The Importance of DCM Associates’ Annual CEO Performance Evaluation
The goal of the annual Chief Executive Officer performance review is to recognize how well the executive is performing in their job and to identify any needed improvements. This review should clearly be based upon the agreed organization’s goals and performance expectations set by the Board for the CEO to the actual achievements of the organization and the CEO.
The annual CEO evaluation process is also a great time for the chief executive to first conduct a self-evaluation to document what they feel have been their key achievements and successes of the past year.
The CEO Annual Performance Review Product includes the CEO Self -Evaluation survey form too.
The DCM Executive Leadership & Board Governance Assessment Survey and their CEO Annual Performance Evaluation tools enabled our board and CEO to create a baseline evaluation of our current performances and helped us develop a specific plan of action going forward to ensure the sustainability of our mission. I highly recommend them.
Robert Kley, Chair of the Board
Monarch Housing Associates
One of the most important responsibilities of a Governing Board is the annual assessment of the Chief Executive Officer to whom operations of an organization are delegated. Not for profit organizations with rotating officers on the board have a daunting task to standardize the evaluation. To make the process objective, and to engage all officers of the Board, takes much effort and time. CAHME determined to outsource the initial part of the process in 2020-21. DCM assists in standardizing the Performance Evaluation survey to make it timely and more efficient. DCM created and performed a Board survey with elements of our prior assessments. The survey was completed much earlier in the past with the entire participation of the Board. DCM also facilitated the CEO self-evaluation and summarized all results. I am extremely pleased that the Board chose DCM to assist CAHME in the Performance Evaluation survey and assessment process. I highly recommend that other organizations consider DCM.
Dolores G. Clement, DrPH, FACHE
Commission on Accreditation of Healthcare Management Education
Annual reviews of the CEO’s performance are an excellent way to identify and reward the CEO for their performance as well as communicate key areas of needed improvement to successfully guide the organization forward. All members of the Board should participate and be encouraged to provide their input into the CEO’s annual performance evaluation. We strongly recommend that this major Board responsibility not be left to the Board Chair or Executive Committee only.
This review should also identify and include the establishment of organizational goals for the coming year’s executive evaluation. It is vitally important for both the Board and CEO to discuss and agree on these new goals.
We highly recommend that the Board of every nonprofit organization conduct this annual performance review of their CEO each year. In addition, we recommend that the Board include our DCM 360 Leadership Development System to include feedback from the CEO’s direct reports on their perspective on his/her performance to enable the Board to have a better understanding of the CEO’s relationship with the organization and his/her leadership team.
The DCM Associates Chief Executive Officer Performance Evaluation includes the following topics for assessing the annual review of the CEO:
- Overall Organizational Performance
- Strategic Leadership
- Board Relations
- Community Relationships
- Positive Brand Identity
- Fiscal Stewardship
- Culture of Philanthropy
In addition, after each major section of the CEO Annual Performance Evaluation, all Board members are encouraged to write down any additional comments they feel would be helpful in assessing the CEO’s performance. For example, a Board member might want to elaborate further on either a strength or area of needed improvement to be included in the final report to the Board.
We strongly recommend that the Board Chair schedule with the CEO ample time to review the findings in the DCM Associates Chief Executive Officer Annual Evaluation report and start the conversation by highlighting what the CEO has done well before discussing any areas of needed improvement.