January 25, 2010

The Economy’s Impact on Churches (Part 2 of 3): How Churches Have Adapted

[January 25, 2010] After enduring some of the worst economic conditions in modern history, many businesses, families and other charitable organizations are coming out of panic mode and adapting to the “new normal.” A Barna Group study with 1,114 pastors and church executives, conducted in the fourth quarter of 2009, explored how congregations and churches are coping with the economic downturn.

This is the second report in a multi-part Barna Update series. Other features in the series can be accessed at the following links:

Part 1 | Churches are Down 7% in 2009 (January 11, 2010)
Part 2 | How Churches Have Adapted (this week – see below)
Part 3 | Giving and Donations (coming in February)

Adjusting to Decline


Most Protestant churches reported that the economy negatively affected their financial resources over the last year, resulting in an average decline of 7% across all such congregations. The Barna study shows there have been three major ways that churches have attempted to weather the downturn:

  • Reducing spending – Roughly one out of every five churches (21%) have cut their spending to compensate for diminished revenue. In addition to budget reductions, pastors indicated that they were watching spending, conserving more, shopping for better deals, eliminating non-essentials, freezing portions of the budget, re-evaluating vendors. Each of these types of slices to spending was mentioned by 2% to 3% of pastors.
  • Cutting staffing and missions – A second type of reduction that churches made related to people, primarily staff members but also including missionary partners. In all, about one out of every six churches (18%) indicated that they had to eliminate positions, reduce salaries, rely on more volunteer time, and cut hours from full-time to part-time. Also, nearly one in every 25 churches said they had reduced their giving to missions or missionaries.
  • Reducing facility budgets – One of the least commonly reported adaptations was to related to church buildings and facilities (3%). These types of alterations included scaling back a building plan, eliminating a planned project altogether, delaying construction, making better use of existing facilities, delaying upgrades of equipment, and deferring maintenance and repairs.


Nearly half of church leaders (45%) said they had not made any changes to their ministry as a result of the economic problems of the last year.

The study discovered that the types of churches most likely to reduce spending included Boomer-led congregations and large churches (churches of more than 250 adults and budgets in excess of $500,000). The least likely churches to reduce spending were smaller churches, congregations located in the West, and churches led by older pastors (age 64-plus). Staff cuts were also most common among large churches. Churches located in the West as well as congregations associated with traditionally charismatic denominations were less likely than average to cut spending but were more likely to have resorted to eliminating staff positions.

Programs and Proactive Planning

For the most part, church leaders seem to have been in a hunker-down mode, attempting to get through the tough economy while avoiding drastic cuts to programs. Only a small minority of churches said the economy had caused them to cut back ministry services and programs. For instance, just 16% of churches indicated that the down economy had caused their church to offer fewer camps and conferences. The vast majority of congregations reportedly managed to keep their 2009 camp and conference programming on par with the previous year.

The research pointed to mixed results regarding the proactive engagement of churches in trying to address the economic crisis. On the one hand, a Barna study among churchgoers that was conducted when the economy began its steep decline showed that large proportions of church-going adults said their congregation was offering special talks about the financial situation, providing financial counseling, offering prayer support for those struggling financially, and increasing the amount of material assistance available to congregants.

However, in the current study, when pastors were asked to identify the changes they had made as a result of the economic downturn only about one out of every eight church leaders (13%) identified what might be described as activities that proactively position the church as a valuable resource to churchgoers and to those in the community. The elements rarely mentioned by pastors included providing more financial assistance to the community, hosting support groups and classes for those with have lost jobs and who have experienced money problems, increasing the amount of prayer, teaching people how to handle money problems, and intentionally communicating how the church was dealing with its own budget shortfalls.

Perspective on the Findings

David Kinnaman, president of the Barna Group, commented on the findings. “In the past year, most churches have been satisfied to tie down loose financial ends and keep costs under control. That has been no small feat for most organizations, let alone donor-driven congregations. Yet, the surprise is how few churches seem to have clearly and intentionally developed a proactive response to the downturn. Perhaps they have been so busy keeping the programs running that they have failed to see the significant opportunities as well as unique challenges represented in the new economic reality.

“For instance, many churches understandably have put off purchasing new equipment and technology,” Kinnaman pointed out. “Yet less than one-half of one percent of the churches we interviewed said they upgraded their use of technology in order to help cut down on costs or to maximize communication and reach. Some churches were naturally deferring building projects and facility-related expenditures, but virtually none of the leaders we interviewed said they were rethinking whether the future of congregational ministry required or could even sustain their current campus, much less planned facility expansions. And while some churches have offered resources, training and assistance specifically in response to the economic crisis, it is surprising that so few pastors had made strategic shifts to become a significant and vital resource to their congregants and to the broader community. Like so many others, church leaders have been focused on surviving; now is the time, though, to calibrate ministries and strategies to the opportunities brought by the new economy.”

