Economics Principles at Your Church

My college experience included four years serving as a student assistant in the office of the chairman of our school’s economics professor. For 10 hours each week I got a healthy dose of Economics – everything from Econ 101 to advanced statistical analysis. Dr. Cho certainly knew his subject matter, and the quizzes, exams, and homework I graded made me appreciate the field of study, even to the point of taking extra classes and obtaining a minor in economics.

Over the 30 years since college, various economic concepts have popped up in my work on a church staff and as a church consultant. The most regular of these has been “The Pareto Principle,” first written about in 1906 by Italian economist Vilfredo Pareto.

You probably know it as the “80/20 Rule.”

John Maxwell recalls learning of it in a college business management course, calling it one of the most profound eureka moments in his life:

The professor was teaching the Pareto Principle, and as he explained its impact, my eyes were opened. He explained that:

  • 80 percent of traffic jams occur on 20 percent of the roads
  • 80 percent of classroom participation comes from 20 percent of students
  • 80 percent of the time you wear 20 percent of your clothes
  • 80 percent of the profits come from only 20 percent of the customers
  • 80 percent of problems are generated by 20 percent of the employees
  • 80 percent of all decisions can be made on 20 percent of the information

What an eye opener! It meant that the best 20 percent of my activities were sixteen times more productive than the remaining 80 percent. (from Leadership Gold, by John Maxwell)

Dozens of books in my Leadership Library refer to the 80/20 rule, most often in terms of resource and time efficiency. In this context, I think it is appropriate, and a very useful rule of thumb. Certain assumptions can follow from this idea – you should focus on your best customers, or your hardest working staff members, or your most profitable selling item – with these you reap the greatest results for the least effort.

In ChurchWorld, a handful of members typically account for most of the effort in the congregations. (A corollary to this principle is that a few members cause most of the headaches, but I’ll save that for another day.)

  • How can you shift more of your church members from sitting to serving, from being spectators to engaging more deeply?
  • Would doing so help more people to grow and develop spiritually?

A classic Leadership Network publication may just be what you are looking for to answer those questions. The Other 80 Percent is a practical guide for church leaders, written by respected researcher Scott Thumma and noted author Warren Bird. The authors draw upon research across a broad range of Protestant churches of all kinds.

I can almost hear Dr. Cho now: “the distribution of your sheep can be shown like this…”

Beginning tomorrow, I would like to invite you to look deeper into The Other 80 Percent and see how you might use it to help move your church forward.

12 Best Books of 2012

Making a “Best of” list is always hard – it’s a very subjective process, driven by my personal tastes, professional needs, and plain curiosity.

I’ve always been a voracious reader – a cherished habit passed down to me by my late father. In the past year, though, I’ve been able to ramp it up considerably because of my role as Vision Room Curator.

It’s not only a pleasure to read, it’s part of my job description – how cool is that?

Even so, it’s also hard to narrow it a “Best of” list down: in 2012, my reading included:

  • 127 books checked out from my local library
  • 68 print books purchased
  • 31 books received for review
  • 75 digital books on my Kindle

I also perused dozens of bookstores on my travels, writing down 63 titles for future review and/or acquisition. There are also a lot of late releases just coming out that I don’t have time to take a look at – yet. Be that as it may, here is my list of my 12 favorite books published in 2012.

Outside In

  Outside In

Guest Experiences for ChurchWorld is my passion, and this book by Harley Manning and Kerry Bodine will provide churches a “go-to” manual for years to come

 

Deep and Wide

Deep and Wide

Andy Stanley and Northpoint Ministries have a solid model that all churches would do well to study – not to duplicate, but to understand how to impact your community for Christ.

 

Center Church

Center Church

Tim Keller delivers a textbook for doing church; possibly the most important church theology/leadership/practical book in a decade

 

The Advantage

   The Advantage

Patrick Lencioni captures the concept of clarity (he uses the phrase “organizational health”) like no business thinker today

 

The Icarus Deception

   The Icarus Deception

Seth Godin’s most recent book is probably the most challenging personal one I’ve read – and that’s saying a lot!

 

The Lego Principle

   The LEGO Principle

Joey Bonifacio writes in a simple, profound way about the importance of “connecting” in relationships that lead to discipleship

 

Missional Moves

   Missional Moves

Rob Wegner and Jack Magruder in a quiet, unassuming way, illustrate how Granger Community Church is transforming into a community of believers reaching their community – and the world.

 

Lead with a Story

Lead with a Story

Paul Smith delivers a powerful tool to enhance the leader’s skill in storytelling.

 

Design Like Apple

Design Like Apple

John Edson delivers a stunningly designed book that challenges the reader to understand and utilize Apple’s principles of design

 

 

Better Together

   Better Together

Church mergers (and closings) are going to be a huge event in the next decade; Jim Tomberlin and Warren Bird give an excellent resource on how to survive and thrive throughout the process.

 

Quiet

   Quiet

Susan Cain writes the book I’ve been waiting for over 30 years – because I am an introvert leader.

 

 

Midnight Lunch

   Midnight Lunch

Sarah Miller Caldicott delivers a powerful primer for collaborative teamwork.

 

 

HBR Guide to Persuasive Presentations

   HBR Guide to Persuasive Presentations

Nancy Duarte is not just a great writer – she knows how to deliver a great presentation from the first idea to the final applause.

 

 

Okay, it’s not 12 – but it is a baker’s dozen!

Let’s see – there’s still over 2 weeks left in 2012 – plenty of time to find a good book – what do you recommend?