Under-Promise, Under-Deliver

To the untrained observer, it seems obvious: Companies that experience growth should be praised, particularly when sales are positive and revenues increase.

But many investors have another point of view. They judge a company’s performance against their projections. They primarily are concerned with what the company promised in comparison with what they actually delivered, even if sales increase.

Explaining these facts, a noted stock analyst recently explained why investors reacted negatively to an announcement by a major company. The CEO had promised that “2013 would be a big year.” Sales, in fact, had been strong. On the surface, this seemed to be good news.

But many investors were disappointed. Why? Because their focus was on what the company had promised. Its leaders hadn’t understood the importance of under-promising and over-delivering.

The analyst pointed to other companies which have had problems in over-promising and under-delivering, but which “have managed expectations and continue to wow investors every quarter.” The rule, the analyst stated, was “Never promise what can’t be delivered.”

The Bible warns us about the importance of our promises. It tells us to be careful about what we say. Jesus taught that “by your words you will be justified, and by your words you will be condemned” (Matthew 12:37). You must “let your ‘Yes’ be ‘Yes,’ and your ‘No,’ ‘No.’ For whatever is more than these is from the evil one” (Matthew 5:37). The Bible also says that each of us will be judged based on what we do with the resources that we have been given (Matthew 25:14-30).

Today, remember to be careful with your words and your promises. Remember that others are looking at you, watching to see if your actions match your words. Make sure your faith is real, and confirm it with your actions.