Bill – Leadership Beyond the Book

Bill – Leadership Beyond the Book. July 28, 2024

I had the privilege of joining an exclusive, closed-door session with Bill High on 28 July 2024, where we explored key insights on succession planning and legacy building. The discussion, inspired by his book “Discipleship Not by the Book,” was filled with practical wisdom on cultivating generational impact and sustaining organizational values. I found the session incredibly insightful and hope that sharing my notes here will provide valuable takeaways for others facing the complex challenges of succession planning.

Chapter 5: Building a Business to Last 159 Years

Challenges of Traditional Business Succession

1. Built to Sell: Many businesses are created with the intention of eventual sale or succession to family members, often causing fragmentation over generations.

2. Splitting for Inheritance: As businesses grow, they are often divided among children, but third-generation sustainability is rare. The distribution can lead to shareholder dilution, complicating decision-making and diminishing focus.

3. Building for Longevity: A sustainable business requires a generational mindset, where children and grandchildren are actively involved with a sense of calling, rather than entitlement. This reflects a belief in God’s order, as seen in biblical examples of legacy passed through generations.

Why Build to Sustain?

• Preserving Culture: At Hobby Lobby, the culture is a vital part of the organization, emphasizing faith and values that guide both family and business decisions.

• Ensuring Generational Impact: Passing down a business means more than financial success—it’s about instilling shared beliefs and a commitment to fulfilling a higher purpose.

Strategies for a Sustainable Culture

1. Develop Meaningful Relationships: Encourage the individuality of children rather than grooming them to be replicas of the founder.

2. Establish Governance and Structure: A clear framework is essential for long-term leadership stability.

3. Invest in the Next Generation: Building a strong culture rooted in core values can create a legacy that lasts well over a century.

Chapter 1: Giving God the Vote

• Acknowledge God’s Guidance: With experience, leaders may rely solely on their own decision-making, but it’s essential to continually seek spiritual direction.

• Avoiding Complacency: Instead of bypassing God’s guidance, leaders should consistently consult and involve Him in every decision.

Chapter 2: Listening to the Holy Spirit

• Seeking Divine Wisdom: David Green exemplifies honoring God by consulting Him even in the smallest decisions.

• Faithful Leadership: Each decision should reflect values that align with God’s vision for the business.

Maximizing Risk for Purpose-Driven Impact

• Balancing Risk and Purpose: Growth must be paired with governance and succession planning. Leaders often focus on expansion but may overlook the critical elements of long-term continuity and training successors.

• Global Business Challenge: Many leaders struggle to set up governance structures for smooth generational transitions, which weakens organizational stability.

Managing Intergenerational Challenges

1. Family Employment Committee: A family employment committee fosters development and unity by offering opportunities for both personal and professional growth.

2. Hiring and Firing:

• Principles: Be slow to hire but quick to fire.

• Code of Conduct: Establish ethical standards, address conflicts, and enforce family integrity.

3. Conflict Resolution: A clear code of conduct discourages gossip, promotes accountability, and facilitates objective conflict resolution, often involving legal professionals when needed.

Intergenerational Conflict and Governance

• Preventative Measures: Clear documentation of the vision, mission, values, and family employment expectations is essential.

• Biblical Governance Model:

• From Genesis to Exodus: A structured approach is vital, as seen in the Bible where rules and principles were established to promote harmony.

• Celebration and Remembrance: Regular, intentional celebrations (beyond traditional rituals) help younger generations value shared beliefs and understand their importance.

Honoring God as Owner

• Preparing God-Honoring Successors: The goal is to raise successors who align with God’s vision, prioritizing projects like Bible translation, education, and opportunities that positively impact society.

• Wealth for Good: Stewardship involves channeling resources for impactful causes rather than accumulation.

Recognizing Governance Gaps and Developing Talent

• Talent Alignment: Not all family members may be suited for operational roles, which makes professional management essential to complement family involvement.

• Multigenerational Training:

• Early Foundations: Ages 0-5 can begin with biblical teachings.

• Financial Literacy: Ages 7-9 can learn foundational finance.

• Personal Development: Pre-teens and teens focus on individual strengths and spiritual gifts.

Key Aspects of Building Legacy

1. Identifying Spiritual Gifts: Recognizing each family member’s unique strengths as a gift from God.

2. Encouraging Passion and Purpose: Individuals should pursue what aligns with their values and drives.

3. Nurturing Strengths: Support family members in overcoming weaknesses by focusing on their innate abilities.

4. Valuing Life Experiences: Personality, experience, and education play a role in forming each family member’s contributions to the legacy.

Succession Planning and Continuity

• Criteria for Successors: Faith, generosity, humility, and servant leadership.

• Gradual Succession Planning: A well-thought-out 10-year succession plan allows for values preservation and adaptability as each new generation takes on leadership.

Embracing Generosity

• Modeling Generosity: God’s example of radical generosity calls for discomfort in giving, as it often stretches us toward fulfilling God’s vision.

• Codifying Generosity: A documented approach to generosity helps instill it as a core organizational and family value.

YouVersion: A Legacy of Faith and Innovation

• With over 600 million downloads, YouVersion is a significant example of using technology for faith-based impact, aiming to provide God’s Word in every language and empower readers worldwide.

Final Reflections: Leading by Faith, Not Fear

• Ensuring Perpetual Impact: Decisions should prioritize continuity and alignment with faith over short-term fears.

• Core Principle: Choices based on faith help sustain purpose and strengthen legacy beyond individual lifetimes.

Legacy Insight:

“Legacy is not merely what we leave behind; it’s what we set in motion for future generations.”