Business Books

Posted on June 9, 2010 Written by

Why don’t ministers read more business books? There are some classics out there by gurus such as Tom Peters, Peter Drucker, and Jim Collins. There are lesser known authors or newer authors such as the Heath brothers (right now I’m reading their book, Made to Stick – great stuff). Popular business books from the past few years are very readable and enjoyable.

If I could, I’d challenge every minister to read one business book for every two books he or she reads on theology or church life. Think outside the box! After all, a minister is the CEO of a corporation. An aside, a minister once told me that the church is the only organization in the world where the customers (who pay the bills) are also the stockholders (who control the company) which leaves the staff in the middle.

So, please read some business books. Here is a sample:

  • Me, Myself, and Bob by Phil Vischer (story of the rise and fall of Veggie Tales)
  • In Search of Excellence by Tom Peters (a management classic)
  • Made to Stick by Chip & Dan Heath (communicating your message)
  • Switch also by the Heath brothers (how to bring change to your organization)
  • Good to Great by Jim Collins (and the 30-page monograph dealing with non-profits)
  • How the Mighty Fall by Jim Collins (how to detect and stop the decline of your organization)
  • Y-size Your Business by Jason Dorsey (not read it yet but gets rave reviews about including the next generation of 20-somethings)
  • and too many others to count but this list will get you started
Lead On!
Steve
Filed Under: leadership, wisdom, young adults Tagged: , ,

Book Review

Posted on May 7, 2010 Written by

Just finished reading “The New Context for Ministry: Competing for the Charitable Dollar” by Lyle Schaller. He wrote this at the end of 2001 and it was published in early 2002. In the book, especially in the last handful of chapters he makes some predications about the future of church economics. It is uncanny how accurate he was and is.

Schaller gives all churches (and non-profits) a warning shot across the bow about the way they’ve always done church finances versus the new economy and how they need to re-shape their church’s finances. It is also hard to acknowledge that the church is not prepared for the future. What is worse, is that no one seems concerned about the future enough to do anything about it.

About once a year someone pulls the fire alarm in my church. It is always a false alarm. Everyone knows it is a false alarm. So, no one moves the exit; no one gets the kids out of the building; no one runs to investigate the source of the alarm. In this book, Schaller is pulling the fire alarm for churches because there is a real fire. Unfortunately, churches believe that “God will provide” the financial resources they need. Well, God will but the church must actively work and search for it.

I recommend the book (even though it is not particularly readable) with an emphasis on his recommendations at the end of the book.

Lead On!
Steve

Filed Under: future, leadership, planning, strategy Tagged: , , ,

Group Decision-making

Posted on February 15, 2010 Written by

I was asked to speak to our church’s “Emerging Leaders” class about decision-making by groups. Specifically, there are three questions to answer:

  1. Why teams or committees in the church make decisions?
  2. How teams make decisions?
  3. How and why decisions are made by teams or committees get passed on for further approval?

First, full-disclosure: I work in a Baptist church. Baptists believe in democracy – my mom said that the truest expression of democracy, warts and all, is in a Baptist church. Members (actually, only those present) get to voice their opinion regardless of how much they’ve contributed to the church financially, how informed they are on the subject, or how much the result of the decision will affect them and their family. Everyone gets a voice – and that is very good and very bad.

Rather than digress into an explanation of the very good and very bad (which pretty much everyone can figure out for themselves), let me speak to these three questions.