Want more info about the profile of today’s churches?
Contact Barna Group about how we can help.

About the Research


This report is based upon annual tracking surveys conducted via telephone by the Barna Group among representative random sample of Protestant churches (known as the PastorPollSM and ChurchPollSM). At each of the churches contacted, the senior pastor or executive pastor was interviewed. The interviews were conducted in October through December, 2009. The sample was balanced according to the denominational distribution of Protestant churches in the 48 continental states. The sample size for the survey was 1,114 pastors and church leaders, using a mixed mode data collection of telephone and online interviews. The range of sampling error associated with the sample of pastors is between ±1.4 and ±3.2 percentage points at the 95% confidence level. These allowances do not include other types of error (known as non-sampling error) that can occur in surveys, such as errors arising from question wording, question sequencing, and the inaccurate recording of responses.

The Barna Group (which includes its research division, The Barna Research Group) is a private, non-partisan, for-profit organization that conducts primary research on a wide range of issues and products, produces resources pertaining to cultural change, leadership and spiritual development, and facilitates the healthy spiritual growth of leaders, children, families and Christian ministries. Located in Ventura, California, Barna has been conducting and analyzing primary research to understand cultural trends related to values, beliefs, attitudes and behaviors since 1984. If you would like to receive free e-mail notification of the release of each new, bi-monthly update on the latest research findings from The Barna Group, you may subscribe to this free service at the Barna website (www.barna.org). Additional research-based resources, both free and at discounted prices, are also available through that website.

© Barna Group, 2010.

Copyright Disclaimer: All the information contained on the barna.org website is copyrighted by the Barna Group, 2368 Eastman Ave. Unit 12, Ventura, California 93003. No portion of this website (articles, graphs, charts, reviews, pictures, video clips, quotes, statistics, etc.) may be reproduced, retransmitted, disseminated, sold, distributed, published, edited, altered, changed, broadcast, circulated, or commercially exploited without the prior written permission from the Barna Group.

January 23, 2010

Equipping: The Leader's Responsibility

Equipping: The Leader's Responsibility
And He Himself gave some to be apostles, some prophets, some evangelists, and some pastors and teachers, for the equipping of the saints for the work of ministry, for the edifying of the body of Christ, till we all come to the unity of the faith and of the knowledge of the Son of God, to a perfect man, to the measure of the stature of the fullness of Christ. Ephesians 4:11-13

Equipping is a tough job, much harder than shepherding. The leader is to equip others for ministry. Paul explains the goal for the shepherd. If leaders wish to equip their people, they must give them certain gifts:

  • I must CARE for them (Communication, Affirmation, Recognition, and Example).
  • I must work on their weaknesses, but work out their strengths.
  • I must give them myself (time, energy, and focus).
  • I must give them ownership of the ministry.
  • I must become a resource person (atmosphere, training, support, tools).
  • I must make expectations clear.
  • I must eliminate unnecessary burdens.
  • I must catch them doing something good, then reward them for it.
The Maxwell Leadership Bible

January 20, 2010

Creating a Climate for Developing Leaders

January 17

Creating a Climate for Developing Leaders

All these men of war, who could keep ranks, came to Hebron with a loyal heart, to make David king over all Israel; and the rest of Israel were of one mind to make David king. 1 Chronicles 12:38

We can conclude from the list of warriors who joined David in Ziklag that his ragtag team was diverse, loyal, and hungry for victory. So what did David do to reproduce his leadership in them?

1. He was relational: David's personable and approachable manner enticed hundreds of misfit volunteers to serve him. David accepted anyone.
2. He was resourceful: David made use of every situation and got the best out of it-even in the wilderness. He resourced his team to become all it could be and enabled it to succeed.
3. He was rewarding: David quickly shared both rewards and recognition for victory. He affirmed his men and motivated them with words of encouragement and spoils from battle.
4. He was respectable: David modeled a leadership style that others wanted to imitate. Friends and foes alike respected him; people saw in David an example of good leadership.

