A Leader's P&L Statement

Profits and Losses: A Leadership Audit

If you’re like me, you’ve spent some time recently reviewing P&L statements as we close out one year and prepare for the next. The sharpest business minds can look over a P&L and gain deep insights into the company’s performance and trajectory. These documents reveal a lot about the health of an organization. They outline revenue—did we hit or miss projections? They break down expenses—did we overspend, underinvest, or face unexpected costs? A P&L statement tells the story of what’s working and what needs to change.

Now imagine this: What if our leadership had a P&L statement to review at the end of every year? Just as the sharpest business minds can analyze finances to uncover a company’s priorities and health, could our leadership P&L reveal insights about our own values and effectiveness? What would it show? What would be counted as gains, and what might we label as losses? More importantly, what impact would those gains and losses have on our lives and on the people we lead?

Leadership, like any investment, requires careful evaluation. What are we pouring our energy into? What’s truly adding value/profit, and what might be a loss, quietly draining the lifeblood of our culture and staff? Just as a financial P&L statement helps us see where our money is going, a leadership audit helps us discern whether our efforts align with what truly matters—both for now and eternity. Paul gives us a powerful framework for this:

Philippians 3:7-8 (NIV) - “But whatever were gains to me I now consider loss for the sake of Christ. What is more, I consider everything a loss because of the surpassing worth of knowing Christ Jesus my Lord.” Paul redefined what he considered valuable, measuring his “gains” against the eternal impact of knowing and serving Christ.

In leadership, it’s all too easy to prioritize the wrong things. We might chase accomplishments, accolades, or financial milestones, only to discover that these “gains” leave us empty and our people depleted. We might be focusing our attention and efforts on areas of our organization that we think are profitable, only to find that we were investing our precious time in areas that we should have delegated to others, watching true opportunities pass us by as we run on the hampster wheel of mistaken gains.

True Gains

What are the true gains for a leader? Perhaps we’ve misunderstood what truly matters. It’s easy to get caught up in what the world defines as profits—hitting revenue targets, meeting payroll, and satisfying shareholders. These things are necessary, but are they the ultimate measure of success?

Through experience, I’ve discovered that the truest gains are found by investing in the people around me. If I focus on chasing the wrong kinds of gains, I risk using people to achieve those goals—and when I use people, I lose both them and the pursued gains. But when I prioritize loving and valuing people as my true gains, something remarkable happens. By aligning my leadership with God’s Kingdom values—loving God and loving others—I’ve witnessed tangible, earthly benefits. Investing in people fosters a thriving culture, builds stronger relationships, improves organizational outcomes, and yes, it even leads to profits.

True leadership profits come from focusing on people, integrity, and purpose—the things that carry eternal significance. While earthly success is fleeting, the impact we make on others and for God’s Kingdom will endure far beyond our time here.

Practical Steps for a Leadership P&L Audit

1. Identify Your Current Gains and Losses

Start by listing what you currently view as gains in your leadership. Are they metrics like revenue growth, promotions, or achievements? Then, look at the other side of the ledger. What might be in your loss column? Is it strained relationships, burnout, or neglecting your spiritual growth? Evaluate honestly: Are the gains worth the losses?

2. Redefine True Profits

Ask yourself: What truly matters? For Paul, everything he once prized became secondary to the “surpassing worth of knowing Christ.” As leaders, we must ask the same question. Are we investing in people? Building character? Honoring God in our decisions? These are the profits that truly last.

3. Reallocate Your Investments

Once you’ve identified what matters most, adjust your focus. Spend more time cultivating relationships, developing your team, or seeking God’s guidance. Let go of pursuits that drain your energy but don’t add lasting value.

4. Commit to Regular Audits

Leadership isn’t static, and neither is your P&L statement. Make it a habit to regularly review your priorities and make adjustments. This ensures you stay aligned with God’s purpose for your leadership.

The Eternal Perspective

At its core, a leadership audit is about maintaining an eternal perspective. Earthly gains—no matter how impressive—are temporary. As Jesus reminds us in Mark 8:36, “What good is it for someone to gain the whole world, yet forfeit their soul?” Effective leaders constantly evaluate whether their pursuits align with God’s kingdom.

Picture standing before God with your leadership P&L statement. Your profits would be lives impacted, integrity upheld, and faithfulness to His calling. Your losses would be the temporary sacrifices made for eternal rewards. That’s a legacy worth leaving.