  1. Why do churches have committees to make decisions?
    1. The Baptist church is a democracy: as explained above, decision-making is shared by the church. Now, the entire church cannot decide everything so it delegates some decisions to committees. Some decisions are made by the committees and some are passed on (see question #3). Sharing the burden (or blame) helps unify the church.
    2. “The Wisdom of the Crowds:” providing a venue for people with different life experiences to share their wisdom can help make decisions more informed and thus have better results. I frequently remind my committees that “right now we’re operating from a basis of ignorance and getting more information will help us make a better decision.” Decision-making from a base of ignorance is never good – get as much knowledge and wisdom as possible.
    3. Corporate buy-in: having as many people as reasonably possible in the decision-making process will mean that later on, those decision-makers can be “emissaries” to others who question the decision. It also means those decision-makers will support the decision verbally and financially when the time comes for them to speak out (or else they’ll be viewed as hypocrites and not trusted by other members).
    4. CYA (cover your ass): this is not a polite term in church but it is exceedingly true. Smart leaders will use officially sanctioned committees to make decisions that might cause heartburn in a handful of individuals. Those individuals who have their own agendas will find it harder to fight the group. An individual decsion-maker can be hounded (sometimes mercilessly) by a person with an agenda. Individuals who question the group decision in a public arena can be asked why they did not go to the committee rather than air their grievance to the world.
  2. How do teams make decisions?
    1. The best decisions made by groups are by consensus. Sometimes a vote necessary for an official record. However, shy away from official votes when possible. Ask the members of the group if everyone is in agreement. Then, when you do need to take a vote, those official votes will have that much more power because members are willing to put their opinions in the record.
    2. Decision that are made by split or almost split decisions are not valid. Decisions should have a clear majority (at least 66-33) in order for them to have full support of the committee. Then, the committee must share and explain their decision with others so that there is further and continued buy-in.
    3. Point of clarification: some decisions should be made by a person for one of several reasons
      1. Expediency: there is not enough time to have an official meeting. In those cases, if the decision is minor then the leader can make the decision. Sometimes a leader may want or need to consult one or two others for their input but ultimately the decision will be made by that person.
      2. Leadership: “follow we” is not what Jesus said. Leadership is given to us by God. Sometimes leaders just need to make a decision and get out there and lead. Leadership is not “finding a parade and jumping out in front of it.” Leadership is realizing that sometimes people are following you and sometimes people are chasing you – sometimes at the same time! Leadership is a topic for another blog.
  3. How and why decisions that are made by teams get passed on for further approval?
    1. Authorization: some committees are not authorized to have the final say in an issue. A team will pass on their decision with a recommendation to the next group in line when they are required to do so. The next group may or may not follow the prior group’s decision and/or recommendation.
    2. Publicity: having a decision made by the entire congregation or a very large group provides the opportunity to “sell” or “market” the decision. That way, more people will be aware of the decision, can tell others about it, and when the time comes, can support it financially.
    3. Tricky issues: matters which could affect a member or group of members might need to be dealt with in an official capacity (depending on the matter and the people it affects). Some people accept negative news better than others; those who do not accept bad news are well-known and when a decision involves them, a group decision can help (see CYA above).

All that being said, let me tell a story that happened in a church. A certain member had a major contract with the church which annually cost the church over $40,000. I wanted to put that contract out to bid and I was authorized to do so but I knew how news would be received. I asked the church’s Finance Committee to “order me” to put this out to bid (see CYA). Four companies bid on it and that member’s bid came down 35% even though it was the same contract and two other bids were almost identical. I was authorized to make the final decision but I asked some elders in the church to help with the decision. They realized this was a tricky issue and they asked the Finance Committee to make the decision. The Finance Committee wrestled with this for over an hour before giving it to the member. The result is that about a dozen church leaders felt that this member was taking advantage of his church and his influence waned. The right decision was made, the member was put on notice that his prior actions were unacceptable, and the church got a $14,000 discount on an annual contract.

I need to go now, the contractor for a small renovation project needs me to make a decision. I’ll handle that one myself – no committee need get involved!

