Tag Archives: business topics

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My Top Posts For 2011

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In case you missed any of these, I thought I would share my top posts for 2011.

posts

1. Why I Decided To Walk Away From The Family Business…

    This one is close to my heart because it is truly what started all of this. Interestingly enough, this post received almost three times as much traffic as #2. It was certainly a turning point in my life – one I will never forget.

2. Reason 2 of 5 To Run Your Business According To Your Christian Faith

    In this post, I look at how the Greatest Commandment(s) relate to our business purposes. This really hits at the core of what drives my efforts in business.

3. Pursue The Gifts You Have, Not The Ones You Want!

    This is a great post about embracing our God-given gifts. This post received more comments than any of the others on this list.

4. Why Acknowledge Christ In Christmas?

    As a result of a friend sharing a video with me, I ran a Christ-centered TV ad leading up to Christmas. I posted about this video and the bigger issue of acknowledging Christ in Christmas.

5. Taking Action: Owners Manual For Life!

    Here I describe one of the various methods our company employs to do ministry in the course of doing business. I also explained how I was heeding my own advice to just take action!

6. “Go Make Yourself Useful!”

    Jim Collins heard these words from Peter Drucker many years ago, but they have stuck with him. If you read about the context of the conversation, I believe you will feel the same!

7. 10 Reasons For An Exit Interview (With Purpose)

    Many leaders fail to execute exit interviews on a consistent basis. In this post, I share some reasons for a Christian business leader to reconsider this practice.

8. Reconcile And Forgive Immediately!

    This was the fifth post in a series on character issues for leaders. I confessed my own struggles in this area as well.

9. Why Do You Need An Inner Circle?

    Without a doubt, my inner circle has had more influence on my growth than any other system I have put in place. I strongly recommend you do the same.

10. What is Christian Ministry?

    This sounds like an easy question, but I believe too many people have the wrong answer to it. Take a look and let me know what you think.

Did any of these impact you?

What was your favorite? Why?

What was the top post on your blog?

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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?

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Added Value: A Good Measure Of Your Performance?

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As the owner or leader in your business, one of your main functions is to create added value in the organization. How do you measure your performance in this area?

If you are in corporate America, there are a number of metrics that analysts use to gauge your performance. If you are in a small business or non-profit organization, these metrics are likely different. Being a Christian business owner or leader adds a twist to this issue.

added value

Perspective

Adding value to your business can be defined differently, depending on your perspective. We are going to look at this method from the perspective of a Christian business owner or leader.

The C12 Group has a model for measuring this added value in the Christian business. However, the main difference between the C12 model and almost all other models is the perspective. While most businesses measure success or performance on a monthly, quarterly, or annual basis, the C12 model is very different.

Tri-Value Model

In stark contrast to most other business added value models, C12’s Tri-Value model considers the eternal perspective. Rather than judging a business’ leadership based on short-term performance only, this model takes a more balanced approach. The Tri-Value model is certainly not the final word on measuring performance. Instead, it is designed as a tool to keep us focused on the truly important areas of our jobs as well as to facilitate accountability in those areas.

In this post, I will give you a brief overview of this model. In the following three posts, we will look at each of the three components in more detail.

added value

Overview

The first component of the Tri-Value model is Team Value Added (TVA). This measurement deals with how well we are creating added value within the team of people that work in our company. There are two main categories in TVA. The first looks at how well the team is operating as a whole. The second category considers the development of the individuals on the team.

The second component is Economic Value Added (EVA). EVA measures whether the business is worth more in solid equity from year to year. It is a simple formula that helps us determine if we are adding to our company’s value or spending it.

Finally, the third component of the Tri-Value model is Spiritual Value Added (SVA). If we are truly looking at our company from an eternal perspective, and I cannot think of a single good reason why we would not, then this is our most important measurement. SVA attempts to measure the eternal fruit our company is producing.

