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Correctly Analyzing Organizational Situation is Critical

This is part two of a two-part series on Michael D. Watkins book The First 90 Days. In order to get the most out of this article, please read the definitions of the terms from the first article by clicking here. What follows is a brief explanation of my diagnosis of the church I entered last year.[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row custom_padding="19px|0px|21px|0px" _builder_version="3.0.47" background_size="initial" background_position="top_left" background_repeat="repeat" _i="2" _address="0.2"][et_pb_column type="2_3" _builder_version="3.0.47" parallax="off" parallax_method="on"][et_pb_text _builder_version="3.0.77"]

Diagnostic Options

I entered my new position following a popular leader who was reappointed by our bishop. However, the church had experienced a fifty percent or more decline over the previous seven years in almost all statistics of vitality. In the previous year alone, over $60,000 in salaried positions had been eliminated, mostly related to musicians on Sunday morning.Based on the vitality statistics alone, three categories of the STARS model could be eliminated immediately: Start-Up, Accelerated Growth, and Sustaining Success. While the church is relatively young (established in 1995), it was definitely no longer in the start-up phase of the church life-cycle. Given the steep decline in vital statistics, Accelerated Growth and Sustaining Success were also easily eliminated.[/et_pb_text][/et_pb_column][et_pb_column type="1_3" _builder_version="3.0.47" parallax="off" parallax_method="on"][et_pb_code _builder_version="3.0.77"]<iframe style="width:120px;height:240px;" marginwidth="0" marginheight="0" scrolling="no" frameborder="0" src="//ws-na.amazon-adsystem.com/widgets/q?ServiceVersion=20070822&OneJS=1&Operation=GetAdHtml&MarketPlace=US&source=ac&ref=qf_sp_asin_til&ad_type=product_link&tracking_id=drwadearnold-20&marketplace=amazon&region=US&placement=1422188612&asins=1422188612&linkId=492206c2659435335d626b4cbd06231c&show_border=true&link_opens_in_new_window=true&price_color=333333&title_color=0066c0&bg_color=ffffff"><!-- [et_pb_line_break_holder] --> </iframe>[/et_pb_code][/et_pb_column][/et_pb_row][et_pb_row custom_padding="0px|0px|27px|0px" _builder_version="3.0.47" background_size="initial" background_position="top_left" background_repeat="repeat" _i="3" _address="0.3"][et_pb_column type="4_4" _builder_version="3.0.47" parallax="off" parallax_method="on"][et_pb_text _builder_version="3.0.77"]So, the remaining choices in the STARS model were Realignment and Turnaround. In Realignment situations, a church is doing many things well. On the whole, the organization has many processes and ministry areas that are functioning very well. In a Turnaround situation, the church has few, if any processes and ministries that are functioning at a high level. There may be high functioning areas, but they are so few and far between that they cannot create momentum, or “spill-over,” to other areas.

Critical Diagnosis

The reason that correct diagnosis of the organizational situation is so critical in these two cases is that the type of leadership that is required to be successful in each case is very different. Watkins contrasts the type of leadership required as follows:In turnarounds, leaders are often dealing with people who are hungry for hope, vision, and direction—which necessitates a heroic style of leadership, charging against the enemy, sword in hand. People line up behind the hero in times of trouble and follow commands.Realignments, by contrast, demand from leaders something more akin to stewardship—a more diplomatic and less ego-driven approach that entails building consensus around the need for change. Stewards are more patient and systematic than heroes in deciding which people, processes, and other resources to preserve and which to discard.

Results of Misdiagnosis

If Turnaround leadership is used in a Realignment scenario the leader is likely to be seen as overbearing, egotistical and fails because followers rejects leadership initiatives. Alternately, if a leader uses a Realignment approach to leadership in a Turnaround scenario the leader may be viewed as weak, unresponsive, and incapable and is rejected on this evidence. Complicating the matter, again, is the fact that there are no pure scenarios. Some ministries of the church may need Turnarounds and others Realignments.

