Confidence in the CEO
I got a press release announcing that CEO confidence has declined, and I initially assumed it was confidence in the CEO. Instead, it was a study of how CEOs felt about the economy.
But it got me to thinking—aside from salary and benefits, which often do not really say how a CEO is performing—are there any ways to gauge a CEO's performance? Sure, the board can get rid of a CEO when the shareholders are up in arms about the company's financial performance. But what about before that?
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Jonathan Narducci
The Vision Thing
Gwynne,
The performance of the company is the performance of the CEO. Sounds trite, but it’s the responsibility of the CEO to make sure that the right pieces and parts are available and organized that enable the company to succeed. As a result, there are quite a few things that can be measured, other than the financials, to determine the performance of a CEO.
One of the most important is leading the development of an actionable “Vision,” defining where the leader wants to take the company and its businesses. It’s the foundation of company performance and it needs to be communicated and aligned throughout the enterprise.
The measurement could be a survey of the stakeholders to see whether or not they can describe the vision, the main strategy(ies) to make it a reality, and the sub-strategies and activities they need to execute as well. How well they respond is a performance measure as to how well the CEO has done the foundation work.
Jonathan Narducci
CornerStone Cubed
Building Customer Powered Value
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