Lead On!
Steve

Filed Under: church administration, leadership, strategy Tagged: , ,

Financial Resolutions 2

Posted on January 4, 2010 Written by
The next set of financial resoutions for churches from Brad Leeper of Generis.com
3. Conversations must move beyond stewardship to generosity
With all due respect to the biblical concept of stewardship, the term itself is passive, hard to understand, and boring. In the secret places of the heart, people do not long to be good stewards. They do long to make an impact. To be a difference maker. To be generous to the point of giving up something that is good in exchange for something that is better.
Churches that celebrate generosity become more generous. Churches that are silent about generosity become zealous about cutting expenses. I have lived in that cutting expenses season. Experiencing generosity is much more fun. Try a vocabulary shift in 2009. Replace stewardship with generosity and unpack the stories about how the generosity of your church changed lives. Watch your giving flourish.
4. Churches must speak more intentionally about finances
Economically tough times create intense static in the minds and hearts of your people. Consider that we have been accustomed to a consumer driven lifestyle accompanied by $3 cups of specialized coffee and the internal confusion hits decibel levels too loud for even 18 year old rockers. Where do your people stand in juggling financial realities? According to a USA Today article May 2008:
· 9 out of 10 consumers in their 30s are in debt.
· 45% of respondents in one survey said they had too much debt to think about saving. Do we think the answer is any different about their generosity?
· 20% of adult in their 30s are still paying college loans.
Another source reports that Americans now save, on average, less than 1% of their income. How can we expect people to give generously when their margin is already so razor thin? Be daring in your coaching. Teach people how to get out of debt. Teach them how to save. Inspire them to live above the roar of our consumer-driven machine.
When I perform a giving analysis for a client, it is very typical to receive a list of regular attending households (OK, relax. I do not ask for names) with over 50% of those households having giving nothing in the last year. I have had pastors tear up when they realize that they are the number 2 top donor in the church. Your people are not as up to speed about finances as you think they are. The church that preaches and teaches about sound, biblical financial practices will create a long-term culture that gives abundantly to match its compelling vision.
 

Lead On!
Steve

Filed Under: church administration, church finances, generosity, leadership, strategy Tagged: , , , ,

Financial Resolutions 6

Posted on January 4, 2010 Written by

The last set of financial resolutions for churches from Brad Leeper at Generis.com

9. Human need trumps brick and mortar
Pastors tend to like ministry and facilities large. People like church to feel small and relational. Pastors understand how facilities are tools to reach more people. Most people, however, are less concerned about the facility and more concerned about human need. It is the new normal now to include the human element in vision expansion projects. Church planting, multi-site, a clinic in Africa, homeless ministry in the community, and similar high human touch elements are increasingly expected in major projects. Human investment validates the construction.
A colleague worked with a client’s vision expansion project that had nothing to do with any construction undertaking. Every investment dollar flowed boldly to planting churches around the city. The multiple of annual income raised was incredible! A clear connection on how personal giving reduces human need throws gasoline on generosity.
10. Free yourself from the past. Your church members have.
The recent Barna report on giving in 2007 repeated the same theme from prior years. Just 5% of American adults tithed. The most generous segment, evangelicals only topped the charts at 24%. The numbers have remained steady over the decade. We are anemic as a church in prompting generosity.
Trends in giving, however, are shifting more radically than ever before. For those of us passionate about the local church, Barna sends up a bright warning flare. People are changing how they relate with the church. No longer content with standard church interaction, they are “expanding their circle of Christian relationships beyond local church boundaries.” People increasingly give their money to organizations other than the church.
I served a client this past year that had small groups unofficially connected with their church in multiple states. This strategy was not intentional nor were these groups even supported by the church. The groups emerged from a meaningful interaction with the church podcast ministry. These groups gave generously to this church without a hint of request by the church.
There is an increasingly sophisticated donor in an ever increasing competition for the faith dollar. A challenging economy will accelerate the competition. Many donors fail to connect how their attendance at your church translates into giving practices to your church.
If inspired, motivated, and simply prompted, however, people would still rather give to their church. Our silence leaves them uninspired, unmotivated, and believing that we have no need of financial resources. The church that shifts generosity dialog and practices to better match the shifting patterns will receive substantial resources.
Conclusion
As we consider ministry plans for the new year in the midst of economic uncertainly, understand the urgency of making adaptations to your giving practices. You will find the process engaging, energizing, and incredibly meaningful to your people. They will be transformed with an amazing collaboration with their investments and God’s call on your church.

Lead On!
Steve

Filed Under: church administration, church finances, leadership, planning, strategy, wisdom Tagged: , , , , ,

Financial Resolutions 5

Posted on January 4, 2010 Written by

The next set of financial resolutions for churches from Brad Leeper at Generis.com

7. Potential larger gift donors need pinpoint coaching and encouragements

As leaders, we hear an outstanding vocalist and we encourage them to move into the music ministry. We find a young leader gifted as a communicator and we prompt them into ministry options. Yet, we find a person with financial capacity to give large sums and we go into silent mode. Churches that coach and elevate the gift of giving contribute vast resources for Kingdom work. Rather than showing the rich man favor, we actually raise the bar of discipleship for them and release enormous sums toward those things that stir the heart of God.

