Reviewing Executive Director Performance Leadership 101 Skill Building for NonProfit Leaders October

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Reviewing Executive Director PerformanceLeadersh
ip 101Skill Building for Non-Profit
LeadersOctober 25, 2009

• Maureen Matthew, CHRP
• INNOVA Learning

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Objectives

• Describe the responsibility of the Board of
  Directors in directing and managing performance
  of senior staff.
• Outline a process to review and manage ED
  performance.
• Provide sample indicators and outcomes for Boards
  of Directors to begin the review/ assessment
  process.

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What is Performance Management?

• Performance management is a forward looking
  process for setting goals and checking progress
  toward achieving those goals.
• It is a cyclical performance is continually
  assessed and compared with the desired goals.
• Any discrepancy or gap is fed back into managing
  performance to achieve the desired goals.
• A key aspect of performance management is
  measurement. Most performance management fails
  because the expectations and results
• are ambiguous,
• not specific enough,
• poorly communicated or
• cannot be measured effectively or there is no
  system to measure results.

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Performance Assessment/Appraisal/Review

• Performance management is often confused with
  performance review
• Performance review is the final part of the
  performance management cycle.
• Performance review is a backwards looking process
  only looking at what happened in the past.
• As a forward looking process, performance
  management drives an organization towards a
  desired future goal and defines how staff
  contribute to that desired goal.

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Performance Management

• There is NO LEGISLATION that states an employer
  must do performance reviews or have a performance
  management system.
• However
• Should problems arise that require staff to be
  dismissed, disciplined, or negatively impacted,
  an employer will need to demonstrate that they
  conducted due diligence regarding performance and
  took action to address gaps or deficiencies in
  performance (performance management).

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Due Diligence

• Due Diligence is the performance of an act with a
  standard of care.
• Due diligence may vary depending on the workplace
• For example an industrial workplace will have an
  increased standard of care for employee safety
  than an office environment.
• But there is still a standard of care for
  employee safety for the office environment.
• ALL employers have a responsibility to ensure due
  diligence is conducted.

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Due Diligence

• Due diligence is expressed through
• Policies (policies in the areas of human
  resources, financial, operational, etc.)
• Practices
• Processes
• Monitoring to ensure that policies/practices/
  processes are followed
• Review and follow-through to address issues
  identified.

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Due Diligence Performance Management

• As a Board of Directors, you are the employer and
  it is your responsibility that
• the organization,
• its employees,
• volunteers,
• members and
• public
• Benefit from the work of the organization.

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Due Diligence Performance Management

• To achieve that, due diligence would involve
• Are policies in place related to the work of the
  organization (such as setting performance
  expectations job descriptions, performance
  management systems etc. etc.)
• Are those policies followed?
• As a board, how do you know the policies are in
  place and are being followed?
• As a board, what have you done to ensure that
  policies are developed/followed?

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Due Diligence Performance Management

• Due diligence applied to the performance
  management must include
• Staff know and understand what their job
  expectations are (job descriptions, work plans,
  communication, feedback etc.)
• They have a reasonable chance of achieving those
  expectations (resources available,
  education/experience are appropriate to the
  position, etc.)
• They are informed when their performance is not
  meeting expectations and are told what will be
  the result if performance does not improve to
  meet expectations.

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Due Diligence Performance Management

• It is the Board of Directors responsibility to
  ensure due diligence is applied in two ways -
• All staff members participate in performance
  management (usually lead by the Executive
  Director) AND
• The Board of Directors apply performance
  management approaches to the Executive Director
  (who typically is the only staff person a board
  will supervise directly).

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Principles of Performance Management

• On-going continuous, establishes performance
  objectives, gathers information throughout the
  year, collects feedback on performance.
• Forward looking guiding the performance of the
  ED and identifying where the EDs focus
  (attention and energy) needs to be.
• Clarifies is a communication tool so that the
  partnership between the ED and the Board, each
  with specific roles and responsibilities, can be
  integrated.

