchase a vehicle from a competitor. I do not have an issue when someone, even a friend, buys a car from another local dealer. I would love to sell everyone a car, but I know I will lose some deals. That is just part of doing business.

However, when I see a dealer’s drive-out tag from an out-of-town competitor on a local car, my blood boils. Just ask my wife. She cringes when she sees one, hoping I will miss it! Unfortunately, my radar rarely misses one of these!

I am completely wrong and embarrassed to admit it, but I cannot deny it.

Holding Grudges

Dave Anderson says that competitive business people are known for holding grudges. While this is certainly not an exhaustive list, he gives the following examples of when we might create these grudges:

  • When an employee makes a mistake
  • When an employee leaves the organization for reasons we do not like
  • When competitors take away our business (already mentioned above!)
  • When coworkers wrong us
  • When family members do not appreciate or support our career

So what is the problem with this? I am sure I am not the only person that carries these little grudges around. Some people carry bigger ones than I do! So if this is common, why do we need to address it? Why is the ability to reconcile and forgive – getting rid of these grudges – so important?

What Does Jesus Say?

Let’s take a look at Jesus’ own words. In His Sermon on the Mount, Jesus says the following:

So if you are offering your gift on the altar, and there you remember that your brother has something against you, leave your gift there in front of the altar. First go and be reconciled with your brother, and then come and offer your gift.
– Matthew 5:23-24

Later in the same speech, Jesus said this:

For if you forgive people their wrongdoing, your heavenly Father will forgive you as well. But if you don’t forgive people, your Father will not forgive your wrongdoing.
– Matthew 6:14-15

So what do you take from these words? Is this something we should take casually? Is this something we should just skip over? Or is this a topic that we should address immediately, with great urgency and effort?

Forgive and Reconcile

I believe there are two reasons for us to act now!

First, Jesus tells us to forgive and to reconcile. It really is that simple. If Jesus is this clear and emphatic about something, it is best we take heed and act on it.

Second, we are the one’s that are hurt by this practice. Even if we are completely justified in the way we feel, the other person is rarely aware of our feelings. Even if they are, I promise they do not think about it as often or for as long as we do!

Stop Chasing The Snake!

Think about the illustration of the venomous snake that bites you. Which do you attempt first – killing the snake or removing the venom? Too many Christian business leaders start chasing the snake to kill it, causing the venom to spread faster and leading to a quicker death. This simply makes no sense. This only hurts you, not the snake.

Stop chasing the snake!

Dave’s Challenges To Us

Here are Dave’s challenges to us:

  1. Bring closure to past offenses. Identify amends you must make, with whom, and do it quickly.
  2. Practice forgiving quickly. Realize it is the responsibility of the more spiritually mature in a relationship to make the first move toward reconciliation and restoration.
  3. If someone continues to offend or hurt you, practice praying for them the qualities they seem to be lacking. This follows the Biblical promise to bless your enemies and the promise to receive a blessing in return.

I encourage you to pray over this topic.

Ask God to reveal any blind spots and resolve to act on them immediately!

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How To Keep Your Commitments

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This post is based on material from Dave Anderson’s book, How to Run Your Business by THE BOOK. It is the second post in a series of five in which we will address common character issues for leaders. The character issue we are addressing is how to keep your commitments.

keep your commitments

Casual Commitments

How often do you tell someone else that you will call them later? Do you? What about those you told you would pray for them and their family? Did you keep your commitments and actually set aside time to pray for them?

Many leaders take lightly the “casual” commitments such as promises to call or offers to pray. They make these commitments without actually planning to keep them. Their intent is not malicious or deceitful. Maybe they actually want to make good on the commitment at some point, but they really do not take it seriously. In fact, within minutes of making the commitment, they have often forgotten it completely!

Scandalous Behavior?

While this behavior is certainly not what any of us wants to confess to, it is not the stuff that scandals are made of, is it? I mean, how often do you hear this type of broken commitment broadcast on the evening news? How many times are you confronted for failing to keep your commitment when it was only said in passing? Everyone knows these are not promises sealed in blood, right?

So what is the big deal? Well, let’s go back to the Bible again. In fact, we will look at the same verse that we did in my last post on little white lies. Here is what it says in Luke 16:10…

Whoever is faithful in very little is also faithful in much, and whoever is unrighteous in very little is also unrighteous in much.