Most potentially larger gift donors are often paralyzed about their giving. They often are ill-equipped to know how to give, where to give, and the mechanics of making wise gifts. Appropriate financial guidance can multiple a gift to your church while legally minimizing tax liabilities. Our government tax code subsidizes our giving.

Although people can earn huge dollars, they are not automatically inclined to know how to give wisely. A wealthy person who understands how much is enough can substitute giving for lifestyle and release untold resources to valuable ministry needs. Churches that disciple high capacity donors multiple vast amounts of resources.

8. Leaders must model sacrificial giving

We cannot lead people where we ourselves are not going. Our people are hungry to view authentic leaders living and giving in the context of faith. Leading by example inspires. How we model and appropriately demonstrate generosity can be tricky. It is done with integrity and humility in generous churches.

Lead On!
Steve

Filed Under: generosity, leadership, wisdom Tagged: , ,

Financial Resolutions 4

Posted on January 4, 2010 Written by

The next set of financial resolutions from Brad Leeper of Generis.com

6. The church must intentionally build greater trust with its people

Most church giving, especially project-driven giving, is in direct correlation with the trust account balance with its people. How often and how creatively can you build the trust connection that gives people instant freedom to say yes to a spiritual investment? Your people might love the primary teaching pastor. They most certainly love the people of their church. Significant trust comes from neither of these sources. Shaping confidence is a neglected art.

·No bank account replenishes itself automatically after a withdraw. So too must church leadership constantly make trust deposits.

·How can we increase our trust account?

·Tell people frequently how their financial gifts are being used.

·Teach how they are building treasure in heaven.

·Celebrate generosity at each offering.

·Help people understand how financial accountability is a big deal in your church.

·Maintain an open atmosphere about your finances.

·Unapologetically spend money on an annual, independent audit and proclaim the results of the clear audit. Make audit copies available in your lobby.

·Leaders appropriately share how they give.

·Send a thank you note to a household after their first gift to the church.

As we swim in these economically turbulent waters, consider more radical moves to build trust.

·Stop ineffective ministry even though you will take hits. People are having to adjust their budgets by stopping spending that they would rather not stop. Model for them how to adjust spending patterns.

·Redeploy budget line items to more practical human needs. Food banks, justice ministries, fighting child slavery, mercy ministries and other such works are perceived as far more important than operating expenditures. If the economy worsens, you will need to support some in your church to ride out the storm. Consistently building trust accelerates generosity.

Lead On!

 

Filed Under: budget, church administration, church finances, church financial statements, generosity, leadership Tagged: , , , ,

Financial Resolutions 3

Posted on January 4, 2010 Written by
The next set of financial resolutions for churches from Brad Leeper of Generis.com
5. Churches can still raise financial resources for major projects if … Churches that successfully raise additional funds for major projects make an audible from classic campaign approaches. Donors are eager to give to the right projects if we adapt our methods from past practices. People eager to give generously look for certain qualities in a project before giving. Their decision making grid is radically different than even just a few years ago.

 ·Generous people look for more specific benchmarks and ask much harder questions in search for validation of the project.

 ·Does the project make sense? Is the reason to give sacrificially clear and compelling?

 ·Has the leadership thought this project through? Has the leadership done due diligence? Just because the pastor loves this project has little bearing on my love for the project.

 ·Would my investment directly help people? Buildings do not inspire me.

 ·There are far more attractive projects outside the church that appear more meaningful to me. Just because I attend church here does not mean that I automatically buy into your project.

 ·Does this project help the poor?

 Give a change of pace from predictable practices to foster generosity. Even though much of my work centers on capital campaigns, I fight hard to keep those two words from my interaction with clients. Most of my clients call their effort a “mission expansion project” or “vision expansion project”. Stewardship is replaced by generosity. Vision casting and telling gripping narratives begin months in advance not compressed into a five week package. Print media is replaced with moving video work that is viewed repeatedly on YouTube.

 

The traditional three-year giving period for a mission expansion project can be shortened. People are increasingly skeptical about long-term commitments. A fast growing church can actually be hindered with a long giving season. Churches that have made adjustments to converse with a new kind of donor still cultivate significant resources for their vision.
Lead On!
Filed Under: church administration, church finances, leadership, planning, strategy Tagged: , , , ,
« Previous Page
Next Page »