How To Evaluate A CEO
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The Chief Executing Officer, CEO in short, can be compared to the heart of any organisation, which pumps ups functions every moment, running the company. The person in the position is responsible to make employees and teams execute their operations as required. He or she is supposed to supervise each internal operation, in such as way that their output is optimal with minimum input of resources. However, CEO is a position within the organisation with predefined functionalities as well as responsibilities. Although, it is the topmost position, it cannot be larger than objectivities and sustainability of the enterprise. There are instances where even founder CEOs of reputed organizations has been removed from their positions. The need to evaluate a CEO is crucial because in such a position, one is empowered to take a company both ways, to complete doom or to the zenith. Since CEO is a salaried position, evaluation of his or her performance is a necessity to ensure swift running of the organisation.
To evaluate a CEO, vigilance should be made strictly on parameters mentioned below:
The first and foremost obligation of a CEO is to accomplish an image that reflects the company completely. The CEO should be coherent with viewpoint of the organization and should have an approach that wins belief and support from all stakeholders. The person should be understanding, respectful and concerned about each team member. Principles and integrity with perfect balance of time management and priorities are key qualities for any CEO.
Delegating and organising work correctly with strict accountability are referred as professional manners. A CEO must be professional in all respects, behavior and approach. As the head of an organisation, he or she must be judicious and effective to execute strategies on priority. The ability to prioritize for better results should be an ingrained characteristic of any CEO. He should be seasoned enough to monitored and evaluated financial planning, budget and administrative operations with skills to expectant board training and development.
Farsightedness and an ability to form excellent strategic formulations is a requirement in every CEO. The person must be apt to understand business trends, opportunities and industry updates. Only a clear understanding of these aspects can translate into effective strategies forming up growth trajectories for the organization. The CEO should evidently translate his or her vision and strategy into feasible business or operational plans to achieve strategic success for the company. The CEO must be able to maintain high operational standard within the organisation.
Dictatorship is forbidden in any organisation. Traditions and workplace environment should be created in such as way that they can inspire the work force to keep on executing their responsibilities with excellent performance. Work culture when reinforced with objectivities and mission of the organization becomes optimally productive. To render creativity, apposite levels of autonomy and right must be given within the organisation. Appropriate personnel must be encouraged to participate.
The CEO has to build up comprehensible mission, policies, and strategic plans, which directly affect clients, employees and other partners. The person must be able to identify problems and issues tactfully. He should ensure equal participation of senior management, board members and other employees for holistic growth of the organization. This is crucial to propagate a sense of ownership as well as diplomacy. The CEO is responsible to align the company’s capital and finances. It must be monitored that the CEO Keeps watch and has effective control over works and processes.
The CEO should put in place the processes and programs required to create a pipeline of future leadership. Identification of positive latent candidates for top management position should be his forte. He should be conventional enough with thorough information and thoughtful insight of the company.
In a nutshell, a CEO should be evaluated on the basis of his Vision, Strategy, Performance, Transparency and maintenance of Human Networks. A cross dependency is always necessary for balanced growth as well as performance within the hierarchy levels of any organization. Strict vigilance should be maintained at all levels to ensure overall progress of a company.
The author, Sidharth Agarwal, is Director, Spectrum Talent Management