Theology, simply put, is the meditation on and the study of God. As such theology is the quinessential activity of all who ask, and answer, questions about God and His relation to all created realities. God, says Scott Swain, "is thus the generative and organizing subject matter of theology, the 'starting-point' from which all other topics 'flow forth, by which they are held together, and to which they should be directed' . . . Theology is reasoned discourse concerning God and all things in relation to God."
Theologizing or "doing theology" is, therefore, essential to the life of faith because faith seeks understanding. One of the simplest—and one of the most profound—theological statements anyone can make is "God is love." God's love for us, and our love for God, drives us to ask how we are to obey and please Him in all things He has made and provided. As such no Christian can speak of being "not theological" whenever they have something to say about God. It is only possible for what they say about God to be either bad theology or sound theology. Sound theology leads to a clearer deeper understanding of God and, therefore, to a deeper love for God and, therefore, to worship. As J. I. Packer is fond of reminding his students, theology that does not lead to praise, thanksgiving and worship is fraudulent because it has not done what it is supposed to do. God-pleasing theology follows two rules: first, it must serve to know God, and second, to share Him. Together they prepare and facilitate the Christian for a life of discipleship and for witness.
Theology that does not lead to
doxology and worship
is fraudulent
because it has not done
what it is supposed to do.
The term 'theology' also refers to the product of our exploration about God. The sermon you preach—since you will be talking about God and what His Word teachers—is, therefore, a 'theological product,' i.e., theology (though we don't normally call it that). The preacher who tells his congregation that he is not a 'theologian' does not know what he is saying. But what he may have in mind is the idea of 'theology' as the formal and academic sorts, those that are represented in seminaries or universities. In this sense, it is also sometimes known as 'divinities.' As an academic discipline, it involves itself in many concerns, such as methodology, philosophy, etc. The process of preparing a sermon is, however, as much a theological process as what a professor of theology does and, even though our focus and approach may differ, should be undertaken with no less seriousness. Our presentation, however, must differ because, in a sermon, we are speaking to ordinary folks. A sermon should appeal and apply to the mind as much as it—as most frequently happens—appeals and applies to the spirit and the heart, just as sound and good theology must do with the latter as it does—as most frequently happens—the mind. As theology that does not lead to worship is fraudulent, so Christian teaching and preaching that are not simultaneously well-hearted and well-minded is flatulent.
You may also wish to read the following entries:
Theology: What Does It Do & How Should It Be Done 
Print Resources
Louis Berkhof, Systematic Theology. Reprinted, Grand Rapids: Baker, 1979. (Reformed) Alberith hopes to republish this work.
Media Resources
Third Millenium Ministrys has developed this extremely helpful course on Theology. These lectures open (click on 
on the left top corner of the screen) in the SPanel.
Building Your Theology. Lesson 1: What is Theology. video 56:14.
Building Your Theology. Lesson 2: Exploring Christian Theology. video 1:00:38.
Building Your Theology. Lesson 3:Relying on Revelation video 1:05:37.
Building Your Theology. Lesson 4: Authority in Theology. video 1:11:06.
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