5 Tips for Making Difficult Decisions as a Nonprofit Leader
When someone is chosen to lead a for-profit or nonprofit organization, one of the critical factors is their judgment. Leaders are called upon to make smart but often difficult decisions about compliance, resource allocation, management, risk, mission attainment, and more.
The nonprofit sector adds additional complexity because there is pressure to not be a “command and control” style leader. Compared to small business owners or corporate CEOs, nonprofits have a bias toward collaborative and inclusive decision-making and authentic stakeholder engagement. This makes decision-making more political, social, and potentially more difficult.
How to Make Difficult Decisions in “Normal” Times
There are many ways to approach decision-making as a leader.
You can make decisions based on popularity. You can make decisions based on what’s best for the organization. You can make decisions based on fear or risk mitigation. You can also make decisions based on hope or ambition. There are countless other frameworks. There is no right or wrong approach.
For the purpose of this blog post, we are not talking about simple decision-making, like what color tablecloths to use at the gala. This article is about big, consequential, and often difficult decisions. Making these sorts of decisions is a critical part of a nonprofit leader’s role.
5 tips I use when making difficult decisions
1. Consult smart people for insights
As a leader, you aren’t expected to know it all or always make the right call. But your team does expect you to seek out smart people to help you make the best possible decisions. Think of it as creating your own “cabinet” of advisors.
I once had to decide whether to fire an employee. I could not make up my mind, so I reached out to a mentor, who convinced me that termination was the only viable path. I was overthinking it, and her clarity confirmed my instinct. I talk to a lot of smart friends. When I have a decision that is gnawing at me, I gather opinions to see what resonates.
2. Resist biases in decision-making, especially for difficult decisions
People are not logical, they are psychological. We make decisions based on first impressions, assumptions, available or recent information, biases, and incomplete information. One of the best things leaders can do is to learn about decision-making biases and work to resist them. It is vital to developing critical thinking skills.
3. Consider the ramifications of the decision for people and mission
Could your decision cause short-term or long-term harm to people or your organization? Could your decision undermine your other values and commitments, therefore creating inconsistency or hypocrisy?
At the end of the day, the decisions we make should be guided by values and principles. But that doesn’t mean your decision-making must be rigid. We must evaluate our decisions based on situations and circumstances as they arise.
Try not to make decisions out of fear or simply to avoid unpleasantness.
“Try not to make decisions out of fear or simply to avoid unpleasantness.”
The difference between decision-making in our personal lives and in nonprofit leadership is that we must be called to higher standards when leading an organization.
To learn more about how decision-making fits into nonprofit leadership, check out my full breakdown of an executive director or CEO’s role.
4. Wait before making a final choice, especially for difficult decisions
I almost always make better decisions if I wait and simmer on the choices. Even if you can decide things quickly, take a beat and give yourself time so you really know you aren’t rushed. The temptation to act fast and decisively may cloud your vision.
The best leaders take a beat and think about whether urgency is an illusion.
“The best leaders take a beat and think about whether urgency is an illusion. ”
5. Use scenario planning
Some of the best decisions I make are after I use scenario planning. This involves thinking through the potential consequences or chain of events of each potential choice of a difficult decision.
What are the likely reactions and outcomes and how will they impact you and your people? Some people call this “gaming out.” For example, if you need to decide whether to fire a vendor, ask yourself what would happen next after each decision. Then ask what would happen after that. The added benefit of scenario planning is that you are rarely caught off guard by any course of action.
Another version of scenario planning is to ask yourself what you would say about your decision in five years. Imagine yourself five years in the future, looking back and asking: “How did I handle this moment? Were my values reflected in my decision-making? Were my decisions based on fear or hope? Did I act in a way that I’m proud of? Will I look back and say this ended up being no big deal?”
My mantra is “Don’t just do things right, do the right things.”
“My mantra is “Don’t just do things right, do the right things.””
In nonprofits, this means constantly asking yourself, “What is the best decision to serve our mission?”