Slippery Slope

So there it is…the Biblical description of the infamous “slippery slope” with which we are all familiar! If we make casual choices to tell little white lies, then we will soon find ourselves telling bigger and bigger lies. If we choose to make quick commitments that we do not take seriously enough to fulfill, then we will eventually find ourselves failing to honor bigger commitments.

Folks, it always starts with the small stuff. Satan rarely comes at us with the huge temptation right off the bat. He slowly draws us toward them with the small temptations. Eventually, we will have slipped so far down the slope, there is no return.

Keep Your Commitments

As a leader in Christian businesses, you must keep your commitments. The problem with this truth is that it really only tells one part of what you need to do. You see, once they are made, the only option for you as a Christian leader is to keep your commitments.

The real question is how to avoid making those commitments that are painful to keep. Well, once again we can turn to the Bible for advice. Below are some tips from Dave Anderson’s How to Run Your Business by THE BOOK. Check out the Scripture associated with each one.

  1. Count the cost (see Luke 14:2-30). Before committing to anything, make certain you can live with the worst-case scenario.
  2. Seek God’s wisdom before deciding (see Joshua 9:3-15, especially v.14). Check with trusted counselors who have nothing to gain or lose, either way, from your decision.
  3. Follow through (see Joshua 9:16-10:14, especially 9:19) . Do what you said you would do – regardless of the cost!

Joshua’s Commitment

This story of Joshua’s poor decision to make peace with the Gibeonites is the perfect illustration of the whole idea I am trying to convey. He failed to seek God in his decision. He failed to count the cost. As a result, he was deceived into a tough commitment.

But when Joshua realized what had happened, he stuck to his word. Not only did he not attack the Gibeonites when he found out about the deception, but he also went to their aid when they called upon him and the Israelites. This is true leadership!

Did you read the last part about God making the day stand still? If you will keep your commitments like Joshua did, I believe God will honor your behavior just like He did for Joshua.

What commitments are you guilty of taking casually?

What can you do to change that behavior?

Have you seen God act on your behalf when you have kept a tough commitment?

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But it was just a little white lie…

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This post is based on material from Dave Anderson’s book, How to Run Your Business by THE BOOK. It is the first post in a series of five in which we will address common character issues for leaders. Our first character issue is the little white lie.

white lie

Just A White Lie?

“But it was just a little white lie, right?”

How many times have you heard (or thought) this? I know we have all told someone they looked good when, in fact, they may not have. Maybe you told someone you liked their haircut or their new pair of shoes. You get the idea. I am not here to argue that point. I want to know if this behavior is okay in your business. Is it okay to tell white lies as a Christian in business?

Let’s try another line with which you may be more familiar…

“Who is it?…Just tell them that I am not here.”

If you have an assistant or receptionist, I am sure you have said something like this before. If not, congratulations! If so, can you justify saying something like this when you know it is not true? If your people see or hear you saying things like this, what effect do you think it has on their opinion of you? What effect does it have on their own behavior? If it is left unchecked, what behavior does it eventually lead to?

The white lie is so common in our world that most people do not even realize they are telling one. It can take many forms. Some of these may seem harmless (or even helpful) at the time. Some of them are a little more dangerous, but they are justified as being safer than telling the truth (at least at that moment!). Regardless of the rationalization, I think we need to take a long, hard look at this topic.

What Is The Expectation?

So what are we to do as Christian business owners and leaders? What is the expectation of us?

Well, as you probably guessed, I think we need to turn to the Bible for our answer. If we look at Ephesians 4:25, we will see the following verse:

Therefore, putting away all lying, let each one of you speak truth with his neighbor, for we are members of one another.

Obviously, I could point to many other verses that make it clear that we are not to lie, but to tell the truth. This is God’s expectation of us. It is not dependent upon circumstances or conditions. It does not apply only to some people, but to all who claim the name of Jesus.

Good Advice

In How To Run Your Business By The Book, Dave Anderson gives the following key advice:

  1. Tell the truth even when it is not easy, cheap, popular, or convenient.

  2. Tell the truth because it is right, it pleases God, it protects your personal integrity, and honors, rather than diminishes, everyone who hears what you say.

  3. Never, ever ask someone to sin for you by instructing them to lie on your behalf. This is an abuse of your power, position, relationship, and friendship and can destroy your witness as a Christian.