Disclaimer

Please do not think that I am saying that all performance can be measured with numbers. Nor can we quantify all spiritual aspects of ministry in business. That is simply not possible. There are some aspects of business success that are impossible to put into a formula. Certainly, the Holy Spirit works in ways we cannot even understand, much less measure!

Instead, this type of model is intended to be a tool to elicit discussion and create conversation around our performance as it compares to our vision. The Tri-Value model should be used as a part of an ongoing planning and assessment process in your leadership of the business. If so, it can provide clear accountability for your leadership while helping you to remain true to your eternal vision.

Make sure to follow along all week as we break this model down into its components and look at how to use it!

What tools are you currently using to measure your performance in your business?

Do you feel these tools are effective at gauging your performance from the eternal perspective?

What benefits do you see in the Tri-Value model?

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Three Steps To Develop Your Inner Circle – Part 3

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inner circleThis is the fifth post in a series on developing your own inner circle of leadership in your business. We are on step three of Dave Anderson’s three-step process from his book, How to Run Your Business by The Book. The first steps in developing your inner circle dealt with choosing, investing, and empowering them. In this post, we will discuss holding them accountable for results.

Higher Expectations

While it is common business sense to hold individuals accountable for results on a day-to-day, project-by-project basis, this concept goes even further with your inner circle. If you, as the business owner or leader, are going to carefully select, invest in, and empower a few of the higher-potential members of your team, then you are certainly going to expect a higher degree of “fruit-bearing” from them.

Jesus’ Example

Your goal should be multiplication of impact through your inner circle, just as it was Jesus’ goal with His disciples. Jesus did not expect His disciples to just go around winning people one at a time. He taught them to multiply themselves. That is why they delegated the feeding of the widows to the deacons in Acts 6:1-7.

This idea is also illustrated in the story of Jesus’ encounter with the fig tree in Matthew 21:18. Most people notice that it says Jesus was hungry and was therefore upset at the fig tree with no fruit to eat. But have you ever thought of the other God-given purpose of the fig’s fruit? The fruit of the tree is where the seeds are – its God-given system of multiplication! Could it be that Jesus was more upset about this than His hunger? What are the possible parallels here?

The fig tree was accountable to Jesus for fruit. As a result of its lack of fruit, Jesus cursed the tree and it died.

The lesson of the vine (John 15:1-8) is another example of Jesus holding us accountable for our fruit when He said the branches not producing fruit would be thrown in the fire. While I do not recommend this exact punishment to be inflicted on members of your inner circle, it certainly shows us a clear example of accountability!

Your Inner Circle

So how do we apply this to your inner circle? I think there are several things to consider in holding your inner circle accountable.

    1. Where did they start? If you began with really green members of your inner circle then your expectations are going to be different than if you started with tenured and experienced leaders. You need to refer back to Part 1 of this series when I told you to look at where your group is right now and determine the gap.
    2. The key is progress. Regardless of where you started with your group, are they making progress? Are they growing as a result of the development efforts you are making? Look at them both as a group and as individuals. Are they moving forward together? Is any one individual holding up the progress of the group?
    3. Address shortfalls. If there are shortfalls in their progress – either as a group or as individuals – you must address it. Find out what obstacles are in their way and remove them. Help them see the gap between your expectations and where they are. Then help them close that gap.
    4. Cut the fruitless branches. In the event you chose poorly or if outside influences have taken one of the members of your inner circle off course, you are to try to correct that. But if your efforts to do this have been ineffective and the gap remains, then you must act. It is better for you, the team, and the company as a whole, to cut this member from your inner circle than to continue trying in vain to bring them along. While this is certainly a decision that requires prayer and a lot of thought, it must be made.

Are you holding your inner circle accountable?

If so, are you pleased with their progress (and yours)?

If not, what are you missing? What do you need to do next?

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Three Steps To Develop Your Inner Circle – Part 1

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In my last two posts, I described why you need to develop an inner circle of leadership. We looked at several compelling reasons you need an inner circle, including the example that Jesus set for us. I also identified and answered several common objections to this idea. Now that you are convinced that you simply must have an inner circle, let’s take at look at how you do it!

inner circle

In this, and the next two posts, I am going to break this process into three simple steps using material from Dave Anderson’s book, How To Run Your Business By The Book.

