Informed Decision Making in Your Not-For-Profit

How does informed decision-making lead to better governance in not-for-profits? This simple checklist will help your organisation make better decisions.

Authored by: iClick2Learn Team

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Informed Decision Making in Your Not-For-Profit

Not-for-profit leaders are responsible for making many crucial decisions. One of the best ways to support good governance and further your organisation’s objectives is to engage in informed decision-making. While each organisation’s decision-making process will look unique, some basic guidelines can help your members stay on track and make highly informed decisions.

Informed Decision Making: 7 Steps

An informed decision-making process involves a clear understanding of the facts and future implications of your actions. Having a strategic approach in place can help you avoid confusion, frustration, and costly errors in judgment.

Follow these steps to encourage informed decision making:

Have a robust discussion.
Don’t be afraid to ask difficult questions.
Remember always to keep your goals and objectives in mind.
Write out pros and cons so you can weigh them thoughtfully.
Consider similar situations and discuss the outcomes.
Do plenty of research.
Utilise the unique skills and knowledge of your committee.

An informed decision is made after collecting relevant information and data and assessing potential risks. While it might not feel like the fastest method, it saves your organisation valuable time in the long run. It can even protect you from devastating consequences.

For a step-by-step guide on how to engage in informed decision-making, check here.

How Informed Decision Making Supports Good Governance

Informed decision-making weighs pros and cons, assesses risk, and makes room for robust discussions that pose challenging questions. By understanding the facts and evaluating implications, your board makes decisions that promote good governance. After all, cooperation, open communication, and well-researched strategising are all essential governing ingredients.

On the other hand, poor decision-making can:

Undermine your organisation’s mission
Create a climate of mistrust
Frustrate board members
Fail to anticipate legal or reputational consequences
Increase risk

At all times, your members are working hard to advance your organisation’s mission and objectives. By engaging in informed decision-making, your members can better support your organisation and its beneficiaries. That’s why how you make decisions can be just as important as the decisions you make.

Informed Decision Making: Conclusion

Decision-making can be difficult for a variety of reasons. Maybe your organisation is growing, or you’re working hard to accommodate new stakeholders. Whatever the case, an informed decision-making process can promote efficiency and good governance within your organisation.

Informed decision-making is vital for many reasons:

Clumsy decision processes create confusion, discord, and cynicism
Informed decisions make the best use of your time and resources
Members will be able to contribute more effectively
Member satisfaction and engagement will improve
You will accomplish more faster

Informed decision-making involves brainstorming, research, and thoughtful engagement. It fosters a climate of engagement, trust, and accountability. Best of all, a strategic process supports good governance and equips your organisation to serve its beneficiaries better.