Creating Eternal Value through Strategic Management

Business as Mission Metrics – Measuring the Effectiveness of BAM Efforts (part 1)

One of the root challenges for BAM leaders is managing the numerous demands on their business. The BAM leader’s responsibilities of planning, organizing, managing resources, and leading are all shaped by the availability of information, the expectations, value systems, and influence of key stakeholders, and (to the extent they are used) business and management principles and theories. Significant attention has been given by the corporate sector to studying each of these factors.

Recently, the popularity of social and environmental responsibility has increased focus on “sustainability”^[1] and the “triple bottom line” of financial, social and environmental performance as value systems for measuring business success. Integrating mission/ministry into business activities introduces a different set of relevant information, expectations, and principles. The result is a very broad spectrum of values and criteria that influence BAM companies. Until all of these factors are truly understood from a kingdom perspective, it is difficult to know where a BAM leader should focus their attention. It is even more difficult to objectively measure the business’s impact. ^[2]

Our research provides insight into what BAM leaders prioritize in the management of their organizations and what their experience has shown to be good measures of the effectiveness of BAM operations. Survey data indicates that BAM practitioners do not strongly emphasize any one category (business, social, environmental, spiritual), but emphasize some measures more than others within each category (Exhibit 8).

Drivers of the BAM movement

What can be learned by examining which measures are accepted by the majority^[3] of the Business as Mission movement?

Analysis of the measures that 80 percent or greater of respondents agree with suggests three main drivers of acceptance:

• Alignment with Biblical values;
• Direct impact on the company’s own stakeholders and interests;
• Fit within the understood boundaries of the business (particularly in respect to the distinction between corporate and individual roles and responsibilities).

The measurements that significantly less than 80 percent of respondents agree with can all be interpreted as not meeting one of these criteria. ^[4]

Within the financial category, the majority of respondents agree with the effectiveness of all of the measures. Within the social, environmental and spiritual categories, all measures that less that 80 percent of respondents agree with either directly benefit a group or element secondary to the company or may address activities or impact that is not considered a universal responsibility for all businesses.

Social

• Number of employees from marginalized groups. (62 percent)
• Participation of local employees in civic volunteer activities. (57 percent)
• Number of partnerships with social service agencies. (45 percent)

Implication: Hiring employees from marginalized groups can meet a need in society; however, it is difficult to quantify any direct benefit to the company, especially if preference is given to marginalized people groups without consideration of ability to fulfill the requirements of the job. Civic volunteer activities and partnerships with social service agencies do not directly or explicitly contribute to the core purpose of a BAM organization, presumably because the target of these efforts are groups and needs that are external to the company.

Environmental

• Reduced ecological footprint. (60 percent)
• Reduced consumption of energy and non-renewables. (53 percent)
• Zero waste operating measures. (51 percent)
• Existence of recycling programs. (49 percent)

Implication: Environmental impact is not the same all industries. For example, manufacturing firms consume more raw materials and natural resources than service firms and thus have a greater impact on the environment. As a result, some measures of environmental impact are outside the scope of a business’s responsibilities. Environmental concerns can not be assumed to be applicable to the entire BAM movement.

Spiritual

• Growth in employee giving to local churches. (71 percent)
• Participation of local employees in evangelistic activities. (61 percent)
• Regular worship at work. (34 percent)

Implication: Of the three categories, spiritual impact is the most susceptible to questions of fit within a business’s responsibilities. Employee giving, employee evangelism, and worship at work are all subject to debate (whether it is the responsibility of the company or if it is appropriate in a business context).

Creating Eternal Value through Strategic Management

Business as Mission Methodology – BAM Business Organization and Resource Coordination (part 2)

Impact of Company/Business Attributes on Business as Mission Objectives

Research suggests that links exist between respondents’ perceptions of how different attributes of an organization (development stage, size, and geographic focus) impact BAM goals (Exhibit 7). ^[1]
(Note: The colored bars on the scale reflects specific opinions pertaining to General Businesses (not explicitly BAM) [yellow], Missions Organizations [red], and Business as Mission Companies [blue], respectively.)