The Maxwell Leadership Bible

January 15, 2010

Portrait of a Godly Leader

January 15 Portrait of a Godly Leader

Lord, who may abide in Your tabernacle? Who may dwell in Your holy hill? He who walks uprightly, and works righteousness, and speaks the truth in his heart; He who does not backbite with his tongue, nor does evil to his neighbor, nor does he take up a reproach against his friend; in whose eyes a vile person is despised, but he honors those who fear the Lord; he who swears to his own hurt and does not change; he who does not put out his money at usury, nor does he take a bribe against the innocent. He who does these things shall never be moved.
Psalm 15:1-5

What qualities should every leader possess? Psalm 15 furnishes us with a list of many of the necessary traits. David pictures a godly leader as one who:

  • Possesses integrity
  • Does not participate in gossip
  • Does not harm others
  • Speaks out against wrong
  • Honors others who walk in truth
  • Keeps their word even at personal cost
  • Isn't greedy to gain at the expense of others
  • Is strong and stable
The Maxwell Leadership Bible

January 11, 2010

Vision Brings Victory

January 11


Vision Brings Victory


Therefore, King Agrippa, I was not disobedient to the heavenly vision, but declared first to those in Damascus and in Jerusalem, and throughout all the region of Judea, and then to the Gentiles, that they should repent, turn to God, and do works befitting repentance. Acts 26:19-20

Paul's vision on the road to Damascus became the captivating force behind his success. The apostle teaches us the power of a vision. God's vision for Paul accomplished a number of things:

  • It stopped him. Vision allows us to see ourselves. We see things not as they are, but as we are.
  • It sent him. Vision allows us to see others. We feel compelled to act.
  • It strengthened him. Vision enables us to continue despite struggles and lack of resources.
  • It stretched him. Vision gives us conviction to stand, confidence to speak, and compassion to share.
  • It satisfied him. Obedience to this vision motivates us to act. It fulfills us.
The Maxwell Leadership Bible

Evangelicals Go "Green" with Caution

Evangelicals Go "Green" with Caution Print E-mail

altSeptember 22, 2008

Everything and everyone seem to be going "green" these days. Advertising boasts the environmental friendliness of products, services, and companies. Presidential candidates are also adopting the trend, vying to offer Americans the best sustainable energy proposal. Are Christians, and the oft-discussed evangelical segment, going green, as well?

A new study released by The Barna Group provides the most comprehensive look at the Christian community and environmental issues. The study explores Americans’ perceptions about the environment, global warming, lifestyle changes, and how much impact their faith has on these issues.

One of the intriguing findings of the research is that millions of evangelicals - often perceived to be on the sidelines of the green movement - have become more environmentally conscious in the last year. Yet, evangelicals do so with some skepticism about the environmental movement, specifically the implications of climate change. Evangelicals are concerned about what they perceive to be media hype surrounding global warming, as well as skepticism about the role humans play in causing it. Moreover, evangelicals express strong concern that proposed environmental solutions would hurt the poor, particularly in developing nations.

Environment Intersects Faith

Most Christians are not satisfied to be mere observers of the green movement. Three-quarters of self-identified Christians (78%) agree they would like to see their fellow Christians take a more active role in caring for God’s creation in a way that is both informed and biblical. Among evangelicals, 90% would like Christians to take a more active role in caring for creation, with 67% agreeing strongly. This sentiment is firmly endorsed by a majority of active churchgoers who are Catholic (52%), mainline Protestant (62%), and non-mainline Protestant (67%). [Note: Barna defines evangelicals based upon their personal belief profile, not based upon denomination or self-identification. See below for more details.]

Interestingly, the survey shows that while the environment is on Americans' radar, few consider it one of the top challenges facing the nation. Many surveys show that a majority of Americans believe it is important to increase our investment in protecting the environment. Yet, when asked to name the top challenges facing the nation, only a minority of Americans identify issues such as energy (6%), the environment (3%), or global warming (3%) as crucial problems. Instead, among the nation’s top concerns are the economy (50%), fuel costs (30%), the war in Iraq and Afghanistan (27%), health care (11%), unemployment (9%), moral concerns (8%), and education (8%).

Each faith segment has its own unique hierarchy of concerns. For instance, evangelicals are not surprisingly focused on social issues and the perceived moral breakdown of culture. Yet, when it comes to the priority of environmental issues, Christians' rankings mirror the national norms. This suggests that Christians - like most other Americans - are open to environmental concerns, but these issues tend to be relatively minor top-of-mind concerns. If anything, the importance of environmental issues tends to be interpreted through the lens of their economic reality, such as how it affects fuel costs.

Lifestyle

In terms of embracing the so-called "green" movement, one out of every two adults say they have made specific changes to their lifestyle in the last 12 months because they are aware of the environmental impact. A slim majority of each churchgoing segment - Protestant and Catholic - reported that they had embraced more environmentally friendly lifestyles in the last year. Despite their past reluctance to embrace "green" lifestyles, nearly half of evangelicals had made changes in the past year to become more environmentally conscious (45%), a proportion slightly less than average.

