Church Management Academy Blog - Knowledge, Tips and Tools

By Michael Castrilli

The 3-R Approach to Address Financial Challenges

Previously we have discussed how to construct a church financial narrative with impact and ease. However, we all know that writing about money is simple when finances are in great shape. Inevitably, church financial challenges occur and also need to be communicated.

Address Financial Challenges with 3-R

Picture of doors with the inscription "Holy doors of Mercy" showing that openness if required when it comes to addressing financial challenges — The Cathedral Basilica of Saints Peter and Paul., Philadelphia, PA

For example, from a decrease in collections, the parish drew a larger percentage of endowment funds than in previous years. Responding to financial challenges can feel overwhelming, but consider breaking the problem down using the 3-R Approach. The first step is to Reflect what has occurred. What is the actual data telling you about what happened? The second step is to Review reasons or circumstances and consider any changes that are necessary for the future. The third step is to Refine any policies and procedures to mitigate the likelihood that the problem will occur again.

When reporting a challenging situation, keep the narrative simple, straightforward, and offer answers to the relevant “W” questions.

What happened?
Who is/was involved?
When did it take place?
Why did it happen?

So, we have constructed the financial narrative, we have addressed any challenges, now what? Let’s choose the most compelling visuals to include in your financial reports. Next week we discuss choosing visuals to communication financial understanding!

Read More Church Finance 30/30 Tips

By Michael Castrilli

Performance Driven Churches

A performance management system is a coordinated and collaborative method to create, measure, track, and achieve parish goals. An effective performance management system will hold the parish accountable for ensuring that parish priorities are in fact accomplished. This type of system creates a performance-driven parish because all members of the team are on the same page in terms of direction, priorities, progress, and accountability.

Do you remember in elementary school when the teacher would send home a progress report? The progress report would include commentary about coursework, skill development and behavior. The report typically offered commentary on student performance and was sent home early enough in the quarter or semester to allow you to make adjustments prior to the final grade. The purpose of a performance management system has a similar objective. In order to track progress, a structure must be in place to track progress and offer (should it be necessary) an advanced warning system for adjustments. Therefore, the system can help the parish achieve a grade of A+ as it relates to accomplishing goals!

[Read more…]

By Michael Castrilli

Rx for Frustration = The Present Moment

It’s Monday Morning…and you’re halfway through your 9 AM meeting and your mind starts to wander…

You begin thinking about all of your To Do’s, a whole list of calls that still need to be made, even details left undone that you may have missed from the prior week’s work and you begin to feel a great sense of anxiety build within you! Sound familiar? You are not alone.

The feeling that you have too much to do and not enough time to do everything is common for so many busy professionals. However, what we forget when we become overwhelmed is that one of the key aspects of remaining productive in meetings is staying present. What I mean is that if you are always thinking about the past or the future, you are not really present to the individuals or the work right in front of you or around you.

Being present is more about listening well in the moment and fighting the temptation to dwell on the past or obsess about the future. When you are present, you stay actively engaged and allow the present moment to help you accomplish the goal immediately in front of you. The question then becomes, how do I stay present when I have so much on my mind? Here are a few tips.

1. Turn off technology

Turning off your mobile phone during meetings can help you stay focused and present. Even when your phone is silenced, you may feel this small vibration that is beckoning you to check out, or reminding you that someone or something wants your attention.

Turn it off and find your mind rests a bit easier. One hour with your phone off is not going to hurt anyone. Plus, you typically can’t respond during the middle of a meeting anyway, so turn it back on when you are done. This is a great cure for finding some quiet and focused mental time in a meeting.

2. Write it down and refocus

Instead of resisting all of the tasks pummeling your brain for action during a meeting, keep a piece of paper out and call it “Out of my mind notes” so when you think of something you must do, you can quickly write it down and refocus.

Often, people are fighting so hard to focus, they end up taking so much time resisting their own thoughts that they defeat the very purpose of their attempt to pay attention. Write it down and let it go. When a thought comes, write it down and you will allow your mind to rest.

