CEO performance is integral to the prosperity of any organization. Therefore, the 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 also plays an essential role in determining success for the CEO, the directors, and the company. However, too often CEOs simply do not know how 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 board, organization, and CEO will benefit in these ways:
- When they receive candid, anonymous feedback about how to leverage strengths, mitigate weaknesses, and effectively address expectations, CEOs can dramatically improve their performance
- Boards can improve their performance when the board chair has information about the directors’ perception of the CEO, which can influence compensation and other major decisions.
- Enhanced communication between the CEO and directors will clarify roles and define spheres of responsibility.
- The CEO can better know how to drive the success and growth of the business.