When asked to identify the primary motivation for lifestyle changes, three-quarters of Americans (74%) indicated that their behavioral change resulted from their general concern about the environment rather than their specific concern about global warming (10%). Across the faith spectrum, adults were more likely to be motivated by wanting to take better care of the environment, rather than specifically by anxiety about global warming.

Global Warming

One of the most widely debated environmental subjects is global climate change: whether it is happening, what causes it, and what to do about it. Americans maintain a wide range of opinions about whether global warming is real. The margin is three-to-one of those who are certain it is happening (63%) versus those who are not certain (22%). Another 15% of Americans have not made up their mind on the issue. Those who are very certain that climate change is happening (40%) outnumber those on the opposite extreme by a four-to-one ratio (11% are not at all certain).

What makes Americans skeptical about global warming? The survey explored five common objections and discovered that roughly half of Americans maintain some reluctance about climate change for each of the following reasons:

  • 49% of Americans contend that some solutions proposed to help global warming would have a negative influence on the poor, especially in other countries
  • 48% believe the earth has undergone climate change before and the current warming is not primarily caused by human activity
  • 47% indicate the news media have made global warming a bigger story than it deserves
  • 47% agree that the U.S. economy is not strong enough right now to take on the problem
  • 46% say that if America leads the way tackling the problem other countries will not follow suit and it would hurt American businesses and workers

A majority of the Christian community, regardless of how it is defined, believes that global warming is happening. Still, only a minority of churchgoing Catholics (36%), non-mainline Protestants (36%), and mainline Protestants (45%) are very certain climate change is occurring.

Evangelicals are among the most skeptical population segments when it comes to global warming - just 27% firmly believe global warming is happening. In particular, evangelicals express the greatest caution regarding their perception that media has hyped the story (65%), their belief that cyclical climate change is not primarily caused by human activity (62%), and their concern that proposed solutions would hurt the poor, especially in other countries (60%). Interestingly, evangelicals’ concern about the impact global warming policies will have on the poor is the one shared point of skepticism also held by secular Americans (atheists and agnostics).

Missing Pieces

Despite the appetite for doing more, relatively few Christians have been exposed to the term "creation care." This phrase has garnered recent attention among Christian leaders as a useful way to frame environmentalism as a biblical concept of being good stewards of the world God created. However, the term has not reached church pews: the vast majority of Christians (89%) and active churchgoers (85%) have never heard the phrase "creation care."

One of the reasons few Christians have heard about "creation care" may be because few congregations teach the topic. The survey explored whether churchgoers have ever been exposed to any teaching about how Christians should respond to environmental issues. Overall, most active churchgoers (64%) have never heard any such sermons.

Green Perspectives

David Kinnaman, who directed the research, notes that "the Christian community is in tension about environmental engagement, being surprisingly active and engaged, but unsure about what to do next or whom to believe. Many Christians are reluctant to embrace the modern environmental movement, with concerns about the objectivity of the media as well as the best way to solve the problems. Rather, many evangelicals are concerned that proposed solutions to global warming would actually hurt the poor."

"Still, millions of Christians - no matter how you slice it, Catholic or Protestant, evangelical or not - want to see their faith community become more active in environmental stewardship," commented Kinnaman, president of The Barna Group. "There is a void in Christian leadership on environmental issues, as well as an inability to articulate clearly and confidently a biblical understanding of creation care. Since climate change is controversial, many churches have simply avoided dealing with the subject, ceding the conversation to other voices. It may not be an easy arena to venture into, but the Christian community is ready for balanced, thoughtful, non-partisan and engaged leadership on this crucial issue."

About the Research

This report is based upon telephone interviews conducted by The Barna Group with a random sample of 1003 adults selected from across the continental United States, age 18 and older, in August 2008. The maximum margin of sampling error associated with the aggregate sample is ±3.2 percentage points at the 95% confidence level. Minimal statistical weighting was used to calibrate the aggregate sample to known population percentages in relation to several key demographic variables.

"Evangelicals" are born again Christians. In the survey, people qualified as evangelicals if they met the born again criteria (i.e., said they had have made a personal commitment to Jesus Christ that is still important in their life today and also indicated they believe that when they die they will go to Heaven because they had confessed their sins and had accepted Jesus Christ as their savior) plus seven other conditions. Those include saying their religious faith is very important in their life today; believing they have a personal responsibility to share their religious beliefs about Christ with non-Christians; believing that Satan exists; believing that eternal salvation is possible only through grace, not works; believing that Jesus Christ lived a sinless life on earth; asserting that the Bible is accurate in all that it teaches; and describing God as the all-knowing, all-powerful, perfect deity who created the universe and still rules it today. Being classified as an evangelical is not dependent upon church attendance or the denominational affiliation of the church attended. Respondents were not asked to describe themselves as "evangelical."

