Spears, Tridents, Pitchforks, and Rakes

Posted on October 30, 2012 Written by

I am concerned about the focus of the church, or its lack of focus. There was a time when the church in the United States was relatively financially flush and spent its money on a variety of ministries. Churches had food pantries, libraries, gyms, etc. I’ve even heard of a church that had a minister of softball!

My concern with this is that lots of organizations do those same things. Some of those organizations are Christian, while others are completely secular; some do it well and some don’t. But there are others out there doing this work. So, why does a church feel the need to replicate what is already being done by others especially in today’s very tight financial economy? I fully believe that churches should be involved in social ministries, I just don’t think those ministries have to be located inside and paid for by the church. Take advantage of the economies of scale of several groups working together.

Here’s my challenge to churches: stay on your mission-critical path. Focus on those things that no one else is doing. Concentrate on what you were tasked to do by Jesus Christ. Do what is in the marrow of your bones. Stay away from things that lead to mission creep.

Instead, if a church member wants to start a ministry, ask that person to find out what other groups are doing the same type of work in your area. The other groups may or may not be Christian, but that doesn’t matter; we don’t always work with Christians, we work for Christ. Next, find out which of those groups is the most effective, most efficient, and financially transparent in what they are doing. Finally, ask them if they could use additional volunteers and perhaps an occasional financial gift–and then partner with them.

Churches don’t need to use their resources to accomplish everything. They need to use their resources strategically. There are three main resources a church has: buildings, money, and people. When a church uses one, two, or all of these for a ministry within their own walls, they may take away resources that could be used for the church’s critical path needs. And, when a church uses some of its resources in a ministry outside its buildings, it gets its people and money to be involved and invested in the community–exactly what Jesus asked us to do.

Every manager knows that he or she can focus on 3-7 goals at any given time, at a maximum. Do anything more and projects began to suffer; resources get scarce. Businesses know to concentrate on no more than five major items at one time (for confirmation, read any book by business guru Jim Collins). ITT is a great example of business that decided it could do everything at the same time. You’ve never heard of ITT? That is probably because it went bankrupt decades ago.

Churches need to learn from businesses and remain focused on a primary goal: sharing the Good News of Christ. Extraneous ministries are good, but they can be done by church members volunteering at other well-run organizations. They will still be able to explain their motivation in helping others: because of their desire to share and exemplify God’s love.

Here’s an analogy: if you take one piece of steel, you can shape it into a spear, trident, or even a pitchfork and those one, three, or five points can make a very strong impact. Those points are always going in the same direction and are virtually unbreakable. That same piece of steel can be made into a rake which has 20 or 30 prongs which bend every which way and sometimes don’t even work together, bend at awkward angles, or even break off.

I challenge every church to be a spear,  a trident, or a pitchfork–singularly focused, very strong, and unified in its mission. Too many churches are like rakes going in lots of different directions with a wide variety of ministries. Use your resources strategically; use them for the Kingdom of God and the path on which God has set the church.

Lead On!
Steve

Filed Under: leadership, wisdom Tagged: ,

What Hasn’t Changed?

Posted on August 20, 2012 Written by

My missionary/pastor father was born in 1928. I distinctly remember going on vacations where he wore a coat and tie every day – of vacation! That’s who he was and the generation of which he was a part. He went to church every time the doors were open, even when he wasn’t the pastor of the church.

It’s been 32 years since he died. And times have changed – dramatically. My children don’t go to church in “Sunday go to meeting” clothes. They wear what they wear to school – shorts, flip-flops, shirts (we usually do require a solid color shirt, not a logo shirt).

What else has changed in church from 30, 40, or 50 years ago? Actually, EVERYTHING!

  • The music we sing to
  • The instrumentalists
  • The “hymnals”
  • The pews
  • What people wear
  • The Bibles people bring (mine is on my iPhone)
  • How people learn (in the middle of a Bible study, someone will pull up a doc from the internet)
  • The “Sunday School quarterlies”
  • Mission trips
  • How we do missions
  • How members support their church financially (electronic offerings are increasingly the norm)
  • etc., etc.

I can’t think of a single area of church-life which has remained stagnant in the past 30 years (except maybe the sermon!).