Key Insights:

Development stage (7.1-3)

• Respondents believe that start-up companies are more influential than established (95 percent agree start-up BAM companies are better; 87 percent agree start-up businesses are better). (7.1 and 7.2)
• The preference for start-up missions organizations is not as significant (only 64 percent agree). (7.3)
• Development stage is strongly linked to all Business as Mission objectives, with the greatest correlation with building the economy and blessing the nation.

Implication: the newness of an organization creates perceived benefits that are valued by the Business as Mission movement. Primary among these is the creation of new value in the form of products/service enhancements, additional wealth, and jobs in the economy. Start-up companies could also be assumed to be more dynamic and flexible which theoretically would make it easier for the company to incorporate BAM goals. Of course there is a trade off between the benefits of newness and the efficiencies and learning that a company gains as it develops. It makes sense that respondents seem to favor the benefits of maturity more for traditional missions organizations given that missions organizations do not create as much market value to offset early stage inefficiencies.

• The development stage of a missions organization is not correlated to profitability or the ability to provide access to locations. (7.3)
• The development stage of a company (both BAM and regular) is negatively linked with the ability to provide access to locations. (7.1 and 7.2)

Implication: the relationship between a company’s development stage and “Provides access to many locations” may result from closed-access countries valuing existing companies more than entrepreneurial efforts. The established size and structure of a mature business may lessen the government’s fear of exploitation.

Size (7.4-6)

• Respondents prefer large Business as Mission efforts to micro-enterprise.^[2] (7.4)
• In general, respondents favor large companies over small; however the preference is not as pronounced as it is for BAM companies. (7.5)
• Respondents prefer small missions organizations over large. (7.6)
• A focus on micro-enterprise is believed to limit the benefits that profit can create for the kingdom. Additionally, respondents associate micro-enterprise with the goal of providing access. (7.4)
• Larger companies are perceived to have a greater impact on building the local economy and blessing the nation. Larger companies are also perceived to have a negative impact on ability to evangelize and focus on developing nations. (7.5)
• Large companies are negatively correlated with providing access to many locations while large missions organizations are positively correlated. (7.5 and 7.6)

Implication: the preferences exhibited toward organization size highlight that size is proportional to perceived impact within a host country. However, the BAM movement strives to maintain a balance regarding size because of the perceived trade-off between size and ability to evangelize. The results suggest that there is a size at which it becomes more difficult for a BAM company to effectively evangelize. This belief (if validated) will greatly influence the goals set by the Business as Mission movement in terms of growth targets. Similarly, respondents may recognize that some developing nations or remote regions do not have the infrastructure needed to support larger companies, which tempers size preferences.

Geographic focus (7.7-9)

• Respondents overwhelmingly embrace the global focus of the Business as Mission movement. (7.7)
• Global presence is believed to impact all Business as Mission objectives. The biggest impact is believed to be on profitability and ability to build the local economy.
• Global presence is negatively correlated with providing access to many locations.

Implication: the results reinforce the central role that globalization plays in creating opportunities for Christians to further the kingdom through Business as Mission. The negative correlation between global focus and “Provides access to many locations” most likely is a consequence of reactions to the simplification of Business as Mission as a means for overcoming prohibitions against missionaries in closed countries.

The following is another excerpt from the BAM Survey 2007 Report. The BAM Survey 2007 Report is an in-depth assessment of the state of the Business as Mission movement based on survey responses from 497 people in 38 countries. You can purchase an electronic copy of the BAM Survey 2007 Report for $14.99 here.

Creating Eternal Value through Strategic Management

Business as Mission Methodology – BAM Business Organization and Resource Coordination (part 1)

In order for Business as Mission objectives to drive the strategic management of BAM companies, the structure of a BAM company must align with those objectives. Analysis of the survey results suggests that correlations^[1] exist between respondents’ perceptions of key elements of a BAM company (structural elements and management considerations) and perceptions of key BAM objectives.

Structural elements

Different strategies that integrate business activities with ministry efforts hold to different principles on how a business should operate. How each of these principles is manifest within a business is a subject of much debate. Core principles such as operating with integrity and honesty are universally accepted as important to Christians in business. However, research shows that three key considerations regarding structure (commercial function^[2], licitness^[3], and management oversight) are not universally accepted as vital elements of Business as Mission (Exhibit 5).

