Written by the Ronald Blue Trust Business Consulting Division
Do you know the difference between knowledge and wisdom?
Knowledge is learning from your own mistakes. Wisdom is learning from the mistakes of others.
In your business, wisdom is applying knowledge to reduce the risk of uncertainty and increase the chance of success.
Consider the story of Jethro and Moses in Exodus 18, where Jethro counsels Moses to set up a governance structure. He says that Moses should “select capable men from all the people—men who fear God, trustworthy men who hate dishonest gain—and appoint them as officials…” (Exodus 18:21).
We believe that well-chosen counselors bring wisdom to businesses as well. We encourage the companies we work with to integrate wisdom because the area of decision making is always bigger than the area of information. There are three key benefits from integrating wisdom into the operation of the business you steward:
- Provides strength of insight – Proverbs 11:14
- Provides strategic focus – Genesis 41; Exodus 17:8-13
- Provides accountability – Galatians 2:11-13
How to Integrate Wisdom
In a business, wisdom is synonymous with corporate governance. Corporate governance can take many forms, ranging from informal to formal. We encourage our clients to choose a structure that fits well with their unique business.
Informal networks are just that: informal structures that promote accountability. Examples of organizations that offer CEO roundtables are C12, FCCI, Truth at Work, and Convene. We get a lot of questions about advisory boards, which both help define and provide accountability for leadership. When forming an advisory board, leaders will want to consider factors like objectivity, worldview, experience, and connections. We have observed that companies that define roles and processes tend to have the most success using this model. Finally, the most formal of governance structures is the commonly recognized board of directors.
Implementing a governance structure that fits well with your individual company can be an effective way to bring wisdom to your organization.
Here are some questions to consider as you reflect on how this information applies to your business:
- What is your company’s current corporate governance structure? Is it providing you with sufficient insight, focus, and accountability?
- What strategic decision is your company facing that could benefit from additional information? What is your plan to obtain this information?
- Has there ever been a time in leading your company that you could have benefited from encouragement and/or accountability? If so, was there someone in your life that provided it?
- How could access to a multitude of counselors that share your biblical worldview impact the business you steward? What is one idea you can apply in your business today?
Understanding the Kingdom perspective and evaluating your business are the first steps. Developing and implementing an actionable plan that pursues this perspective and brings the benefits of wisdom follows.
Would you like personalized guidance as you think through creating a governance plan for your business? Ronald Blue Trust’s Business Consulting division leverages biblical wisdom and practical expertise to advise business owners as they seek to faithfully steward the companies with which they have been entrusted. To learn more, click here to visit the Business Consulting division page on ronblue.com.
Scripture taken from The Holy Bible, NEW INTERNATIONAL VERSION®, NIV® Copyright © 1973, 1978, 1984, 2011 by Biblica, Inc.® Used by permission. All rights reserved worldwide.