Three Critical Areas to Gauge Performance

The measure of the executive, Peter Drucker reminds us, is the ability to “get the right things done.” This usually involves doing what other people have overlooked and avoiding what is unproductive. In an executive position, intelligence, imagination, and knowledge may all be wasted without the acquired habits of mind that mold them into results.

Drucker has long been recognized as one of North America’s pre-eminent management philosophers and researchers.

In The Effective Executive, Drucker identifies five practices essential to effectiveness that can—and must—be mastered:

• managing time;
• choosing what to contribute to the organization;
• knowing where and how to mobilize strength for best effect;
• setting the right priorities;
• knitting all of them together with effective decision-making.

And we expanded on these for boards in last week’s blog…

But to what end?

For Drucker, every organization needs performance in three major areas:

• direct results;
• building of values and their reaffirmation; and
• building and developing people for tomorrow.

And the implications for you?

You need direct results.

This seems rather obvious. So, as a board…

How do you measure results?

What are your board’s Key Success Factors?

Where are they written?

When are they reviewed?

How you measure your direct results – by transaction; by output; by outcome; by impact?

How are these reported to your constituencies and stakeholders?

Are these policies in place? Are they monitored and reviewed? When? By whom?

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You build values and ensure their reaffirmation.

What are your values? As an individual? As an agency? As a Board?

Again, where are they written?

When are they reviewed?

How are they affirmed in your organization?

From recruitment? To orientation and onboarding?

Through daily activity and meetings?

And of course, through performance, of staff and of board members.

Are these policies in place? Are they monitored and reviewed? When? By whom?

You build and develop people for tomorrow.

What is your policy on staff development? On board development?

How does your staffing, orientation and training reflect your strategic plan?

How do you monitor and evaluate your return on investment in training and development, even informally?

And your succession plan for your Executive Director or Chief Executive Officer?
And for your Board? And for your Chair?

Are these policies in place? Are they monitored and reviewed? When? By whom?

Drucker speaks to executives. But his priorities and expectations are critical to the policy framework for any organization – including yours!

What are your main “pain points” dealing with measurement and accountability?

What advice would be most helpful to you?
And we always assume that you are asking for a friend!

Get in touch. We’ll address your questions and concerns in an upcoming blog post.

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