It is not a difficult matter to collect criticism about executive evaluation. Perhaps the ultimate criticism is that it does not happen. Most estimates are that sixty to seventy-five percent of not-for-profit executives have no regular evaluation by the boards they serve. And, not uncommon is the report that a sizeable majority of those who do receive evaluations do not have a positive assessment of that experience.

This is not a not-for-profit CEO problem alone. Writing in the Wall Street Journal, Tim Schellhardt asks, “If less than ten percent of your customers judged a product effective and seven of ten said they were more confused than enlightened by it, you would drop it, right? So why don’t companies drop their annual performance reviews?” Whether executive evaluation is administered to not-for-profit CEOs or for-profit CEOs, the questions are many and the criticisms severe:

“Most performance review systems reinforce a paternalistic world, one built on distrust and the assumption that the boss (or board) knows more about our skills, abilities and commitments than we do. This dependency works against empowerment. And focusing on individual problems rather than looking at system issues works against the grain of quality improvement.” Rick Mauer

“The basic nature of performance appraisals is [that] the board (or boss) takes responsibility for development…and exercises that responsibility through a discussion of strengths and weaknesses. This is an exercise of sovereignty regardless of how lovingly it is done. It makes no sense to talk of team- and partnership-oriented cultures…and still hold on to this artifact called performance appraisal.” Peter Block

“It takes the average CEO six months to recuperate from the typical performance appraisal.” Tom Peters

So what to do? Well, what we hope to do in these pages is three things:

1.      Encourage board members to regularly and thoughtfully evaluate their executive.

2.      Enable your board to go about the tasks of evaluation in a way that promotes learning and strengthens the trust between board and executive.

3.      Present a variety of evaluation inventories and processes, from which you may choose the ones that fit the culture of your organization.