Okay, now think 30 years from now to the year 2042. If you think we’ve had a lot of change in the past 30 years, it’s going to be increasingly exponential change in the next 30. That leads me to ask:

Are you being intentional in preparing your church for upcoming changes? OR Are you just going to let the changes happen to you?

Change will happen – you can’t stop time, don’t even try. But you can get ready for change. I’m not saying you have to embrace every change that comes along, but you don’t have to fight every change either. Pick and choose your battles (the best piece of advice my mom ever gave me!) – learn what changes your church should adopt and adapt to. If you resist change, your church might end up with closed doors. Your church will be stronger in the long run by developing a healthy attitude to change.

Lead On!
Steve

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

Roadblocks to Strategy Implementation

Posted on July 5, 2012 Written by

Below is the outline of materials presented by Susan Beaumont, a consultant with the Alban Institute. She is very effective and what she has to say (and how she says it) is excellent. Think about each of these 10 items – flesh them out in your own mind and reflect on which one(s) are the roadblocks to the success of your vision and your church.

Top 10 List of What Gets in the Way of Executing Strategy

  1. Too many strategic priorities (should be no more than 2-3 priorities)
  2. Senior clergy losing strategic focus
  3. Board fails to provide oversight
  4. Rogue committees that over-function
  5. Board micromanages the staff team
  6. Staffing structures that don’t support the strategy
  7. No performance management system
  8. Absence of program evaluation
  9. Lack of meaningful measures of success
  10. Operating budget not aligned with strategies

Lead On!
Steve

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

Reading List

Posted on June 26, 2012 Written by

This is a list of some of my favorite reading materials for my profession: church business administration in no particular order. What’s on your list? Share it.

  • Books
    • Me, Myself and Bob by Phil Vischer
    • E-Myth Re-visited by Michael Gerber
    • In Search of Excellence by Tom Peters
  • Magazines
    • Fast Company
    • Religious Product News
    • Church Executive
    • Peachtree Business Products catalog
    • NACBA Ledger
    • Harvard Business Review
    • Christian Computing Magazine
    • Today’s Facility Manager
    • Church & Clergy Tax Update

 

Filed Under: church finances, church staff, leadership, wisdom Tagged: , , ,

Bell Curves and Giving

Posted on May 24, 2012 Written by

Here’s an interesting stat: the most generous age bracket in any church are 50-somethings.

  • College for the kids is done and paid for
  • The kids’ weddings are over
  • The mortgage is low because they got it several decades ago (if they even have a first mortgage)
  • They are in middle to upper management at work making really good money
  • In short, their expenses are low and their income is high which means they’ve got more disposable income than other age brackets.

What about the other decade age brackets regarding their charitable gifts? Here’s my analysis of them:

  • 20-somethings are just getting started financially. Many have serious college debt, most are not ready to settle down with a spouse (much less kids), and their income is on the low side since they are just beginning their careers.
  • 30-somethings have begun to settle down with families and careers but they are financially strapped because of the mortgage, cars, retirement planning, new furniture for the home and kids, etc. They’ll give, but it will be usually from their financial leftovers. A few are giving more and more but they are the exceptions.
  • 40-somethings are well into their careers and an impressive number have even risen to upper management already. Many have figured out a financial strategy and are able to give surprising amounts. Others want to give but can’t, right now.
  • 50-somethings are the main givers to every church. Not every 50-something is a big giver but the preponderance of them give more than at any other time in their lives. They’ve reached the age when they want to live for significance, not success.
  • 60-somethings have retirement looming over them and their giving begins to decrease, sometimes rather sharply. Some 60-somethings have to keep working while others are planning comfortable retirements. However, in every case, they are beginning to ask the question that 70-somethings ask every day.
  • 70-somethings wonder “Am I going to outlive my money?” and that causes their charitable giving to drop off a cliff. Those with ample resources continue to give, but the ones with “just enough” cut their giving back significantly.
  • 80-somethings and beyond do not form a large giving base for two reasons: their numbers are smaller than other age brackets (and shrinking daily) and their financial resources are smaller than the other age brackets. An occasional 80-something will be a high-capacity giver, but most are hanging on by their financial fingernails.

