Posts

Identifying and Maximizing BAM Success Factors Part 1

By Paul Harrington

In this new series on ‘BAM Success Factors’ we invite guest authors to share what they consider the key factors contributing to success and growth for BAM practitioners. To open up the series, Paul Harrington gives us an overview of the most important BAM success factors he has identified through research. 

BAM Success Factors Part 1: Professional and Technical Considerations

Starting a new career in a part of the world that is not your cultural home is a big undertaking for anyone. For those who wish to use their businesses as a means through which God can reach the world, the challenge can be even greater. Everyone involved in the Business as Mission movement wants to make sure that every practitioner that takes the bold step of setting up a business with Kingdom values in a new context succeeds. Thankfully, many of the keys to success for BAM practitioners are known and have been validated by scholarly research.

BAM practitioners aren’t the only group of people who live and work outside of their home countries. Many companies and governments, including the military, as well as mission agencies and non-governmental organizations (NGOs) send their employees to work around the world. While government and military techniques do not necessarily provide insight into how BAM practitioners can succeed, research done by and for private employers, NGOs, and mission agencies provides insight into the factors that lead to successful deployment of their personnel and have relevance for BAM practitioners.

Success means different things for different people. Since business as mission is a unique discipline with defined goals that might include the fourfold bottom line – achieving the financial goals of the owners of the company, social impact goals of the community in which the business works, goals to protect and enhance the environment, and spiritual impact goals – success in a business as mission enterprise can be measured.  Read more

7 Markers for a Kingdom Business: A Framework for Entrepreneurs

AND THE AWARD GOES TO...

Our goal is to provide the BAM Community with the best content and resources available. As we wrap up another great year we will be highlighting various articles and resources which have stood out in the past six months. Below is the “Most Popular Post” for July to December 2016.

Please enjoy and thanks for following!

by Courtney Rountree Mills

A quick framework to help entrepreneurs learn how to integrate their faith life with their business life in a practical way.

Let’s face it. Life is hard enough as an entrepreneur. The whole world always seems to be resting on your shoulders. The pressure to succeed is immense. After all, if you don’t, you let down not only yourself and your family, but also your staff and their families! What gets you through the pressure? Mainly prayer and the passion you have for your business. You love the challenge of being an entrepreneur. It energizes you more than almost anything else. Sometimes thinking about your business becomes more like an addiction – you could work on or think through challenges you face all day, every day and never feel like you are completely caught up.

The only thing you care about more than your business is your relationship with Jesus and your family. Still, it seems your business ends up taking over your prayer life and family life, too. You keep hearing about how you should live an integrated life, but you have no practical idea how to achieve this. You hear people around you using the phrases “Kingdom Business” or “Missional Business.” These sound great to you, but you don’t even know what the definition of a Kingdom Business is. Measuring your business’ Key Performance Indicators is easy, but how do you measure your KPIs when it comes to integrating your life as a believer and business owner? This article provides a quick framework to help entrepreneurs live out their faith in their business. This is a topic that resonated most with the 450 entrepreneurs we have accelerated who were asking the same question. Most of this is not material I wrote. Rather, it is a compilation of some of the best material I have found on living out business as mission. Read more

Do You Have Clear KPIs for Your Kingdom Business?

by Larry Sharp

What if Jesus was your boss? What if he was the chairman of your board? What if you reported to him each month for your KPIs (Key Performance Indicators)?

What would he expect that those KPIs would be? How would he measure how you are doing?

A wise owner or manager continuously keeps his KPIs in mind. He knows that accountability is a key factor in driving results. So it is with God as the owner of our businesses because Kingdom business owners see themselves as stewards.

KPIs should be clear, short and understandable to everyone in the business. They should be measurable and uncomplicated. Either you achieved them or you didn’t; they are not fuzzy.

Profitability

We expect secular entrepreneurs to think profit margins and growth. But what about Kingdom business owners? Yes, definitely. Jesus himself established a KPI for profit as a measure of success when he told the parable of the talents (Matthew 25: 14-30). He made it clear that everyone is entrusted with wealth in unique proportions. In his example he told of one who received five bags of gold and he doubled it; another received two and he doubled it. Both were commended because they “put their money to work.” Jesus said, “Well done.”

