Latest / Profit and Principle / Generosity as a Business Strategy - Episode 17

Transcript

Generosity as a Business Strategy - Episode 17 · Profit and Principle

• 0:00
  SPEAKER_00: I want to give you a line from Proverbs that makes most business people stop and read it again the first time they really hear it.
• 0:08
  SPEAKER_00: Says this one gives freely yet grows all the richer.
• 0:14
  SPEAKER_00: Another withholds what he should give and only suffers want.
• 0:19
  SPEAKER_00: Now read that again slowly.
• 0:21
  SPEAKER_00: One gives freely and grows richer.
• 0:24
  SPEAKER_00: Another withholds and suffers want.
• 0:28
  SPEAKER_00: Solomon is not describing a spiritual law that operates in some invisible otherworldly realm.
• 0:36
  SPEAKER_00: He's describing something observable, a pattern that he's watched play out in real economic life.
• 0:42
  SPEAKER_00: And he's saying it runs counter to the basic instinct of financial self-preservation.
• 0:49
  SPEAKER_00: The person who holds tight ends up with less, and the person who releases ends up with more.
• 0:56
  SPEAKER_00: Now I want to be honest with you about something before we go any further.
• 1:00
  SPEAKER_00: I'm not going to turn this into a prosperity gospel episode.
• 1:04
  SPEAKER_00: I'm not going to tell you that generosity is a vending machine.
• 1:08
  SPEAKER_00: Put a dollar in and get ten back.
• 1:11
  SPEAKER_00: That's not what scripture teaches, and it's not what I believe, and it's not what the evidence from actual business bears out.
• 1:19
  SPEAKER_00: What I'm going to make the case for is something more interesting and more durable than that.
• 1:25
  SPEAKER_00: Generosity is not primarily about what you give away.
• 1:29
  SPEAKER_00: It's about what it does to you and to your organization.
• 1:34
  SPEAKER_00: The generous business leader becomes a different kind of leader, one who makes decisions from abundance rather than scarcity, who attracts a quality of loyalty from employees and clients that traditional relationships cannot produce.
• 1:50
  SPEAKER_00: And one who builds something that people want to be a part of for reasons that go beyond compensation and price.
• 1:57
  SPEAKER_00: That's not sentiment.
• 1:59
  SPEAKER_00: That's a competitive advantage that is genuinely difficult to replicate.
• 2:04
  SPEAKER_00: I'm Daryl, and this is Profit and Principle.
• 2:08
  SPEAKER_00: Three passages today that make the case for generosity, not as charity, but as character, and two specific practices to make it concrete in your business this week.
• 2:20
  SPEAKER_00: So let's talk about why this matters in business.
• 2:23
  SPEAKER_00: Let's make the business case clearly, because it's more specific than most conversations about generosity get.
• 2:32
  SPEAKER_00: The first business effect of generosity is what it does to your team.
• 2:37
  SPEAKER_00: The research on this is consistent across industries.
• 2:41
  SPEAKER_00: Employees who feel that their employer is genuinely generous with them, not just competitive in compensation, but genuinely oriented toward their flourishing, well, they perform differently.
• 2:53
  SPEAKER_00: They bring discretionary effort.
• 2:56
  SPEAKER_00: They solve problems the job description doesn't require them to solve.
• 3:00
  SPEAKER_00: They stay when a competitor offers more money because they've internalized that where they are is a place that cares about them.
• 3:10
  SPEAKER_00: You cannot manufacture that loyalty through policy.
• 3:14
  SPEAKER_00: It's a response to genuine generosity.
• 3:17
  SPEAKER_00: And the people it produces in your organization are the ones who make the difference between a good business and a great one.
• 3:25
  SPEAKER_00: The second business effect of generosity is what it does to your client relationships.
• 3:32
  SPEAKER_00: The business that consistently gives more than it is required to give, that goes beyond the contract, that solves problems adjacent to the work, that treats the client's success as a genuine priority rather than a transaction, well, that business builds a different kind of relationship than the business that delivers exactly what was agreed and nothing more.
• 3:56
  SPEAKER_00: The generous business becomes the vendor clients don't go out to bid against.
• 4:02
  SPEAKER_00: The partner clients bring into strategic conversation.
• 4:07
  SPEAKER_00: The name that comes up when a colleague asks for a recommendation.
• 4:11
  SPEAKER_00: None of that comes from a marketing budget.
• 4:14
  SPEAKER_00: It comes from a consistent pattern of giving more than is required.
