Evaluating the CEO Five Dimensions of CEO Performance to Consider Evaluating the CEO By Stephen P. Kaufman In the October 2008 issue of the Harvard Business Review, Stephen Kaufman, a former CEO of Arrow Electronics and a senior lecturer at Harvard Business School states how the feedback that most CEO’s receive from the board is based solely on the company’s financial performance – a stark contrast from the comprehensive reviews given to senior executives on their way up the corporate ladder. Consequently, to do a better job of giving feedback to a CEO, Arrow Electronics adopted a process that required independent directors to spend more time talking to executives and observing operations. As a result, the board was more aware of how the CEO performed throughout the year, and was able to detect and give advice on how to fix problems the CEO may have missed – before the issues escalated into disasters. Five Dimensions of CEO Performance to Consider Source: Harvard Business Review Leadership. How well does the CEO motivate and energize the organization, and is the company’s culture reinforcing its mission and values? Strategy. Is it working, is the company aligned behind it, and is it being effectively implemented? People management. Is the CEO putting the right people in the right jobs, and is there a stream of appropriate people for succession and to support growth goals? Operating metrics. Are sales, profits, productivity, asset utilization, quality, and customer satisfaction heading in the right direction? Relationships with external constituencies. How well does the CEO engage with the company’s customers, suppliers, and other stakeholders?