![]() ![]() ![]() Too much slack can distort priorities, erode managerial discipline, and encourage wastefulness, especially high salaries. Nonprofit commentators write about capacity as if an organization can’t get enough of it, but slack (financial capacity) has a dark side. Think of slack as the financial aspect of organizational capacity. The difference between a hand-to-mouth organization and a vibrant one is slack. It has several definitions, but all boil down to extra resources or resources held in reserve. Organizational slack is an important concept in the management literature, but you won’t find it mentioned in articles on nonprofits.
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