• 4:20
  SPEAKER_00: The third business effect, and this is the one that connects most directly to the Proverbs passage, is what generosity does to the decision-making posture of the leader.
• 4:31
  SPEAKER_00: The generous leader makes decisions from a fundamentally different orientation than the hoarding leader.
• 4:38
  SPEAKER_00: The hoarding leader's instinct in every situation is to protect what they have.
• 4:43
  SPEAKER_00: The generous leader's instinct is to deploy what they have in ways that produce value.
• 4:49
  SPEAKER_00: Over time, those two postures produce very different businesses.
• 4:54
  SPEAKER_00: The hoarding leader's organization shrinks around him.
• 4:58
  SPEAKER_00: The generous leader's organization expands in ways that often surprise even the leader.
• 5:03
  SPEAKER_00: And that's what Proverbs 11 is pointing at.
• 5:06
  SPEAKER_00: Not a formula, but a pattern.
• 5:09
  SPEAKER_00: So let's take a look and see what Scripture says.
• 5:12
  SPEAKER_00: Turn with me to Proverbs chapter 11, and we're going to look at verses 24 and 25.
• 5:18
  SPEAKER_00: And it says this one gives freely, yet grows all the richer.
• 5:23
  SPEAKER_00: Another withholds what he should give and only suffers want.
• 5:28
  SPEAKER_00: Whoever brings blessing will be enriched, and the one who waters will himself be watered.
• 5:35
  SPEAKER_00: This is one of the most economically counterintuitive statements in all of Proverbs, and it rewards close reading because both halves of it are doing something precise.
• 5:47
  SPEAKER_00: The phrase gives freely is from a root word that means to scatter or to spread abroad.
• 5:55
  SPEAKER_00: This is not careful, measured giving, it's open-handed, almost reckless generosity.
• 6:02
  SPEAKER_00: And the result, Solomon says, is that the person grows richer.
• 6:08
  SPEAKER_00: So the Hebrew says that it is added to him.
• 6:13
  SPEAKER_00: This carries a sense of accumulation.
• 6:16
  SPEAKER_00: The scatter produces increase.
• 6:20
  SPEAKER_00: The contrast is equally precise.
• 6:23
  SPEAKER_00: The one who withholds what he should give, well, the Hebrew for that suggests withholding beyond what is fitting or keeping back more than what is right.
• 6:33
  SPEAKER_00: Okay?
• 6:33
  SPEAKER_00: That person only suffers want.
• 6:36
  SPEAKER_00: The tight-fisted approach produces exactly the outcome it was trying to prevent.
• 6:42
  SPEAKER_00: Verse 25 extends the image with two agricultural metaphors.
• 6:47
  SPEAKER_00: The one who brings blessing will be enriched, and the one who waters will be watered.
• 6:53
  SPEAKER_00: Both pictures describe a return that flows through giving rather than around it.
• 7:00
  SPEAKER_00: The water that you pour out is not lost, it cycles back.
• 7:05
  SPEAKER_00: This is not a promise of immediate direct return.
• 7:08
  SPEAKER_00: The farmer who waters this field does not receive instant rain.
• 7:12
  SPEAKER_00: But the principle is that generosity is not a drain on resources.
• 7:16
  SPEAKER_00: It is, over time, a generator of them.
• 7:20
  SPEAKER_00: For the business leader, this passage is both a challenge and an invitation.
• 7:25
  SPEAKER_00: The challenge is this examine where you are withholding what you should give.
• 7:30
  SPEAKER_00: And here's the invitation.
• 7:37
  SPEAKER_00: Let's take a look in the New Testament and see what the Apostle Paul writes in 2 Corinthians chapter 9, verses 6 and 7.
• 7:45
  SPEAKER_00: Paul writes this The point is this: whoever sows sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully.
• 7:55
  SPEAKER_00: Each one must give according as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver.
• 8:06
  SPEAKER_00: We visited the sowing and reaping image once before in this series, back in episode 11, where Paul's words in Galatians 6 made the case about the compounding cost of ethical compromise.
• 8:19
  SPEAKER_00: Here in 2 Corinthians chapter 9, Paul uses the same agricultural metaphor in exactly the opposite direction.
• 8:28
  SPEAKER_00: The same principle that makes compromise costly makes generosity fruitful.
• 8:34
  SPEAKER_00: What you sow is what you reap.
• 8:37
  SPEAKER_00: And whoever sows bountifully, literally with blessings, reaps bountifully.
• 8:44
  SPEAKER_00: But it's the second verse that contains the most distinctive teaching in this passage, the part that goes further than just the quantity of giving.
