Managing by Key Indicators

You can’t manage what you don’t measure. “Know well the condition of your flocks, and pay attention to your herds. For riches are not forever; nor does a crown endure to all generations” (Proverbs 27:23-24, NASB).

Most companies that fail, work hard — but on the wrong things! To help your business stay focused on the right things, create a set of simple Key Indicators, which allow you to quickly assess the health and direction of the organization in a timely manner.

Key Indicators should directly relate to your Keys to Significant Success™, since you've identified them as the few things that MUST take place in order for you to achieve the business Mission, Vision, and Kingdom Purpose. This is critical to ensure you stay focused on improving performance in the right areas.

For the CEO level, create and manage by five to six leading indicators that are critical to the survival and growth of the company. Be sure at least one of them tracks redemptive activities that lead to eternal fruit.

Each department should also have their own set of Key Indicators tied to the mission of their department. These indicators allow people to get timely feedback on their performance and self-correct.

Remember, people always do what you inspect, not necessarily what you expect (WGMGD—What Gets Measured Gets Done). Do you know what Key Indicators you should be tracking that will tell you what direction your business is heading…long before your accountant gives you the financial news? If you had a set of leading indicators that allowed you to reliably forecast and make early course corrections, how might that affect revenue consistency, profits, and cash flow?

Recognizing the Rightful Owner of the Business

Who really owns your business? Who do you think really owns your business? A foundational principle for a Christian entrepreneur is that God is the REAL Owner of the business. The stock certificates may have your name on them, but they’re really held in trust for the Owner.

Wise men seek truth, and the first truth about all things is that God created them. Our lives, abilities, wealth and opportunities are ultimately given to us by the Creator. The most reasonable thing we can do is acknowledge His Lordship over our lives and businesses with thanksgiving, and seek to let Him work through us to accomplish His purposes.

“The earth is the LORD’s, and everything in it. The world and all its people belong to him” (Psalm 24:1, NLT).

Do you acknowledge God as the rightful Owner of your business? If not, ask Him to help you see that truth and act on it. If you do, how often do you thank Him for that tremendous opportunity?

How do your business strategies reflect God’s ownership? Are you confident you’re fulfilling His unique purposes for the business?

Are you at least as committed to fulfilling God’s purposes for His business as you would want your trustee to be in executing your estate according to your desires?

“Now it is required that those who have been given a trust must prove faithful” (1 Corinthians 4:2, NIV).

Steward, Shepherd and Servant: Understanding Your Leadership Roles

As Christian business leaders, we have three roles: steward, shepherd and servant. A steward manages the owner’s resources for the benefit of the estate and the advancement of the owner’s agenda. A shepherd cares for the sheep and leads them to the place of safety and benefit. A servant attends to the needs and desires of the people he serves. Jesus, our model, demonstrated and talked about these qualities extensively.

As stewards, we’re responsible to God, government, shareholders and team members. The parable of the talents is clear: God expects us to get a fair return on the assets entrusted to us. Casting a compelling vision, creating and maintaining healthy profitability, using biblical principles to operate the business and investing in God’s work fall into the category of stewardship.

“He who works his land will have abundant food, but the one who chases fantasies will have his fill of poverty. A faithful man will be richly blessed, but one eager to get rich will not go unpunished” (Proverbs 28:19-20).

In our role as shepherds, we’re responsible to care for our people. Do we view them as precious in God’s sight or simply as a means to accomplish our goals? In addition to providing fair or generous wages and benefits, are we providing an excellent work environment and pointing them toward the Good Shepherd? Our faithfulness toward God will be shown by our faithfulness toward people.

“Be shepherds of God’s flock that is under your care, serving as overseers—not because you must, but because you are willing, as God wants you to be; not greedy for money, but eager to serve; not lording it over those entrusted to you, but being examples to the flock. And when the Chief Shepherd appears, you will receive the crown of glory that will never fade away” (1 Peter 5:2-4).

As a servant leaders, we’re responsible to “do nothing out of selfish ambition or vain conceit, but in humility consider others better than ourselves. Each of us should look not only to our own interests, but also to the interests of others” (Philippians 2:3-4).