I will leave you with this verse from Luke 16:10…

Whoever is faithful in very little is also faithful in much, and whoever is unrighteous in very little is also unrighteous in much.

I encourage you to start watching what you say. Increase your awareness of your words and make sure you are not falling into this trap.

Have you been guilty of little white lies?

Do you see the danger in where they lead?

What is your plan to change this behavior?

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Are You an Impact Player?

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An impact player is someone who changes the game when he or she steps onto the court. You know the kind I am talking about. When it appears they may have been injured, the crowd gasps! The team does not want to lose them, even for a short time. These are the players that we all strive to be in our fields…at least that is what we say.

impact playerRecently, my daughters tried out for and made the local middle school girls basketball team. Now they are athletic, but they have not actually played organized basketball in several years. Soccer has been their dominant sport. In soccer, they have been impact players for years!

My Surprise

Last night, I watched something that surprised me. Last night was their first basketball game of the season. I truly do not know what I was expecting to see. Maybe I thought it would be a slight step ahead of the last time I saw them play (when they were 7, now they are 12). Maybe, I just pictured a cute game of basketball because dad’s think that way about their daughters. Regardless, I did not see what I was expecting to see.

Not Prepared

I witnessed a game that was MUCH faster paced and more aggressive than I ever imagined! I was blown away. Because my girls had not played organized ball in several years, they were told to watch the first game and get a feel for the flow. I am glad he held them out of this game. They were simply not prepared. Neither was I!

After the game, we talked. They were frustrated with not being starters and not even getting to play. We discussed what they needed to do to catch up. They are so athletic and competitive that they can if they put their mind to it. Each of them can be an impact player!

Preparation To Come

Fortunately, we also have a friend that was a hometown hero and star on her high school girls basketball team. She still holds scoring records there after more than ten years! She has agreed to spend some time with my daughters, giving them some one-on-two coaching. She knows what to do and I believe they can do it. It will take work on their part, but I know they can pull it off.

What Is The Point?

So, what is the point to all of this? My point is that many of us go to work every day expecting to make a difference. If you are a regular reader of this blog, then I assume you also go to work hoping to impact people there for eternity. I will assume we all want to be an impact player that makes a difference in God’s Kingdom when we step into our everyday roles.

Let me ask you this…if that is the case, how are you doing at your preparation? What does your quiet time with God look like? How much time every day are you spending with your Lord to grow spiritually so you can fight the battle at the level it is being fought around you?

Results Without Preparation?

Would it have been reasonable for me or my daughters to have expected starting positions on the basketball team with little to no real preparation? Is it reasonable for you or me to expect different results in life?

How is it that so many people can go out on a day to day basis, expecting to change the world for Jesus, without spending significant time in Bible study, prayer, and one-on-one seeking of God’s will?

I guess it is understandable when we occasionally get off track and skip our quiet time or let it get stale. I know none of us are perfect.

Impact Player?

What is not understandable is when we are shocked at the results we see! We are genuinely surprised when we trip and fall into temptation. We are stunned when things begin to unravel around us. We just don’t understand why the people we want so desperately to reach will not listen to what we have to say. Is this consistent with being an impact player?

How can this be?

In my next post, I will give you some suggestions on how to power up your ministry impact! In the meantime, I am going to leave you with these questions.

On a scale of 1-10, how would God rate your quiet time with Him? Consider quantity and quality!

If your score is less than you think He would like it to be, what are you going to do about it?

What is your very next step?

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How To Measure Spiritual Value Added

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spiritual valueAs owners or leaders in Christian businesses, we should be looking at our businesses from an eternal perspective. Profitability is a must and team development is critical to our success, but the impact we have on eternity (spiritual value) should be our primary concern. Quite simply, nothing else will last.

Spiritual Value Added

When all is said and done and we stand in judgment, nothing material from this world will count. Only what we have done that survives the fire will matter. While there are no metrics that fully capture this eternal impact we desire, I believe we must do the best we can to track our efforts in this area. Let’s look at Spiritual Value Added (SVA) from C12’s Tri-Value model.

As the final component of the Tri-Value Model from the C12 Group, SVA consists of three elements (a.k.a. “The Three S’s”)”

    1. Salvation – those coming to know Jesus for the first time
    2. Sanctification – helping believers to grow or be strengthened in their faith
    3. Service – giving money or service to those in need, especially the “least among us”

Each of these elements requires different actions from us. Each has different results that we can expect. If we are serious about evaluating our performance from an eternal perspective, then we need to measure both our actions and the results they produce. We need to do this for each of The Three S’s!

