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LASA 2014
Measuring CEO Performance
LASA 2014
“A better world through exceptional leadership.”
LASA 2014
“Mobilising people to achieve important outcomes … in order to thrive.”
LASA 2014
Key roles of Boards 1. Set Vision through to Strategy
2. Recruit and monitor CEO3. Manage compliance and risk
LASA 2014
Why measure CEO performance?
LASA 2014
Why measure CEO performance?
“The most common form of foolishness is forgetting what we set
out to accomplish”. Nietschze
LASA 2014
“Adequate strategy with great execution is much better than great strategy with poor execution.”
Why measure CEO performance?
LASA 2014
Why measure CEO performance?
1. CEO is responsible for strategy AND for compliance AND risk
2. i.e. Your organisation’s entire future … and maybe your reputation and house … depends on the CEO.
3. Hawthorne Effect: measurement means improvement
LASA 2014
Measure CEO performance in two key domains
• Technical Leadership • Adaptive Leadership
LASA 2014
Type of Challenge
Problem Definition
Solution Locus of Work
Technical Clear Clear Authority
Technical & Adaptive
Clear Requires Learning
Authority & Stakeholders
Adaptive Requires Learning
Requires Learning
Stakeholders
TechnicalAdaptive
LASA 2014
Technical Outcomes• Vision• Mission• Strategy – The CEO’s Workplan• Business Plans (finance, HR, etc.)
LASA 2014
Adaptive Outcomes• Culture• Change• Behaviour• Organisation Development
LASA 2014
Common Tools• Chair - CEO professional supervision• Evaluation against strategic plan• KPIs • 360 degree feedback• Culture surveys• Board “presence”
LASA 2014
$ Performance Incentives• Often controversial• Often (at least partly) subjective• MacGregor Theory X-Y, Herzberg Hygiene
- Motivator, and more
LASA 2014
Role of the Board• Every CEO evaluation is also the Board
looking in the mirror.• Ends and means policies in place?• Systems aligning to vision?
LASA 2014
Tips & Tricks1. Plan process well ahead2. The strategic plan is the CEO’s
workplan3. Align reports to strategic outcomes.4. Regular out-of-meeting communication5. No surprises!
LASA 2014
Traps1. The CEO - Board psychodynamic system2. Involvement: CEO - Board Goldilocks involvement3. If KPI’s: align with strategic plan4. If incentives: great care
LASA 2014
Questions
?
LASA 2014
Measuring CEO Performance