On the other hand, one person received one talent and did nothing with it. We might have thought Jesus would have said: “…oh well, he is just not a business guy!” No – he also was expected to be profitable and when he did not even invest the gold in low-interest accounts, he was called “wicked”. Read more

7 Markers for a Kingdom Business: A Framework for Entrepreneurs

by Courtney Rountree Mills

A quick framework to help entrepreneurs learn how to integrate their faith life with their business life in a practical way.

Let’s face it. Life is hard enough as an entrepreneur. The whole world always seems to be resting on your shoulders. The pressure to succeed is immense. After all, if you don’t, you let down not only yourself and your family, but also your staff and their families! What gets you through the pressure? Mainly prayer and the passion you have for your business. You love the challenge of being an entrepreneur. It energizes you more than almost anything else. Sometimes thinking about your business becomes more like an addiction – you could work on or think through challenges you face all day, every day and never feel like you are completely caught up.

The only thing you care about more than your business is your relationship with Jesus and your family. Still, it seems your business ends up taking over your prayer life and family life, too. You keep hearing about how you should live an integrated life, but you have no practical idea how to achieve this. You hear people around you using the phrases “Kingdom Business” or “Missional Business.” These sound great to you, but you don’t even know what the definition of a Kingdom Business is. Measuring your business’ Key Performance Indicators is easy, but how do you measure your KPIs when it comes to integrating your life as a believer and business owner? This article provides a quick framework to help entrepreneurs live out their faith in their business. This is a topic that resonated most with the 450 entrepreneurs we have accelerated who were asking the same question. Most of this is not material I wrote. Rather, it is a compilation of some of the best material I have found on living out business as mission.

Kingdom Business: The Definition

First, what is a Kingdom business? The best definition I found is one I slightly adapted from Acton School of Business in partnership with Gateway Church:

A kingdom business is an enterprise directed by the Holy Spirit and managed by a godly leader that uses its time, talent, and money to meet the spiritual and/or physical needs of the community around them to advance God’s purpose.

Ok good. We’ve defined it. Sounds pretty simple right? Now, let’s break apart this definition piece by piece to define the characteristics of a Kingdom Business. From this definition, Acton matched 6 characteristics they believe a Kingdom Business should exhibit. Each one has an associated question you can use to evaluate yourself and your business. I have slightly modified this framework to add a seventh dimension (“Reflection of God’s Character”) that I think is quite helpful. Read more

4 Resources to Help You Decide What to Measure

BAM companies have a lot to learn from the social enterprise movement. One of the things that social enterprises have been thinking about for a long time is: How do we measure more than the financial bottom line? Here are 4 resources that will help you think about metrics more holistically and give you tools to measure your impact.

 

B Corps Impact Assessmentmeasure what matters

B Corps advocates for measuring what matters most: the ability of a business to not only generate returns, but also to create value for its customers, employees, community, and the environment. Use B Corps online tool to assess how your company performs against dozens of best practices on employee, community, and environmental impact. Compare your company’s impact with thousands of others. Create a plan to improve your company’s practices, and help your staff implement them easily using the Best Practice Guides.

 

Read more

Lessons from the Edge: Ingredients for Sustainable Success

Insights from a BAM Practitioner 

‘Andrew’ was in business in China for 8 years and now consults to other BAM companies.

Finding a good fit for you is critical
This business is what you will be doing day in and day out, so it’s really important that you have an idea that you feel passionate about, that you understand how it’s a good fit for you and your goals. Is it a good business for your personal strengths? Business as mission can be really, really hard and finding that good fit will see you through many challenges. If you get into a business just because you have to, it can end up feeling like drudgery.

Don’t do it by yourself
It’s important to have good partners. Build a team or find a partner that has complementary skills to your own. Find partners locally that can work with you, whether it’s locals or other foreigners. I don’t think I would have made it in my own business if I didn’t have a key partner working with me, we kept each other going when the going got rough. Get good people around you and have the right people in the right roles.

Engage advisors
Find good mentors, consultants or advisors. That could look like having regular contact with consultants, finding a specialist mentor, or setting up an advisory board. Advisors might be other business folks in your local context, either foreigners or consultants that are further down the road than you, or local business people. They might be business people, lawyers and other experts from your home church network. One model that we’ve seen work well is to engage several different people from your home church from the beginning of the business. They would help with planning, make some site visits, get to know the local context and the difficulties, so that they can give business advice that is helpful for the situation.

 

Apples to Apples: Measuring Progress Across an Organisation

We interviewed Timothy, a consultant with a mission sending organisation that has been developing a metrics tool to evaluate businesses across their organisation globally.

How did this metrics tool come about?