• Nearly 10 percent of respondents do not think that commercial function and legal structure are vital for Business as Mission. (5.1 and 5.2)
• One out of four respondents expressed no opinion about whether an advisory board is a vital element of a BAM business. (5.3)

Management Considerations

Exhibit 6 summarizes how perceptions of corporate structure as well as management considerations regarding oversight and sustainability correlate with the perceptions of the strategic objectives of the Business as Mission movement.

Corporate structure (6.1-2)

• Aspects of corporate structure (licitness and commercial function) are recognized by 77 percent of respondents as important elements of BAM companies.
• Both licitness and commercial function are considered to strongly influence a business’s ability to make a profit. Both also influence evangelism efforts and focus on the developing world.
• A BAM company’s commercial function influences that company’s role in building the local economy. (6.1)

• Commercial function has a negative correlation with providing access to countries. (6.2)

Management oversight (6.3-5)

• Survey respondents heavily favor Management participation in discipling and accountability relationships (87 percent). Additionally, 68 percent agree that BAM companies should have an advisory board. (6.3 and 6.4)
• Results indicate that the primary influence of these two types of management support is on the company’s evangelism efforts and focus on the developing world. (6.3 and 6.4)

Sustainability (6.6-8)

• Sustainability is considered a highly important aspect of Business as Mission, with over 85 percent of respondents agreeing that Net profitability of the organization, Growth in capital base for future development of kingdom businesses, and Development of a succession plan are valuable elements.
• Respondents correlate net profitability with the ability to build the local economy and to bless the nation. (6.6)
• Respondents also believe that developing a succession plan facilitates the ability to evangelize and the focus on the developing world. (6.8)

• All three aspects of sustainability are negatively correlated with the goal of gaining access through Business as Mission.

The following is another excerpt from the BAM Survey 2007 Report. The BAM Survey 2007 Report is an in-depth assessment of the state of the Business as Mission movement based on survey responses from 497 people in 38 countries. You can purchase an electronic copy of the BAM Survey 2007 Report for $14.99 here.

Who are the Business as Mission leaders? (part 3)

Business as Ministry

It is clear from the survey results that the belief that missions/ministry work can be done in the business context is widely accepted (Exhibit 4). In fact, as many survey respondents believe that Business as Mission is beneficial to the kingdom as those who believe Missions work is beneficial to the kingdom (96 percent agree with each) (4.1 and 4.2). However, it is not as widely accepted that general business (operated ethically) is beneficial to the kingdom (only 60 percent agree and 21 percent disagree) (4.3). The fact that 83 percent of all respondents agree that Work in a business is a ministry (4.4) suggests that the Business as Mission movement distinguishes between the impact a business (organization) can have and the impact that individuals within a business have.

Business as Mission is more than just doing business ethically

It’s particularly interesting that respondents in the Business, Non-Profit, and Education fields all agree to the same extent that Work in a business is a ministry (82 percent, 82 percent, and 85 percent respectively). However, fewer Business respondents agree that Any ethical business is beneficial to the kingdom (59 percent) compared to Non-Profit and Education respondents (64 percent and 63 percent respectively).

This may point to an increased awareness among Christian businesspeople of the importance of being intentional in using business as an opportunity to minister. Whether this is a result of experience or in response to increased scrutiny and criticism the business world receives as a result of the sacred/secular divide is unknown.

In Business as Mission, the company itself is a part in the ministry

One of the core distinctions between Business as Mission and other approaches to integrating business and mission/ministry (e.g. workplace ministry, tent-making, micro-development, etc) is that in BAM some or all aspects of the business (organization) contribute to the missional purpose. Business as Mission involves the manifestation of a missional purpose at both the individual level and the organizational level. What the missional purpose is and how it is manifested at both levels is influenced by many different factors.

Given that respondents universally accept the benefit of Business as Mission (4.1) but do not completely accept individual (4.4) and organizational (4.3) impact in business implies that some people do not understand how Business as Mission incorporates both. Only 53 percent of all respondents agree that Work in a business is a ministry and that Any ethical business is beneficial to the kingdom. Additionally, 22 percent of respondents who agree that Work in a business is a ministry did not agree Any ethical business is beneficial to the kingdom.