Mainline Protestants: Includes Protestants who say they attend one of the following denominations: United Church of Christ, American Baptist, Episcopal, the Presbyterian Church USA, Lutheran, and United Methodist.

Non-Mainline Protestants: This category includes any Protestant denominations not covered in the mainline category above. Major groups include Adventist, Assembly of God, Baptist (various types), Church of God, Evangelical, Nazarene, non-denominational churches, Pentecostal, Wesleyan, and so on.

The Barna Group, Ltd. (which includes its research division, The Barna Research Group) conducts primary research, produces media resources pertaining to spiritual development, and facilitates the healthy spiritual growth of leaders, children, families and Christian ministries. Located in Ventura, California, Barna has been conducting and analyzing primary research to understand cultural trends related to values, beliefs, attitudes and behaviors since 1984. If you would like to receive free e-mail notification of the release of each new, bi-monthly update on the latest research findings from The Barna Group, you may subscribe to this free service at the Barna website www.barna.org.

© The Barna Group, Ltd, 2009.

Copyright Disclaimer: All the information contained on the barna.org website is copyrighted by The Barna Group, Ltd., 2368 Eastman Ave. Unit 12, Ventura, California 93003. No portion of this website (articles, graphs, charts, reviews, pictures, video clips, quotes, statistics, etc.) may be reproduced, retransmitted, disseminated, sold, distributed, published, edited, altered, changed, broadcast, circulated, or commercially exploited without the prior written permission from The Barna Group, Ltd.

January 10, 2010

Checklist Before Taking New Territory

Checklist Before Taking New Territory

Arise, go over this Jordan, you and all this people, to the land which I am giving to them-the children of Israel. Every place that the sole of your foot will tread upon I have given you, as I said to Moses. Joshua 1:2-3

People need to be shown the team's vision clearly, creatively, and continually. Whenever I endeavor to cast vision with the members of my team, I use the following checklist. I try to make sure that every vision message possesses the following:

  • Clarity: brings understanding to the vision (answers what the people must know and what you want them to do)
  • Connectedness: brings the past, present, and future together
  • Purpose: bring direction to the vision
  • Goals: bring targets to the vision
  • Honesty: brings integrity to the vision and credibility to the vision-caster
  • Stories: bring relationships to the vision
  • Challenge: brings stretching to the vision
  • Passion: brings fuel to the vision
  • Modeling: brings accountability to the vision
  • Strategy: brings process to the vision

The 17 Indisputable Laws of Teamwork

John Maxwell


January 9, 2010

The Power of Purpose

The Power of Purpose
But I want you to know, brethren, that the things which happened to me have actually turned out for the furtherance of the gospel, so that it has become evident to the whole palace guard, and to all the rest, that my chains are in Christ; and most of the brethren in the Lord, having become confident by my chains, are much more bold to speak the word without fear.
Philippians 1:12-14

Paul might have been forgiven had he chosen to take a little sabbatical as he sat in prison, awaiting his trial. Yet he used even this opportunity to advance the gospel. Paul was a leader who never drifted from his mission. He determined to leave his mark wherever he went.

How did Paul's sense of purpose keep him in the battle as he sat in prison? What did he learn behind bars? Consider the following:

  • A purpose will motivate you.
  • A purpose will keep your priorities straight.
  • A purpose will develop your potential.
  • A purpose will give you power to live in the present.
  • A purpose will help you evaluate your progress.
The Maxwell Leadership Bible

January 8, 2010

Setting a Leadership Point of View for Yourself and Your Organization

Ignite! Newsletter—January 2010 Article

Setting a Leadership Point of View for Yourself
and Your Organization

While 2009 was a year for holding on, 2010 is shaping up to be a year of alignment and execution. The changing economic landscape has caused just about every organization to stop and re-examine their business, identifying what is critical and what isn’t.

As leaders look forward to implementing new strategies in 2010, it is important to remind people of the organization’s overall purpose and vision for the future. Now more than ever, leaders need to paint a picture for their people of where the organization is heading, why this is important, and how everyone will get there together.

“Without a compelling vision and clear goals, your leadership really doesn’t matter,” explains Ken Blanchard. “Leadership is about going somewhere. Your people need to know what vision they’re executing against, and who their leader is. Is this someone I want to follow?”