Making Difficult Decisions During a Crisis
No leader loves a crisis, but sometimes you can’t avoid them. A crisis could be a natural disaster, a pandemic, or a public threat to your organization’s reputation. A crisis can be completely of your own making or be a complete misunderstanding. Here are a few real-life examples of decision-making during a crisis.
Difficult decisions during a pandemic
When Covid 19 caused lockdowns in the U.S. in March 2020, staff members at the climate change organization I was leading were worried and confused about what the pandemic meant. It was a new world for all of us.
Being isolated impacted me a lot as a massive extrovert. I knew that if the pandemic was affecting me emotionally, then it certainly would be affecting my staff and could start impacting morale. As a manager, I kept reading about how the pandemic was causing burnout and stress. Relationships were strained at home and at work, within families, and among friends.
I decided to take action at our nonprofit to immediately set a tone of compassion.
I told our staff, “I know what we are going through is unnatural, huge, and stressful. Many of us have loved ones with pre-existing conditions or who are ‘essential workers’ and are doing everything possible to stay safe. This is stressful and distracting. I don’t need you at peak productivity right now. It’s OK.” It really helped set a tone of trust.
As a leader, you don’t need to have all the answers, but I do believe that creating a sense of calm (if appropriate) is key. Emotions are fine; unnecessary drama is not. Decision-making is better when cooler heads can assess facts without psychological factors clouding our judgment.
Difficult decisions during a financial crisis
Another example of decision-making during a crisis was when I was asked to lead a women’s reproductive rights organization. It was my first executive director job running a nonprofit.
As I stepped into the role, I realized the organization had debt I didn’t know about, the national economy was collapsing (this was August 2008), and our national office had just irritated many of our donors. I was new to North Carolina and didn’t have the support systems I have now. I remember just needing to comfort our staff, stakeholders, and others that even if we were a smaller organization in a year, we would survive.
One thing I learned about decision-making in a crisis is that you need to slow down, not speed up. Make sure you gather facts and information so you don’t act impulsively in a premature effort to solve problems.
“One thing I learned about decision-making in a crisis is that you need to slow down, not speed up. Make sure you gather facts and information so you don’t act impulsively in a premature effort to solve problems. ”
Difficult decisions during a media “scandal”
In 2013, an organization I was leading was accused of breaking the law. We were later cleared of any wrongdoing, but during the first seven days, we were dragged through the mud and my decision-making was tested. Our attorney and I believed one course of action was best, while our coalition members and funders were more scattered. Any course of action would have steep consequences.
When you are facing a threat to your reputation and a communications crisis, it helps to have a structured and thoughtful system in place.
“When you are facing a threat to your reputation and a communications crisis, it helps to have a structured and thoughtful system in place. ”
I now advise organizations to have a crisis communications plan in place before something bad happens. It’s an incredibly valuable practice.
Understanding Logic vs Emotion in Decision-Making
It is very common for people to say that we should be guided by logic instead of emotion. As attractive and practical as this sounds, it is a pretty white patriarchal claim.
Some of my best and most passionate decisions were made from fear, love, hope, and anger. I wouldn’t be an activist without my anger.
So, I want to firmly say that emotion is valuable and plays a role. It cannot be wholly discounted. I recently heard Diarra Kilpatrick, a black female writer, producer, and actress) say:
“Nothing changes unless someone gets angry. There’s great information in anger. There’s great direction in anger.”
I couldn’t agree more.
“‘Nothing changes unless someone gets angry. There’s great information in anger. There’s great direction in anger.’
I couldn’t agree more.”
Accept that mistakes happen
Stop worrying about mistakes. They happen. Some of the best leaders make mistakes daily. Obviously, you don’t want to make this a habit, but stop wasting energy fretting. Build reflection into your decision-making process so you can learn from mistakes. Then, be humble and just move forward.
Conclusion: Being a leader means making tough calls
All leaders need to make decisions. The stakes are usually low, but sometimes they can change the course of your life, career, or organization’s success.
When making difficult decisions, try to be consistent and thoughtful and reduce decision-making biases. Most importantly, you want to be able to learn from mistakes and know that, regardless of the outcome, you have approached decisions in a way that aligns with your principles and values.
