CEO performance is integral to the prosperity of any organization. Therefore, the selection, development, and retention of the right CEO—one who leads the organization toward its strategic and tactical goals—defines one of the primary responsibilities of the Board of Directors. The CEO’s ability to work collaboratively with the board is also an essential factor that determines success for the CEO, the directors, and the company. However, often CEOs simply do not know how the directors perceive their performance because feedback has been rare or non-developmental.
Directors can develop their relationships with the CEO, enhance organizational effectiveness, and improve CEO performance when feedback is timely, balanced, consistent, and systematic.
- The process begins with an interview with the Chairman to outline the procedures and set the timelines.
- Then, each director engages in a phone call with me to discuss the CEO’s strengths and opportunities for development.
- Following the calls, I debrief the aggregated information with the Chairman, provide a brief written summary, and assist in writing comments for the CEO.
- I debrief the results with the CEO and assist in developing a 90 day action plan.
- The CEO discusses the results with the Chairman.
- Give the CEO candid but anonymous feedback about how to leverage strengths and address areas of development.
- Provide the Chairman more information about the Directors’ perception of the CEO, which can influence compensation decisions.
- Enhance relationships between the CEO and directors, clarify roles, and define spheres of responsibility.
- Help the CEO better know how to drive the success of the business.
- Realization of the company’s strategy.
- Identification of strengths so the CEO can replicate effective performance.
- Early discovery of potential problems.
- Detection of positive and negative patterns of performance.