CEO Performance Rating
How well are you really performing? Do you have a single measurement that quantifies the value that you’re creating from each dollar invested in the company?
Measuring Mid-Market CEO Performance
How do you measure your performance each year as a CEO? Are you able to measure it against the performance of your competition? Against that of your peers?
Public company CEOs can easily get a real-time independent evaluation of their performance by viewing their stock price. Mid-market CEOs typically don’t have public markets to measure how well they’re performing and what their company is worth.
The unfortunate reality is that the standard numbers that most mid-market CEOs rely upon quantify only past operational performance and give little intelligence on:
- How much value they’re creating
- How well they’re performing against their competition
- How well they’re performing against their peers
Other than comparing company revenue, number of employees, or the size of their houses, cars, boats, or other toys, how do CEOs of mid-market companies obtain this information? For most, they need to bring in independent experts: bankers, analysts, or financial consultants with sophisticated performance-modeling tools.
CEO Performance Metrics
Fortune 500 financial executives have been using sophisticated tools to measure their performance and the amount of value they’re creating for decades.
Their teams produce the standard numbers required for public markets, but most use an even deeper set of numbers to gain a true understanding of their strengths, their weaknesses, and their performance, with numbers like TBR, CFROI, RONA, EVA, ROCE and EROCE.
Calculations do not change businesses. Influence and action do. Understanding how to measure the results of those influences and actions, an ultimate measure of the value you’re creating as a CEO, is the key to being a successful leader.
The Most Important Number
Do you have a single metric you use to measure your performance? Not your company’s performance (i.e. profitability, growth, etc), but your ability as the chief executive, as the business owner, to turn each dollar invested into multiple dollars?
If you had access to that number, would you use it?
"Nick's tools and guidance enable CEOs to have confidence that the measures that matter are the primary focus of all team members."
- Nicole Graham, Chief Executive, scosa, the Spastic Centres of South Australia Inc
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