Salvation

Let’s first look at Salvation. The first thing we must realize about this element is that we cannot make it happen! Nothing we can do will save anyone…that is the job of the Holy Spirit. At the same time, we certainly can make sure that we are spreading the Word – teaching people about the gospel message. Here are a couple of examples of when this could happen:

    1. Chaplain is given permission by employee to share the reason for his faith
    2. Gospel-centered devotion is shared with all employees
    3. Gospel is shared at company-sponsored Boy’s & Girls Club Christmas party
    4. New Testament given as gift after a transaction with a customer

Rate you and your team are doing in this area on a 1-10 scale compared to your potential. You will also want to have a system to gather the results – those who actually turned their lives over to Jesus. This is probably the most difficult to track because you may never find out about some decisions. Other times you may have just planted the seed and someone else will be there to see it harvested. Regardless, start counting those you are aware of and see what happens.

Sanctification

The next “S” is Sanctification. The activities in this area can range from Bible studies or classes offered to employees, customers, or anyone you choose. Any work done to teach, strengthen, or support believers in their walk with Christ should be counted here. Some examples include:

    1. Lunch-and-Learn video series offered to employees, customers, vendors
    2. Small group studies held at lunch or before/after work
    3. Classes offered to employees and their families on financial or marriage issues

Again, rate you and your team on a 1-10 scale compared to your potential. For the results in this area, you want to count how many people participated.

Service

The final “S” is Service. There are many ways you and your team can give to those in need. Get creative and include as many employees as possible. While it may be easier to just write a check at the end of the year and be done with it, you will miss incredible blessings if you do. here are some examples:

    1. Sponsor a Thanksgiving meal at a local shelter & enlist employees to volunteer
    2. Sponsor a team of employees in a local event like the March of Dimes walk-a-thon
    3. Sponsor a kids organization with Christmas toys & let employees do the shopping!

Rate yourselves on a 1-10 scale the same as before, comparing your actions with your potential. The results here are fairly easy to track. Whether you count the money given in dollars or percent of net profit, either works. I would also count the number of man-hours your employees log.

So there it is – Spiritual Value Added – the final component of the Tri-Value model series. Get started evaluating your performance and let me know how you are doing. If you are at all disappointed at your current performance, remember this is not a sprint! Just decide to make a change for the better and get on your horse and ride!

Looking back over all three assessments (TVA, EVA, SVA), where are you the weakest?

What will it take for you to see improvement when you do this assessment again next year?

What is your first step?

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How To Measure Economic Performance With Added Value

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With all of the metrics available to a business owner or leader today, how are you supposed to know which ones are the most important? Which are the best indicators of your economic performance as the leader of your business? I do not believe you can completely boil all possibilities down to one measurement that tells the whole story. At the same time, by measuring the economic added value to your business from year to year, I think you can get most of the picture.

added value

Added Value

This is the third post in a series on the C12 Group‘s Tri-Value model for measuring the performance of the leadership in a business. In the first post, I did an overview of the Tri-Value model and its purpose. In the second post, we looked at Team Value Added component of the model. Here, in the third post, we will focus on Economic Value Added (EVA) component.

Simply put, EVA measures whether the business’ value is being sufficiently increased or spent by the leadership responsible. Let’s start by taking a look at the formula itself:

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Operating Profit – Taxes – Cost of Capital Employed = EVA

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Breaking It Down

Operating Profit is easy to define: Gross Sales – (Cost of Goods Sold + Selling, General & Administrative Costs). Taxes are also easy to understand and quantify. It is the true Cost of Capital that causes a little more confusion.

The first response is usually to consider the cost of capital as what is paid to borrow it. This is not necessarily incorrect, but it only tells a small part of the story. We really need to dig a little deeper to get the rest of the story.

This description from the C12 material says it better than I can:

The total of all the invested capital tied up in the business (i.e. real estate, equipment, inventory, working capital, assets of all kinds) should be producing a return equal to or greater than the same amount if used to purchase another investment of equal risk.

While it is not critical that we go into too much detail about the risk, it is generally agreed that a conservative risk return is 10% for most businesses. I would argue that it should be higher, but you really need to settle on a number that is comfortable for you.