Thus, a majority of people understand the individual aspect of BAM transformation; but, a significant portion of the movement does not understand or agree with the organizational aspect. In order to address this disconnect, it is important how BAM leaders run their companies to create impact. In the next section we look at four aspects of Business as Mission strategic management: objectives, organization and coordination, metrics, and resource allocation.
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This is the third installment sharing highlights from the BAM Survey 2007 Report. Today we take a closer look at the global leaders of the Business as Mission movement and the beliefs that drive their efforts in spreading the Gospel through global business entrepreneurship.

The BAM Survey 2007 Report is an in-depth assessment of the state of the Business as Mission movement based on survey responses from 497 people in 38 countries. You can purchase an electronic copy of the BAM Survey 2007 Report for $14.99 here.

Who are the Business as Mission leaders? (part 2)

Embracing the Priesthood of Believers

Our research shows that businesspeople around the world are enthusiastically responding to God’ s call for them in the workplace (72 percent of respondents believe they are called to business) and are forging ahead to use their business activities to create transformation (83 percent of respondents believe that Work in business is a ministry^[1]) (Exhibit 3).

Results highlight a greater prevalence of being called to business versus being called to missions.

• Nearly three-quarters of all respondents indicated that they believe they have been called to the business world (72 percent). A slightly lesser percentage of respondents believe they are called to Business as Mission specifically and to missions (69 percent and 67 percent respectively).
• 86 percent of respondents from the Business field feel called to business compared to 72 percent of Non-Profit respondents that feel called to missions.
• Of survey respondents that indicated they are “Very Familiar” with Business as Mission, 82 percent indicated that they feel called to business compared to 75 percent that feel called to missions.
• Of survey respondents that indicated they are either “Not Very Familiar” or “Not At All Familiar” with Business as Mission, 63 percent indicated that they feel called to business compared to 43 percent that feel called to missions.

Respondents from different age groups demonstrate different degrees of feeling called to business, missions, or Business as Mission.

• Of respondents in the 18 to 29 year old group:
  • 66 percent feel called to business.
  • 64 percent feel called to missions.
  • 58 percent feel called to Business as Mission.
• Of respondents in the 30 to 44 year old group:
  • 75 percent feel called to business.
  • 72 percent feel called to missions.
  • 79 percent feel called to Business as Mission.
• Of respondents in the 45 to 59 year old group:
  • 71 percent feel called to business.
  • 63 percent feel called to missions.
  • 67 percent feel called to Business as Mission.
• Of respondents in the 60+ year old group:
  • 71 percent feel called to business.
  • 74 percent feel called to missions.
  • 66 percent feel called to Business as Mission.

Feeling called Business as Mission is linked to feeling called to either business or missions.

• Respondents that feel called to business (relative to those who expressed no opinion or do not feel called to business) are 2.6 times more likely to feel called to Business as Mission (84 percent compared to 32 percent respectively).
• Respondents that feel called to missions (relative to those who expressed no opinion or do not feel called to business) are 1.4 times more likely to feel called to Business as Mission (76 percent compared to 54 percent respectively).
• Of respondents that feel called to both business and missions (45 percent of all respondents):
  • 91 percent feel called to Business as Mission.
  • 2 percent do not feel called to Business as Mission.
  • 8 percent expressed no opinion.

We’re continuing with sharing excerpts from my BAM Survey 2007 Report, an in-depth assessment of the state of the Business as Mission movement based on survey responses from 497 people in 38 countries. You can purchase an electronic copy of the BAM Survey 2007 Report for $14.99 here.

Today we look at the demographics of the survey respondents in order to get an better idea of who makes up the global Business as Mission movement.

Who are the Business as Mission leaders? (part 1)

For the first time, the survey results enable us to describe the community of BAM leaders that has formed around the core elements that define Business as Mission (Exhibit 2). Of survey respondents that rated their understanding of Business as Mission as “Very Familiar”

Our data reveals that the 30 to 44 year old group has the ideal temperament for facing many of the challenges of the next stage of the Business as Mission movement — 75 percent feel called to business and 79 percent feel called to Business as Mission. What’s more, this group’s support networks (church, social communities, and companies) understand and pray for Business as Mission more than any other group’s.