How does this translate to a church?

  • At either end are the 20-somethings and 80-somethings: the goal is for the 20-somethings to be giving, per person, more than the 80-somethings. “More” is probably about 1.5 times.
  • Next are the 30-somethings and 70-somethings. In a healthy-giving church, the 30-somethings will be giving about twice what the average 70-something is giving, because giving by 70-somethings is plummeting.
  • The 40-somethings should be the second strongest age bracket in a church, and the third strongest should be 60-somethings. 40-somethings are the “left shoulder” of the bell curve and 60-somethings are the “right shoulder.” Strengthen that right shoulder as much as you can because in 10 years, they’ll be 50-somethings.
  • The peak of the bell curve is the 50-something crowd. Who are your 50-somethings today? Who coached them to give? What was their giving like 10 and even 20 years ago?  But wait, look at your church 10 and even 20 from now. Is estimated future giving by your current 30- and 40-somethings enough to replace what your current 50-somethings are doing? What are you doing long term to ensure that generosity becomes part of your church’s culture?

A church must be cultivating and encouraging generous giving with the 40- and 50-somethings. That should be the church’s main focus. Next should be the 30- and 60-somethings. Lastly, the 20-, 70- and 80-somethings should get the least financial emphasis focus, because they are in the weakest position to contribute to a church. By “cultivating and encouraging generous giving,” I mean that there should be a stewardship education plan for all groups but that those age brackets should get a bigger dose than other age brackets. Give them a second helping of generosity teaching; it will do them and you some good.

By the way, this analysis is true of annual giving (giving from your checkbook or income statement) but also of planned giving (giving from your estate or balance sheet). A church should encourage 40- and 50-somethings to put the church in their will. The 60-something and older crowd have typically already created a will (although the percentage of people without wills is shockingly high). Get some estate planning for 40-somethings and 50-somethings ASAP!

Lead On!
Steve

Filed Under: church finances, leadership, wisdom, young adults Tagged: , , ,

Walt & Roy

Posted on May 9, 2012 Written by

One of my favorite business books is Me, Myself and Bob. This hilarious book is the story of the rise and collapse of Veggie Tales as told by its founder, Phil Vischer. Throughout the book you learn that Phil’s childhood hero was Walt Disney – to the point that Phil wanted to create a Veggie Tales theme park like Walt did. It was not to be and it all fell apart due to some bad business decisions. Toward the end of the book, Phil has a chapter called “Lessons” in which he very openly shares what he learned from the experience and that will help him in the future.

One of his critical lessons was that while Walt was the innovative genius, his brother Roy was a fiscal sage. Orignally it was called Disney Brothers’ Studios before Walt bought out Roy. One of the advantages that Roy had over anyone else was that he was Walt’s brother. As such, he had the ability and power to confront Walt and tell him, as no one else could, whether one of Walt’s ideas was crazy or not. Roy could get in Walt’s face and tell him the honest truth. Walt had to accept it – it was coming from his partner who had as much to lose as he did. Roy’s motives were honest – he wanted success. Roy was responsible for counting the money (Roy’s Boys were the Disney beancounters!) while Walt’s guys were the creative thinkers. It took both of them to come up with the American success story that is the Disney empire. However, none of this could have happened if Walt didn’t have a Roy and if Roy didn’t have a Walt.

Phil continues in this chapter with a personal lesson that he learned the hard way – he was a Walt without a Roy. He never gave anyone the authority to confront him with the cold, hard financial facts. Instead, Phil figured he could “create” his way to financial success. I especially like how Phil ends the chapter. He tells the reader that if you are a Walt, find yourself a Roy and give him the responsibility, authority, and trust to tell you the hard financial picture. And if you are a Roy, then wait for your Walt and don’t sell yourself short. Phil acknowledges that as a Walt or a Roy you may never find your counterpart, but always keep looking.

My take-away from this is to encourage pastors, CEOs, and other visionary leaders to intentionally find a Roy. Leaders absolutely need an equally visionary beancounter (that is not an oxymoron, they do exist!). And what’s more, leaders need to very clearly tell the financial guru that the leader depends on getting good, accurate, and even scary financial figures. The financial status of the organization is not the fault of the CFO/messenger, but that if the CEO does not heed the financial advice, the fiscal failure of the organization will rest on the CEO.