The Risk

Quite simply, if you sold the business and everything you have invested in it, how much cash would you have? If you invested that cash, over a long period of time in a similar-risk investment, what return would you expect to receive? Go with that number here. Why would you accept less? (There are arguments here, but we will save those for later!)

Taking that number (we will use 10%), along with the total market value of your business, you should be able to finish the equation. To make it easier to follow, I will use sample numbers assuming the following:

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(Market Value = $500,000) X (Return = 10%) = Cost of Capital $50,000

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added value

Now, in this example, the leadership produced $20,000 in added value. If Operating Profit had been less than $80,000 for the year, then they would have actually spent value, rather than adding it.

Of course, this is not the ultimate measurement. C12 still recommends benchmarking the performance of your business against comparable businesses in your industry. You also need to know your own critical metrics for your business – those numbers that drive the health and performance of the company.

How did your business do in this exercise?

Are you showing added value or spent value?

If you are spending value, what needs to change?

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How To Measure Team Performance with Added Value

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In my last post, I gave you a brief overview of the C12 Group’s model for measuring the performance of a company’s leadership. As business owners and leaders, we need to make sure we are building added value in our organization. As Christian business owners and leaders, we need to make sure we are doing this from an eternal perspective. Used as a part of our own annual assessment of our performance, the C12 Tri-Value model helps us to do this.

team performance

The Tri-Value component we will tackle in this post is Team Value Added (TVA). TVA is concerned with our team performance as a whole as well as how each individual member of our team operates within our business. Now, how you define “team” here is up to you. For me, with 100 employees, 18 managers, and 4 members of my Leadership Team (Inner Circle), I choose to evaluate the Leadership Team.

For you, the “team” may be your entire company. It may just be your management team or the department you supervise. Regardless, I would try not to pick a group that is too big. While there is not a recommended number in the C12 material, I would suggest you stick with a max of seven or eight. If you go any larger than that, the individual evaluations become difficult.

Team Dimension

To start, let’s look at the team dimension of TVA. In looking at our team as a whole, we want to look at the synergy of the team. Below are some questions we want to answer from year to year (or a frequency of your choice) on a scale from 1-10, watching the trends to see if the team value is increasing or decreasing….

    1. Is your team positive, supportive, and complimentary to each other?
    2. Are they setting and meeting ‘stretch’ targets that require teamwork?
    3. Are they innovating and pushing the envelope?
    4. Are they developing their replacements?
    5. Are they participating in the ministry dimension more fully?
    6. Are they thankful or becoming complacent?
    7. How is their attendance and work ethic?
    8. Is loyalty high and turnover low?

Individual Dimension

Next, we want to look at our team as individuals. Consider your individual team members and answer the following question for each of them, also on a scale from 1-10. If more valuable, note what they did to achieve that, using the choices listed below.

    Is this person more or less valuable to the business this year?
    A. Taking training
    B. Skill development
    C. Extra work or effort to ministry goals
    D. New innovations
    E. More dependable or loyal
    F. More input
    G. Attitude improvement
    H. Other

Now that you have evaluated their added value, now it is time to rate your role in that added value. Answer the following “How” question for each individual on your team, on a scale of 1-10. Then answer the “What” portion of the question with the choices listed below.

    How and what have I done to facilitate their added value this year?
    A. Personal encouragement
    B. Modeling / mentoring
    C. Recognition
    D. Rewards
    E. Training
    F. Other

Finally, we will take a look at how your individual team members are doing at developing their own team members or direct reports. Using the same scale from 1-10, score each individual member of your team on the following question. Again, note the “How” using the choices below.

    Is my staff adding value by developing their direct reports?
    A. Personal encouragement
    B. Modeling / mentoring
    C. Recognition
    D. Rewards
    E. Training
    F. Other

That is all there is to the actual evaluation of your Team Value Added. Obviously, the next step in this process is to take your scores and look for the opportunities to improve. Congratulate yourself and your team on your areas of strength and continue to work hard there. At the same time, take the steps necessary to bring your lower scores up over the next year. With intentional planning, you should be able to see significant progress!

[box]Email me HERE for a sample TVA Assessment document.[/box]

How did you and your team do?

What were your strengths? Your weaknesses?

What is the next step you need to take to improve?