The most effective boards regularly assess an executive’s performance on both subjective and objective measures. A direct annual evaluation by board members on Presidential leadership, strategic clarity, organizational development, accountability, internal relations, community relations, and board relations provides not only an assessment, but the thoughtful feedback provides a basis for improved interactions and an ability for the board and leadership to move the institution forward. Periodically including other constituents in the review process can enrich the feedback to the executive.
Presidents and their senior team must also translate the institution’s mission and long range strategic plan into an annual work plan. Effective leaders are able to align the critical goals necessary to advance the organization with the overall strategy. Goals should be set that are specific, measurable and that move the institution forward. Board leaders should also assess the President’s performance as measured against the annual goals. A growing percentage are deciding that a portion of management compensation should vary from year to year, based on individual and organizational performance measured against these pre-set criteria.
Yaffe & Company assists clients in both areas: we provide customized evaluation and feedback tools, and we can facilitate the design of variable pay programs, including the development and strengthening of benchmarks in goal setting.
On an annual basis, the process can include:
- Creation and Review of the Goals
- Executive Performance Evaluation
- Multi-Constituent Leadership Feedback
- Strategic Plan Review and Highlights
- Goal Strengthening and Alignment
“I want to thank you. Our organization’s performance is better than ever since Yaffe & Company started working with us. You helped us focus our goals and our strategies for achieving those goals.” – Client CEO