Q:

"I have been the ED at a small nonprofit for the past six years. During that time, I’ve only had one performance review, in my first year, and it was basically just a conversation with the board chair where they told me I was doing a good job. Since then, I’ve requested a performance review several times, but it’s never happened. There are no big issues with my board, but I think it’s an important part of their role that they are just ignoring. And personally, I would love some constructive feedback to help me grow. How can I get my board to take this seriously?"

A: 

There are two kinds of EDs: those who want performance reviews they don’t get, and those who get performance reviews they don’t want. (I have occasionally encountered EDs who get consistent and constructive annual evaluations, but that definitely seems like the exception to the rule.) 

Managing executive performance is an important part of a board’s role, but across the sector, ED evaluation is in a fairly sad state, particularly for smaller organizations. Many boards are like yours: they will skip over this task entirely, and those that do make the effort don’t always do a great job, leading to processes that are both ineffective and frustrating. 

You’re wondering how to get your board to give you a performance evaluation. But unless you want to end up with a crappy performance evaluation, we should also ask: how can you make sure the board develops an effective performance evaluation process? We’ll tackle the first part here, by exploring why boards avoid executive performance evaluation and how to move them beyond that impasse. I’ll talk about the second question - how to build an effective ED evaluation process - in the next Board Stories issue.

Why do boards avoid executive performance evaluation?

I’ve found that there are a few common reasons that boards overlook ED performance evaluation, usually related to some combination of: a lack of governance literacy, a preference for informal processes, discomfort with evaluation, and limited time and resources.

They don’t think it’s important

In most cases, volunteers join boards because they want to support an organization or cause they care about. That means that many people who find themselves on a board of directors may lack a deep understanding of, or enthusiasm for nonprofit governance (with the exception of that one lonely governance nerd on every board who talks about policy every chance they get, often to the chagrin of their fellow directors). So it’s possible that most of your board directors simply aren’t aware of how important it is for them to manage and monitor the ED’s performance.

And even if they do know that it matters - anyone who has taken a governance 101 training has probably heard that an annual ED evaluation should be on their board calendar - they may not think it’s important. This is particularly true if things are going well in the organization; boards who are happy with their ED’s performance may not think it’s worth the time or effort to conduct a performance evaluation (a misconception based on the idea that performance evaluation is designed only to fix problems). 

They don’t know what to do

For board directors who do understand the importance of executive performance management, there is often a fair amount of uncertainty about how to actually do this work well. Many board volunteers don’t have training or experience in management or HR. And even for those that do, the process of evaluating an Executive Director requires some unique processes to account for the nature of the board/ED relationship. Many board volunteers have told me that they worry about micro-managing, and that they aren’t sure how to evaluate someone when they are not directly supervising their day-to-day work. And while there are some resources and training out there around ED performance evaluation, they are not always helpful or easy to adapt to an organization’s specific needs.

They don’t want to do it 

And then there’s the reality that most people just don’t like this stuff. So many people have had crappy experiences with performance evaluation, and we all carry baggage into this kind of work. On top of that, it’s challenging to give or receive feedback, and it can be awkward to work through structured processes. Avoidance is a very human characteristic, especially when we are faced with discomfort, uncertainty and complexity, which is certainly the case when we’re talking about executive performance evaluation.  

They don’t have time to do it

And then we can’t ignore the fact that board directors are volunteers. They are living full lives outside of their board role, which is already a demanding responsibility. When a board is skipping over some important work, it might be because they just don’t have the time. Because a task like executive performance evaluation isn’t just about a meeting with the ED. This is a task that requires detailed planning, consultation, analysis, and clear communications, along with the emotional labour involved in performance conversations. And if you have to go through training and process development before you can even get started . . . that’s a big commitment!

How to get your board to embrace ED Evaluations 

It’s important to understand the particular motivations that are driving avoidance around ED performance evaluation, in order to help get the board beyond its impasse. A combination of training, support and infrastructure can help move the board in the right direction, toward a consistent and constructive approach to executive performance management. 

Step One: Provide learning opportunities

The first thing your board needs to understand is that executive performance management is an important part of their fiduciary duty; some governance resources or training may be helpful here. Then, it’s important that the board has the knowledge and skills it needs to actually plan and carry out the performance evaluation process. I’ve developed a free online training module that checks both boxes - it’s worth sharing the link with your board as a development activity (and then include it in your orientation package moving forward).

Step Two: Assess where you’re at

Once your board understands the importance of executive performance management, it’s worth having some discussions at the board or committee level about next steps. Talk about what is working right now, and where there are gaps; even if your organization doesn’t have a formal process, the board is sharing expectations and providing feedback to the ED somehow. Discuss what the board and ED would like to get out of this work, and how to balance those goals. And make sure to think about how your organizational values could show up in this process; resist the urge to default to generic templates that may not be a good fit or reflection of your culture.

Step Three: Build the infrastructure

Your board will need some governance infrastructure to ensure that their approach to ED evaluation is thoughtful, equitable and sustainable. Ideally this will involve documenting both policy and process in a way that meets the organization’s goals for executive performance evaluation, but also ensures that the process can be carried out consistently over time. Having that one board director with HR experience lead the process with a template from their day job won’t cut it - it’s a whole board responsibility to ensure the process is effective and that it can outlive any individual board volunteer’s term. 

Conclusion 

It’s frustrating, but not uncommon, to be an ED who is begging their board for a performance review. While there are many reasons why boards tend to avoid executive performance evaluations, I have found that board directors often do want to embrace this work. And the good news is that boards can make the shift, often quite easily, with the right clarity and support. In the next Board Stories newsletter, I’ll talk about how to avoid common pitfalls in ED performance evaluation, so your board can build an effective process, instead of a crappy one.

Big Takeaways

• Avoidance is common. Many boards skip or downplay ED evaluations, usually because of limited governance knowledge, discomfort with the process, or lack of capacity.
  

• Most boards want to improve their approach. By accessing resources, opening up honest conversations, and developing infrastructure, boards can move past avoidance to embrace executive performance management.

• Don’t just go through the motions. Using a template or leading a one-off review won’t guarantee success; what matters is building an evaluation process that’s effective, constructive, and sustainable.