Growing health and effectiveness

A blog centered around The Addington Method, leadership, culture, organizational clarity, faith issues, teams, Emotional Intelligence, personal growth, dysfunctional and healthy leaders, boards and governance, church boards, organizational and congregational cultures, staff alignment, intentional results and missions.
Showing posts with label budgets. Show all posts
Showing posts with label budgets. Show all posts

Monday, October 1, 2012

Does your ministry budget reflect your ministry priorities?

Budgets tell a story. They reflect our true ministry priorities whether in a local church or other ministries. We can say what we will but how we allocate resources is the real story of what is important to us.

Often budgets simply reflect what we have always done rather than what we say we intend to do. Politics and inertia can keep us from budgeting our priorities. How we have traditionally allocated resources should not be the test of how we allocate them in the future. 

Here is an interesting exercise. Identify the top three priorities for your ministry and then ask the question as to whether you are allocating resources in a way that will help you achieve those priorities. If not, what is keeping you from budgeting your real priorities?

Budgeting should not start with the past but with what you intend to accomplish in the future. The starting point is where we want to go, not where we have been. Budgets should help us drive our ministry agendas.

Tuesday, May 8, 2012

Core ministries, ancillary ministries and focus

I recently had a conversation with a ministry where I asked what was truly "core" and "central" to what they did? They looked at me with confusion and said "everything."  So I went at it a different way and asked, "If you had half of the money you now have, what ministries would stay and which would go?" Their answer to that question got them on the road to identifying what was truly core and central and what was in fact ancillary.


Scarce resources are often the thing that force us to make the choice between core and ancillary. When you have to choose you have to make decisions as to what is truly central and what is not.


Here is the truth. For most ministries, there are core and ancillary sub ministries. Knowing the difference is critical because the majority of your time, energy and budget should be focused on the core, not the ancillary. Furthermore, you need to know what is core and central and what is nice but non-essential.


One of Steve Job's upsides as a leader is that when he returned to Apple for the second time, he helped them focus on a few core products and shed what was ancillary. He knew that the organization could not deliver excellence over a broad number of products. He ruthlessly shut down what was not central and they focused on the few products that have made Apple a very wealthy company today.


Ministries pick up all sorts of ancillary activities like a duster picks up dust. New stuff sticks all the time, often diminishing the core ministries as energy and focus is spread ever thinner. Disciplined organizations are very clear about what is core and central and they resist the temptation to add new and novel ministries that might be good for someone but are not core for them. 


Here are some important questions to be able to answer with your ministry team:
1. What is central and core to what we do and what is ancillary?
2. Do the central and core ministries get the energy, focus and resources they should get?
3. Are there ancillary ministries that are diminishing our attention to the core ministries?
4. Do we need to refocus around our core ministries and shed what is ancillary?

Thursday, April 5, 2012

Principles and practices to guide your ministry's financial decisions


In our current era of fewer resources it becomes even more critical for churches and other ministries to have a grid through which they make financial decisions. All budgets reflect a financial philosophy whether spelled out or not. Having your philosophy defined can help you make key financial decisions and keep your ministry on track toward its intended objectives.

In addition, the answer to increased ministry is not always an increase in dollars or people. It is often doing what we do in a different and more effective and efficient way. A set of financial principles or practices can help define a mindset that sees financial resources through a new set of eyes.

Consider these best practices to guide your financial decisions. And consider taking the time to draft a set for your own ministry.

One, we will teach and model generosity believing that this is the heart of God. We will call people to a life of generosity but will not coerce or manipulate people to give.

Two, we will faithfully and wisely steward what God provides to us for the ministry He has entrusted to us.

Three, we will joyfully and thankfully live within the income that God provides. We will live within our means believing that God gives us what we need in order to accomplish the ministry He has called us to.

Four, we know that we cannot be all things to all people. Thus we will carefully define our mission critical and core ministries and fund those before we start ancillary ministries, no matter how attractive, that are not mission critical. In tight times, we will always come back to funding that which is mission critical.

Five, we value excellence but do not believe that excellence must be expensive. Our ministries will be excellent but as cost effective as possible. We will regularly look for ways to accomplish our mission in the most cost effective way as possible.

Six, we will staff with the best people possible, compensate them fairly and subscribe to a lean staffing philosophy. All key ministry staff will build teams of volunteers so that we are not staff heavy and live out the equipping mandate of Ephesians 4:12.

Seven, before we hire new staff we will always look at the systems, processes, staffing and volunteer resources to determine whether there is a way to increase our ministry capacity without increasing our staff.