A church or ministry of integrity must have a leadership team willing to set up a system of accountability for itself. For a governing board, one essential element of that system is an annual evaluation of the organization’s top leader.
While finding a competent senior leader (CEO, senior pastor, executive director, etc.) is a key duty for an organization’s governing board, just as critical is the board’s ongoing work partnership with that leader. The board leadership should maintain a strong relationship with the leader and hold him or her accountable for the successful management of day-to-day operations in pursuit of the ministry’s mission.
This is easier said than done for many boards.
In an ECFA blog post, board governance consultant John Pearson noted,
When I ask board members or CEOs about the annual performance review of the CEO, the reluctant responses run the continuum:
- “We did a review three years ago, but it didn't go well.”
- “The Board Policies Manual says the Governance Committee should conduct the annual evaluation—but no one knows how to do it.”
- “Our board chair takes the CEO out for lunch—and uses the annual review forms from her company's HR department.”
- “We pray for our CEO and speak the truth in love, but we don't have a formal process.”
Reflecting on this problem, Pearson concluded that “the reason so many boards fail to conduct annual evaluations of their CEOs—no annual goals!”
Effective boards—boards that enhance and operate in an environment of trust—work with their organization’s top leader to establish and regularly re-visit SMART goals for the ministry and the leader specifically. These are goals that are Specific, Measurable, Achievable, Realistic, and Time-bound. Such goals will likely include operational objectives, but may also be drafted to evaluate and support qualities like the ministry’s culture and the leader’s vision, strengths, spiritual gifts, professional growth, and holistic care. These then become a key and mutually understood focus for an annual evaluation.
Related to the establishment of SMART goals is the development of a process for the annual review. The format and setting of the top leader’s evaluation should be agreed on ahead of time with the leader. Similarly, boards and top leaders should delineate in advance the way the leader will receive insights from the review (e.g., informal conversation, written notes, etc.) and his or her most appropriate form of response—how she or he will process the feedback and propose next steps. Some examples of possible review structures are available in the ECFA Tools and Templates for Effective Board Governance workbook.
Annual evaluations of a top leader need not be complicated or time-consuming. However, they are an invaluable investment in the health of a church or ministry, as well as an essential element of a governing board’s regular duties.
If you found this helpful, check out more “Board 101” tips and a host of other resources in ECFA’s Knowledge Center. Not an accredited member of ECFA yet? Visit ECFA.org to find out how we can help you maintain a trusted reputation so you can focus on reaching the world for Christ.