Lead On!
Steve

Filed Under: church staff, leadership, wisdom Tagged: , ,

Leadership and Followship

Posted on December 10, 2011 Written by

Recently I came across a couple of really good articles on leadership:

  • Leadership in Church:
    • http://www.healthychurch.org/doorpost/enews-december-2011
    • Oh, those are sticky wickets to address but every single one of them is a potential minefield for both the church and its leaders. And, minefields don’t go away. A study of minefields (the ones used in wars) show that mines become more unstable over time and the least little pebble can set them off. This is also true of church life – any event can set off a long-dormant mine. Dig up the mines (carefully); confront the elephants in the church (carefully) – they won’t go away on their own but need to be led/taken gently out of harm’s way.
  • Leadership in Sports:
    • http://www.washingtonpost.com/sports/in-sports-theres-no-faking-leadership/2011/11/30/gIQAnoksGO_story.html
    • Actually, the “cover story” is about sports but the article cites some research on what followers want: “According to Hogan’s research, followers want four things: integrity, confidence, decision-making and clarity. But just as important is what followers don’t want: irritability, moodiness, untrustworthiness, indec­i­sive­­­ness, needless micro-management and excessive authority. They perceive these things as incompetent, and pretty soon the leveling mechanism kicks in and there is a subtle rebellion.” Those are very powerful words for leaders to remember – all the time.

I also saw a short (less than one minute video) with the former CEO of Xerox. She turned the company around from death’s door to being financially successful. When asked about leadership, her answer was that leadership was dependent on followship – how those who actually do all the work see you and follow you.

Years ago I heard that one of the problems of leadership is that sometimes people are following you and sometimes they are chasing you. Obviously, followers are much better than chasers but sometimes you need both to keep you on your toes.

Don’t run away from the chasers, turn and ask them point-blank (in a nice way) what they want to follow. You may be surprised by how reasonable their answers are. And you will certainly take the wind out of their angry sails. Make the chasers your followers; make the followers your disciples; make your disciples your new leaders; make the new leaders your successors.

Lead On!
Steve

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

IRS Tax-Exempt Ruling Letter

Posted on November 29, 2011 Written by

Whether or not a church should obtain its own 501(c)(3)ruling letter from the Internal Revenue Service (IRS) is a question with some confusion. It is a simple question with a multi-layered answer so here is my take on this issue.

  1. The IRS considers, by definition, all churches to be exempt from federal income taxes. Thus, just because you are a church, the IRS will not tax the organization for income tax purposes. AND
  2. Most churches that belong to denominational bodies fall under an umbrella that covers all churches in the regional, state or national organization. For instance, the local Episcopal diocese has a letter with the IRS which covers all churches in the Richmond diocese. That way, churches do not have to obtain their own ruling letter from the IRS.     HOWEVER
  3. Times are changing and church finances are getting more complicated every day. In 2008, some churches have intentionally sought to violate the IRS requirement that churches not endorse a political candidate. In 2004, the IRS revoked the non-profit status of 56 churches (albeit temporarily while there was an investigation).  THEREFORE
  4. Because some churches are getting involved in national politics, I am of the opinion that each church should control its own destiny as regards the IRS. I would hate for an umbrella letter (covering hundreds of churches) to be revoked because a few churches in that group decided to flaunt the IRS. My worst case scenario would be that the IRS would revoke the tax-exempt status of the entire umbrella while there is an investigation. In the end everything will work out fine, but in the meantime there can be some heartache because of the actions of other churches. So, my recommendation is that each church obtain its own ruling letter from the IRS. Yes, it is a pain to fill out the forms, get things approved, write a check for a few hundred dollars, and wait on the IRS for a few months, but think about the headache and hassle it could save the church later. Again, I feel it is important to control your own destiny and not potentially suffer because of the actions of other churches.
I hope that helps you and the decision by your church. I’ll be happy to talk with anyone about this.
Lead On!
Steve


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