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.
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.
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.
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.
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?