Creating a Clear and Compelling Vision

One of the things that Blanchard cautions leaders about as they begin the process of creating and articulating a clear plan for moving forward is to make sure that the vision setting process is seen as something more than just a word game. Employees can sometimes be skeptical when you’re talking about mission, vision, values, etc.

When companies take it seriously, though, a clear vision can create an enduring picture of the future that drives business results. Blanchard recommends that leaders start by answering some basic questions: What are we trying to do? How will we make a difference?

Next Blanchard recommends focusing on your customer: What do they need? What do they want from doing business with you? What do you hope that they get out of it?

“At Southwest Airlines, for example,” explains Blanchard, “They believe that they’re in the customer service business—and that they just happen to fly airplanes.”

It’s a simple, powerful statement that reminds everyone at Southwest that customer service is the foundation of their organization in a way that is memorable. And when you add in Southwest’s values of warrior spirit, servant heart, and a fun-loving attitude, you have all of the ingredients for a vision and values that can guide behavior among employees and with customers.

Do Your Leaders Personify Your Organization’s Culture?

In addition to the role they play in the setting of vision, leaders must “walk the talk” when it comes to living the values. Nothing will kill a new initiative faster than seeing senior leaders behave in ways that are inconsistent with the organization’s stated values.

At Southwest Airlines, founder and CEO Herb Kelleher made sure that the culture of spirit, service, and fun would continue after he decided to step down. So he turned to longtime Corporate Secretary Colleen Barrett as his replacement to lead the organization. Kelleher did not want someone to come in and change the vision and values of the company. He wanted somebody who would continue to implement and live the values that had already been created.

As Blanchard explains, “Part of the reason that he went to Colleen is that her whole leadership point of view was consistent with the Southwest culture.” So much so, in fact, that as Barrett shared with Blanchard for an upcoming book the two of them are working on, “I don’t know where Southwest begins and I end—or vice versa. It is who I am.”

What Do You Believe about Leadership?

Walking the talk means making sure that your own beliefs match up with the beliefs and culture of your organization. And while Blanchard believes that a foundation of all great leadership is a servant heart, the key success factor for all leaders is creating a level of transparency with others in the organization.

When leaders share a little bit about themselves it gives employees insight, confidence, and connection with a leader that builds trust. It also lets people know where the leader stands and what they can expect from him or her. To help with the process, Blanchard suggests that leaders think about—and be prepared to answer—four questions about their leadership point of view:

  1. What do you believe about leading and motivating people?
  2. What can people expect from you?
  3. What do you expect from your people?
  4. How will you set an example?

By sharing a little bit of themselves, leaders can provide employees with a glimpse into what they believe and what drives them. For leaders and employees, it can be emotional sometimes.

As Blanchard recalls, “I remember back when a president was sharing his leadership point of view. I was sitting in the back of the room. He got really emotional while speaking. He was sharing about his family and the impact that they had on him.”

After he had finished, the president asked for feedback, not sure what people would think. He was pleasantly surprised when people told him, “We think we’ve gotten to know the person who is behind the position. You were willing to share some vulnerability—which we haven’t seen in the past—and that feels good.”

Leaders who share a piece of themselves build trust among employees. When leaders don’t share, people respond by holding back parts of themselves as well. Today, organizations need a deeper level of trust and collaboration. When leaders share their leadership point of view it opens up the lines of communication and people realize that they can share too.

Developing a Leadership Point of View—Personally and Organizationally

For companies that don’t have a corporate vision in place for the coming year, it’s important to get started right away deciding where you want to go and what you want to do.

Creating a compelling vision explains who you are, where you are going, and what will guide your behaviors. Leaders can encourage the process by following a couple of key steps including identifying and sharing their own personal vision. It’s a “leading by example” strategy that will get everyone moving in the right direction.

Would you like to learn more about creating and communicating a personal and organizational vision?

Then join us for a free webinar with Ken Blanchard!

From Recovery to Prosperity: The Power of Vision and Leadership
Tuesday, January 19, 2010
9:00–10:00 a.m. Pacific Time, 12:00–1:00 p.m. Eastern Time
5:00–6:00 p.m. UK Time, 5:00–6:00 p.m. GMT

In this special two-part webinar designed for existing and aspiring executive leaders, Ken Blanchard will personally show you that creating a clear and inspiring vision is not an activity that can be checked off a list. It's one of the most critical ongoing roles of a successful leader. It means the difference between high and average performance, whether it's an entire organization, a department, or a team.