My Critical Decision

Based on my review of the church’s information given to me from the Conference prior to assuming my role as pastor, my discussions with staff and key leaders, as well as a thorough review of the church’s financial information, I determined that the church to be in a Turnaround scenario. The church’s vital statistics, discussed above, were in serious decline. The church had been drawing on reserve funds in order to meet monthly expenses for the previous 12 months. Church leaders who had been a part of the church for several years expressed concern over the loss of members, declines in giving, and expressed what I can best describe as a general malaise in the church.

My Leadership Approach

While I would not describe my leadership as “heroic,” I did take a directove, forthright approach. I listened very carefully, and I was more directive that I might have been otherwise. For instance, I immediately preached a sermon series on developing a strategy for ministry. While I had planned on developing a mission and vision statement by consensus, it became apparent to me that the church needed and wanted me to state our mission, vision, values, and strategy. Within three months of my appointment, we established LIFE Groups and changed Sunday morning service times in order to allow these small groups to meet between services on Sunday morning. Honestly, I was relieved that I did not have to make this major change; our Church Council, more or less, demanded the change and voted unanimously in favor of this change. I directed the Financial Secretary, Treasurer, and Finance Committee to become radically transparent in the area. In response to congregational concerns, in addition to the monthly Treasurer’s reports, the Treasurer and Financial Secretary developed two summary reports which we make available to the congregation each month after approval of the Church Council . Also, our Preschool Treasurer’s Report, which had not been previously reviewed by the Finance Committee, is now brought to the Finance Committee to review each month, so that they could have the fullest picture possible of the church’s overall financial position. As chair of the Nominations and Leadership Development Committee, I reduced the number of committee members from nine to six. This change allowed congregants to serve on fewer, or maybe even one, committee and remain in compliance with the Book of Discipline. We also discontinued a Wednesday night meal that had a $1000 financial deficit when I arrived and was burning out volunteers. The result is that Wednesday night attendance has gone from 30-40 attenders to about 10-12 each week. We decided to offer for sale a parcel of property adjoining our main parcel that was not a part of the original land acquisition. The proceeds of this sale will be used to refinance our mortgage with the hope of reducing our monthly payment significantly. There were other smaller changes, but these are a few that I recall as being significant and sleep-depriving.

The Results

The results are not in. We are still in process. I can, however, safely make a few statements. First, I entered a church in crisis. The church was digging a hole financially. Due in large part to the leadership of the previous pastor, we are no longer digging a hole. He made significant staff cuts in order to balance the budget. Through his leadership, we are able to arrange with the Conference to make interest only payments for a short while. Our giving has increase by about 7% since July of last year, which also helps balance the books, so that we are no longer drawing on reserves to make ends meet.Second, my sense is that people are more hopeful about future of the church. For the past seven to eight years people have seen the gradual decline in giving, worship attendance, new members, discipleship participation, and service in the community. In each of these areas we are holding steady or growing ever so slightly. For example, a few weeks ago when I was feeling discouraged because things were not rebounding as quickly as I had hoped (ok, maybe I need to work on patience), I had two people whose social circles don’t overlap come to me independently and say, “Wade, I can’t put my finger on it. But something good is happening at Ocoee Oaks.”Third, not everyone responded positively to the changes that have been made. There are a variety of reasons for this resistance. One, some people resented the pastoral change. Two, some people didn’t like the directive leadership style. Third, some people didn’t diagnose the church the same way I did. In some cases, for instance, the individual(s) had no idea of the dire financial situation of the church. Four, I did not always communicate as clearly as I could have.

We do we go from here?

Change is not over. Change necessitated by crisis is mostly in our rearview mirror. We’ve moved some of the big rocks. We are out of the dangerous rapids. But change is just starting. Now we must begin the deep cultural change necessary to develop a healthy church. In order to get there, we must bring everything we do into alignment with our mission, vision, values, and strategy. Whether or not the direction I have laid out for us thus far will lead to growth is yet to be seen. I am fully confident in the direction we are headed, but ask me againin fiveyears. I am pulling every lever possible and praying as earnestly as I know how. But what is absolutely certain is that more of the same will result in more of the same.[/et_pb_text][et_pb_text _builder_version="3.0.77"]

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