Passing it On: BAM Succession Planning and Exit Strategies

by David Skews

Editors Note: When we asked veteran BAM leaders to identify some of the pressing issues that are facing the business as mission movement in the next decade, among the issues they identified were several areas that could broadly be categorized as ‘resource gaps for BAM companies’, including:

1. Adequate financial capital flow.

2. Adequate human capital flow – both in terms of a) recruiting the right kind of people to begin and sustain a BAM company, and b) succession planning and the successful transition of a BAM company from one generation of owners to another.

3. Adequate support for BAM practitioners, especially mentoring, accountability and care.

We will be posting articles covering each of these issues during the month of June, continuing with the challenge of human capital flow, part b: succession planning.

BAM Succession Planning & Exit Strategies

In the beginning God created a BAM Business but when is it time to pass it on?

I can guess why I was asked to write something on exit strategies by the editorial team!

Having founded a business in the UK in the 1980s, I later realised how it might be used by God with the help of a BAM conference I attended in 2003. Scaling the business was tricky, opening offices in Singapore and then into Southeast Asia. We had a bumpy ride in the 2010s and I completed my exit strategy through the sale of the company – specifically, a management buyout (MBO) – in 2014.

I am currently engaged in advising over 100 BAM businesses on their journey from pre start-up to lean start-up, and now some scaling-up. I am currently working with a BAM business in Asia that is planning the succession of owners, along with a collaboration of two BAM companies as part of a medium-term exit plan.  Read more

People, People, People! Human Capital Flow for BAM Companies

by Peter Shaukat

Editors Note: When we asked veteran BAM leaders to identify some of the pressing issues that are facing the business as mission movement in the next decade, among the issues they identified were several areas that could broadly be categorized as ‘resource gaps for BAM companies’, including:

1. Adequate financial capital flow.

2. Adequate human capital flow – both in terms of a) recruiting the right kind of people to begin and sustain a BAM company, and b) succession planning and the successful transition of a BAM company from one generation of owners to another.

3. Adequate support for BAM practitioners, especially mentoring, accountability and care.

We will be posting articles covering each of these issues during the month of June, continuing with the challenge of human capital flow.

Human Capital Flow for BAM Companies

To some ears, the term “human capital”, especially when applied to the BAM movement, might sound strange, secular, and mercenary – even exploitative.

According to the OECD, human capital is defined as: “the knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods, services or ideas in market circumstances”.

There is, therefore, nothing at all shameful in this use of the term. Indeed, if the BAM movement is predicated on the assumption that God’s pleasure is to create good things for the benefit of all, and that the marketplace is part of the divine design for how society is intended to function, then we should rejoice in being a part of that process and outcome. This doesn’t mean we are ciphers or cogs in some impersonal machine, for this would entirely negate the splendid truth that we are persons, made in the image of our Father in Heaven.  Read more

Human Resource Management Through a Spiritual Lens

by Ross O’Brien

In this series of blog posts, we have been looking at Porter’s Value Chain Analysis as a useful tool for business people seeking to maximize the value they deliver to customers while also seeking to gain a competitive advantage as they execute their strategy. If you have not yet read the previous articles, let me encourage you to read at least the introductory article linked here, as it will set the foundation for this and all the other articles in the series.

Beyond the traditional use of the analysis, we have also unpacked how the tool could be used as a way to help a follower of Jesus steward the resources of God’s company. In this fifth part of the series, we continue to examine the support activities of the value chain, this time focusing on Human Resource Management.

 

800px-Porter_Value_Chain

Dinesh Pratap Singh’s visualization for Porter’s Value Chain: CC BY-SA 3.0 

Read more

A Potluck Approach: Engaging the Marginalized with Meaningful Work

by Stu Minshew

Work is good, and we are called to glorify God through the work that we do, but what does that look like in our day-to-day lives as entrepreneurs and Kingdom businesspeople? A new book by Michael Rhodes and Robby Holt, Practicing the King’s Economy: Honoring Jesus in How We Work, Earn, Spend, Save, and Give, has challenged me to intentionally consider how I can provide employment opportunities for those on the margins of society. Today, I want to share two key takeaways for as we seek to engage those on the margins through our work.

