Biblical Principles and Strategic Management

Adapted from Biblical Principles & Business: The Practice by Richard C. Chewning

The Bible warns us at times not to put too much confidence in our plans (Isaiah 44:24-25; James 4:13-16) and at other times we are told to plan and work hard to see our plans fulfilled (Proverbs 16:3; 20:5; Luke 12:54-57).  So should we plan or not?  Like all biblical tensions, this one is to be understood as being harmonious and at the same time it transcends our full comprehension.  Only God has the perfect understanding in this or any other antinomy.  As Dr. Chewning states, “While only God knows the future perfectly, we are to prepare and plan for the future in view of what we know of the natural order and of God’s revealed will, including His desire for us to serve others as we rule and exercise dominion over His created order.” 

In the book’s chapter on strategic planning (authored by Steven J. Musser) we are challenged as business leaders “to assure that the moral direction of our world is being influenced by Christian values and principles.”  The author proposes that a primary tool for Christian business leaders to use in doing this is the strategic management process.

This strategic management process consists of 5 basic steps:

1.      Determine the organizational mission

2.      Analyze the environment

3.      Formulate strategies to exploit environmental opportunities and manage weakness

4.      Implement strategies

5.      Monitor and control strategies

As Christian business persons we are to strive to produce goods and services that “reflect to the world the depth of our understanding of its needs and our personal commitment to meeting these needs.”  The difference between the Christian approach and the secular approach in doing this involves the Christian business owner’s desire to demonstrate Christian values in his/her decisions and operations.  By doing so, we attempt to alter our environments through the public modeling of behavior consistent with scriptural principles.  We desire to see our world shaped by Christian values. 

For the Christian who is the founder/owner of a privately held business: note that the world is watching your firm very closely.  People want to see whether Christianity makes a real difference in the marketplace.  You have an opportunity to show them that it does.   

Determining the Organizational Mission

Although mission statements vary widely, the overarching mission of any Christian organization must be to serve God by serving others in a way that is motivated by love.  We are to serve consumers, to serve our employees, and to serve other stakeholders.  We don’t need to place these exact words in our mission statements, but the Christian character underlying our mission should be evident.  This mission of service takes precedence over the traditional organizational goal of profit maximization. 

Analyzing the Environment

Here we consider the general environment (e.g. social trends, the economy), the operating environment (e.g. competitors) and the internal environment (e.g. employees, organizational policies).  For example, a secular CEO who sees his people putting in extreme hours on the job may be very pleased at their commitment.  However, the Christian CEO would question any job commitment that is causing marital/family issues.  The overall question: have Christian values become integrated into the firm? 

Formulating Strategies

When selecting a strategy, do we focus on simply maximizing profits or do we consider the superordinate Christian mission of the enterprise?  Some would argue that our job is to maximize the return to the shareholder--period.  However, the author makes a great point by stating, “We are not assured of higher than average long-run profits, but we will not bring true harm to our firms, or their stockholders, if we run our companies in ways consistent with biblical principles and values.”  The Bible is replete with examples of leaders who have been blessed by God in the long run for their spiritual obedience (Joseph, for example). 

Monitoring and Controlling Strategies

Standards by which your strategies are measured might include return on investment, market share, productivity, product quality, customer satisfaction and the like.  But performance standards should also reflect the biblical values and principles evident in the firm’s mission statement.  As an example, employee satisfaction may take on a higher priority in the Christian leader’s firm than in traditional ones.   

The above process is challenging.  So much so that to implement Christian strategic management in your firm will require you to trust in the supernatural power of God.

Keith 

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