I work as part of a team that consults to and supports BAM-type entities across Asia and we were looking for a way to evaluate how those entities were performing and started to develop this benchmarking tool. At the same time another region was working on a similar idea and we realised that it would be far more effective to work on one tool that could be applied globally across our organisation. We want to be able to compare ‘apples to apples’ and get a better read on what is working well worldwide.

What is the tool’s purpose and how has that shaped its design?

Well first of all we wanted it to be a tool that would help business owners identify areas in which they could grow and improve. It has to serve those on the field at the sharp end of doing business so we have tried to make it straight-forward to use and informative. For instance, we have limited the number of questions practitioners have to answer so that it is not an unwieldy time-waster. The reports are laid out in a user-friendly way using various charts and formats so that areas for growth can be quickly pinpointed. It’s a tool that we’ll use when we are consulting with individual companies as a way of focusing on strengths and weaknesses. The results will be part of the ongoing conversation with the business owners, providing a framework for accountability and planning. Read more

Getting Started: Essential Metrics for your BAM Company

Every business is unique, metrics need to be tailored to the company to reflect the company’s unique goals, context and challenges. That said, there are certain metrics which should be monitored as a minimum by any business. These essential metrics are all aimed at ensuring the owners of the BAM company are able to answer for themselves the key questions:

  • Are we doing what we set out to do?
  • Are we being responsive to God’s call and the Spirit’s leading?
  • Do we have the cash we need to operate and meet our commitments and is it likely that we will continue to be solvent in the coming year?
  • Are we being good stewards of the money that has been invested with us?
  • Are we caring for and developing our employees?
  • Are we damaging or helping the environment?

Not every business needs dozens of charts and numbers to answer these questions. In many cases the answers will be obvious. However, a few carefully selected, measured and reported metrics can help bring clarity. The following list contains recommendations for how to cover these questions. Read more

Forever Crystals: A Missional Business with Latin Flair

‘Every Crystal Has a Story’, is the tag line of Forever Crystals. Every person also has a story. Here is the story of Merari Pena and her business Forever Crystal Jewelry.

It started with her father. Merari, a native of Puerto Rico, was raised in the church and at the age of 16 she became a Christian. However it was some years later, in 2003, that she came back to the Lord, wanting to passionately follow Jesus. Although Merari comes from a missionary family, she has always been a business person. Early on in her business career Merari had a specialist advertising agency selling outdoor media space. It was out of a motivation to help her father reach his dream of going to Cuba as a missionary that she got involved in the family jewelry business.

Living from commissions on successful advertising sales, Merari had a lot of time on her hands and she offered to help manage her father’s jewelry kiosks to support him in his work in Cuba. “It really started because I had a desire to serve and do something for God. Running the kiosks was the only thing holding my father back,” she explains, “I didn’t know anything about the jewelry business when I started helping my father. For me it was an enlightening process of learning by trial and error, and just walking with God and him showing the way because I didn’t know anything about it!” Read more

Making Sense of the World of Metrics

Measurement and metrics can be deceptively simple. We pick an aspect of our business and ask some basic questions about it, for example:

  • How many tables did each of the servers take care of each day?
  • How many sales calls did each of the sales staff make each day?
  • What is the company’s net profit each month?
  • How many people viewed our latest Google ad last week?
  • Which of our products gives the highest profit and which gives the lowest?

Answering such questions can help a manager understand a bit more about the business, however, there is a lot more to establishing metrics than simply asking and answering a few questions. It matters a great deal that we ask the right questions, that we get correct answers in a timely fashion and that we analyze the answers carefully then apply what we have learned.

Why are you measuring?

Metrics can be used for a variety of reasons. Purpose drives design, that is the design of the measure changes depending on how it will be used. Sometimes the desire will be to assess the state of the business for a one time decision that needs to be made. Other times the goal will be to establish a base and ongoing input for process improvement and management.  For example, a loan company will likely make an assessment of the business for a simple yes or no answer to the question “Is this company capable of repaying the loan?” Or an outside owner may want an answer to the question “Is management accomplishing its objectives?” However, an internal manager is likely to ask questions such as “Are we on track with our sales plan and if not, how can we get back on track?” The manager’s question is likely to be a process question, looking for diagnostics. The investor’s question is to make a one-time decision. The outside owner’s question falls somewhere in between, sometimes it would be a matter of replacing the manager and other times—one hopes—it would be aimed at helping the manager improve performance. Read more