However, it is clear from the data that the 45 to 59 year old group is driving the movement forward and paving the way for the next generations of Business as Mission leaders. The 45 to 59 year old group:

According to a 2005 Market Audit Survey by Claritas, the median net worth of 45 to 54 year olds is greater than twice that of 35 to 44 year olds (Table C). The median net worth for 55 to 64 year olds is nearly four times greater than that of 35 to 44 year olds. The improved financial position of the 45 to 59 year old group suggests two benefits: a greater ability to invest capital in BAM and a more stable financial base to endure challenges in operating a BAM company.

Due to their experience, positions and access to resources, the 45 to 59 year old group is the most prepared to create impact in the world through Business as Mission. This group is the key to executing Business as Mission and leading the movement as it faces new challenges.
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Pray4BaM.org is part of a UK based charity that was set up to support Business as Mission in prayer, finance and marketing. We felt God calling us to organise a Prayer Conference for BaM. Rather than being a time of teaching about BaM, this is to be a Prayer Conference, supported by times of worship and testimony of what God is doing around the world through business.

Based on their description and from what I know of the group that’s involved, I am excited about what God is leading them to do. I think the conference will be a great opportunity for those who attend. As S.D. Gordon has said, “The greatest thing anyone can do for God or man is pray.”
Prayer is crucial to all endeavors whether they be overtly Christian or not.

I think this announcement is rather timely in light of my previous post regarding conferences for the rest of us. This is a great opportunity for the priesthood of believers who are called to global missions and business to engage in networking, learning/training, and self-promotion (for themselves or their organization) and the need for venues for this is great. And I’m glad that prayer is a top priority, I hope that this becomes the first of many such efforts and that BAM practitioners around the world can grow to rely of frequent prayer efforts on their behalf.

At the same time, I believe there is a greater need among the BAM movement. This conference is one of many new services being developed to address the needs of the BAM movement. But the market for BAM services is still relatively new. This new growth stage is characterized by the growth and maturing of customer groups within the BAM movement. As a result we’re seeing the development of “competition,” new offerings from existing groups or the emergence of new groups adding new services to the mix. The historic challenges of lack of conceptual clarity, fragmented and isolated effort, and philosophic differences which hindered BAM efforts in recent years are giving way to a new set of challenges arising from the diverse backgrounds and needs of the participants in the BAM market.

To date, very little empirical research exists in the field of Business as Mission. The majority of the focus is still on issues like the Biblical basis for BAM, and as long as there are Christians that need to be awakened to the fact that God wants their full service – Monday through Sunday, such discussion is needed. For those who are brave enough to venture beyond BAM principles and foray into practical BAM, conceptual contributions based on personal insight and experience dominates the discussion. As a result, very little data- and fact-based guidance exists for these service providers to draw on as they sift through the complexities of the Business as Mission landscape.

The some of implications of this on developing a BAM strategy are:

• You will most likely have to spend time educating your customers about Business as Mission which will influence your business development strategy. Make sure to incorporate stories into your efforts in order to help customers “experience” the power of what it is you do.
• There will be very little Business as Mission specific, market information to reference in your business planning efforts. Use bottom-up estimations when assessing the opportunity in your business plan. Your estimates will be more realistic and people will be more likely to trust your assessment.
• Market boundaries will be blurry and difficult to define; thus it may be difficult to both identify pockets of demand for you products/services and understand the underlying drivers. It will be important to invest in market intelligence activities in order to understand your competitive landscape and track customer demand. Client relationships will also be important as you must make sure you have a good understanding of your customers’ needs and challenges.
• Poorly established BAM business models will get lost somewhere between a traditional business model (pay for service) and a traditional mission model (give it away), making it hard to establish a perceived value from which to develop profitable pricing models. It is important to clearly define your business model, clarifying how you create value for customers both directly (through your offering) and indirectly (through how you operate).
• Very few individuals or groups have significant market history so  you will need to invest in establishing your brand establishment in the appropriate areas.
• The power of BAM is diluted by weak attempts at integrating faith with business. You need to be able to show how your Business as Mission strategy creates real impact. Offering “products plus prayer” will only take you so far.
• There is no common language or existing BAM standards which will make engaging others more difficult. Do not think that you need to have a standardized process for everything that you do; however, you do something in your business, you need to be working towards creating consistent and efficient processes, making it easier to bring others into your world and forming a basis for interacting with others.
• It will be difficult to do a good self-assessment, since there is no prototypical Business as Mission entrepreneur or organization to compare yourself or your organization to. Try and gain exposure to as many different working models from across multiple areas of business as well as other parallel fields, drawing from lateral examples of success and incorporating them into how you run your business.