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EDs Responsibilities

• While the job description for a ED position will
  provide specific areas of responsibilities,
  typically it will include
• Providing leadership and assistance to the board,
• Managing and directing the organizations
  operations, staff and volunteers
• Ensuring the organizations financial resources
  are properly managed, and
• Communicating the goals, purposes and programs to
  stakeholders.

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Performance Management

• To assess an Executive Director performance, the
  process should focus on these responsibilities
  through a two-part process
• Gathering information for the Performance Review
• Conducting the Performance Review

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Gathering Information

• Gathering information is the weakest part of
  performance management typically the
  information gathered is immediately before the
  review takes place will not reflect the EDs
  on-going performance.
• One of the difficulties that B of Ds face in
  gathering information is defining the type of
  information that should be collected and
  analyzed.

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Gathering Information

• The template (pages 5 to 11) has identified the
  type of information and sources that can be used.
• These are grouped into three areas that reflect
  the responsibilities of most EDs
• Strategic Management
• Human Resource Management
• Financial Management

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Gathering Information

• The template is formatted using an outcome
  evaluation approach performance management is a
  form of evaluation.
• Four columns
• Key Performance Area
• Outcome the ideal statement on what is
  expected if the individual is performing well.
• These two areas define the performance
  expectations too often employers fail to define
  expectations

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Gathering Information

• Possible indicators
• How you know that progress is being made towards
  the ideal
• Outcomes typically tend to be statements
  indicators provide the concrete evidence to
  determine if the outcome is being achieved.
• Moving right, each column further defines the
  information
• Possible sources of evidence
• In some cases, ED and staff will need to provide
  additional information to the board as in an
  annual report on specific areas (not to be
  confused with the organizations Annual Report to
  the public)
• Every organization has information that they
  routinely collect but fail to use

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Gathering Information

• Over time, each organization will identify and
  refine the indicators and the sources of evidence
  that are appropriate to the mandate and work of
  the organization.
• The aim is to provide concrete information to
  assess performance
• For example either there is a written
  communication plan with documented evidence of
  implementation/results or there is not!

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Example
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CAUTION

• DO NOT ATTEMPT TO IMPLEMENT ALL OF THE
  OUTCOMES/INDICATORS IN ONE YEAR.
• YOU WILL NOT SUCCEED
• YOU WILL GET BOGGED DOWN
• AND THEN YOU WILL GIVE UP AND QUIT

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• Rather, identify the important outcomes/indicators
  relative for where your organization is.
• Examples
• If your organization is undertaking major work on
  planning, then focus on the key performance area
  of Strategic Management, plus one or two
  outcomes/indicators from the other key
  performance areas.
• If your organization is undergoing growth or
  implementing changes in directions which results
  in assuming new programs, new staff, reassigning
  tasks etc., then focus on Human Resource
  Management and outcomes/indicators around
  Program Management tasks.

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Template - Examples

• Strategic Management
• Leadership (page 6)
• Indicators
• Control/follow-up mechanisms (how does your
  organization gets it work done?)
• Teams develop and deliver programs
• Relationships with internal/external stakeholders
  maintained
• Annual communication plan to inform stakeholders
• Your organization may have other indicators that
  are relevant.

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Template Examples

• Strategic Management
• Leadership
• Possible Evidence
• Benchmarks for program results/impact could be
  a workplan with progress reports
• Staff assignments that reflect teamwork and
  results.
• Reports on contacts, purpose and results of
  meetings with stakeholders
• Written communication plan with evidence of
  implementation.

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Gathering Information - HOW

• It is likely that information will be collected
  and reported on throughout the year.
• Designate a specific agenda item at each board
  meeting for review of ED performance linked to
  specific reports provided on various aspects of
  the organizations operations/management.

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Policy Governance

• With Policy Governance boards, the Ends
  statements and monitoring reports are used to
  assess the EDs performance.
• However, Ends statements/monitoring reports may
  or may not address specific performance
  standards.
• Those statements that do address performance are
  often intended to limit the actions of the ED.
• However, if your organizations Ends
  statements/monitoring reports are sufficiently
  detailed to serve as performance standards use
  them.
• OR review your ends statements/monitoring
  reports and use the template to flesh out those
  that are not detailed enough to serve as data for
  performance management activities.