Ken Blanchard has spent more than 30 years helping leaders and organizations become and stay great. With Ken's guidance, you'll learn that today's leaders need to provide their people with:

  • A compelling vision that starts everything in the right direction.
  • A picture of the future that people can actually see.
  • Clear values that define the way employees act on a day-to-day basis
    while doing their work.

Ken will also show you that great leadership starts with looking at yourself and sharing who you are and what you stand for. In the second half of this presentation, you'll learn why it is important to identify your beliefs about leadership and how these beliefs will impact your work relationships with the people who report to you.

Don't miss this opportunity to explore and strengthen your leadership abilities with one of the foremost experts in the world. Whether you lead a team, a department, or an entire division, you will walk away from this event inspired, motivated, and ready to lead your group forward in the coming year.

Register Today

January 5, 2010

Making an Impression vs. Being Impressed By John C. Maxwell

Making an Impression vs. Being Impressed By John C. Maxwell

Admired for her beauty, Jennie Jerome (Winston Churchill's mother) glided through the loftiest social circles in Great Britain. Once, on consecutive nights, Ms. Jerome dined with England's premier politicians: Prime Minister Benjamin Disraeli and his chief rival, William Gladstone. When questioned about her impressions of the two men, Ms. Jerome made the following observation:

"When I left the dining room after sitting next to Gladstone, I thought he was the cleverest man in England. But when I sat next to Disraeli I left feeling that I was the cleverest woman."

Perhaps you know leaders like Gladstone-confident individuals who exude wit, intelligence, and charisma. Whenever you're around them, you cannot help but notice their charm...because they make every effort to parade their brilliance in front of you. However, I'll wager that you'd prefer to follow someone like Disraeli, a leader who would rather draw out the best in you than strut his or her personal greatness.

In relationships, be impressed with others instead of trying to make an impression. Throttle back on the urge to make your presence felt, and instead look for ways to esteem those around you. By expressing genuine interest in the people in your life, you'll win friends and gain favor.

The 30-Second Rule

I've developed a simple rule in relationships to help me shift away from a selfish vantage point. Within the first 30 seconds of a conversation, I say something encouraging to the other person. Giving out compliments focuses me on the value of the other person and prevents me from being self-absorbed. Here are a few principles I've found helpful in following the 30-second rule:

1) Give Others the "Triple A" Treatment:

o Attention
o Affirmation
o Appreciation

Gossips speak endlessly about others, and bores talk only of themselves. A brilliant conversationalist is someone who speaks to you about yourself. These thoughtful persons attract friends and reap the benefits of likeability.

2) Remember that the 30-Second Rule Gives Energy

People are energized and motivated when their leaders value them for who they are. On the other hand, they quickly disengage when they feel anonymous. Speaking encouraging words does wonders for a leader when it comes to inspiring a team and earning its loyalty.

3) Practicing the 30-Second Rule Positions You for Success with People

Benjamin Franklin realized this truth when he wrote the following note to John Paul Jones:

"Hereafter, if you should observe an occasion to give your officers and friends a little more praise than is their due, and confess more fault than you can justly be charged with, you will only become the sooner for it, a great captain. Criticizing and censuring almost everyone you have to do with will diminish friends, increase enemies, and thereby hurt your affairs."

When we add to others, they are drawn to our side, but when we belittle others, they withdraw from our influence.

4) Spend Time Creating an Encouraging Thought for Everyone You Know.

Before I meet with people, I pause to think about something encouraging I can say to them. This practice isn't complicated, but it does take some time, intentionality, and discipline. And the reward for practicing it is huge.

SUMMARY

Too many people, when in the presence of others, search for ways to make themselves look good. The key to the 30-Second Rule is reversing this practice. When spending time with people, search for ways to make them look good. Doing so uplifts them and ultimately raises their opinion of you as well.

About

John C. Maxwell is an internationally respected leadership expert, speaker, and author who has sold more than 18 million books. Dr. Maxwell is the founder of EQUIP, a non-profit organization that has trained more than 5 million leaders in 126 countries worldwide. Each year he speaks to the leaders of diverse organizations, such as Fortune 500 companies, foreign governments, the National Football League, the United States Military Academy at West Point, and the United Nations. A New York Times, Wall Street Journal, and Business Week best-selling author, Maxwell has written three books that have sold more than a million copies: The 21 Irrefutable Laws of Leadership, Developing the Leader Within You, and The 21 Indispensable Qualities of a Leader. His blog can be read at www.JohnMaxwellOnLeadership.com.

January 4, 2010

Market Commentary by: James Investment Research, Inc.

