Colorado Life Science Deal Flow and Seth Levine of the Foundry Group wrote a couple of great posts on the CEO review process. I clipped the posts for my own records, but thought VC Café readers – entrepreneurs and investors alike – could benefit from a checklist like this, as they plan their activities for 2008.
Without further delay, here is the list of 10 things to review when evaluating a CEO:
- Vision: Creates vision and strategy. Communicate this vision and strategy both internally and externally.
- Leadership: Ensures the support and execution of the vision and strategy by: Establishing communication of priorities; Driving change for improvement throughout the organization; Team-building; And, creation of a high performance environment.
- Operating Management: Develop and execute sound long-term and annual business plans in support of approved strategy. Manage operations and resources efficiently and effectively.
- Values and Integrity: Maintains consistent values and exemplary conduct. Promote positive corporate culture to reflect corporate mission statement.
- Shareholder/Investor/Financial Community: Serves as chief spokesperson, communicating effectively with shareholders and stakeholders. Become well regarded and respected by investment and financial community.
- Strategic Partners: Maintain personal rapport with strategic partners through open, ongoing communications.
- Human Resources: Ensures the development of effective employee recruitment, training, and plan programs to provide and motivate the human resources necessary to achieve objectives.
- Public Relations: Ensures that the company and its operating units contribute appropriately to the well being of their communities and industries. Represent the company in community and industry affairs.
- Board Relations: Work effectively with the Board of Directors to keep them fully informed on all important aspects of the status and development of the Company. Facilitate the Board’s governance, compositions, and committee structure. Implement Board policies and recommend policies for Board consideration. Supports a relationship characterized by trust, mutual respect, open communication and responsiveness to feedback. Use Board meetings effectively.
- Financial Results: Establish appropriate annual and long-term financial objectives and manage to consistently achieve these goals; ensures that appropriate systems are maintained to protect assets and maintain effective control of operations.
Make sure you plan this year wisely, both when running your business or in evaluating companies.