BY JOHN GREGOIRE
CEO reviews have a tendency to be anything but straightforward. Inconsistent comments and scores impede clarity. Worse, some CEOs are reluctant to challenge such inconsistencies. As a result, the Board/CEO relationship can be impinged. These tips will make the matter clearer so that everyone involved gets what they deserve!
In our previous article, we described the CEO review as a weakness in the all- important Board/CEO relationship. We also mentioned that the performance evaluation is complex and difficult. HR professionals tell me it is the “bane of their existence.” Typically, the reviews are late and poorly constructed. They believe that most managers see the performance review process as a “necessary evil.” In reality, this process is one of the most valuable of all management tools.
A proper performance evaluation is informational, instructive and personally valuable to the employee. It is also a reflection of the manager’s skill and commitment to his or her staff. All of this applies in spades to the performance of the CEO.
Most CEO reviews consist of two key components: a set of organizational performance measures – typically in the form of an organizational scorecard – and a more subjective perspective of the Board’s perception of the CEO as an organizational and community leader. This second component encompasses the Board’s comfort with the Board/CEO relationship.
Our prior article gave some basic metric information. We will provide a detailed method for developing a robust and member-centric scorecard in a future article. This article will focus on the more subjective portion of the CEO review.
Typically, each Board member is asked to rate the CEO relative to several questions. These inquiries are designed to assess leadership and relationship-communications performance.