The first step in developing your inner circle is to:

1. Identify and invest more into those with the highest upward potential

Identify Your Inner Circle

Let’s start with identifying the people with the highest upward potential. So, exactly how do you go about doing this? Well, first and foremost, I would pray about it. I would pray for wisdom and discernment as I reviewed my employees for prospects. Ask for Him to reveal qualities and characteristics that you may not already be aware of. Pray for patience as well. Jesus prayed all night!

Next I would look at your current leadership structure. The easiest people to choose are already in your key leadership positions. Hopefully, assuming you have these positions, the people you have here are trustworthy and have the potential you are seeking. Mutual trust is mandatory.

For me, it was fairly clear because I had been fortunate enough to have people in my key management positions that fit this role perfectly. Not only did they have the highest potential, but they also shared the same values and beliefs and were quickly bought in to the mission as I presented it.

Your situation may not be the same. If not, you may have to spend more time on this step. You also may see that you are not positioned well with your key people. While that is likely not something you can change quickly, it is certainly something you need to address over time.

Here are three keys to choosing these people:

    Ready – The people you choose must be ready to take on the additional learning and responsibility. Regardless of where they are now in their leadership growth process, they cannot be immature, unstable, or short-sighted. They need to be ready to take on the challenge you will place in front of them.
    Willing – Another requirement is that they must be willing, even eager to join this group. You do not want someone that you are constantly having to sell on the idea! They need to see the opportunity you are presenting and value it.
    Able – The actual level of each members’ ability to take this on depends on the general ability level of the group. While every member of the group does not necessarily have to be on equal ground with all of the others, they need to be close. If you have one potential member that trails the others by a significant amount, you may want to consider another path for them. Otherwise, they will likely hold back the progress of the group.

One note, it is my opinion that you may need to start with only one individual that IS the right fit rather than trying to force two or three others that are NOT a good fit. Think quality over quantity! Personally, I have a total of five. I am not sure there is a magic number, but I would not have many more than this. Intimacy is also important for this group.

Invest In Your Inner Circle

This step will be different for each leader, depending on the level of the members of the inner circle. Depending on your industry or your company’s mission, you may already have a ready-made path for leadership development. If not, you may have to create your own. The key here is to be intentional about their development.

Here are some simple steps to consider:

    Determine the gap – Look at where they are as a group right now. Look at where you see them in x number of years after you have invested in their development. Now try to plot out a path to close that gap!
    Gather material – Choose material that will reinforce your mission while moving them down the path you have chosen. Make sure it is not too far above or below their ability to absorb. Obviously, the internet is an almost infinite source of material! Consider joining a C12 group as one source!
    Schedule time alone with them – Jesus spent time with the crowds, but He also carved out time just for His twelve. He then carved out other time for the three. You have to do the same.
    Monitor your progress – Take time along the way to stop and check your progress. Document what you are doing. This will give you a sense of how far you have come as a group.
    Celebrate growth – Take time to celebrate your progress! While there is a lot of work to be done in this process, you need to enjoy the fruit of it as well!

Are you ready to choose your members?

What are your challenges here?

What is your next action step?

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Common Objections To Developing An Inner Circle

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In my last post, I told you why you need to develop an inner circle of leadership in your company. If you have not read that post, stop now and go back and do so. You really need to be committed to doing this if it is going to be effective.

Now that you know why you SHOULD develop an inner circle of leadership around you, let’s address some common objections to doing so.

inner circle

It Is Not Fair!

One of the first objections that arises at this point is, “But it is not fair to everyone!” The idea here is that those you choose for this inner circle will have unfair advantages and opportunities over the rest of your group. Folks, as Andy Stanley put it in his session at Catalyst recently, “Fair ended in the Garden of Eden!”