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Principles of Performance Management

• 1. On-going continuous, establishes
  performance objectives, gathers information
  throughout the year, collects feedback on
  performance.

2. Forward looking guiding the performance
of the ED and identifying where the EDs focus
(attention and energy) needs to
be. 3. Clarifies is a communication tool so
that the partnership between the ED and the
Board, each with specific roles and
responsibilities, can be integrated.
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Conducting the Review

• Five-step process
• Collect and review the information again should
  be a continual/year-round process.
• Look for consistent strengths or weaknesses
• Dont become preoccupied by one outstanding
  quality
• Example an ED may be very good at acquiring new
  funding for programs/projects etc., but what are
  the results of receiving the funding? How has
  the organizations stakeholders been served
  through the new funding? What are the benefits?
• Look at performance/results, not personality
  (unless the personality if getting in the way of
  results).

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Conducting the Review

• Prepare a summary report (probably done by a
  committee of the board).
• All statements/conclusions about performance
  should be supported by the evidence collected.
• The entire board should review and approve the
  summary document.
• Provide the summary report to the ED.
• The ED reviews the report and provides additional
  comments or information (again facts not
  opinions).
• If the ED provides significantly different
  information, the committee who prepared the
  summary may need to review their report and, if
  needed, revise it. However, if the report is
  significantly revised, that is an indicator that
  the original report may not have been well done
  to begin with.

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Conducting the Review

• The President of the Board meets with the ED to
  discuss the boards assessment of the ED.
• Should be the responsibility of the President as
  part of his/her on-going working relationship
  with the ED.
• The purpose of the interview is to review and
  clarify the information in the report and to
  identify preliminary expectations for the future.
  
• If required, the interview should identify when
  and how the EDs performance needs to improve.

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Conducting the Review

• A final report is prepared which includes
• Revised report including EDs comments and
  summary of interview discussion
• Areas for improvement including when and how
  performance will be improved and any support the
  organization is prepared to provide.
• Expectations for performance during the upcoming
  year (sets priorities for the ED).
• The final report is the reference document for
  future discussions and performance reviews. As
  such it is the primary document if ED dismissal
  is a consideration in the future.

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REMINDERS

• Performance reviews are NOT a negotiation with
  EDs on what they will or will not do. The Board
  has the sole responsibility for the overall
  health and direction of the organization the ED
  serves the Board and the organization.
• EDs input is a valuable component for the health
  of the organization and the Board/ED relationship
  is critical, but it does not supersede the
  decisions of the Board.

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REMINDERS

• Which inherently means that the Boards
  responsibility is to ensure that their
  performance management processes
• were based on evidence of performance, rather
  than opinions,
• identified weaknesses in performance and provided
  directions on improvements, and
• identified performance expectations (and provided
  reasonable supports to achieve performance
  expectations).

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SUMMARY

• Performance management is an on-going process
  not just something that is done once a year and
  tucked away.
• The Board of Directors is obligated by due
  diligence to conduct performance management
  activities that
• Set clear expectations on performance
• Monitors performance
• Identifies where performance is meeting
  expectations and where it is not.
• Provides directions and support to improve
  performance

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SUMMARY

• The template developed for SaskCulture provides a
  framework to guide Boards to
• identify expectations,
• collect concrete information on which to base
  performance management, and
• conduct a performance review.
• Each organization will need to refine the
  template to reflect organizational goals and to
  identify sources of information specific to the
  organization.

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Additional Resource

• HR Council for Non-Profit and Voluntary Sector
  has developed Human Resource Management
  Standards.
• The standards provide additional information on
  managing staff in non-profit organizations.
• Standards are available for downloading at
• http//www.hrcouncil.ca/resource-centre/hr-standar
  ds/home.cfm

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For further information

• Maureen Matthew, CHRP
• INNOVA Learning
• Phone [phone]
• Email innovalearning_at_sasktel.net