Decision-making:

Nonprofit Leadership

DEL 830: Executive Decision Making

Dr. John Barnette

Presented by: Dallas Bragg

Nonprofit Organizations

Nonprofit Leaders

Nonprofit Decision-making

Current Research

Current ResearchNonprofit Organizations Nonprofit Leaders Nonprofit Decision-making

Government Funding (Boris et al., 2010)

Need for Talent(Cornelius et al., 2011; Tucker et al., 2005)

Intuitive (Bezjian et al., 2009; Cornelius et

al., 2011; Inbar et al., 2010)

Individual Donors (Cray et al., 2007; Bess et al., 2011)

Collaboration (Cray et al., 2007; Boris et al., 2007)

Participative (Bess et al., 2011; LeRoux, 2009)

Capacity Building (Cornelius et al., 2011;

www.councilofnonprofits.org)

Change Agent (Carlson & Donohoe, 2010;

Cray et al., 2007; Yaghi, 2008)

Generative(Bess et al., 2011; Boris et al., 2010;

Tucker et al., 2005; Vogelsang, 2008)

The Shifting NonprofitNonprofit Organizations

Government Funding (Boris et al., 2010)

Individual Donors (Cray et al., 2007; Bess et al., 2011)

Capacity Building (Cornelius et al., 2011; www.councilofnonprofits.org)

•Government funding accounts for 65% of human service organizations’ budgets.•Individual donors are being courted using diverse efforts.•Federal government needs nonprofits now more than ever.

Current ResearchNonprofit Organizations Nonprofit Leaders Nonprofit Decision-making

Government Funding (Boris et al., 2010)

Need for Talent(Cornelius et al., 2011; Tucker et al., 2005)

Intuitive (Bezjian et al., 2009; Cornelius et

al., 2011; Inbar et al., 2010)

Individual Donors (Cray et al., 2007; Bess et al., 2011)

Collaboration (Cray et al., 2007; Boris et al., 2007)

Participative (Bess et al., 2011; LeRoux, 2009)

Capacity Building (Cornelius et al., 2011;

www.councilofnonprofits.org)

Change Agent (Carlson & Donohoe, 2010;

Cray et al., 2007; Yaghi, 2008)

Generative(Bess et al., 2011; Boris et al., 2010;

Tucker et al., 2005; Vogelsang, 2008)

Nonprofit Leaders

Need for Talent(Cornelius et al., 2011;

Tucker et al., 2005)

Collaborative (Cray et al., 2007; Boris et al., 2007)

Change Agent (Carlson & Donohoe, 2010;

Cray et al., 2007; Yaghi, 2008)

The Demand for Leaders•Talent over passion for the cause.•Collaborate to encourage mission first.•Transform the institution.•Become more for-profit thinking.

Current ResearchNonprofit Organizations Nonprofit Leaders Nonprofit Decision-making

Government Funding (Boris et al., 2010)

Need for Talent(Cornelius et al., 2011; Tucker et al., 2005)

Intuitive (Bezjian et al., 2009; Cornelius et

al., 2011; Inbar et al., 2010)

Individual Donors (Cray et al., 2007; Bess et al., 2011)

Collaboration (Cray et al., 2007; Boris et al., 2007)

Participative (Bess et al., 2011; LeRoux, 2009)

Capacity Building (Cornelius et al., 2011;

www.councilofnonprofits.org)

Change Agent (Carlson & Donohoe, 2010;

Cray et al., 2007; Yaghi, 2008)

Generative(Bess et al., 2011; Boris et al., 2010;

Tucker et al., 2005; Vogelsang, 2008)

Nonprofit Decision-making

Intuitive (Bezjian et al., 2009;

Cornelius et al., 2011; Inbar et al., 2010)

Participative (Bess et al., 2011; LeRoux,

2009)

Generative(Bess et al., 2011; Boris et al., 2010; Tucker et al., 2005; Vogelsang, 2008)

Nonprofit Decisions•Intuitive decisions based on the environment.•Participative decisions to be network-inclusive.•Build a culture of learning, generating, and creating.

What does all of this mean?

From Individual Leaders to Shared Leadership Decisions cannot be singular

(Deiser, 2008; Klein, 2009; Obolensky, 2009; Tucker et al., 2005; Uhl-Bien et al., 2010)

Nonprofit Leadership Skills Necessary for Effective Decision-making

•Understand complexity and networks (Bess et al., 2011).•Transformational and transactional (Barros & Nunes, 2007; LeRoux, 2009; Pfeffer & Sutton, 2006; Yaghi, 2008; Useem, 2010).•Simulate decision scenarios (Cornelius et al., 2011; Klein, 2009; Lee, Oh, & Pines, 2009;Tucker et al., 2005).•Effectively balance intuition and rational reasoning (Klein, 2009; Pfeffer & Sutton, 2006; Mauboussin, 2009)

ReferencesBarros, C. P. & Nunes, F. (2007). Goverance and CEO pay and performance in non-profit

organizations. International Journal of Social Economics, 34(11), 811-827. doi:10.1108/03068290710826404.

Bee, K. D., Perkins, D. D., Cooper, D. G., & Jones, D. L. (2011). A heuristic framework for understanding the role of participatory decision making in community-based non-profits. American Journal of Community Psychology, 47, 236-252.

Boris, E. T., de Leon, E., Roeger, K. L., & Nikolova, M. (2010). Human service nonprofits and government collaboration. Retrieved from Urban Institute website: http://www.urban.org/uploadedpdf/412228-nonprofit-government-contracting.pdf

Cornelius, M., Moyers, R., & Bell, J. (2011). Daring to Lead 2011. Retrieved from CompassPoint website: http://www.compasspoint.org/sites/default/files/docs/research/Daring%20to%20Lead%202011%20Main%20Report_062211.pdf

Cray, D., Ingles, L., & Freeman, S. (2007). Managing the arts: Leadership and decision making under dual rationalities. Journal of Arts Management, Law, and Society, 36(4), 295-313/

Lee, E., Oh, J., & Pines, E. Unknown Year. Practical managerial decision making tools: Operations research. Journal of Applied Business and Economics.

Pfeffer, J. & Sutton, R. (2006). Hard facts dangerous half-truths and & total nonsense: Profiting from evidence-based management. United States of America.

Inbar, Y. (2010). People’s intuition about intuitive insight and intuitive choice. Journal of Personality and Social Psychology, 99, 2, 232-247.

ReferencesKlein, G. (2009). Streetlights and shadows, searching for the keys to adaptive decision

making. London, England: MIT Press. LeRoux, K. (2009). Paternalistic or participatory governance? Examining opportunities

for client participation in nonprofit social service organizations. Public Administration Review, 69(3), 504-517.

Mauboussin, M. (2009). Think twice, harnessing the power of counter intuition, United States of America, Harvard Business Press.

Tucker, J. S., Cullen, J. C., Sinclair, R. R., & Wakeland, W. W. (2005). Dynamic systems and organizational decision-making processes in nonprofits. The Journal of Applied Behavioral Science, 41(4), 482-502.

Useem, M. Decision making as a leadership function. Excerpted from Nohria, N. and Khurana, R. (2010) Handbook of leadership theory and practice: a Harvard business school colloquium. Unites States of America.

Yaghi, A. (2008). Leadership values influencing decision-making: An examination of nine Islamic, Hindu, and Christian nonprofit institutions in the US. South Asian Journal of Management, 15(1), 24-41.

Questions?