Mind the Gap: Business Metrics vs Mission Metrics

“That’s not how we do it here. We’re not a business.”

In the decades I’ve spent working in and with churches, nonprofits, and other mission-driven organizations, I’ve heard time and again that they and businesses are different. Different goals. Different mindset. Different values.

There’s some truth there, but I also believe there are no black-and-white lines or tidy one-size-fits-all standards between the two. Rather, they have plenty of similarities and opportunities to learn from each other.

Making the Sale

I don’t think I’ve ever met an executive director who claims to be in sales, or a sales director who claims to run a mission. Changing lives is not selling a product.

But what about hospitality? Welcoming newcomers? Investing in the experience (environment, safety, a warm first impression) that keeps people coming back? While mission-driven organizations aren’t selling a tangible product, there are parts of the experience that people are buying into every time they show up.

A good leader knows their community, its preferences, its needs, and probably even some of its wants. That knowledge helps them build relationships and deliver what’s most helpful.

A sales director knows their clients, their preferences, their needs, and probably even some of their wants. That knowledge helps them build the relationship and deliver what’s most helpful for the client.

Sound familiar?

Managing a Bottom Line

For many of us in mission-driven work, feelings about the bottom line can be complicated. Yes, funding matters. It costs money to keep the lights on, the floors clean, and the programs running. But make finances a central part of the discussion? Some people around the leadership table start to squirm, believing the mission isn’t about money.

As organizations grow, the bottom line gets more complicated. New hires are made. Buildings are built or purchased. Costs for goods (chairs, supplies, coffee cups) and tools (email platforms, software, equipment) go up as more people are served.

There are many sides to managing a mission-driven organization’s finances, and the same is true for business. Even the most mission-minded companies with one-for-one giving models have to manage budgets and fund their initiatives.

Having a realistic, informed understanding of your funding does not mean you’ve lost sight of the mission. It helps you see clearly what you’ve been given to work with.

Some organizations, especially those just starting out, don’t have a seasoned finance leader the way most businesses would, and I think that’s okay. The ability to get curious and ask intentional questions is just as crucial as CFO-level skills.

What are our costs? Where are they coming from? Are they supporting the programs and efforts that match our priorities? Does our spending match our focus?

Just like a CFO might raise an eyebrow at gourmet coffee or lavish staff outings, mission-driven leaders can (and should!) ask questions and look for data that helps them steward the financial side of their work.

Making Decisions

One notable difference I’ll allow between business and mission settings is how decisions are made. In business, decisions are more often (perhaps too often) based on numbers and spreadsheets with little thought to human impact.

On the other extreme, I’ve been in plenty of mission-driven meetings where “we just know this is right” is code for inaction, or for pursuing an idea with no evidence behind it.

I believe the best decision-making sits somewhere in the middle. We can use data and conviction to make choices. We can rely on numbers and the stories of the people we serve to see whether our work is having the outcome we set out to achieve.

For faith-based organizations, that conviction often comes through prayer and discernment. Those don’t compete with data. We do the work best when we bring all of it to the table: data, prayer, reflection, and honest conversation with each other.

Whatever your mission, use every tool at your disposal. Businesses and mission-driven organizations are more similar than it seems.

A question for your leadership team

Where are we leaning on only one of the two, data or conviction?

Have a question your team keeps coming back to? Bring it to us.