CEO Performance Planning & Appraisals - An Enhanced Partnership

The recession is exploding demands on hospitals to deliver better ‘value for money,” and
pressures are growing for more transparency and accountability from hospital boards and
senior executives. All these forces interact to create a need for enhanced leadership within the
board, physician collaborations, and executive ranks. The prospects for enhanced leadership
improve when the leaders are more structured and formal in their approach to the annual CEO
performance review process.
CEO-Board Partnership is Essential to Enhanced Performance
Most organizations are conducting CEO performance appraisals (98%), and most do so at the
end of their fiscal year (45% versus calendar year of 15%) or in conjunction with other
compensation decisions (35%). A majority of the boards ask the CEO to submit a selfassessment
(98%), and then seek input from these sources*:
Exhibit 1
Sources of Input
% Surveyed
Entire Board 69%
Officers of Board 46%
CEO Direct Reports 22%
Physician Leaders 18%
Other Boards or Leaders 18%
*Could respond to more than one source of input
The Board Chairperson is most often tasked to discuss the results with the CEO (60%) or via a
standing committee (30%). Very few deliver the review via the entire board (5%). Interviews
with selected CEOs suggest the discussion with smaller groups can be the most useful and
personal.
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