Do you have a one Page review for the new CEO?
Setting the new CEO up for success includes designing a well thought out CEO review process. Although a CEO review process can be quite elaborate, we find that our clients value a concise, single-page scorecard that balances quantitative and qualitative feedback. Here is the information our clients find useful:
Bonus Program Integration: The review directly integrates with the CEO's bonus program. It includes the primary financial metrics, typically Sales and / or EBITDA, with tiered performance levels (e.g., 90% to 120% of the budgeted target) to determine the financial payout.
KPI Breakdown: The one-pager lays out Key Performance Indicators (KPIs) for various individual metrics, which should include both tactical (current-year) and strategic (future-focused) measures, ideally aligning with a Balanced Scorecard approach.
Written Feedback: The scorecard includes space for written notes and feedback on the CEO's performance in each key area. This written record is crucial because it serves as a reference point. Of course, it is complemented with respectful constructive dialogue delivered in person. It may include a “score.”
Future-Focused Ideas: It offers suggestions for where to focus energy, resources and talent for the upcoming period.