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Spotlight report highlights issues for board and CEO performance

22 July 2019

ICDA executive director Patrick Moriarty’s first response to Spotlight Report Assessing Board & CEO Performance was alarm at the nearly two in 10 organisations failing to ever review their CEO’s performance.

DOWNLOAD NOW: Read the full Spotlight report into NFP performance (4.7MB) 

He said the study should be a wake-up call for organisations to schedule reviews annually.

The study released in Assessing Board Performance week last month, found:

  • 16% of boards have never reviewed their CEO’s performance, while a third of not-for-profit boards don’t have a system for reviewing their own performance
  • Half of board members say they’d benefit from governance training
  • Health sector organisations and bigger groups are more likely than others to have processes for reviews, inductions and governance training
  • Those in the sport and recreation sector are more likely to think board commitments take too long, and are far less likely to think they’d received a good induction

“How well your top manager is performing is vital to the overall success of your organisation. Groups can’t afford not to monitor their own performance as a board, and the performance of their CEO. Senior staff also should be similarly appraised and comprise part of a CEO succession strategy,” Mr Moriarty said.

“It's never be too late to conduct a review, but the need is probably immediate if you’ve already got disgruntled staff, or you’re unhappy about the way things are going yourself.

“It’s just another reason that our motto at ICDA remains ‘trust and validate’. We need to trust people are doing the right thing, but ensure we’re also validating those things through regular performance reviews.”

“As for the findings related to sport and recreation, and concerns about workload, I often reflect that when I played footy we had one coach, but in the modern era that’s not sustainable because there’s too much to do.

“Despite this, we often have the same sort of structural issues, with sporting club board members both governing and delivering services. There needs to be more working groups and subcommittees to support the board (just like backs, mids and forward coaches).

“This study highlights the fact that it’s time for many community organisations – and not just those in the sport and recreation field – to rethink that model.”

The Spotlight Report series analyses the views of nearly 1900 not-for-profit leaders who responded to our national Not-for-profit Governance Survey 2019. The resulting studies are a product of the Innovation Lab, with past Spotlight reports addressing the role of the chair, and not-for-profit impact and data.

 

imageTap above to download the spotlight report into not-for-profit performance

Patrick MoriartyPatrick Moriarty says the NFP spotlight reports hold lessons for community directors and others. 

ICDA will release further insights in stages, with the full release of all data later this year.

To have your say about this report, comment at the Not-for-profit Happy Hour Australia Facebook page, tag us in a tweet @nfpdirectors or email us: service@ourcommunity.com.au

If you’d like to be notified about Spotlight reports as they’re released, become a member of the Institute of Community Directors Australia – visit www.icda.com.au to find out more.

Latest survey reports and news: www.icda.com.au/survey

MORE INFORMATION

Effective CEO performance appraisal featured in Community Directors Intelligence (May 2019)

Help sheets from ICDA’s tools and resources pages

The CEO and the board – the roles and relationships

Becoming a more accountable, transparent and consultative board

Keeping your board fresh: Spotting the need for change and making the change

Achieving the right mix - towards a more diverse board

Take our quizzes to assess yourself

Board effectiveness quiz

Board member effectiveness quiz

Policy template from the Policy Bank

Performance review policy template (word *.doc download) 
More policies at www.communitydirectors.com.au/policybank

 

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