Added Value: A Good Measure Of Your Performance?

As the owner or leader in your business, one of your main functions is to create added value in the organization. How do you measure your performance in this area?

If you are in corporate America, there are a number of metrics that analysts use to gauge your performance. If you are in a small business or non-profit organization, these metrics are likely different. Being a Christian business owner or leader adds a twist to this issue.

added value

Perspective

Adding value to your business can be defined differently, depending on your perspective. We are going to look at this method from the perspective of a Christian business owner or leader.

The C12 Group has a model for measuring this added value in the Christian business. However, the main difference between the C12 model and almost all other models is the perspective. While most businesses measure success or performance on a monthly, quarterly, or annual basis, the C12 model is very different.

Tri-Value Model

In stark contrast to most other business added value models, C12′s Tri-Value model considers the eternal perspective. Rather than judging a business’ leadership based on short-term performance only, this model takes a more balanced approach. The Tri-Value model is certainly not the final word on measuring performance. Instead, it is designed as a tool to keep us focused on the truly important areas of our jobs as well as to facilitate accountability in those areas.

In this post, I will give you a brief overview of this model. In the following three posts, we will look at each of the three components in more detail.

added value

Overview

The first component of the Tri-Value model is Team Value Added (TVA). This measurement deals with how well we are creating added value within the team of people that work in our company. There are two main categories in TVA. The first looks at how well the team is operating as a whole. The second category considers the development of the individuals on the team.

The second component is Economic Value Added (EVA). EVA measures whether the business is worth more in solid equity from year to year. It is a simple formula that helps us determine if we are adding to our company’s value or spending it.

Finally, the third component of the Tri-Value model is Spiritual Value Added (SVA). If we are truly looking at our company from an eternal perspective, and I cannot think of a single good reason why we would not, then this is our most important measurement. SVA attempts to measure the eternal fruit our company is producing.

Disclaimer

Please do not think that I am saying that all performance can be measured with numbers. Nor can we quantify all spiritual aspects of ministry in business. That is simply not possible. There are some aspects of business success that are impossible to put into a formula. Certainly, the Holy Spirit works in ways we cannot even understand, much less measure!

Instead, this type of model is intended to be a tool to elicit discussion and create conversation around our performance as it compares to our vision. The Tri-Value model should be used as a part of an ongoing planning and assessment process in your leadership of the business. If so, it can provide clear accountability for your leadership while helping you to remain true to your eternal vision.

Make sure to follow along all week as we break this model down into its components and look at how to use it!

What tools are you currently using to measure your performance in your business?

Do you feel these tools are effective at gauging your performance from the eternal perspective?

What benefits do you see in the Tri-Value model?

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  • http://www.lifeofasteward.com Loren Pinilis

    I think this is a pretty solid way to think about it. I tend to not really categorize how I evaluate myself. I just try to be faithful and think through every area that I can come up with to see if there are ways I could be better.

    • http://www.christianfaithatwork.com Chris Patton

      I think I get what you are saying. I certainly do not want to be guilty of over-thinking the measurement of my performance.

      At the same time, in assessing my own performance, I need some structure that will keep me from experiencing “drift” and feeling good about it. For me personally, I fear finding myself out at sea (see Michael Hyatt’s post on this…How to Avoid the Power of the Drift) after a period of time, having lost focus on my mission or purpose.

      While you are not advocating a “lack” of assessing yourself, I think something similar can happen without any consistent structure in your assessment process.

      Does that make sense?

  • Angela Hough

    The Holy Spirit is difficult to measure, and that’s what we love about His mysterious ways! The tri-value model offers a good balance. Many Kingdom Companies make the mistake of ignoring their sustainability. The challenge for me – a measurables maniac – is to allow Him to do the work through me.
    Funny. I just posted an applicable article this morning at: http://kingdombusinessjourney.blogspot.com/
    If we will only receive the help offered by Him, we’ll find that He REALLY is interested in our everyday work issues. Thank you for this post, Chris. 

    • http://www.christianfaithatwork.com Chris Patton

      I agree, Angela. He really is interested, but only in HIS plans for our work, not in our own little plans (that often exclude Him)!

      Like you, I am a “measureables maniac” and try too hard to make my numbers work rather than going to Him. As soon as you learn how to stop making this mistake, let me know. I need some serious help here!

      I am actually reading a book right now on this very topic…Pray and Plan by Tom Capps. If it offers any solutions, I will let you know.

      Thanks for stopping by!

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  • Creyes

    I must say that I love the posts on this group. With that said, for so many years I tried to control he outcomes of my company and finally decided to allow Him to work through me and what a difference it has made in my business and personal life. My pastor, had recommended a book which I found to be extremely helpful. I would highly recommend reading it ….Almighty and Sons…Doing Business Gods Way by Dennis Peacocke.. I hope you find he same value in it

    • http://www.ChristianFaithAtWork.com/ Chris Patton

      Thanks for the encouragement and the book suggestion! I will check it out!

  • http://www.coachbrown.org/ Coach Brown

    From my experience as seen from your perspective, if we are honoring God with our attention to the SVA, He will draw the right people and resources to develop the TVA, and the EVA will be realized. Right focus and commitment to the right priorities will always realize “right values”. Thank you for your example.

    • http://www.ChristianFaithAtWork.com/ Chris Patton

      Thanks Coach!