How CEOs Should Assess Their Own Performance

McKinsey estimates as much as 45% of a company’s performance can be attributed to the CEO’s influence and actions. A CEO’s performance is therefore non-negotiable; they must operate at the top of their game, and enhance their leadership skills to address complex business challenges. As one CEO shared with us:

This process not only ensures they maintain peak performance, but is crucial for understanding and addressing any issues that might hinder their effectiveness.

Below, we provide five techniques a CEO can use to assess their own performance:

1. 360 View: Use leadership development to plot progress

A robust leadership development plan is essential for any CEO aiming to excel. This plan should focus on key CEO capabilities, such as active listening and integrating stakeholders' ideas. Many CEOs find value in working with a coach, though at this level, the relationship can often be more informal and tailored to specific needs.

A 360-degree feedback process can be used as part of this plan and integrated into the CEO’s annual development cycle. This feedback mechanism gathers insights from various sources, including peers, subordinates, and other stakeholders, providing a well-rounded view of the CEO's performance and areas for improvement.

2. Team View: Deliver on the succession plan

An often-overlooked but crucial element of CEO performance is the development and implementation of a robust succession plan. Every CEO should prioritize grooming internal successors to ensure the company's long-term stability and continuity.

By incorporating succession planning into their self-assessment metrics, CEOs can demonstrate their commitment to the organization's long-term success and stability.

3. Self View: Implement a routine ‘personal self-check’

Personal growth and energy management are critical aspects of a CEO’s role, often overlooked in formal board targets. Perceptive CEOs understand that maintaining their energy, balancing personal and professional priorities, and being cognizant of their wellbeing are key drivers of their success.

This can be done by implementing a personal self-check into their regular review process. 

4. Stakeholder View: Build a network of trusted advisors

CEOs can enhance their effectiveness by cultivating a network of trusted colleagues both inside and outside their organization. These individuals should provide candid and constructive feedback, helping the CEO to maintain a well-rounded perspective on their performance and decision-making.

This can include establishing a personal advisory board composed of trusted advisors, such as senior executives, industry experts, mentors, and even peers from other sectors. The purpose of this advisory board is to serve as a sounding board for the CEO on various aspects of the business and upcoming challenges.

5. Organisation View: Measure against transformation and culture change goals

CEOs must ensure their self-assessment focuses on what truly matters, rather than just what is easy to measure. This means evaluating whether they are effectively transforming the organization and positioning it for future success, rather than merely maintaining the status quo.

Assessing the strategic impact of their initiatives is a crucial aspect of this.

While they rarely personally take charge of executing these initiatives, CEOs are the ones who help remove roadblocks and set the tone at the top for these initiatives to succeed.

A CEO’s key challenge is to understand how their own language, behaviors and habits impact the organization’s culture and ability to transform itself. 

Being at your best

Business disruption is now relentless, requiring CEOs and their teams to maintain exceptional performance levels. Ongoing self-assessment is a vital tool in ensuring this performance while identifying challenges or competency gaps.

Odgers Berndtson offers leadership development programs aimed at entrenching some of these methods. This includes working through real-time strategic issues and operational challenges, leadership assessments and 360s to identify areas for improvement, and executive coaching or strategic team coaching to build capabilities in critical areas.

We ensure CEOs and their teams are well-equipped to navigate and lead through continuous disruption.

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Get in touch. Follow the links below to discover more, or contact our dedicated leadership experts from your local Odgers Berndtson office here.