Written By: Stephen P. Kaufman
October: 2008
Summary
In this article Kaufman says that
he was struck by how perfunctory the board was in its feedback on his
performance after he becomes a CEO. The feed back that most CEOs receive from
the board is based on company’s financial performance. Give better feed back to
a CEO, Arrow Electronics adopted a process that obliged independent directors
to talk to executives and observe operations first hand.
Director considers CEO performance
in the five keys areas: leadership, strategy, people management, operating
metrics and relationship with external constituencies. Why he need this process
because he thought that the CEOs should have autonomy, reducing performance
management to only financial measures makes little sense.
One bad decision can bring
company’s down. With that in mind,
Kaufman encouraged arrows electronics, where he was CEO for 14 years to adopt a
formal process. As a result, they picked up on problems Kaufman might not have
noticed, provided council that made him a stronger leader and avoided disasters
along the way.
Ref –Page, No
53
HBR
HBR
0 comments:
Post a Comment