It is not your responsibility to give everyone in your organization equal and fair opportunities with your time and energy. Jesus did not pass around a sign-up list to those in the crowd, giving everyone an opportunity to be in His small group of twelve disciples. Nor did He give those twelve equal opportunity to be in His inner circle of three.

Instead, it appears that each time He intentionally chose those with more potential than the rest. Just like the master in the parable of the talents (Matthew 25:14-30), you should give of your time and energy “to each according to his ability.”

I Don’t Have Anyone Qualified For An Inner Circle

What if you feel you really do not have anyone qualified to be in your inner circle? Well, there are several ways I could answer this.

First I will assume you have enough people from which to choose, but you do not see any clear stand-outs. In this case, remember you are looking for those with the most upward potential. You may have to start very small and do a lot of developing. You may have your standards too high or you may need to relook at your hiring process! Regardless, it will be worth it.

What if you truly do not have anyone with even a remote hint of potential for this type of group? What if you are such a small company that an inner circle would have to include all of your employees to be considered a group? In these cases, I would advise two things. First, find someone else to mentor you and help you develop as you grow your organization. Second, keep this inner circle in mind as you hire. Do not hire people that could not eventually be considered for this opportunity.

But I Am Not An Expert!

Another argument may be that you do not yet feel like an expert yourself. You do not feel worthy or qualified to gather an inner circle around you for furthering their development. Good point. You are not. Unfortunately, you will never be qualified! If you wait until you are, it will never happen!

To again quote Andy Stanley, he said “It is not your responsibility to ‘fill their cup’, only to empty yours!” You are not an expert, and as long as you keep learning, you never will be! But you do not have to know everything there is to know about your job or role in order to teach them what you do know. Empty your “cup” of all you know – that is your only responsibility here.

Lack of Time

You may object to developing an inner circle by saying you do not have the time to pour into them. This could be a legitimate short-term argument because some leaders truly do not have the time right now to spare for something like this. However this argument virtually ignores the long term necessity and benefits of doing so.

Instead of accepting your current situation, you need to take immediate action to work towards creating this time in your schedule through delegation and elimination of less-critical tasks. By replacing these less-critical tasks with leadership development of an inner circle, you will actually free up more time in the long run than you can imagine!

Do you already have an inner circle? Is it working?

If not, are you now convinced to start working on it?

What is your next action step? Have you prayed about it?

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Why Do You Need An Inner Circle?

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On two separate occasions during a 24-hour period last week, I had two members of my inner circle of leadership hold me personally accountable on mission-related issues. In both cases, they were “spot on” with their comments and delivered their message with perfect sincerity.

I needed the nudge in both cases, but was not exactly excited to accept their recommendations. At the same time, I knew they were right and I was glad they were comfortable telling me.

inner circle

My Thoughts

As I thought about these situations, I simply thanked God for the privilege of being able to work with people of this caliber and the mutual trust we have established. I have had an inner circle in place for over five years and continue to see benefits!

Of course, my next thought was that I really needed to share this on my blog! So as a result, I am going to give you my reasons for having an inner circle. In the next post, we will look at some common objections people bring up when discussing this topic. I am also going to dedicate the next several posts after that to laying out HOW to develop your own inner circle. I will include some recommendations for additional reading material for further help.

Jesus’ Example

So, we will begin addressing the WHY by doing my favorite thing…looking at the Bible! Let’s consider how Jesus managed His three-plus year ministry on earth. We have to assume that He knew He was operating with limited time to establish an ongoing ministry that would continue after His death (and resurrection!). We can also assume that He would have the wisdom to know the best way to make that happen, right? So how did He do it?

Choosing Twelve

Well, He started with a crowd that was following Him from place to place for various reasons. In Luke 6:12-13, we see that He spent all night praying about who to choose for his small group of twelve disciples. It does not appear that He took this task lightly! The next morning, He chose His small group of twelve disciples from among the crowd.

His Inner Circle

Next, we notice in Mark 5:37, Luke 9:28, and Mark 14:33 that he called out three of the disciples from the small group to go deeper with Him. On several occasions, we notice that He spent additional time with these three, exposing them to opportunities that the other nine did hot have.