Where Do We Start: Potluck vs. Soup Kitchen

No matter where we live and work, we are surrounded by those in need. Many individuals, and even entire groups of people, live on the margins of our society. There are those who have committed crimes and served time in jail, those treated as inferior because of their race or ethnicity, members of low-income communities, single moms, and the elderly. Almost everywhere in the world, these individuals are afforded less encouragement and fewer opportunities for work, and are often prevented from even pursuing meaningful work.

How should Christians respond? We must start by realizing the value inherent in each individual, a value that comes from the fact that they are created and loved by God. As His followers, we are also called to love them and we demonstrate that love in the way we engage them.  Read more

Workplace Relationships: Loving Your Employees

by Michael Thiessen

As a business owner, you provide many amazing things for your employees. You provide financial security for their families, a sense of belonging, and the emotional well-being and satisfaction that comes from doing good work. However, if Jesus were running a business, do you think he would stop there?

I believe that we are called to much more than that. We have so many more opportunities to bless our employees and care for them – to love our neighbors as ourselves. We can learn leadership lessons from Jesus, think more deeply and compassionately about who we are hiring, find ways to engage spiritually with our employees, plus some other great ways of caring more for our employees.

Leadership Lessons from Jesus

In true biblical fashion, it turns out that the best way to lead others is to serve them. Stephen Covey, who wrote one of the best-selling business books of all-time, was an advocate of this style of leadership, aptly called Servant Leadership. This is also the style of leadership that Jesus used throughout his ministry. We see this in how he washed the feet of the apostles, humbling himself to serve them even though he was their King. In fact, one of the people I have interviewed for Marketplace Disciples has based their entire business on teaching others how to lead in this way. Jannice Moore coaches the boards of businesses and non-profits, and gets to share the story of Jesus with all of her clients:

“The model of governance in which my business specializes is Policy Governance ®. One of its fundamental principles is that the board is not there for itself, but for its owners, those on whose behalf it governs, and that the board’s relationship with those owners should be one of servant-leadership.

So I build the concept of servant-leadership into every presentation, and use it as an opportunity to note that the concept was one taught by Jesus Christ.” Read more

Three Female BAM Owners Tell Us Their HR Stories

Three female BAM owners share their Human Resource stories from around the world – from Mongolia to Turkey to Puerto Rico! People issues can make or break a BAM company. Listen in to these real-life experiences.

hospitalityJulia in Mongolia – Hospitality Industry

Keeping staff steady has been a major challenge! We have had a 10 year saga of people leaving just when we have them trained or half trained. We have also had struggles with people who don’t show up for work, some legitimate, some not. Many have had pressure from family to get work elsewhere for a better salary. This is understandable as many of my workers, mostly young people aged 19-24, are the only providers for their families, parents, and siblings. But what I don’t understand is why they often quit before they find another job!

On the other hand, we have had a pretty good success rate building staff loyalty by setting up flexible schedules that were doable for mothers and students. We have tried to prioritize strong families and build staff schedules that are hand-tailored to their needs. They stay on because no other business takes these things into consideration. We have built very loyal workers from this. Read more

The Risk of Making Assumptions When Hiring Christians

by Jim Nelson

Making the right hiring decisions is crucial to a company’s well-being. From a BAM company perspective, I have sought to hire local Christians to work for me. By our shared faith, we can understand each other better and seek Kingdom values in the company and surrounding community. If proper research, interviewing and trust building is cut short, the consequences I have experienced have been less than ideal. Here are a few stories of lessons I learned in hiring Christians to work for my business.

Caught Off-Gaurd

In 1999, I had a chance to open an office in a new business area. An older Chinese Christian recommended I hire Zhang, a Chinese Christian who could speak the local dialect. I interviewed him on his business thinking and agreed to let him manage the office. I felt the older Chinese Christian who recommended him knew about his faith, so I did not bring up the topic during the interview.

