The Chief Executive is the person who will bring into reality the vision of the directors/trustees for an organisation. Making the best possible appointment and then supporting and monitoring that person is a critical board role.
It is best to have a regular, formal performance review process as well as giving ongoing feedback and support.
The essential documents for a performance review are:
- Chief Executive's contract
- Position description
- Performance agreement, which include Key Performance Indicators (KPIs) or Key Results Areas (KRAs)
The performance review process monitors targets which are set with the chair of the board and aligned to the organisation's goals, such as: financial, organisational development, relationships within the organisation and with external stakeholders and product development.
A regular, objective review process allows the Chief Executive and board representatives (usually the chair) to have a constructive, structured discussion about the strengths and areas for development in the Chief Executive's performance.