Elevating Executive Performance: How Boards Can Provide Meaningful Feedback

As someone who has worked closely with boards and top executives, I've come to appreciate the nuances of executive performance evaluations. As I've advanced in my career, I've increasingly found myself on the other side of the table, serving on a board tasked with evaluating a top executive. This individual reports directly to us but operates largely independently from our day-to-day purview. I've come to realize that our evaluations, while procedural, lack the depth to truly support the executive's growth and align their performance with the organization's strategic goals.

This challenge isn't unique. Boards everywhere struggle with creating evaluations that are more than just paperwork. It's important and challenging to create a process that truly benefits the executive and, by extension, the organization. We're rethinking this entire evaluation process for a chief executive. Here are some of the things that I've learned along the way:

The Unique Challenges of Executive Evaluations

1. Distance from Operations: Boards are responsible for oversight, not operations. This separation often means we don't see the day-to-day decisions or challenges our executives face, making it harder to gauge their effectiveness beyond outcomes like financial metrics or milestones.
2. Complex Responsibilities: A CEO or other top executive isn't just steering the ship; they're also shaping its culture, inspiring its crew, and building alliances with ports far and wide. Evaluating such multi-dimensional responsibilities requires an equally nuanced approach.
3. Balancing Accountability and Support: It's critical for boards to strike the right balance between holding the executive accountable and ensuring they feel supported. Too much of either can tip the scales in the wrong direction.

Keys to Meaningful Feedback

Providing meaningful feedback to a top executive requires thoughtful consideration of what really drives their performance and the organization's success. Here are some key areas that I believe boards should focus on:

1. Define Clear Expectations: Effective evaluations begin with clear, shared expectations. Boards should collaborate with the executive to establish measurable goals that reflect the organization's strategic vision. These should include not only tangible targets but also qualitative objectives, such as fostering a positive organizational culture or enhancing stakeholder relationships.
2. Assess Competencies, Not Just Outputs: While metrics, KPIs, and other quantifiable outcomes are essential, they don't paint the full picture. Boards must dig deeper to understand how those results were achieved. Did the executive demonstrate strategic leadership, innovation, and adaptability in achieving their goals, or were the outcomes primarily driven by the efforts of the team underneath them? Conversely, if metrics were missed, did the executive effectively navigate challenges and lay the groundwork for future success? By focusing on competencies, such as decision-making, communication, and leadership, boards can gain insight into the executive's leadership strengths and potential areas for growth. This approach also helps identify potential red flags, like a leader who hits targets but creates a toxic work environment in the process.
3. Engage Diverse Perspectives: Boards should recognize that their perspective is just one piece of the puzzle. To evaluate an executive comprehensively, input from stakeholders such as senior staff, community partners, and even clients can be invaluable. Structured interviews or surveys can provide candid, actionable feedback while giving a well-rounded view of the executive's impact across different areas of the organization.
4. Focus on Strategic Impact: An effective evaluation looks beyond immediate results to assess whether the executive's actions align with the organization's long-term goals. Boards should ask whether the leader is positioning the organization for sustainable success, adapting to emerging challenges, and driving progress in a way that reflects the mission and vision.
5. Provide Actionable Feedback: Generic feedback like "meets expectations" or "needs improvement" isn't enough to guide an executive's growth. Boards should aim to offer specific, constructive suggestions tied to the goals and competencies being assessed. For example, if there's a need for improved collaboration with external partners, boards might suggest strategies or resources to support that growth.
6. Create a Dialogue: Evaluations shouldn't feel like a one-way report card. Boards should invite executives to reflect on their own challenges and successes, fostering a two-way conversation. This approach not only helps the board understand the executive's perspective but also creates a foundation of trust and collaboration.
7. Institutionalize Feedback: Performance feedback should be an ongoing process, not just an annual event. Regular check-ins tied to key organizational milestones can help ensure alignment throughout the year. This continuous dialogue also allows for mid-course corrections and makes the final evaluation more meaningful and actionable.

It's Not Rocket Science!

Evaluating a CEO or top executive is a complex task, but it's also an opportunity to deepen alignment, strengthen leadership, and ultimately drive organizational success. By focusing on how results are achieved, incorporating diverse perspectives, and creating a culture of open dialogue, boards can ensure that evaluations provide meaningful feedback, not just for the executive, but for the entire organization.

How does your organization approach executive evaluations? I'd love to hear your thoughts and strategies for making this process truly impactful.