Stanford Social Innovation Review

The board's responsibility is to hire the CEO, support the CEO, and if necessary, fire the CEO. It's up to the CEO to operate the organization, which includes evaluating the senior managers. It would be wise for the CEO to seek feedback from board members who work closely with particular senior managers. But the board wouldn't evaluate senior staff directly.

At the minimum, the board leadership should evaluate the CEO annually. I like to have some sort of formal check-in halfway through the year, too. At our organization, we link the staff reviews to accountability for the organization's progress toward goals, which helps underline the fact that that we derive our individual goals from the goals of the organization.

Boards approach the evaluatory process in a range of ways. Some have a committee on compensation and governance, which does the evaluation. At our place, the executive committee does it. Some do it as a committee of the whole. I think a smaller group can be more focused and frank in their assessment. But it is important to seek feedback from all of the board members.

There's nothing magical about an evaluation. In our organization, we have one form for managers and another for line workers. Both involve a self-evaluation, and the supervisor fills out a planning form, too. Each person describes the primary responsibilities, greatest achieivements in the evaluation period, areas for improvement in the next year, a handful of goals, and training that would be appropriate. We like to have at least two training opportunities that relate to job duties, and two that improve technical skills, since technology is impacting the workplace.

When I evaluate one of my senior managers, I ask for informal feedback from peers and that person's direct reports. (We do a formal 360 degree evaluation every three years for our senior managers.) We also do an annual staff survey in which every staff member comments on his/her department head in four categories, the division head, and me. So I have that feedback in hand for the evaluation. And, as I stated above, if the senior manager works closely with one or more board members, I'll ask for feedback. For instance, I'll ask the finance committee chair about the working relationship with the CFO.

So a good evaluation of a CEO examines the standard skills that you desire in a nonprofit leader (evaluation forms are pretty easy to find on the web or through HR service firms) and should include vision; ethics; communication, planning, evaluation, and other core skills; recognition of significant achievements; areas for improvement; whether training was completed; and individual goals for the year met. Ours is about three pages long, has check off boxes for ratings, and space for specific comments in each category. As for the goals, I believe there should be no more than six, and they should relate to the organization's goals. I draft mine, and the executive committee reviews them and usually adds a couple. They often include one or two relating to our nonprofit's financial performance, a couple about use of services we offer, and something which advances the organization strategically. I like to have a couple of stretch goals. All goals need to have a deadline for accomplishment and be quantifiable, that is, measured with a number. And the deadlines should be spread out. If all of your goals are supposed to be accomplished in the first quarter of the year, you're probably not thinking far enough ahead.

All of this is prelude to having a candid conversation with your CEO about how she/he is doing. All of us, whether you are a rookie or a veteran nonprofit leader like me, need a good evaluation process and candor from our supervisor(s). My feedback comes from the board chair, and I look forward to the conversation every year. We also do a half-year check-in with the board on the organization's progress toward its goals, and I review my own progress at that time, too. All staff members have the same half-year sit-down with their supervisor. By doing it formally twice a year, we avoid surprises at the year's end, and make sure we're all moving in the same direction to advance our nonprofit. A solid review process is one of the greatest ways a board can support a CEO. It takes time and must be a priority for all board members. But doing this well will pay dividends for your leadership and all of the people whom you serve.