Of the steward, shepherd, and servant roles, which is easiest for you? Which is most challenging? Why?

Monitoring Assumptions for Early Course Corrections

Many entrepreneurs create a plan for the year, set it on the shelf, and then look at it a year later. Invariably, some of their assumptions are wrong and their goals are unrealized, but they don’t realize it until it’s too late. When you get away each year with your management team to gain perspective and focus ON the business, you probably perform a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). During this process, it’s critical to “face the reality” of whatever situation your business is in and move from there. If you and your team aren’t brutally honest with each other about the reality of your business situation, the market will be brutally honest with you soon enough, and the consequences will be more severe than if your team was courageous and proactive.

“Don’t begin until you count the cost. For who would begin construction of a building without first getting estimates and then checking to see if there is enough money to pay the bills? Otherwise, you might complete only the foundation before running out of funds. And then how everyone would laugh at you!” (Luke 14:28-29).

Adding one step to your planning process can make the difference between managing the business ahead of the curve or simply reacting to missed results. Add ongoing measurables and assign the task of checking them regularly to yourself or another trusted teammate. If you document your assumptions and track the indicators that monitor them, you can get an “early warning” that they’re no longer valid and make changes to avoid months of missed results.

Without having the team’s assumptions documented, you’ll not likely remember them. Then you’ll be less likely to be able to pinpoint the faulty assumption(s) and adjust the plan for the remainder of the year, given the “new reality.” You’ll also be less likely to have accurate assumptions next year, because you aren’t reviewing assumptions vs. reality. Do you have people that you allow to hold you accountable for creating, monitoring and challenging your business plan assumptions?

Defining & Leveraging Your Mission, Vision and Core Values

For team members to be inspired, the leader must be clear about why the company exists and where he and his team are going. Our people are all volunteers—they have lots of choices of where to invest their time, talents and heart. We must have an important purpose, cast a compelling vision and stand firm in our values if we’re to capture their hearts in addition to their hands. Mission

A great mission statement for a Christian-led company answers the question, "Why does this company exist?" and reflects both temporal and eternal purposes. It should be short, concise and easy to memorize. It should inspire you, and many others, to invest time and talents to accomplish it. It should be used as a tool with which your team makes decisions.

“Many are the plans in a man’s heart, but it is the LORD’s purpose that prevails” (Proverbs 19:21).

Vision

Your vision is a clear and grand proclamation of what you desire to become or accomplish—it’s your dream for the business. As a Christian business owner, your goal should be to seek your God-given vision, not one supplied by your own imagination. Bobb Biehl says, “A team without a dream isn’t a team at all.” Andy Stanley defines vision as, “A mental picture of what could be, fueled by a passion that it should be.”

Your vision should be captivating and inspiring to motivate you and powerfully attract your team. As a Christian leader, it should start from an understanding of “Who is God?” (His character) and then relate to you personally, “Who is God to you?” Once those are clear and you’re coming from a place of awe, gratitude and humility, answer the question, “What do you think God wants most to accomplish through you and the company over which He’s given you stewardship?”

“Where there is no vision, the people are unrestrained, but happy is he who keeps the law” (Proverbs 29:18).

Core Values

Your values are the moral and unchangeable foundational principles that support everything you do. Your values must be instructive and biblically-based, able to handle the weight of whatever you build. People long to truly believe in something. Choose no more than five core values if you want them to be memorable and used by your team as a code of conduct.

“I urge you to live a life worthy of the calling you have received” (Ephesians 4:1).

Communication

After defining your mission, vision and core values, be strategic in your methods and the frequency of communicating them. Be sure people understand why your company exists. People are self-motivated if they’re compelled by your "Why," want to go to the same place you do and want to get there by living the same set of values. In order to gain inspired followers, the leader must communicate, communicate, communicate the mission, vision and core values.

What’s one thing could you do differently to help capture the hearts and minds of the people you lead and influence? What steps will you take to make that happen?