• 8:53
  SPEAKER_00: Paul focuses on the disposition of the giver, not reluctantly, but he uses a Greek word that comes from the meaning of sorrow or grief.
• 9:05
  SPEAKER_00: Not giving that feels like loss, not under compulsion, not giving that is coerced or forced, but giving as each one has decided in his heart.
• 9:19
  SPEAKER_00: Now the Greek here means chosen in advance.
• 9:23
  SPEAKER_00: You've already deliberately decided ahead of time what you're going to give.
• 9:28
  SPEAKER_00: And then the phrase that the church has repeated for 2,000 years is this God loves a cheerful giver.
• 9:35
  SPEAKER_00: Now the word Paul uses for cheerful is where we get our word hilarious from.
• 9:40
  SPEAKER_00: You're joyful to the point of exuberance.
• 9:44
  SPEAKER_00: This is not the giving of duty.
• 9:47
  SPEAKER_00: This is the giving of someone who is genuinely glad to do it, who does not experience generosity as a subtraction, but as participation in something larger than themselves.
• 9:59
  SPEAKER_00: For the business leader, this passage asks a hard question.
• 10:05
  SPEAKER_00: When you give, whether it be to your team or to clients, to a cause you support, to vendors that you could squeeze, right, when you give, what is the disposition of that giving?
• 10:18
  SPEAKER_00: Is it reluctant?
• 10:19
  SPEAKER_00: Is it calculated?
• 10:21
  SPEAKER_00: Or is there something genuinely glad in it?
• 10:25
  SPEAKER_00: Because the return Paul describes isn't linked to the transaction.
• 10:29
  SPEAKER_00: It's linked to the heart behind it.
• 10:32
  SPEAKER_00: And the heart behind it is something that cannot be faked, not over time, and not by people who are watching closely.
• 10:41
  SPEAKER_00: Let's go ahead and jump back to the book of Luke, chapter 6, verse 38.
• 10:47
  SPEAKER_00: And it says this give and it will be given to you.
• 10:51
  SPEAKER_00: Good measure, pressed down, shaken together, running over, will be put into your lap.
• 10:57
  SPEAKER_00: For with the measure you use, it will be measured back to you.
• 11:02
  SPEAKER_00: Jesus is speaking in a sermon.
• 11:05
  SPEAKER_00: Okay, it's a sermon on the plain.
• 11:07
  SPEAKER_00: It's Luke's parallel to the sermon on the mount.
• 11:10
  SPEAKER_00: And this statement comes in the context of teaching about love for enemies and the refusal to judge.
• 11:17
  SPEAKER_00: And the principle he articulates, though, it reaches into every domain of generosity, including the commercial.
• 11:25
  SPEAKER_00: The language Jesus uses is drawn directly from the marketplace.
• 11:30
  SPEAKER_00: Good measure, pressed down, shaken together, running over.
• 11:34
  SPEAKER_00: This is the language of the grain merchant filling a container for a customer.
• 11:39
  SPEAKER_00: An honest merchant fills the measure.
• 11:42
  SPEAKER_00: A generous one presses it down to settle the grains, shakes it together to compact it, and then fills it to overflowing.
• 11:51
  SPEAKER_00: The customer walks away with more than what they paid for.
• 11:55
  SPEAKER_00: That's not a spiritual image imported into commerce.
• 11:59
  SPEAKER_00: It's a commercial image about how abundance operates.
• 12:03
  SPEAKER_00: The principle Jesus establishes is reciprocal.
• 12:07
  SPEAKER_00: With the measure you use, it will be measured back to you.
• 12:11
  SPEAKER_00: This is not a promise of exact transactional return.
• 12:15
  SPEAKER_00: It's a description of the kind of relational and economic system that the generous person builds around themselves over time.
• 12:25
  SPEAKER_00: The leader who consistently gives good measure, who delivers more than required, who invests more than is asked, who treats generosity as a standard rather than exception, that leader finds that the world around them gradually reorganizes in response to that pattern.
• 12:45
  SPEAKER_00: The people, the opportunities, the relationships that gather around a genuinely generous leader are different in kind from those that gather around a calculating one.
• 12:58
  SPEAKER_00: That's not a vending machine promise.
• 13:00
  SPEAKER_00: It's a description of how character shapes community.
• 13:04
  SPEAKER_00: And community for a business is everything.
• 13:08
  SPEAKER_00: I want to give you a contrast that I think most people in business will recognize.
• 13:14
  SPEAKER_00: There are two consulting firms of roughly equal size and capability.
