Summary This chapter explores decision areas that nonprofit managers consider as they work to achieve public benefit outcomes and sustain organizational operations. The strategic management processes seek alignment among management practices and environmental opportunities while identifying priorities for organizational success. The chapter introduces a framework to guide strategic decision making in three areas. Strategic management is a process that comprises strategy formation and strategy implementation. The chapter identifies critical areas managers should consider while planning and implementing activities. Nonprofit managers confront needs far bigger than their organizations can address, and resource constraints frustrate even the best organizations. The chapter discusses three key strategic 'problems' for nonprofit managers: understanding service and resource opportunities; creating service delivery systems that utilize organizational capabilities; and building control and performance management systems that foster learning. Even organizations that have been successful run the risk of losing their relevance and impact as circumstances change if they fail to practice effective strategic management.
