Topic > The Effective Role of Leadership in Nonprofits...

While business organizations depend on the market's “feedback mechanism” to measure performance and focus on tasks and goals, the nonprofit depends on the missions they attract the organization's resources such as: donors who are encouraged by the goals, board members who dedicate time and money, and employees who work harder for less. As a result, measuring performance based on mission inspiration is subjective and values-driven, so there will be no standard outcome to measure nonprofit effectiveness. These two facts are considered as a challenge for the non-profit organization to deliver better results and achieve the planned objectives as it depends on its good relationship with external and internal stakeholders. (Harvard Article) Therefore, the nonprofit organization must develop a good management strategy to deliver good results and be successful. Strategic management is a broad concept that means “the responsible integration of strategic planning and implementation within an organization in an ongoing manner to improve mission fulfillment, mandate compliance, continuous learning, and sustained creation of public value.” all of which require implementation. (Bryson, 25) Strategic management system also called performance management system organization level as a way to promote greater rationality, consistency and cost effectiveness in their strategies and operations.” (Bryson, 319) Strategic management has many purposes such as the design of a formal strategic management system and the role of strategic planning within strategic management ...... middle of paper ...... finally, the executive director must carefully manage the organization's finances and follow the spending according to the mission as he has the duty to raise funds through success plans and results. (Oct,79) “The role of the executive director is to oversee the day-to-day operations of the organization, as well as share with the board of directors aspects critical to the strategic direction and survival of the organization.” (Oct, 81) Effective leadership has a major impact on creating effective management, whether it originates from board members or executive directors. Cooperation is more important than the selected organizational position. Therefore, leadership is shared between the board entities and the executive director. (Oct,71) True leaders play an important role in maintaining the sustainability of a nonprofit organization.