Today we look at the role of committees of management in the recruitment and selection of the Chief Executive Officer (CEO).

The previous post discussed the importance of the relationship between the committee of management and the CEO.  We noted that appointing the wrong CEO can not only have an adverse impact on the organisation but can result in the committee of management not discharging their legal responsibilities.  It would be very similar to what happened when Prince John took over when King Richard went off on crusade.  People were not happy, the economy was ruined and it turned noblemen into outlaws.

Part of the role of committees of management is to recruit the right CEO. 

  • A subcommittee should be formed to manage the recruitment of the CEO.  The committee of management will still need to endorse the final decision.
  • Be clear about the required characteristics of the CEO.  Most not for profits are linked to a cause, activity, community issue or function so it is important that the CEO understands them.
  • Each organisation has a mission, set of values and culture so it is also important the CEO understands and supports these.
  • Review your strategic plan and identify any specific skills or attributes that the CEO should have.
  • Review and update the CEO position description statement and make sure it accurately describes the required skills, experience, knowledge and functions of the role.
  • Review the remuneration package to ensure that it reflects the expectations of the role.  To help with this you can seek advice from industry associations who should be able to advise on appropriate packages.  You could also approach other similar organisations that you know and ask them what they pay their CEO and use this as a guide.  It is important to establish a range for the role to allow for flexibility if there is a need to undergo negotiations when you make an offer.
  • When advertising the role consider using industry publications, not for profit web sites or, if you decide to use a recruitment agency, make sure they have good experience in the sector your organisation is in.
  • Review and update the employment contract.  To make sure it reflects current legislation it is important to have it reviewed by a solicitor and ideally one who knows your industry.   

In our next post, which is the final in this series, we will look at how your committee of management should manage the interview and selection process.

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