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Executive Director
Compromise and consensus are common themes in the nonprofit world. When debating controversial issues we are eager to discount “extreme” views and look for middle ground. Compromise—“the middle way between two extremes” is intuitively appealing. But another definition of compromise—“settle by concession”—offers a hint of the downside of our compulsion to compromise.
As New Yorker columnist James Surowiecki explains in his book “The Wisdom of Crowds,” our zeal to reach the middle ground may inspire less than optimal decisions. We compromise when we fail to collect and analyze data that would enable us to make informed decisions. We enjoy the thrill of “seat of the pants” decision making more than our missions warrant. Our lack of desire (and in some cases, our inability) to make cost-benefit calculations is yet another form of compromise. When a proposed new activity requires risk-taking we too often prefer to back away rather than getting close enough to estimate the probability of success and identify strategies to mitigate potential losses.
According to Surowiecki, instead of working to reach the best possible decision, we sometimes “accept one that seems good enough.” Caution and compromise are lauded values in the nonprofit sector, and I would be foolish to suggest we abandon either. But the missions of our organizations matter. I encourage you to examine instances of compromise in your nonprofit and consider whether a different approach would better serve your mission.
Compromise is a basic instinct for nonprofit leaders. Discerning when compromise may impair mission fulfillment, however, is a skill we must learn and practice. Resisting the urge to compromise may not be easy, but it is necessary to protect the mission of your organization and your commitment to deliver on that mission each and every day.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your feedback on this article and your questions about any risk management topic. Melanie can be reached at: Melanie@nonprofitrisk.org.
“First let me congratulate you on a conference well done. I had a great time at the Nonprofit Employee Benefits Conference and walked away with some valuable tools and questions that we’ll need to be addressing in both the short and long term. Thanks to you and your staff for all you do to provide us with quality resources in support of our missions.”
“BBYO’s engagement of the Center to conduct a risk assessment was one of the most valuable processes undertaken over the past five years. Numerous programmatic and procedural changes were recommended and have since been implemented. Additionally, dozens (literally) of insurance coverage gaps were identified that would never have been without the work of the Center. This assessment led to a broker bidding process that resulted in BBYO’s selection of a new broker that we have been extremely satisfied with. I unconditionally recommend the Center for their consultative services.
“Melanie Herman has provided expert, insightful, timely and well resourced information to our Executive Team and Board of Directors. Our corporation recently experienced massive growth through merger and the Board has been working to better integrate their expanded set of roles and responsibilities. Melanie presented at our Annual Board of Director’s Retreat and captured the interest of our Board members. As a result of her excellent presentation the Board has engaged in focused review which is having immediate effects on governance.”
“The Nonprofit Risk Management Center has been an outstanding partner for us. They are attentive to our needs, and work hard to successfully meet our requests for information. Being an Affiliate member gave us access to so many time- and money-saving resources that it easily paid for itself! Nonprofit Risk Management Center is truly a valued partner of The Community Foundation of Elkhart County and we are continuously able to optimize staff time with the support given by their team.”
“The board and staff of the Prince George’s Child Resource Center are extremely pleased with the results of the risk assessment conducted by the Nonprofit Risk Management Center. A thorough scan revealed that while we are a well run organization, we had risks that we never imagined. We are grateful to know that we have now minimized our organizational risks and we recommend the Center to other nonprofits.”
Great American Insurance Group’s Specialty Human Services is committed to protecting those who improve your communities. The Center team has committed to delivering dynamic risk management solutions tailored to nonprofit organizations. These organizations have many and varied risk issues, hence the need for specialized coverage and expert knowledge for their protection. We’ve had Melanie speak on several occasions to employees and our agents. She is always on point and delivers such great value. Thank you for the terrific partnership and allowing our nonprofits to focus on their mission!