• 13:18
  SPEAKER_00: And let's call the founders Nora and Grant.
• 13:22
  SPEAKER_00: Grant ran this firm with precision.
• 13:25
  SPEAKER_00: Scope was defined tightly.
• 13:27
  SPEAKER_00: Deliverables were delivered exactly as specified.
• 13:31
  SPEAKER_00: When a client asked for something adjacent to the contract, Grant's team quoted it as additional work.
• 13:38
  SPEAKER_00: When an engagement ended, their relationship essentially ended with it.
• 13:43
  SPEAKER_00: There was nothing left to maintain because nothing had been given that wasn't paid for.
• 13:48
  SPEAKER_00: His margins were excellent.
• 13:50
  SPEAKER_00: His referral rate, however, was low.
• 13:53
  SPEAKER_00: His clients thought of him the way they thought of their accountant.
• 13:57
  SPEAKER_00: Reliable, professional, and interchangeable with the next qualified firm.
• 14:03
  SPEAKER_00: But Nora, on the other hand, she ran her firm differently.
• 14:07
  SPEAKER_00: Not carelessly.
• 14:09
  SPEAKER_00: She was rigorous about scope and delivery, but she built a posture of consistent generosity into the culture.
• 14:16
  SPEAKER_00: When a client was struggling with something adjacent to the engagement, her team helped without billing.
• 14:23
  SPEAKER_00: When an engagement concluded, she sent a summary of what she'd observed about the client's broader situation unprompted, no invoice attached.
• 14:33
  SPEAKER_00: She introduced clients to people in her network who could help them with problems she couldn't solve.
• 14:39
  SPEAKER_00: She gave good measure, pressed down, and running over.
• 14:43
  SPEAKER_00: Nora's margins were slightly lower than Grant's.
• 14:47
  SPEAKER_00: Her referral rate, however, was about three times more than his.
• 14:51
  SPEAKER_00: Her client retention across multi-year engagements was almost double.
• 14:56
  SPEAKER_00: And when a client of hers needed to bring in a firm for a project that was outside Nora's capabilities, they still called Nora first to ask who she trusted.
• 15:07
  SPEAKER_00: The generous business does not win on price or on specification.
• 15:12
  SPEAKER_00: It wins on relationship.
• 15:14
  SPEAKER_00: And relationship, built through consistent generosity, is the competitive moat that the calculating firm simply cannot dig.
• 15:24
  SPEAKER_00: So how do we put this into practice?
• 15:26
  SPEAKER_00: Well, I have two recommendations for you.
• 15:29
  SPEAKER_00: One is internal, one is external.
• 15:32
  SPEAKER_00: So here's the first one.
• 15:34
  SPEAKER_00: Identify one place in your business where you are withholding what you should give and change it.
• 15:40
  SPEAKER_00: Proverbs 1124 describes not just a person who gives little, but one who withholds what he should give, who is holding back something that is, by the right order of things, owed.
• 15:53
  SPEAKER_00: In your business right now, where is that true?
• 15:57
  SPEAKER_00: It might be a team member who is overdue for recognition that you've been putting off because the timing hasn't felt right.
• 16:04
  SPEAKER_00: It might be a vendor relationship where you could pay faster than terms require and you've been using the float because you can.
• 16:36
  SPEAKER_00: Then give it.
• 16:38
  SPEAKER_00: Not as a transaction, not because it might come back to you, but because it is the right thing to do with what you've been given.
• 16:46
  SPEAKER_00: And the posture of withholding is doing something to you as a leader that is not serving you or the people in your care.
• 16:55
  SPEAKER_00: Next, build one act of structural generosity into how your business operates.
• 17:01
  SPEAKER_00: The difference between Nora and Grant wasn't just that Nora was a nicer person, it's that she built generosity into the structure of how her firm worked, the unprompted summary at the end of an engagement, the introduction to a network contact, the help with adjacent problems.
• 17:20
  SPEAKER_00: These weren't random acts of kindness.
• 17:22
  SPEAKER_00: They were consistent practices that shaped what her clients experienced every time they worked with her.
• 17:29
  SPEAKER_00: This week, identify one practice like that, one recurring structural act of generosity that your business could adopt.
• 17:38
  SPEAKER_00: It doesn't have to be expensive.
• 17:40
  SPEAKER_00: It has to be genuine and consistent, however.
• 17:44
  SPEAKER_00: Maybe it's a monthly call to your top five clients where you ask what's going on in their business rather than talk about yours.
• 17:52
  SPEAKER_00: Maybe it's a policy of paying small vendors on receipt rather than on net 30 terms.
