What is a professional practice statement? This Professional Practice Statement, developed by the Association Forum of Chicagoland, is provided as a management tool for associations and individual association professionals, developed by experts in the industry, and recommended as a means to achieve excellence in managing associations and other not-for-profit organizations.
The performance appraisal process is an important tool for measuring the effectiveness of the chief executive officer. Ensuring that performance expectations are achievable and mutually agreed upon by both the chief executive officer and the “Reviewing Body” (board or a subset of the governing body charged with this responsibility) is central to the purpose of the performance evaluation process. Performance evaluation should be an ongoing process that measures progress toward attaining performance and professional development goals. Most organizations function in an environment characterized by limited continuity at the board level, which can exacerbate problems arising from irregular performance appraisals. Whether or not there is good continuity, conducting regular performance appraisals is imperative.
The Association Forum of Chicagoland endorses the practice of assessment of chief executive officer performance by the board at specified intervals throughout the year, culminating with a formal, annual performance review.
The chief executive officer’s performance evaluation should address the success of the association in attaining its organizational objectives as well as the success of the chief executive officer’s personal and professional development goals. Performance goals should always be coupled with objective and clearly stated measurement criteria, how the criteria will be measured as well as milestone activities.
The chief executive officer’s annual performance review should use a process that enhances the working relationship between the chief executive officer and the board and encourages an ongoing, two-way communication of expectations and sharing of information.
The process of collaboratively developing performance goals and measurement criteria results in performance review criteria that balance the expectations of the governing body with the executive’s understanding of association management realities.
The association board should implement a performance evaluation process for the chief executive officer. That evaluation process should:
The Association Forum of Chicagoland expressly disclaims any warranties or guarantees, expressed or implied, and shall not be liable for damages of any kind, in connection with the material, information, or procedures set forth in these Statements or for reliance on the contents of these Statements. In issuing these Statements, the Association Forum of Chicagoland is not engaged in rendering legal, accounting, or other professional services. If such services are required, the services of a competent professional should be sought.
Association Forum of Chicagoland’ s website has sample job descriptions at http://www.associationforum.org/Careers/content.cfm?ItemNumber=551&navItemNumber=547.
ASAE’s CEO Resources be accessed on its website at https://www.asaecenter.org/Career/content.cfm?ItemNumber=15973&navItemNumber=51892.
Governing for Growth: Using 7 Measures of Success to Strengthen Board Dialogue and Decision Making, ASAE, Nancy R. Axelrod, 2009.
Blue Chip Executive Association Compensation and Benefits Study, 2010--2011 Edition and Deluxe Online Compensation Calculator Kit, ASAE Industry Research.
Doing Good Better: How to be an Effective Board Member, Good Books, Edgar Stoesz, 2007.
Performance Evaluation and Performance-Based Compensation, ASAE Background Kit, 1996.
ASAE Executive Management Section http://www.asaecenter.org/Career/content.cfm?ItemNumber=15973&navItemNumber=51892.