How to Evaluate a CEO?
The Top 10 Board and CEO
The proper evaluation of the CEO and the executive team is
critical to the companyís performance. The evaluation framework of
the CEO can be summarized into two major areas; business strategy
formulation and execution.
According to a best practices study conducted by the
International Institute of Management, the CEOís key challenge in
formulating and executing the business strategy is not in finding
answers to the tough questions, the challenge is in asking the right
questions. Asking the wrong questions will result in skewed
operational or strategic plans.
IIM developed a list of the top 100 Board and CEO questions
called the IIM100 Test. These questions provide a 360 degree view of
IIM100 questions can be used as a self-assessment test, as a
planning session tool or as a framework for evaluating potential
CEO/CXO candidates for succession planning.
In this article, IIM shares the top 10 questions that every board
must ask its CEO and the top 10 questions that every CEO must ask
his/her executive team.
The top 10 questions every board must ask its CEO:
Are we in the right business and markets?
What are the growth areas to invest in and declining areas to
What are the economic and market research
data that support our strategy?
What are our strengths, weaknesses,
opportunities and threats (SWOTs)?
What are we doing to address each one of the
What are our core competencies? How we can
What are the key strategic and operational
risks? How do we manage them?
What are our key performance targets?
How do we plan to achieve those targets?
How can we build a sustainable competitive
How can we improve governance, control and
The top 10 questions every CEO must ask his executive
Do we have a big growth idea?
Do we have the right growth engine (business
model, infrastructure, resources and network)?
Does our operations management efficiently
and effectively support our performance targets? How do we know?
Which vendors, partners, clients and
employees are delivering the real value? How do we get more out
of the rest?
What are the key SWOTs in each function, and
how do you manage them?
How can we build a sustainable competitive
advantage in each function (Marketing, R&D, SCM, IT, etc)?
What initiatives/programs/projects are needed
to execute our strategy? How do we ensure that they are aligned
and executed with the right quality, on time and within budget?
What are the key performance targets and
incentives for each executive (CMO, CFO, COO, CIO, and CHO)?
Do we have the appropriate organization in
place to meet those targets? (IIMís 5D strategy framework:
budget, tools, products, processes and people)?
How can we communicate our plans better to
our stakeholders in order to win their support and achieve our
If the CEO or the
executive team is not able to answer all of the above
questions, then the leadership team suffers from management
Every CEO/CXO must be able to provide the answers
to the preceding questions, readily, clearly, and precisely. The
executive team members must be able to provide qualitative and
IIM developed strategic executive retreat and coaching programs
to help the CEOs and their executives in answering these questions.
The goal of the strategic retreat programs is to provide
cross-functional collaboration to ensure a 360 degree business view
and formulate comprehensive executive action plan.
The strategic retreat sessions are facilitated by executive
leadership and strategy experts. The role of the experts is to
facilitate the planning sessions and provide an external point of
view to objectively validate the answers to each question. The
strategic planning program can be followed by custom corporate
action-learning and support programs to help the management teams in
executing and aligning the formulated strategies.
About the Author
Med Jones, is the President of the
International Institute of
Management (IIM). IIM is a management best practices research and
education institute. IIM provides CEO and executive support
services, strategic planning retreats and custom corporate training
courses for the global Fortune 1000 companies and governments. To
learn more you can visit www.iim-edu.org
Author of K-concept
Las Vegas, NV, USA
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