• 17:59
  SPEAKER_00: Maybe it's a commitment to send one unsolicited value-adding communication to a client per week with no ask attached.
• 18:08
  SPEAKER_00: Choose one.
• 18:10
  SPEAKER_00: Build it into the rhythm of how you operate, not as a growth tactic, but as a posture.
• 18:17
  SPEAKER_00: The business that is structurally generous becomes, over time, a fundamentally different kind of business.
• 18:24
  SPEAKER_00: One that attracts different people, different clients, and different opportunities than the one that gives only what is required.
• 18:33
  SPEAKER_00: That's what Jesus means when he says, with the measure you use, it will be measured back to you.
• 18:39
  SPEAKER_00: The measure you set becomes the environment you live in.
• 18:44
  SPEAKER_00: Let me close with something that I think is the heart of the whole episode.
• 18:49
  SPEAKER_00: Generosity is not a tool.
• 18:52
  SPEAKER_00: Used as a tool, deployed strategically to produce a calculated return, well, it stops being generosity.
• 19:01
  SPEAKER_00: People can feel the difference between the business that is generous because it genuinely cares, and the business that is performing generosity because it read somewhere that generous businesses outperform.
• 19:13
  SPEAKER_00: The first builds loyalty.
• 19:15
  SPEAKER_00: The second gets seen through, usually faster than the leader expects.
• 19:20
  SPEAKER_00: The generous business leader that scripture describes, the one who gives freely and grows richer, who sows bountifully and reaps bountifully, who gives good measure, pressed down or running over, is not executing strategy.
• 19:35
  SPEAKER_00: They are expressing a character.
• 19:38
  SPEAKER_00: And that character was formed not by studying the ROI on generosity, but by genuinely receiving the generosity of God and learning to distribute it.
• 19:49
  SPEAKER_00: That's the source.
• 19:51
  SPEAKER_00: If you want your business to be marked by genuine, sustainable, attractive generosity, the kind that builds loyalty that no marketing budget can buy, it has to flow from a genuine encounter with the God who, as Paul says in 2 Corinthians 9.15, gave the indescribable gift.
• 20:10
  SPEAKER_00: You can't manufacture that.
• 20:12
  SPEAKER_00: But you can receive it and let it change the orientation of everything that you manage.
• 20:18
  SPEAKER_00: Let me pray for you.
• 20:20
  SPEAKER_00: Father, I pray for every business leader listening right now who wants to lead with an open hand, but has been operating with the closed one, out of fear, out of habit, out of the basic instinct to hold tight to what they built.
• 20:35
  SPEAKER_00: Loosen that grip.
• 20:37
  SPEAKER_00: Give them the courage to scatter, to give freely from what they've been given, trusting that the pattern you built into the world is real.
• 20:46
  SPEAKER_00: Let their businesses become places where people flourish because of genuine generosity, not performed generosity.
• 20:54
  SPEAKER_00: And give them the joy that Paul describes, the hilarious gladness of a giver who gives not from duty but from overflow.
• 21:03
  SPEAKER_00: Let them be people whose measure is pressed down, shaken together, and running over.
• 21:09
  SPEAKER_00: In Jesus' name, amen.
• 21:12
  SPEAKER_00: Want to thank you for joining us this week for another episode of Profit and Principle.
• 21:16
  SPEAKER_00: I know that your time is valuable, and I hope you are finding value in each episode of the podcast.
• 21:23
  SPEAKER_00: If you are, I would love it.
• 21:25
  SPEAKER_00: If you will go to wherever you listen to podcasts and leave us a rating and review, and then share it with someone who you think could benefit from Profit and Principle.
• 21:35
  SPEAKER_00: Also, if you haven't done so already, I encourage you to go check out our website, profitandprinciple.com, and you'll find a few different resources there.
• 21:42
  SPEAKER_00: First, you're going to find this recording on that website.
• 21:46
  SPEAKER_00: You will also be able to sign up for the weekly newsletter that comes into your mailbox every Monday morning.
• 21:52
  SPEAKER_00: You can also read our latest blog article that further unpacks this content.
• 21:56
  SPEAKER_00: And then finally, you can find there a one-page PDF download that you can use for a Bible study with others or for study on your own that deals with today's episodes.
• 22:07
  SPEAKER_00: I hope you take advantage of those free resources.
• 22:09
  SPEAKER_00: They are all there to support you and the work that you are doing in your business.
• 22:14
  SPEAKER_00: I hope the Lord blesses you this week and I hope you return next week for another episode of Profit and Principle.