Zhang then hired two local Christians to join the team. I learned that the local Christians he hired did not own Bibles so we eagerly provided them. We assumed all were Christian and ethical to run the business. The business soon had trouble and I realized that Zhang could not be trusted. We found he had stolen a few hundred dollars. I let him go.

Read more

Millennial Insights for the Intergenerational Workplace

Every year, millions of “millennials” (born between 1980-1996), are entering the workforce. A recent extensive Gallup Report on millennials reports that there are over 70 million millennials in the U.S. alone, making up 38% of the U.S. labor force. Without a doubt, employers will increasingly need to know how to best work with millennials in the years to come.

Unfortunately, many employers and leaders feel they do not understand the millennial generation or how to maintain their loyalty in the workplace, concluding that millennials are an “uncrackable code” or even a lost cause. This does not have to be the case. Here are some common themes among millennials as well as practical insights about how to strengthen communication with them:

Millennials…
  • Are highly relational. Having grown up in an era of social networking and instantaneous feedback, millennials are accustomed to constant communication. Work environments that have hierarchical, top-down leadership and only focus on the task (while neglecting social aspects) are unappealing as compared to work environments that are collaborative and communicative.
  • Want to have purposeful, meaningful work. Millennials are very purpose and values-driven in terms of where they want to be employed. Many are not just looking for positions that can earn them an income; rather, they want meaningful work at companies that align with their personal values and passions. They seek out jobs that offer the best options to hone their skill sets, give them opportunity for advancement, and resonate with what they find important.
  • Appreciate honesty and transparency. Millennials appreciate coworkers and supervisors who can offer honest feedback and be transparent in addressing challenges. Additionally, as determined by CliftonStrengths, two of the top five strengths among millennials are Learner and Adaptability, which demonstrate their teachability when they receive reviews and critique.

Read more

10 Critical Human Resource Challenges in Business as Mission

We asked 25 BAM Practitioners one simple question:

What have been the most important HR issues in your BAM business experience?

Here are the Top 10 issues that they mentioned the most:

 

1. Finding the complete package

Recruiting and hiring people with the right mix of business skills, character formation and mission-motivation.

The biggest issue is finding employees who are followers of Christ and have the skillset required for the job. I usually run into people who have one or the other of these two qualifications, but seldom have both. – Joseph, India

2. Cultural differences

Dealing with different cultural norms between expat staff or business owners and national staff, that significantly impacts the business operations.

It can be tough to implement systems and policies with people who believe all standards can be moderated or ignored. Learning employees’ real opinions in a high context language group is a challenge, where it is a cultural norm to say only what is expected or desired. – Robert, Turkey

3. Disappointment over Christian staff

Finding that Christians hired into the company do not have the right work ethic, competencies or even expected moral standards.  Read more

What Makes a BAMer? Identifying and Deploying the Right People for BAM Companies

Interview with Peter Shaukat

With 15 years of experience recruiting for, mentoring, and investing in BAM companies all over the Arab world and Asia, Peter has a unique perspective into Human Resources for business as mission. We asked him to share his insights on recruitment and hiring for BAM companies.

What skills are BAM companies typically looking for?

Virtually any! Management skills in various business disciplines are needed. Those with good financial management skills and experience are almost always in short supply. While bookkeepers can often be found aplenty, ‘Chief Financial Officer’ type skills are another matter. Founding entrepreneurs often lack the business building skills and experience of general management of the sort that a COO or CAO brings to the table.

Marketing and/or especially sales skills and experience are highly sought after. Often an SME-sized BAM company will have some national talent on this, but to trade well internationally they require those with expat credentials for (at least perceived) credibility, access to networks, and marketing/sales channels, etc. These are often in short supply.

BAM businesses often need specific technical and/or professional skill-sets which are particular to the business in question. For example, an environmental consulting company to the textile industry in Bangladesh needs experienced chemical, industrial or systems engineers, while a civil engineering company in Pakistan will be looking for a civil or mechanical engineer or architect. An educational business in Yemen looks for qualified teachers or other education specialists whereas an agribusiness in Iraq requires an agronomist, and so on. Read more