3. People first

Next time you are in a meeting and your mind starts going crazy with thoughts, just smile and remind yourself of the principle I call People First. People First is the idea that when tempted by worries about the past or the future, focus on the human beings who require your full attention in this very present moment.

If you are so caught up in your own mind, you may miss the colleague sitting next to you who has offered a brilliant idea because you are so busy thinking about all that you have to do. It’s hard to obsess about To Do lists when you look people in the eyes and really listen to what they are saying instead of listening only to what your brain is telling you to think about.

With People First, remind yourself what’s really important – meaningful connections to the world around you. Great ideas may have come from thoughts, but human beings are the ones that actually made them become a reality.

Live in the present moment and focus on the people around you. It makes meetings better, your time more productive, and puts your To Do list in proper perspective.

By Michael Castrilli

The Benefits of Church Budgeting

My experience working with ministers is that for many, developing a church budget is a necessary, yet stressful and time-consuming exercise. People resist or even fear the topic because of seemingly complicating processes or past negative experiences. Even with personal finances, many people grow up learning that developing a budget is good practice but a constraining activity designed to prevent or control people from doing all of the things they want to do.

So, why spend the time working on the church budgeting process? Below are six benefits:

Church Budget Benefits

The budget is the plan and tool that will help you…

Connect resources to parish priorities
Create a plan to allocate money coming into the parish and expenses to be paid
Ensure that plans stay on track
Empower effective financial decisions
Bring collaboration, communication, and buy-in
Strategize for the future

By Michael Castrilli

Collaboration Yields Results

There is powerful research that concludes that collaboration in fact yields results. James Surowiecki epic work, Wisdom of the Crowds, was groundbreaking in summarizing research that strongly supported the principle that “No one of us is smarter than all of us.”

One example in the book, that I found particularly useful in helping me understand the benefits achieved through collaboration, comes from the television game show, Who Wants to Be a Millionaire, hosted by Regis Philbin.

During the show, contestants worked through trivia questions in their attempt to win $1,000,000. As a fun twist, if the contestant faced difficulty with answering a question, they had three options available. They were only allowed to use each option once, throughout their time on the show. The options included:

50-50 – The computer eliminates two of the incorrect answers, giving the contestant a fifty-fifty chance at the right response
Phone-a-Friend – Prior to the show, contestants singled out someone they could call for help who they considered one of the smartest people they knew
Poll the Audience – The studio audience would cast votes by computer

From the results* of the show, Surowiecki writes:

“Everything we think we know about intelligence suggests that the smart individual would offer the most help. And, in fact, the ‘experts’ did okay, offering the right answer – under pressure – almost 65% of the time. But they paled in comparison to the audiences. Those random crowds of people with nothing better to do on a weekday afternoon and sit in a TV studio picked the right answer 91% of the time…” (Wisdom of the Crowds, 2004, Page 4)

Tip 4: Collaboration is the glue of insightful leadership, shared-accountability, and results

What does this have to do with church budgeting? The show is just the fun example of the benfits of collaboration. But, collaborative budget processes and operational management does prove time and time again to yield results.

A budget that is developed by one or two people does nothing to build a broader spirit of shared accountability across the church. Many leaders feel they may lose control when they bring others into the budget process. However, management research proves that involvement by a team in financial matters, specifically people responsible for the finances of a particular area, will more likely lead to better results.

Why?

If someone is involved in the budget process, and they feel as if they have had the opportunity to offer feedback and input, they’re more likely to “own” and “buy-in” to what has been created. Without participation in the process, resentment builds and can ultimately lead staff to consciously, or unconsciously, undermine what has been created.

Collaboration paired with open communication is where the budget will help church managers achieve the greatest potential of their organization.

*Note: Surowiecki admits that this experiment would not stand scientific scrutiny. However, other examples in the book, would, in fact, support such an inquiry.