Strategic choices are critical and are essential to the future success of any organization. Strategic decisions made by the leaders are significant because they contribute to the implementation of the programs of the madrasah. This study examines school-based management strategies related to decision-making policy, decision-making model, participatory decision-making practice, and decision-making policy implementation. This study recruited 32 participants to participate in this study. Using record analysis, observation and interview data were obtained. The results show (1) that the principal needs a school-based approach that emphasizes aspects of spirituality and religion and maintains the importance of peace to enhance the performance of the madrasah, (2) that the principal frequently monitors teaching staff in their daily work, and (3) that the principal should make decisions on the basis of the mutual decision-making process. Participatory democracy is emphasized by the strategic decision-making process, such that all members of society have a say in what decisions are made and how they are enforced.