Benefits

I may be simple-minded, but I am one who believes if Jesus saw enough value in the process, then I should as well. However, in case there are some of you out there who need more convincing, I will keep going!

Let’s take a look at some of the benefits of developing this inner circle.

    You will learn in the process! – As you go through the steps I will lay out for you over the next several posts, you will realize that this process will teach you as you go through it. Not only will the members of your inner circle benefit from the increased development, you will also learn as you take the time to pour into them. If you are one who does not feel you need to learn, then please stop reading and click on the little red “X” at the very top right of your screen.
    You will raise the bar for all of your leaders! – Not only will those in your inner circle become better leaders, those outside of the inner circle will respond to the higher expectations. They will work to improve their performance and potential because you have shown them this is the way to get your attention.
    You will all gain strength! – While you may think your team members are all on the same page right now, by drawing a small number of them into your inner circle, you will increase the effect of their combined focus. Just like Ecclesiastes 4:12 says, “A cord of three strands is not easily broken.”
    You will gain accountability! – Just as I described in the introduction, we have established such a mutual trust in my inner circle that they feel comfortable enough to call me out. Whether we like it or not, we all need accountability!
    You will perpetuate your mission! – Just as Jesus did through his small group of disciples and, to a greater extent through his inner circle of three, you will exponentially increase the odds that your mission will continue long after you are gone.

Do you already have an inner circle? What benefits do you see?

If so, how could you improve it?

If not, what are you waiting for? Why not start now?

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Accountability – Step 5 In A Strategic Ministry Plan

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This is the final post in a series of posts on creating a Strategic Plan for Ministry in your business. At this point, you should have a mission statement with an eternal perspective. You should have a well-defined mission field as well as a set of action plans for ministry activities that will help you to impact that mission field. Now you need to lay out the accountability processes to ensure your action plans are executed and achieve the results you desire.

Accountability

Accountability Reporting Example

Let’s take a look at an example to illustrate my point. An easy example for our company is the CCA chaplain program (Corporate Chaplains of America). We have a chaplain assigned to our company as a benefit to the employees. By permission, this chaplain speaks to each of our employees face-to-face at least once per week.

He is on call 24/7 and 365. He will meet with employees after hours for extended care sessions in person or over the phone, according to their preference. He performs funerals, weddings, and hospital visits. He prays for the company and every employee on a regular basis.

On an ongoing basis, I need to know whether this program is achieving the results I expect from it. Fortunately, CCA provides their own reporting process as part of the program. They send me a report via email at the end of each month that details the activities of the chaplain. A report like this makes it easy for me to determine whether the program is working or not.

Here is an example of their report:

accountability

Your Accountability Reporting

Your reporting may look very different. It may not be as formal or it may be more so. The format is not important. The accountability is. While each ministry activity will likely present its own measurement challenges, try to make sure there is some ability to track and measure the activities and the results (if possible).

You should have some sort of reporting for every ministry activity on your action plan. If you cannot measure it in some way, then you need to decide whether it is worth doing or not. This is not to say that you are not to do anything that you cannot measure – there are certainly exceptions. It is more about making sure that there is accountability built in to every part of your plan.

Too often, companies come up with a great idea, begin a process or initiative, and never build in accountability. Without a clue as to whether it is effective or not, they forget about it until something goes wrong or someone leaves. This is simply not being a good steward of your resources.

Measuring Ministry?

There are a couple of challenges I will note about measuring ministry. First of all, we are not able to save anyone. That is the job of the Holy Spirit. While we may count the number of times someone turns their life over to Christ during one of our activities, we certainly cannot take credit for that. We are simply celebrating!

Second, we cannot truly know the condition of any individual’s heart or whether that condition has improved in a measurable way. To attempt to measure life change or improvement is not something I recommend. I think you get it, but measuring ministry is very difficult.

