How Values-Based Decision-Making Helps Nonprofit
Leaders Stay Bold, Focused, and Effective
Let’s be real: leading a nonprofit is not for the faint of heart. You’re constantly juggling mission, money, and people—making decisions that ripple through your organization and the communities you serve. And when the path forward is murky, the pressure to “do the right thing” can feel overwhelming.
So, how do you lead with confidence when every decision feels like a high-stakes balancing act? You anchor yourself in values—not as feel-good fluff, but as a practical, strategic filter for making smart decisions for the things that matter most.
Retired Lt. Gen. Mark Hertling, a master at training leaders in high-pressure situations, and legendary management thinker Peter Drucker both drive home the same point: values aren’t just words on a website. They are the backbone of every smart decision you make.
Here’s how to turn values-based leadership into your competitive edge:
From Words to Action – Values Are The Playbook
Most nonprofits have values plastered everywhere—we promote them in strategic plans, on our websites, and emblazon them on breakroom posters. But let’s be honest: how often do they actually guide your big decisions?
Hertling cuts through the noise: values should make your organization different and better. Drucker adds another layer—values shouldn’t just inspire, they should drive measurable outcomes. In essence, values are not just belief statements, they drive behavior.
So, ask yourself:
- Do our values shape who we are?
- Do our values influence how we treat staff?
- Do our values dictate which funders and partnerships we should pursue?
If your answer to all three questions isn’t a clear “yes”, then it’s time to rethink how your values show up in daily operations.
Leadership Isn’t Just About Strategy—It’s About Character
You can be the sharpest strategist in the room, but your leadership will eventually crumble if you lack integrity, empathy, or humilityHertling, who trained military leaders to make life-or-death calls, insists that leadership is as much about who you are as what you know. Drucker backs this up with his “Management by Objectives” (MBO) approach: align decisions with mission-driven goals, but don’t forget the moral courage to turn down funding that conflicts with your values or to address toxic workplace culture before it spreads, or the courage to advocate for your mission and the people you serve.
Leading with character means being transparent, accountable, and making hard calls that align with your organization’s values. No shortcuts.
Effective Leaders Live by Strong Values
Values-based leadership isn’t just about gut instinct—it’s a skill that requires training and practice.
Hertling drilled military leaders to make split-second, high-impact decisions under extreme pressure. Nonprofit leaders may not be on a battlefield, but when funding, staffing, and mission hang in the balance, the stakes feel just as high.
Drucker offers a roadmap in The Effective Executive:
- Treat opinions as untested hypotheses.
- Validate opinions with real-world data.
- Measure what truly matters.
- Avoid making decisions just for the sake of doing something.
The best leaders don’t go it alone. They build cultures where decision-making is shared, debated, and refined. They empower their teams to challenge assumptions and make mission-aligned choices at every level.
Wrapping It Up: Walk the Talk
Leading with values isn’t just ethical—it’s a force multiplier for bold, strategic leadership. Leading with values builds trust, strengthens culture, and ensures every decision moves your organization toward meaningful impact.
Here’s how to start:
✔ Use values as an operational tool. One nonprofit we worked with evaluated managers based on how well they embodied the organization’s values—not just their performance metrics.
✔ Prioritize character and integrity over quick wins or convenience.
✔ Actively develop decision-making skills—and empower your team to do the same.
At the end of the day, every tough call comes down to one key question:
How does this decision align with our values?
If a decision does not align with your values, it’s time to rethink your approach. Because the power to lead with integrity and impact is in your hands (and your gut!).