Stock Market Analysis

Conclusions: Stocks moved against traditional year-end strength and closed lower, almost every index declined in light volume. Transportation, utility, and industrial stocks were especially weak. For the past year, best sectors turned out to be technology, materials, and consumer oriented.

One of the earliest signs of the recession, the break in single family home prices, continues to encumber recovery. Government intervention has been ineffective. Polls say voters earlier offered a simple solution to those behind in mortgages: Sell the home and get something they can afford. This might be an improvement over federal intervention. The pollster Rasmussen finds 28% of homeowners now believe their mortgages are greater than home value, and experts concur. These are an overhang on the market as are the many homes in default and awaiting foreclosure.

Home values still aren't rising, according to the latest Case-Shiller statistic. Values are down 29% from the top, off 7.26% year over year, and stabilizing after bottoming in April. One statistic we monitor: Sheriff sales notices in our daily newspaper; seemed to be improving a few months ago as the page count declined from the mid-teens to ten or fewer. But the New Year brought bad news, 18 pages. Apparently, at least locally, things are not getting better. Commercial property losses are overwhelming, values down about 43% from the top, with $3 ¼ trillion in commercial mortgages due within next 60 months.

In an interesting interview, Richard Koo postulates the Japanese economy has stagnated for 20+ years because the government did not spend enough to overcome private investment. Actually, the market crashed because speculation in Japanese real estate was even more extreme than in America. Japanese stimulus has been applied more than 15 times, according to some observers, and government intervention in the markets has served to freeze the private investment which generates real jobs. America should recognize this syndrome, akin to events of the great depression of the 1930's.

Reviewing economic conditions, we are struck by sentiment readings. For example, the Conference Board reports an increase of confidence to 52.9 in December. But at the same time, present conditions are rated at the lowest level since 1983, at 18.8. The danger is that confidence based on hope for the future will be dashed should the future disappoint.

Epstein points out the importance of changes in inventories, which have declined for 13 consecutive months as manufacturers judge final demand to be wanting. About one-third of the 2.2% GDP increase in the third quarter is due to a slowing of liquidation of inventory stock. October saw an increase in business inventories. This could result in a strong GDP for the fourth quarter, but not a lasting recovery.

A number of indicators hint stocks are topping. In December, for the first time in many months, stock mutual funds were being purchased. The VIX fear indicator, over 55 near the market bottom, touched 19.25 last week, a sign of excessive confidence. Inv Intl bulls now outweigh bears by more than 35 points (51.1 – 15.6), a very rare occurrence, showing excessive confidence by advisers. Insiders are selling. Advances occur on lessening volume. The normal end of the year rally has so far been missing. Our Risk Exposure Ratio is reading 82, a high risk area. Most important, our James weekly leading indicators are negative. None of this means an immediate collapse, however the risks for the bulls are high and growing. We would continue to reduce equities in over invested accounts.

F James, Ph.D.

Bond Market Analysis

Conclusions: US Treasuries took another hit this past week along the short end of the yield curve as yields rose from the 2 year to the 7 year bonds. Yields on the 2 year US Treasuries saw an increase of 14 basis points to 1.14%, and the US Treasury 10 year bond rose 3 basis points to 3.85%. Overall, the Barclays US Intermediate Government Total Return Index fell 0.3% for the week. The only positive for the US Treasury market seemed to come from the 30 year bonds which saw yields fall 5 basis points as the bonds advanced 0.4% for the week.

A possible reason for the poor performance as we wrapped up 2009 can be tied to the shortened holiday week, as well as the Treasury auction of an addition $118 billion in debt. Over the past year we have seen the total US public debt increase from $5.8 trillion in Nov. 2008 to $7.17 trillion in Nov. 2009; an increase of nearly 23%. With an increase in supply of this magnitude, it is rather obvious why the Barclays US Treasury Intermediate Bond Index posted a negative return for the year, the first time since 1994.

There were a few sectors which performed very well in 2009. Corporate AA bonds were up 7.8%, while lower grade junk bonds or high yield bonds saw staggering returns of 58.2% for 2009. Treasury Inflation Protected Securities (TIPS) posted positive returns as they advanced 11.4%.

As we look ahead to 2010, a couple factors that may affect the bond market are the massive government deficits and the large increase in overall supply. With the Money Base increasing 40% over the past year, if it has not already done so, inflation may creep back into the system. The year over year numbers released in October of 2009 show inflation was at a negative 1.3%. The December 2009 release shows the year over year number now at 1.9%. If future inflation rises, TIPS may be a better opportunity than regular Treasuries as they give some additional protection as inflation increases.

Trent Dysert

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