As a result of these challenges, we will most often revert to simply measuring our activities in ministry. As an example, look at the chaplain’s report. We do not attempt to measure the effectiveness of the chaplain’s prayer for our company and individual employees. We simply measure the number of times he prayed. We do not attempt to measure whether his care sessions had the intended effect. We can only count the times he had them.

I think you get the idea. When dealing with the heart and spiritual matters, measuring is difficult. At the same time, we cannot just leave our efforts to chance! Therefore we do our best to discern the right activities, maintain our focus on the right purpose, and then measure our efforts. We leave the results to God.

Do you currently have any sort of ministry results reporting?

If so, do you review it as often and with the same intensity as you review your financial reporting?

I won’t ask a third question…that last one hurt too much!

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Action Plan – Step 4 In A Strategic Ministry Plan

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action planThis is number 4 in a series of 5 posts about how to create a Strategic Plan for Ministry in your business. So far, we have created an effective mission statement with an eternal perspective, identified our potential mission field, and had a brainstorm session about how we will do ministry in the course of doing business. Now we will turn our attention to the laying out of the action plan.

Best Ideas

Now, I am assuming you have already completed your brainstorming session from last time. Depending on your preference of using a smaller team of key managers or a larger group of employees, you need to gather your team together again. Taking the list of ideas generated in your brainstorm session, the group now needs to sift through and find the best ideas, making sure they are in alignment with your mission statement.

Ideally, those that are the easiest to implement with the greatest impact should come first. You can also consider which ones are the most exciting in order to get the most buy-in from the stakeholders.

Categorize the Ideas

Once you have narrowed the list down to those that are the best fit for your current circumstances, you probably want to group them according to which of the three facets of ministry is appropriate (Evangelism, Discipleship, Service), as well as which mission field category applies (Employees, Customers, Suppliers/Vendors, etc.).

While it is not necessary to evenly distribute your activities across these categories, it is good to make sure you are not ignoring any of them.

Create the Action Plan

So you have a list of your best ideas sorted into the appropriate categories. Now it is time to create the plan to actually do them! A typical action plan should cover three elements:

    Task– What will be done and by whom?
    Timeline– When it will be done?
    Resources– What is required for it to be done?

Once you have laid out the action plan for each of your ideas, set some goals for the results. Don’t be shy!

Measurement Challenge

At the same time, you need to remember that by definition, the eternal spiritual impact we are attempting to make is sometimes difficult or impossible to measure, making it tough to set goals. Much of what we are doing is actually just “sowing seeds” and pointing people toward God. We cannot save anyone. Nor can we change their hearts. Even if heart change is a goal, how would you measure it?

Because of this challenge, it is my recommendation that you lean toward setting goals based on activity. If one of your action plan items is to place small new testament Bibles in your waiting area, then just measure how many are taken. If you are teaching a weekly Bible study for employees, then just measure attendance. In this case, you could take it a step further and measure how many of those in attendance go on to lead their own study! Either way, be careful how and what you target and measure. Stay true to Scripture!

S.M.A.R.T. Goals

Of course, you need to make sure your action plan goals are S.M.A.R.T. goals as well!

    Specific– Determine exactly what will be done, when it will be done, who will do it, etc. and write it down.
    Measurable– Make sure you can measure the activity. If you cannot, how will you know if you accomplished it?
    Attainable– This does not mean to set the bar low, but to make sure they are realistic.
    Relevant– The goals need to be in alignment with your mission statement. They need to be important to you.
    Timely– You need to have a time frame or a target date. Open-ended goals are soft.

Start Now!

One hint here…though it is not set in stone, this is great advice. As the leader during this process, you need to encourage the group to agree on at least one or two action items that you will start tomorrow. Don’t lose any of the momentum you have built up to this point. Do something! You will gain a boost if you will be sure to do this.

Once you have set these goals for each idea on your final action plan, you are ready to move on to the last step in this process – determining the accountability process of measuring and monitoring the results. See you next post!

Are moving through the process with me or are you thinking this might be something for next year? Or the next year?

If you are, how is it going so far? Do you have some exciting goals?

Are you inspiring your people in a way that excites them?