Leading by EXAMPLE

Leading by EXAMPLE

C12 is a Christian business-owners

organization focused on boosting profits and seeing its members walk out their faith.

ceo faith by Dave Szymanski | Tampa Bay Editor

What image do you get when you hear the words "Christian CEOs organization?"

If your answer is Bibles on the table, heads bowed in prayer and statements of faith, you're half right. The other part of the image is business reality - 2008-style.

"You need to do three things: Reassess your business, resize it for this economy and do it immediately," says one member of the Tampa Bay area chapter of C12, addressing his fellow CEOs at the November meeting of the Christian business owners organization.

"This recession will likely last 18 months, not six," another says at the meeting.

"I have never seen so much pain. It is unbelievable what I am seeing," another says. "The other shoe is going to drop. And that's commercial real estate."

"It's about the balance sheet and cash flow," another CEO mentions. "Don't live in the hope world. Don't get deluded by a 400-point swing in the Dow. That doesn't mean anything."

"Teen unemployment is 21%," another says. "In the summer, it could be up to 30 to 40%. What will they be doing if they aren't working?"

Like the toss of a life preserver, the group leader mentioned, "Let's take a break."

Welcome to the sobering tones of C12 Tampa Bay, a local chapter of the national professional support group for Christian business owners and chief executive officers that got its start in Sarasota.

C12 recently allowed the Gulf Coast Business Review to attend its November monthly workshop with its CEOs, on the condition that its CEO names remained anonymous.

It was a day of frankness, thankfulness, urgent advice, statistical insight, peer coaching, peer challenging, faith statements, humor, personal gratitude for good marriages and families, a lot of question asking, some doubts and fellowship. Not unlike any management meeting, but one with all CEOs who shared a passion for their faith and a concern about the economy and country's future.

Their common view: The message of Christ can be delivered through them and their businesses. In fact, businesses are the best vehicle to propel the message, in their view, because they have the people and resources and their CEOs can be the catalyst.

But even the cross-carrying catalyst needs advice from executives outside of his company. They agree that someone other than them, someone much higher, needs to be in charge.

"We need to get off the throne," one CEO admits. "For years, I sat on it."

Many stereotypes never emerged. There was no hand holding for prayer, no hymn singing, no chapel and only one hug during the seven-hour gathering.

It was low tech. Only one member used a laptop. There were no powerpoints, no whiteboards.

While frank, the discussion was sometimes humorous, even silly and sometimes gently sarcastic. There was no cursing or raised voices.

"It's a little strange to say, but in times like these, I get energized," one CEO said. "It's a great time to spread the Word."

Club staff brought menus and lunch directly to the members so they could keep working. It was a lot more like a traditional board meeting or CEO gathering than a church group gathering.

Here is a glimpse of what else happened.

Starting with prayer

They met in the Palms Room at the white-columned Tampa Palms Country Club clubhouse at 9 a.m.

A 20-foot rectangular table, covered in white linen, stretched through the room. The day's agenda and backup materials were printed, three-hole punched and awaited each CEO at each seat. A row of French doors, facing a brick-covered porch and a lake with a fountain, lined one wall.

At the top of the table was Scott Hitchcock, the silver-haired chairman of C12 Tampa Bay.

On either side of him were 13 CEOs, 12 men and one woman, from their 40s to their 60s, dressed in plaid shirts, khaki pants and long-sleeve polos, taking notes and checking Blackberries.

While workers quietly assembled a Christmas tree and toy train in the lobby, Hitchcock began the meeting with a prayer, a few announcements and a devotional called "Be Still & Know."

"When it comes to listening to Jesus, how hard of hearing are you?" Hitchcock asks, setting the tone. "Do you currently have a daily quiet time with the Lord that includes 'listening prayer,' or are you busy pursuing your own agenda with God?"

Then the CEOs took turns stating prayer intentions and things for which they were thankful.

Many of the requests were about their businesses, succeeding in harder times. One member asked for wisdom in cutting costs.

Instruction, problem solving

C12 spent hours on instructions from Hitchcock, centered around financial management. That included tips on cost cutting and inventory management, discussions he led on contribution margin, fixed expenses and working capital.

Hitchcock shared information he gathered from local CEOs, including one who ran a landscaping business that was left with an unpaid bill of $400,000 from a client.

"I asked him if there was any way to change his operations and get that money paid up front," Hitchcock says.

Another CEO he interviewed has cut staff from 100 surveyors to 35. He also cut his office leasing costs from $8,800 a month to $2,900 and he is aiming for $1,500.

"Look for opportunities you have to resize your business," Hitchcock tells the group.

He also allowed members to present challenges to the group for its advice.

Those included big capital expenditures, how to deal with brilliant but sloppy managers and how to collect a significant late payment. In fact, the late fee involved two of the members in C12 sitting across the table from each other.

The debtor CEO, who was not at the company when the contract began, agreed to pay the late fee and talk to one of his managers about it.

That same CEO shared that his company gives employees 40 hours of paid volunteer time off every year, which totaled 477 hours last year and 650 hours this year. Last year it gave 14% of net profit to ministry work. This year, it's 9%.

He wants to do more, but is having a hard time getting his president to lead the charge, even though he and his president are volunteering, too.

Members offered their advice.

"It's about leadership," one tells him. "You will have a tough time getting the culture changed without your president."

Members also told that same CEO to delegate management of the brilliant, yet sloppy manager to his president.

"Quit monkeying with the day to day," one CEO tells him. "Have him report to the president."

Parting words

One member gave the group some uncomfortable news. After this meeting, he was leaving.

In his view, the C12 was very helpful to him as a CEO, but as a smaller business he was having a hard time making the $7,500 membership fee.

The management-coaching materials had changed, he says, and were geared more for larger companies.

"When I am at the point of cutting back on snacks in the break room, I need to ask myself if I can still do this," he says.

The group thanked him for his frankness. Most members leave quietly, sending Hitchcock a brief email and never coming back.

Eventually the group convinced the departing member to pray about it for 30 days before deciding. As a small-company CEO, he brought big ideas. He agreed to delay.

Seated two seats from him, another member, a fellow small business, agreed the materials had moved up market. But he liked the change. He wanted something bigger to aspire to.

"I don't want the watered-down stuff, I want the strong stuff," the executive says.

As 4 p.m. neared, the members went around the table and mentioned their "to do" items they had written down and what they gained from the meeting. Some wanted to get healthier. Others wanted to begin new books.

"I will meet with our board and make some hard decisions," one member says.

"I want to do 10 minutes of pure listening each day," another says.

"Man, I can't do that," another replies. "Maybe two."

Still another CEO said he would honor a small request from his wife: To learn how to blow-dry her hair.

That brought the house down.

"Too much information!" one member announced amid the chaos of laughter.

After things settled down, Hitchcock took the opportunity to say a prayer, thank the group and deliver a personal message connected to Thanksgiving. It has been a tough year for C12 nationally. Most veteran chapters have lost members. The new chapters have faired better.

"Thanksgiving is Thursday. In many families, it is a stressful time," he says. "It is very stressful emotionally. But for all of the things you mentioned, there are reasons to give thanks, pray and be a model of Christ's love.

With adjournment, the room quickly emptied. There was a lot of work to do.

REVIEW SUMMARY

Organization: C12

Industry: Management coaching

Key: Making tough decisions, like hiring slow, firing fast and cutting costs, while living the Biblical principals by example, not just words.