On the bright side, the fact that BAM is not well established also means there is a lot of opportunity for those who are being lead into BAM. With the market as undefined as it is, there is a great opportunity for you to be the one who defines your own market or niche-market. And there is a lot of room for creativity and variety in how you get started, in fact I would say that creativity and variety is crucial at this stage of the the Business as Mission movement in order fuel true innovation. It is only through the kind of market innovation that BAM practitioners are working to create that we will be able to redefine “business as usual.” And it is only through redefining “business as usual” that we are going to show the world that there is a better Way.

So if you believe that BAM is in your future, now is the time to get started. Take stock of your capabilities and resources, research the opportunities that are within reach, and get started. I am not saying that BAM is for everyone and I am not endorsing reckless business ventures. But one of the great things about Kingdom strategy is that our successes are His successes and even our failures are still His successes. If you’re wondering where to get started, I think the Pary4BaM conference might be a good place. But I ask that you go into it having prepared in your heart that Christ might ask you to do a whole lot more in Business as Mission than just prayer.

Business as Mission takes many forms, but shares some common features. Some of the common characteristics of Business as Mission efforts are:

• The business activities lay the foundation for ministry impact through:
  • development of relationships;
  • modeling of the power of relationship with Christ (presenting a compelling alternative within a society);
  • engaging multiple aspects of people’s lives (vocation, finances, family, community).
• Revenue is a multiplier (income from business activities can increase the effect of both business and ministry activities).
• Transformation occurs through consistent and intentional efforts that must be continuously managed.
• The business leader/owner sets the vision for ministry.

To maximize the impact of BAM efforts the business must:

• have a clear strategy for both the business and the ministry;
• invite Jesus into every area of operations;
• be sustainable and ideally create a revenue surplus;
• be of a certain scale to create economic value and justify employing multiple people.

My research efforts through Unconventional Method have shown that the following core issues are typically the areas where obstacles, resistance, and confusion to BAM initiatives exists.

• Profit
• Resources (money/materials/people)
• Control/governance/ownership
• Integration of spiritual activities/ministry impact
• Market viability
• Performance expectations
• Strategic management
• Monitoring/measuring

Proceeding without clarity on these issues increases the likelihood of future conflict and introduces risks to the organization. Creating definition and structure around your organization’s understanding of Business as Mission will create a solid foundation a BAM strategy.

Questions for consideration:
Building on the BAM principles discussed here,

• What are the core STRATEGIC thrusts of your organization? Does operation of a business belong on that list or would it be a distraction?
• What does AUTHENTIC BUSINESS mean to you? Are you underestimating the effort required?
• Are there business opportunities that will create a CROSS-CULTURAL context for you or your organization? Are you ready to step outside of your comfort zone?
• Are you prepared to MINISTER & EVANGELIZE? Are you listening to those around you, in tune to their needs?
• What are your SPHERES OF INFLUENCE? Do people want to listen to you?
• What does HOLISTIC TRANSFORMATION look like? Are you truly invested in the lives of other, or just looking to administer some temporary fix and move on?

Looking at the list of Core Issues:

• What do you strongly believe to be true for each area?
• Do others in your organization share the same beliefs?
• Which issues are your priorities? Why?
• Which issues have you not considered? Why not?

It is better to count the cost at the beginning of this journey, to know where you are going and what it will take to get there. There is general belief that 50 percent of businesses fail within the first year and that 95 percent fail within the first five years. But did you know that 99.999… percent of people fail at some point in their lives? My hope is that we can prolong the inevitable as long as possible simply by taking the time to prepare.