In lots of respects the nonprofit sector could take a leaf from the private sector when it comes to CEO assessments. In the case of the private sector, the CEO’s assessment criteria are usually linked to the company’s financial performance and the amount of profit the company makes. In the case of a non-profit, it will usually be linked to other, ‘softer’ targets such as membership or community impact. It is, however just as critical in both instances to ensure it is a genuine two-way process.

In what we hear and observe within the non-profit sector, some private sector executives view the non-profit sector as a less stressful option to work if they are jaded from the private sector. However, as anyone working in the non-profit sector will tell you – this is simply not the case in most instances. So, a good idea would be for both the CEO and the board to agree in the first place to the criteria for assessment and commit to reviewing progress on a regular basis. That said, we do hear of instances where matters get in the way and the time frame slips. The start of the slippery slope! So, we’ve found a great resource that outlines 10 tips as a guide:

  • Set an evaluation policy
  • Set objectives
  • Choose monitoring sources
  • Choose an approach
  • Conduct an executive performance survey
  • Monitor performance against plan
  • Prepare a strengths and weaknesses evaluation
  • Meet with the executive and document the review
  • Consider compensation
  • Avoid common problems

And, if you need any assistance in assisting develop a CEO assessment tool with your non-profit, we can help. Give us a call on 09 419 0042.