Professional Practice Statements

The performance appraisal process is an important tool for measuring the effectiveness of staff leadership. Ensuring that performance expectations are achievable and mutually agreed upon by both the board (or other volunteer group charged with this responsibility) and the chief executive officer is central to the purpose of performance evaluation, which should be an ongoing process that measures progression toward attainment of performance 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

Policy Position

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

The process of collaboratively developing performance goals and measurement criteria results in performance review criteria that balance the expectations of the governing bodies with the executive's understanding of association management realities.

The 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.

Professional Practices for Executives

Collaborate with the board to develop the executive's performance goals and measurement criteria, based upon the mission and goals of the organization.
Develop, in addition to activities designed to achieve the organization's goals, personal and professional development goals, and secure the board's commitment and approval for the pursuit of these goals .
Engage in periodic self-evaluation and offer self-appraisal to the board on these goals at appropriate intervals.
Base personal performance goals and self-evaluation criteria on actions that further the association's ability to achieve its organizational goals.
Maintain documentation adequate to ensure factual assessment of performance based on pre-established goals and pre-determined measurement criteria, and make that documentation available to the performance reviewers at appropriate intervals.

Professional Practices for the Governing Body

The association board should implement a performance evaluation process for the executive officer. Criteria for that evaluation process should:

Include formation of a subset of the governing body to conduct the review.
Include a continuous process of performance monitoring and performance feedback, which culminates in a formal, annual performance review, the results of which should contain no surprises for either the reviewers or the chief executive officer.
Use collaboratively developed, clearly stated, achievable, and objectively measurable performance goals and expectations.
Base performance evaluation on factual, objective, information, rather than unsubstantiated opinions.
The process should include a mechanism for obtaining feedback from all relevant parties.
Ensure that the CEO's performance appraisal is conducted within the context of professional association management practices and the organizational culture unique to the association.

Disclaimer

This Professional Practice Statement, developed by the Association Forum of Chicagoland, is provided as a management tool for associations and individual association executives, developed by experts in the industry, and recommended as an effective means to achieve excellence in managing associations and other not-for-profit organizations. The Association Forum of Chicagoland expressly disclaims any warranties or guarantees, express 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 the 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.

Reference List

For additional information on this topic, the following resources are available:

Association Forum of Chicagoland Association Management Resource Library: Board Assessment of the Chief Executive: A Responsibility Essential to Good Governance, ASAE.

ASAE Bookstore:

Executive Director Performance Evaluation, Product # 83A2-121017, ASAE, 1995.

Job Descriptions and Employment Contracts for the Chief Staff Executive, Product # 83A2-121102, ASAE Background Kit, 1995

Performance Evaluation and Performance-Based Compensation, Product # 83A2-121112, ASAE Background Kit, 1996

Doing Good Better: How to be an Effective Board Member, Good Books, 2nd Edition, 1997

Minnesota Council of Nonprofits: How do we evaluate the Executive Director?

www.nonprofits.org/npofaq/03/11.html

Minnesota Council of Nonprofits: Sample Executive Director Performance Evaluation form www.mncn.org/evaledform.htm

ASAE Executive Management Section Online ResourcesAbout the Perceptual Self-Assessment www.asaenet.org/sections/EMS/assessment2/1,2063,,00.html

Download the Self-Assessment (PDF file) www.asaenet.org/pdf/assessment.pdf

ASAE Executive Management Section ArticleCompetencies for Executive Management www.asaenet.org/sections/exec/article/1,2261,774,00.html

Revised and Adopted June, 2003

Other practice statements

Achieving Diversity In Associations

Employment Agreement for the Chief Executive Officer

Lifelong Learning and the Association Executive

Fiduciary and Management Duties for the Association Executive and Governing Body

Facilitation of Effective Board Decision Making

Financial Management by Association Executives

Ethical Behavior of Association Leaders

Developing a Technology Plan

Volunteer Leader and Staff Relationship

Recruitment and Retention of Quality Staff

Leadership Development

Strategic Alliances

Association Strategic Governance

Role and Function of an Audit Committee

Bylaws

Mission and Goals

Role of the Chief Executive Officer in the Nomination Process

Developing a Business Continuity Plan

Association-Subsidiary Foundation Relationships

Corporate Sponsorship

Strategic Planning

Governance Structure

Performance Measurement & Metrics

Investments Policy

Reserves Policy