Guidelines for Board of Directors Evaluation of Chief Executive

Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Copyright 1997-2008.
Adapted from the Field Guide to Developing and Operating Your Nonprofit Board of Directors.

This document contains the following sections:
Benefits of Evaluating the Chief Executive
One Process to the Chief Executive (with Sample Schedule)
Special Considerations
Sample Form for Board's Evaluation of the Chief Executive

Benefits of Evaluating the Chief Executive
Evaluating the Chief Executive is a primary responsibility of the Board. There are several key benefits from this evaluation, including that the process:
1. Ensures the Board is meeting its duty to effectively lead the organization
2. Ensures organizational goals are being met
3. Ensures continued development of the Chief Executive to more effectively conduct his or her role
4. Ensures a formal and documented evaluation process that meets standards of fairness and practicality
5. Ensures the Chief Executive values his or her role, is benefiting from it and therefore is more likely to stay (finding good Chief Executives is increasingly difficult)
6. Leaves written record of the Board's impression of the Chief Executive's performance in case this record is needed for future verification, e.g., for salary increases, probationary activities, firing, etc.

One Process to Evaluate the Chief Executive
A Sample Schedule:
Note that, more important than doing an evaluation at a certain scheduled time, is doing an evaluation at all, so do the evaluation when the Board believes is the best time for its members.

Activity:	Approx. # of months before start of next fiscal year
Evaluate the Chief Executive, by referencing his or her progress towards last fiscal year's organizational goals and responsibilities on their job description	10
Board self-evaluation	9
Board retreat to address results of Board self-evaluation, conduct any team building and begin strategic planning	7
Strategic planning to produce organizational goals and identify resources needed to accomplish the goals	7
Establish Chief Executive's goals for the next fiscal year, by referencing goals produced fromtrategic planning	6
Establish next year's fundraising goals and budget by referencing resources needed to reach strategic goals	6
Fundraising to meet fundraising goals	6
Fiscal year begins	0

Special Considerations:
1. Don't worry about specifics of the process as much as being sure that the evaluation is conducted yearly.
2. Be sure the process is fully documented in a procedure so the process is well understood and carried out consistently year to year.
3. If staff members are involved in evaluation of the Chief Executive, be sure this procedure is clearly specified and understood by the Chief Executive.
4. The evaluation should be carried out by a Board committee, not by one Board member. Committees might be the Executive Committee, a Personnel Committee or an ad hoc committee.
5. If the Board perceives the Chief Executive to have performance issues, Board members can initiate an evaluation. DO NOT initiate evaluations only when there are perceived issues -- this is abusive. Be sure these perceptions are based on seen behaviors rather than on personality characteristics.

(See "Sample Form for Board's Evaluation of the Chief Executive")

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